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Netflix’s Canadian Investment

Andrea Delgado, Emma Lauermeier, Daniel Mitchell, Mackenzie Salhany, Torri Webster

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Table of Contents

1)Problem Identification�2)Research Strategy

3)Results

4)Conclusions

5)Next Steps

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Problem Definition

Defined Scope:

    • CMF
      • Netflix does not pay back into the CMF fund
    • CRTC
      • Netflix as an OTT player is able to escape paying taxes and Canadian broadcast regulations
    • CanCon
      • What will the future mean for Canadian heritage, and French language content
    • Traditional Broadcasters
      • Consumer ideas on broadcasting are changing (Cutting the Cord)

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Our Research Question:

How will Netflix’s investment in Canada’s entertainment landscape affect traditional broadcasting regulations as it applies to the Canada Media Fund, Canadian Radio-television and Telecommunications Commission, and CanCon?

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Research Strategy

  • Analyze Canada’s Established Broadcasting Climate
  • CRTC, CMF, Broadcasting Act & Regulations
  • Industry Reaction (Government, Consumer, Executives)
  • Netflix and their Content

Content Analysis

  • Key Words
  • Broad Code Themes
  • Recurring Phenomenons
  • Combined Code Chart
  • Takeaways

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Results

  1. Streaming Platforms
  2. Lack of Reinvested Money
  3. Contrasting Opinions
  4. Netflix Investment in Canadian Productions
  5. Canadian Content is “Thriving” on the Platform
  6. Netflix and Google Exempt from Rules
  7. Netflix Subscriptions (has surpassed all Cable Network Subscriptions)
  8. Distributors of Content
  9. Tax Evading
  10. Transition to Online Consumption

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Results

  • CRTC Authority
  • Preserving the long-term health of Canadian Content
  • Canadian Heritage Threatened
  • Future of Policy
  • Netflix Doesn’t Pay into the Canada Media Fund (CMF)

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Results

  • Traditional Broadcasting
  • Broadcasting Act
  • Acquisitions
  • Broadcasting Revenues
  • Consumer Choice (Traditional vs. OTT)
  • Consumer Ideas on Broadcasting
  • Canadian Content Creation & Programming
  • Canadian Content Exportation
  • Canadian Heritage Minister Melanie Joly
  • Impact on the Economy
  • The New Media Environment/Exemption
  • Opportunities for French Language Programs

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Conclusions/Insights

What do these results mean? �- Similar recurring themes throughout our research when accessing Netflix, CRTC & CMF, and Broadcasting / industry opinions

How does this relate to our problem definition? (confirm/rejects)�- It confirms that Netflix’s investment will affect traditional broadcasting regulations. Some of our most relevant codes such as “Tax evading” (Netflix), or “Netflix doesn't pay into the CMF fund” (CRTC & CMF) suggest that there is a definitive link between Netflix’s investment, and the future of Canadian broadcasting.

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Next Steps

If you were to continue with this research, what would you do?

  • Keep digging for ways to get our Canadian content on the map...
  • Are streaming platforms really the answer?
  • Will the CRTC ever be able to regulate an OTT player like Netflix?
  • Will our Canadian heritage be lost, or will the investment help our film economy in the long term?
  • Will French language content become an integral piece to the Netflix deal?
  • Will traditional broadcasters win the fight against streaming platforms?
    • … The topic is so new and has been met with so many opinions and controversy. It’s undeniable that if we continued our research we would be able to note some fascinating analysis and potentially come to a more definite conclusion.