bluetiger16-blog-blog

[bluetiger16-blog-blog]

5 Reasons Why Netflix Shouldn’t Be Regulated In Canada

Stance

In the age of open media and globalization, Netflix should not be regulated the same way traditional media is in Canada.

For the benefit of consumers and country, Netflix should remain unregulated by the CRTC (Canadian Radio-television and Telecommunications Commission).

The Issue: Limited Choice

In Canada, consumers feel like there are only two options when it comes to accessing media:

 Purchase a cable package from one of the "Big Four" telecommunications companies.

 Purchase a membership to an OTT (over-the-top) media service, such as Netflix.

In recent years, Canadians are choosing Netflix over traditional cable providers such as, Rogers or Bell. A 2015 Convergence Consulting Group report, showed 190,000 Canadians canceled their traditional TV plan. An 80% increase from 2014.

 Netflix viewership is on the rise as cable viewership declines. In response to this, companies like Rogers are pressuring the Canadian government to regulate Netflix the same way they regulate cable providers.

Regulations

Canadian government regulates traditional media through the CRTC in various ways to ensure:

·         There is enough Canadian content.

·         Nudity and violence is censored in content.

·         Television content has advisory warnings.

·         Broadcasters pay a fee that supports Canadian      content creators.

Currently, Netflix is not under the same strict regulations other media providers face.

  The List

1. Consumer Choice

Canadians expect choice.

Whether it is at a grocery store, a car dealership, or a movie theatre, Canadians expect the ability to pick and choose. Netflix gives Canadians access to media they want, when they want, for as long as they want.

Regulations would limit Canadians and their ability to choose the media they want due to restrictions set by CRTC regulations.

 2. Different Technology

Regulations that are already in place in Canada affect OTA (over-the-air) broadcasters and not OTT services because the technology is different.

Cable television has since changed to cable wires instead of radio towers, nonetheless, the technology under CRTC jurisdiction does not include internet communication.

Netflix operates outside of CRTC's power and should not receive the same scrutiny as traditional broadcasters.

  3. Contributions to Canada

Netflix contributes to Canadian content creators by filling their libraries with highly produced Canadian content that is cheaper than its American counterpart.

Shows like Vikings and Handmaid’s Tale are heavily influenced by Canadian content creators. Vikings is an Irish-Canadian effort, while Handmaid’s Tale is produced in Toronto, Hamilton, and Cambridge, Ontario, Canada.

Netflix is currently partnered with Swearnet and Showcase (Canada) to help produce the Trailer Park Boys and Traveler respectively. The former is a staple of rural Canadian subculture that many Canadians living outside of city limits easily relate to.

Unnamed sources have also leaked Netflix’s plan to commit to 500 million dollars in spending on producing Canadian content over the next five years.

 For more information on the Netflix 500 Million Dollar Deal, read the Toronto Star’s article: https://www.thestar.com/entertainment/2017/09/27/netflix-commits-to-spending-500m-on-producing-canadian-content-reports.html

  4. Increased Costs

During tough economic times no Canadian wants to pay more for the same product. Any regulations on Netflix by the CRTC or Canadian government would cost consumers.

The most obvious increase would be a higher subscription cost for Netflix. Other regulations proposed by the Liberal members of the Commons heritage committee include a ‘Netflix Tax’.

This proposed 5% tax increase on the broadband service would level the playing field according to members of the committee. Prime Minister Justin Trudeau squashed the proposed Netflix tax in June, 2017.

For more on the proposed ‘Netflix Tax’ and the Prime Minister’s response, take a look at CBCNews’ article: http://www.cbc.ca/news/politics/web-streaming-tax-proposal-commons-committee-1.4161645

  5. Censorship

In the 2016, Human Freedom Index report, Canada was ranked 6th out of 159 countries overall, and scored an 8.33/10 in “Laws and Regulations that Influence Media”.

Any regulations by the government to restrict the freedoms of Canadians would be viewed as censorship. It has become expected in Canada to have personal freedoms and that is in jeopardy.

In January of 2016, Cogeco CEO, Louis Audet told media his issue with government intervention, "our fear is that if governments intervene in what is allowed or not on the Internet, at some point we risk ending up with censorship".

Regulating Netflix could be a slippery slope into larger censorship on the internet.

Decisions

The Canadian government has many decisions with policy regarding Netflix in the upcoming years.

Netflix is too large to be left unchecked, and staying in tradition of Canada should participate in consciously growing and fostering Canadian identity.

But, what are some ways that don’t include strict regulations?

  1. Create a Canadian tab on Canadian Netflix platforms

This tab could be broken into additional tabs: created in, produced in, and starring Canadians to further show the Canadian content on OTT service.

Canadian content is already on the service; it isn’t being showcased however. If the perception of the service changed, maybe there would be less issues with it.

 2. Create a plan to produce Canadian content

This plan could include a commitment to creating two shows in Canada a year, with certain criteria being met.

This idea allows Netflix to make the terms of agreement instead of being constricted by the government. More freedom would also lead to more interesting and diverse shows backed by Netflix studios.

  3. Continue to provide the same service without regulation

Canadians are happy with Netflix.

Roughly 5.2 million Canadian households pay for a Netflix subscription, with almost 50% penetration into the Canadian market, according to a 2016 Solutions Research Group report.

Netflix is working and Canadians are happy. Keep the government out and allow people to enjoy the service.

 Closing Remarks

Those are just some solutions to the issue of choice and regulation of Netflix in Canada. Comment with your ideas on how to solve the battle between Netflix and Canadian regulations.