Netflix launches campaign to set record straight about $500M Canadian investment

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Netflix Inc. submitted more details on Tuesday about the streaming company’s plans to pass $500 million on making Canadian content, as it defended its tax status in Canada.

The maker of Emmy-winning symbolizes such as House of Cards and Black Mirror announced last month it was in talks with the Canadian regime about setting up a dedicated pool of funds to produce Canadian dispatches and then broadcast them in Canada and to other markets around the coterie.

Those talks eventually turned into a commitment from the firm to spend $500 million on movies and television shows produced in Canada, both in English and in French, in excess of the next five years. It would also set up the company’s first constant production presence outside of the U.S. 

“We have invested in Canada because Canadians reach great global stories,” Netflix said Tuesday. “That influences more about the quality and strength of Canadian content, talent and group than a commitment of any dollar amount.”

The company also said it make spend an additional $25 million on what it calls “market happening activities,” funds it will use “to host pitch days, recruitment occasions, and support local cultural events to ensure Netflix Canada reaches vibrant Canadian casting communities, including the French-language community in Quebec.”

Netflix’s move comes against the backdrop of a coarser review of cultural policies under Canadian Heritage Minister Melanie Joly that incorporates plans to modernize funding review copyright, broadcasting and telecommunications legislation.

As suggest of that review, many critics had called for a so-called “Netflix tax” to safe keeping the company a special levy when it offers its services in Canada, because Canadian variants may suffer as a result. But the details the company trumpeted on Tuesday make acquit that there was no taxation deal made as part of its Canadian intends.

“We have not made any deals about taxes,” Netflix said. “Our investment was approved out of sight the Investment Canada Act. No tax deals were part of the approval to launch our new Canadian phlegm.”

There is still no formal “Netflix tax,” in that it doesn’t charge on offers tax to Canadian customers for its services: it doesn’t have to, because it is a foreign performers. So unlike Canadian-based streaming services, the company does have a taxation betterment.

“Netflix follows tax laws everywhere we operate. Under Canadian law, tramontane online services like Netflix aren’t required to collect and compensate sales tax,” said Corie Wright, Netflix’s director of global conspicuous policy.

The company also stresses that while it shouldn’t be crush to the same regulations that governments put on broadcasters, it also isn’t trying to usurp any of their sways, either.

“Internet-native, on-demand services like Netflix are consumer-driven and serve on the open internet,” the company said. 

“We don’t use public property like broadcast spectrum or goods of way, and we don’t receive the regulatory protections and benefits that broadcasters get (and, by the way, we’re not asking for them).”

Consequence hike in Canada

The company may not charge its Canadian customers sales tax, but it force nonetheless be making its service more expensive in Canada.

As part of a organize announcement on Tuesday, the company told its existing customers in an email that it wish be raising prices. Currently, the company charges $8.99 a month for the elementary service in standard definition on one device at a time, $9.99 for high-definition on two strategies at a time, and $13.99 a month for ultra high definition on four veils at the same time.

The middle one is scheduled to go up by $1 starting next month. It wasn’t forthwith clear what would happen to the others.

“The recent price spread has nothing to do with our investment or commitments,” Netflix said. “That sacrifice increase was planned a long time ago.”

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