Netflix deal the centrepiece of cultural policy

Netflix Inc. will spend a minimum of $500-million over five years on the production and distribution of Canadian movies and TV shows as part of a landmark agreement that will be at the centre of Ottawa’s new cultural policy, federal sources say.
Heritage Minister Mélanie Joly revealed on Thursday her government’s strategy to produce more and better Canadian creative content and news in the face of growing technological change.
 
The plan doesn’t include new taxes on digital companies or Internet service providers, despite recurring calls in Canada’s cultural industries for a “level-playing field” with foreign-based firms.
Instead, federal sources said the key element in the announcement will be the Netflix agreement that showcases Ottawa’s ability to get foreign Internet companies to increase their investments in Canada. The deal is expected to facilitate the viewing of Canadian movies and TV series on the popular streaming service, but also include a production house in the country, the sources said.
In an interview, Ms. Joly declined to discuss any element of the deal before the official announcement. Still, she said her government is already reaping the benefits of holding direct negotiations with large Internet companies instead of imposing taxes or regulations on them.
“The reality is that the way to have the biggest impact, and the biggest impact for our cultural sector, is to have deals between the government and these companies. I’m convinced that this is the Canadian way,” she said. “Because behind this deal-making approach, there is a vision to support our creative industries as a whole.”
The new policy, entitled Creative Canada, will be unveiled in a noon-hour speech by Ms. Joly in Ottawa on Thursday.
The plan includes new money to stabilize the Canadian Media Fund, $125-million over five years to promote Cancon globally, mandate reviews for the CBC and the CRTC, as well as changes to the Broadcasting Act, the Telecommunications Act and the Copyright Act.
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