Published Sep 28, 2017Netflix has set its ambitions sky high, promising to deliver streaming services to airplanes next year, but world travellers aren't the only ones about to benefit from the company's cash flow. The streaming giant is committing half a billion dollars to create new content right here at home.
Netflix has agreed to spend $500 million over the next five years to fund original Canadian productions.
Heritage Minister Mélanie Joly is expected to reveal more details about the deal later today (September 28) during a speech about the future of Canadian content and cultural industries in the digital world.
It's currently unclear how hopeful producers will be able to gain access to a piece of the financial pie, though CBC reports that the government's new deal with Netflix will exist outside of the Canada Media Fund, which is propped up by the government and cable or satellite companies.
As such, Netflix will continue to operate free from paying tax or charging Canadian viewers any sort of streaming tax — a proposal that Justin Trudeau's government has repeatedly shut down.
The new Netflix deal also keeps the company off the hook in terms of CRTC Canadian content regulations. Traditional broadcasters continue to be subject to Cancon quotas when it comes to what gets aired and are also required to invest a minimum of five percent of their revenue to the CMF.
In the last year, Netflix has partnered with Canadian content creators at the CBC. First, they collaborated on Anne — a new onscreen adaptation of Lucy Maud Montgomery's classic Anne of Green Gables novels — which is currently in production on its second season. Next up is a Sarah Polley- and Mary Harron-helmed adaptation of Margaret Atwood's Alias Grace. Both series will air on CBC before hitting a global audience on Netflix.