Netflix will be dedicating $500 million over the next five years to original Canadian content. The streaming service has diligently avoided being tasked with the same CRTC regulations that most Canadian broadcasting companies are made to follow, which includes imposing a tax on the service to fund more Canadian programming and meeting a certain quota of aired content.
The idea of a Netflix tax was first proposed in 2015 during the last federal election. The tax was later rejected by Prime Minister Justin Trudeau, who stated “We’re not going to be raising taxes on the middle class through an internet broadband tax. That is not an idea we are taking on.”
Rather than placing a tax on the streaming service to fund future programming, Netflix has decided to dedicate half a billion dollars to creating original Canadian content. The move will be announced tomorrow by Heritage Minister Mélanie Joly.
It is not clear yet where the money will be used and by whom.