Netflix has had quite the year, haven’t they? In the midst of all the controversy over the price hike and the splitting of their DVD and streaming services into two separate entities (and fees), they have also been expanding the amount of content they will be able to provide, while also entering other territories outside of the United States. One of those territories is Canada, and they upset the Canadian television providers by escaping the regulations and fees that they have to pay. Well, Netflix just won this battle today when Canada’s broadcast regulator decided that Netflix did no harm to TV providers.
Netflix Found To Be Complementary To Existing System
Netflix just got to Canada last month, offering a streaming-only service that is far cheaper than the TV providers offer. The broadcast regulator could find no evidence, however, that those companies were hurting from Netflix’ arrival, that there was no mass exodus from their product to Netflix.
In fact, they found that Netflix was complementary to the existing broadcast system, which requires a minimum amount of good ol’ Canadian content in addition to money from broadcasters supporting local film/TV projects.
Really, a lot of what the official CRTC (Canadian Radio-television and Telecommunications Commission) statement says is that it’s too early to begin speculating that Netflix, or YouTube, or Apple’s iTunes store will do any damage to Canadian TV providers. They will conduct another study in May of 2012, which might give them some good data. I know quite a few people who have cancelled cable in favor of Netflix, but I don’t know if that’s the norm or a scattered few.