Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Netflix, Inc. (NFLX) Has Standoff with CRTC Over Transparency, Confidentiality

Netflix, Inc. (NASDAQ:NFLX)’s global public policy director Corie Wright testified this morning at hearings being held by the Canadian Radio-television and Telecommunications Commission (CRTC) in Gatineau, Quebec. As the CBC reported today, Wright told the assembled gathering that consumers should be allowed to vote for the content they want to watch with their wallets, as opposed to having it regulated by the CRTC.


The hearings, which have been conducted throughout the past two weeks, are to determine the future of television and internet streaming in Canada. The U.S’s northern neighbor has long struggled with how to balance Canadian content alongside the overwhelming amount of entertainment coming out of the U.S.

However Netflix, Inc. (NASDAQ:NFLX) has also come under fire in Canada over the fact it does not pay any taxes in the country, and is essentially taking money out of the Canadian economy. It’s estimated by Convergence Consulting Group that while Netflix, Inc. (NASDAQ:NFLX) spends approximately $150 million licensing Canadian content, it generates about twice as much money in revenue from its approximately four million subscribers in the country, effectively removing $150 million from the Canadian economy. It’s an argument that’s also being levied against Netflix, Inc. (NASDAQ:NFLX) in Australia, where they are being urged to shut down VPN access to their service so that the approximately 200,000 Australians who subscribe through those means would be forced to use local services.

Things became particularly tense at the hearings when Wright balked at providing the CRTC with data relating to their Canadian operations, including subscriber and viewership numbers, revenue data, and money spent on Canadian productions. CRTC chairman Jean-Pierre Blais bristled at her fear that the information would be leaked to the public and demanded that Netflix, Inc. (NASDAQ:NFLX) hand over the information, reminding Wright that they are operating in Canada under a special exemption which requires such disclosures.

Wright stated Netflix, Inc. (NASDAQ:NFLX) is ultimately good for both consumers and content producers in Canada, giving consumers choice, while allowing Canadian content to be licensed in other markets outside Canada which they might otherwise not have access to. Blais countered that while that sounded good, he needed proof in the form of their data to support those claims.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.