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Netflix Rejects Canadian Regulator Jurisdiction Over Online Video
An anonymous reader writes "Last week's very
public fight between the CRTC and Netflix escalated on Monday
as Netflix refused to comply with Commission's order to supply
certain confidential information including subscriber numbers and
expenditures on Canadian children's content. While the disclosure
concerns revolve around the confidentiality of the data, the far
bigger issue is now whether the CRTC has the legal authority to
order it to do anything at all. Michael Geist reports
that Netflix and Google are ready to challenge it in a case that
could head to the Supreme Court of Canada.
"Can anyone seriously argue that Netflix isn't also rebroadcasting TV content?"
Yes, easily. Netflix has purchased licenses for it's content.
When it's American broadcasters going after Canada's icravetv, American courts had no problem getting a US court order that basically ended the service, because it was a rebroadcaster.
Can anyone seriously argue that Netflix isn't also rebroadcasting TV content?
Two weights, two measures. What a mess! And really, whatever solution will be a mess.
The difference is that NetFlix gets permission for rebroadcasting -- they have a license. That's why they don't have the same selection that other rebroadcasters do -- because they're licensing content on a show-by-show basis, not taking the OTA stream and routing it over the Internet.
This case is kind of unfortunate, as both the CRTC and Netflix are in the wrong, and both sides are unwilling to back down and come to a reasonable compromise, as that would threaten their power base.
The problem here is that the CRTC can stop all payment via Canadian credit cards to Netflix, and Netflix can support customers paying via alternate methods who are willing to stream over a VPN -- so the result of this conflict is that both sides lose, and the citizen (not consumer, although them too) loses even more.
But this whole thing is really about Rogers and Shaw lobbying the CRTC to block foreign competition for their new Shome project. CRTC is probably quite happy to be flexing their "muscle" in this situation after continually taking a beating from US lobbying interests on allowing US content onto Canadian networks.
So yeah; it's a huge mess to sort out.
That's the real reason.
You may not realize it, but about 5 years ago (it was illegal since 2002, but many companies appealed), the Supreme Court of Canada ruled that it was illegal for Canadians to view US TV via US "grey market" satellite receivers.
No, these were not people hacking DirecTV or Dish receivers to receive content for free. They were normal Canadians who were paying DirecTV and Dish their normal rates to get US TV. It was ruled illegal for companies to provide any sort of service to enable them to do this. (It's called grey market because to Dish or DirecTV, it's a normal subscriber paying full freight on their subscription, except they were receiving it in Canada).
The culprit? Bell.
So yeah, it's a bit bull-headed of Netflix - all the CRTC wants is to have numbers behind Netflix's claim that they provide tons of Canadian support. (That's what Netflix was claiming - that they already fulfil the rules they don't have to follow, and the CRTC basically says "prove it - show me the numbers").
In the end, it's going to be one big nasty fight. Sure, Netflix is worried because those numbers that prove its point are highly sensitive competitive information, but you'd think they could compromise in that Netflix could find a way to give the CRTC what they want without giving it to competitors. But it's better than the alternative which forced an entire industry to shut down.
A remarkably neutral document was compiled out of this - http://www.parl.gc.ca/HousePub...
That's a very US centric view. We as Canadians have a different approach to government and how we want to build our society. We're more like european countries with Free School for all, Free Healthcare for all, lots of social services and support for our vulnerable population. The term "free enterprise" is not something I think I've heard *once* in my life from a politician here. We frankly don't make a big deal about the "sacred invisible hand of the market".
An aspect of this, is the government spending a LOT of money developing artists, book/movie production houses, etc. This conflict between Netflix and the CRTC is tied to that. Other broadcaster have to chip money into the pot for, yes, our socialist approach to fostering local arts. Many Canadians *support* this idea and we're not too fond of an American company trying to wreck the system of local content production.
If Lost Girl is something you subsidize, please increase your taxes. Or Continuum.
Almost as good as the New Zealand show This is not my life.
Don't fight for your country, if your country does not fight for you.