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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.
Except as everyone is noting here, they are NOT broadcasting. They are an on-demand service. Percentage of Canadian content can't apply when your customers pick and choose what they want to see. The CRTC has no jurisdiction here - Netflix isn't radio, television, and it's barely 'telecommunication'. Interesting too that it's being squeezed by the government right after the major carriers announced their own on-demand service... protectionism? Definately.