B.C. Knowledge Network president raises concerns over Netflix deal

The president and C.E.O. ofB.C.'s Knowledge Network says the new deal between American streaming company Netflix and the federal governmentlets down Canada'sfilm industry.

Rudy Buttignolsaid the recent policy announcementallows Netflixto continue operations in Canadaentirely tax free and outside regulations set by theCanadian Radio-television and Telecommunications Commission (CRTC).

On Thursday, federal Heritage Minister Mlanie Joly announced the internet streaming service will spend at least $500 million over the next five years to fund original Canadian productions.

After months of public consultation, Joly delivered the news as part of a speech where she outlined her vision for the future ofCanadian content and cultural industries in the digital world.

In a conversation with CBC's Stephen Quinn during On the Coast, Buttignolexpressed his concern about the investment.

"Netflix has been enjoying the benefits of operating in Canada and it hasnever had any regulations," saidButtignol.

Independents need control

He said it has paid no taxes and "contributed very little as far as we know. And now it's dictating what it will contribute."

"For all we know, it could be the value of its forgone taxes all these years."

Canadian broadcasters are required tofulfila certain quota of Canadian content in their broadcasts. As well, they mustdeliver a portion of their revenues to theCanada Media Fund (CMF).

Buttignolbelieves Netflix has done neither.

He said it's important that funding put towards Canadian productions isallocated for projects that are "in the national interest."

He stressed independent producers need to be given somecontrol over their work, so if their film or television program is successful, they share in the rewards and have a say in the control of an intellectual property's copyright.

Buttignol said this new deal doesn't specifyhow much controlCanadian producers will maintain over projects if they partnerwith Netflix.

"When you're a giant like that you have so much market power and you tend to dictate," said Buttignol. "I feel it will be very very hard for producers to maintain effective control."

With files from On the Coast and Tina Lovgreen