October 2023 Update: Netflix

By: Kyle Wyndham-West, PhD Student (McMaster University)

Netflix has returned to lobbying after a brief hiatus and recorded two communications reports both on the subject matters of arts and culture and broadcasting.

Interestingly, one was put forth by a consultant and the others responsible officer was registered within the company. Within this month Netflix saw an influx of subscribers and also increased their cost of membership. Another reason it made news was due to the intensity of controlling password sharing efforts by members. In addition to this, the digital media company announced its plans to start within the retail space.

Date	Lobbied	Subject Matters	Responsible Officer
2023-10-23	Matthew Gray, Senior Policy AdvisorOffice of the Minister of Canadian Heritage, Canadian Heritage (PCH)	Arts and Culture, Broadcasting	ConsultantLobbyist: Subrata Bhattacharjee, Borden Ladner Gervais
2023-10-23	Matthew Gray , Senior Policy AdvisorCanadian Heritage (PCH)	Arts and Culture, Broadcasting	Reg Thompson

September 2023 Update: Netflix

By: Kyle Wyndham-West, PhD Student (McMaster University)

Netflix recorded no communications in September.

August 2023 Update: Netflix

By: Kyle Wyndham-West, PhD Student (McMaster University)

Netflix recorded no communications with the Registry of Lobbyists in the month of August. However, they did launch a new service that would allow customers to stream video games which could be included in future discussions and communications.

May 2023 Update: Netflix

By: Brad McNeil, PhD Candidate (McMaster University)

In May 2023, Netflix registered two communication reports with the Registry of Lobbyists. One meeting was on the topic of “broadcasting” while the other was on “Consumer Issues, Telecommunications, Broadcasting, Arts and Culture”. It is difficult to interpret exactly what these meetings were about, however, it is likely that Netflix continues to lobby about the implementation of Bill C-11, the Online Streaming Act which became law on April 27, 2023. See this recent blog post for recent developments on Netflix’s position on Bill C-11.

The following table presents Netflix’s lobbying communication reports logged in the month of May 2023.

April 2023 Lobbying Update: Netflix

In April 2023, Netflix logged only one communication report which is presented in the following table.

Date	Lobbied	Subject Matters	Responsible Officer
2023-04-21	Simon Kennedy, Deputy Minister Innovation, Science and Economic Development Canada (ISED)	Canada (ISED) Industry	Subrata Bhattacharjee (Consultant)

March 2023 Lobbying Update: Netflix

By: Brad McNeil, PhD Candidate (McMaster University)

In March 2023, Netflix lobbied Canadian Heritage on the topic of “Arts and Culture, Broadcasting”. On the registry of lobbyist website, Netflix describes its lobbying focus related to “Arts and Culture” as the “global distribution of content in relation to cultural export policies.” In the TechLobby’s February 2023 monthly update on Netflix, it was clear that the streaming company was deeply invested in Canada’s Bill C-11, the Online Streaming Bill. The bill would obligate streaming companies to “promote Canadian films, TV and music, and contribute financially to Canada’s cultural industries.”

On March 22, 2023, Marie Woolf of the Globe and Mail reported that U.S. President Joe Biden had been “urged to escalate concerns about the impact of two Canadian bills on Google, Facebook and Netflix” which are U.S based companies. Additionally, a letter signed by 10 different trade associations, “including the United States Chamber of Commerce, the National Foreign Trade Council and the Information Technology Industry Council” raised the issue that Bill C-11 would infringe the United States-Mexico-Canada Agreement. The letter stated the coalition’s concern that “Canada is pursuing a number of problematic proposals and actions that could significantly limit the ability of U.S. companies to export their goods and services and fairly compete in the Canadian market.” The letter argued that If passed, the bill “could have disastrous consequences for content production and distribution and could inspire other countries to implement similar content-preference schemes.” As noted in an previous TechLobby monthly blog post, Canadian Lawyer Lawrence Herman has noted that this type of intervention by American politicians in Canada’s pending legislation reflects “a well-orchestrated lobbying effort by the major digital platforms”.

The following chart presents Netflix’s March 2023 lobbying activity.

Communication Date	Lobbied	Subject Matters	Responsible Officer
2023-03-24	Ron Ahluwalia, Director of Policy Canadian Heritage (PCH) Matthew Gray, Policy Advisor Canadian Heritage (PCH) Jude Welch, Chief of Staff to the Minister Canadian Heritage (PCH)	Arts and Culture, Broadcasting	Reg Thompson

February 2023 Update: Netflix

By: Brad McNeil, PhD Candidate (McMaster University)

Netflix did not log any communications reports through December 2022 or January 2023. However, in February 2023, Netflix picked up where it had left off in November 2022, registering three communications reports on the topic “arts and culture” and “broadcasting.” In Netflix’s November monthly update blog post, it was noted that Netflix’s lobbying activities primarily revolved around Bill C-11. Bill C-11 aims to regulate digital streaming platforms such as Netflix by requiring them to create and promote a certain percentage of Canadian content and make it accessible to Canadian users.

Netflix has long expressed its discontent with Bill C-11. Early in the legislative process Netflix made a submission to the Standing Committee on Canadian Heritage about the Study of Bill C-10, An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts. Submitted by Stéphane Cardin, Director of Public Policy at Netflix, the submission highlighted Netflix’s investments in Canada. Netflix reminded Canada that in 2020, over 40 original Canadian produced titles were released on the platform. The submission also reminded Canadian Heritage that in 2017, Netflix established Netflix Canada, which was the platforms “first permanent production presence outside of the U.S.,” and committed to Canada under the Investment Canada Act which obligates Netflix to invest “a minimum of $500 million over five years in production activity across the country.”

On October 4, 2022, Cardin appeared before the Standing Committee on Transport and Communications. Again, Cardin spoke to Netflix’s investment in Canada and their active promotion of Canadian content. Cardin raised Netflix’s concerns about Bill C-11 stating, “We believe a new legislative framework should recognize that streaming services provide an unparalleled opportunity to promote Canadian stories to global audiences.” Cardin reminded the committee that Netflix has “invested more than $3.5 billion in Canadian production since 2017.”

Netflix’s reminders of the company’s investment in Canada may be attempts to have the Canadian government reconsider its efforts to indirectly regulate Netflix’s recommender systems for users in Canada. Cardin expressed that although Bill C-11 has a “noble objective”, it threatens to allow the Canadian Radio-television and Telecommunications Commission (CRTC) to “force Netflix to serve up Canadian films and TV programs people might not want to watch.” Cardin claims Bill C-11 creates “a situation where you will force a certain content option onto a viewer and it is something that they are not interested in: It’s a Canadian horror film and someone is only interested in Canadian romantic comedies. That results in that show being viewed less favourably, and that has an impact.”

Such statements have contributed to a wider concern that Bill C-11 constitutes a censorship Bill. For instance, Senator David Admas Richards an acclaimed novelist and screenwriter, claimed that Bill C-11 was “censorship passing as national inclusion.” Richards concerns is primarily related to the powers that Bill C-11 would give the CRTC to decide what does and doesn’t count as Canadian content. Likewise, Matt Hatfeild Campaigns Director for the internet advocacy group OpenMedia, noted that Bill C-11 is “potentially regulating people’s individual expression” by determining what Canadians can watch.

As noted in an earlier blog post, although Ian Scott stated in a June 2022 Senate meeting that the CRTC might tell platforms to “manipulate it (the algorithm) to produce particular outcomes,” the CRTC is primarily interested in an outcome where Canadian content is being promoted by streaming platforms, regulators are less interested in the specific tools they apply to generate that outcome. Bill C-11 does not seek to control the algorithms of recommendations systems like Netflix; it merely dictates a certain promotion of Candain content to make it more discoverable. Bill C-11 specifically rules against the government tinkering with the algorithms of streaming services. As Marie Woolf points out, “A clause in the bill would prevent the CRTC making an order requiring the “use of a specific computer algorithm or source code.”

Netflix is also worried that the definition of Canadian content is too broad. Cardin added that under the current definition of Canadian content “many productions made in Canada with Canadian actors and crew might not count as Canadian, because Netflix or a company from outside Canada owns the intellectual property rights.” Canadian film industry leaders have also been concerned about the definition of Canadian content because that definition will be re-examined after Bill C-11 passes. Once Bill C-11 had gone through its third reading in the Senate on February 2, 2023, Canadian film industry leaders expressed their concerns that Bill C-11 could be disadvantageous for Canadian filmmakers and TV producers because it would produce a “two tiered system” for Canadian production and foreign players. Essentially, foreign streaming services like Netflix would not be held to the same standard for Canadian content as Canadian production companies. This would give streaming services an edge over Canadian production companies.

The following table presents Netflix’s communication reports from the federal lobbyist registry for the month of February 2023.

Communication Date	Lobbied	Subject Matters	Responsible Officer
2023-02-03	Jude Welch, Chief of Staff to the Minister Canadian Heritage (PCH)	Arts and Culture	Greg Maceachern (Consultant)
2023-02-03	Jude Welch, Chief of Staff to the Minister Canadian Heritage (PCH)	Arts and Culture	Reg Thompson
2023-03-24	Matthew Gray , Policy Advisor Canadian Heritage (PCH) Jude Welch, Chief of Staff to the Minister Canadian Heritage (PCH) Ron Ahluwalia, Director of Policy Canadian Heritage (PCH)	Arts and Culture, Broadcasting	Reg Thompson

November 2022 Update: Netflix

By: Brad McNeil, PhD Student (McMaster University)

Netflix Services Canada ULC: November Lobbying Summary

Netflix Services Canada ULC is a subsidiary of Netflix Inc. Reg Thompson, President of Netflix Services Canada ULC, registered four communications with Directors of Policy of the Canadian Radio-television and Telecommunications Commission (CRTC) and Canadian Heritage (PCH) on the subject matter of “Arts and Culture, Broadcasting.”

Scott’s comments signal a subtle change in tone, suggesting a lighter approach to the regulation of Canadian content on streaming service operating in Canada than originally thought. Initially, in June of 2022, Scott claimed that the regulator may require platforms to “manipulate [the algorithm] to produce particular outcomes.” This, he seemed to clarify in November, may not be the case. Rather, Scott argues that the CRTC is interested primarily in an outcome where Canadian content is being promoted by streaming platforms, regulators are less interested in the specific tools they apply to generate that outcome.

On December 9, 2022, legal scholar Michael Geist suggested that part of the problem with Bill C-11 is what counts as Canadian content that streaming platforms are being asked to promote. Geist notes that although a program can be produced, filmed, and about Canada, if Netflix owns the intellectual property that program will not count as Canadian content. Because the criteria for CanCon remains somewhat unclear for platforms and their users, Geist notes that the CRTC has forced Netflix into a uncomfortable regulatory position.

Geist’s article suggests that Netflix’s meetings with the CRTC and Canadian Heritage are about what should count as CanCon, and continuing discussions about whether, or if at all, user generated content would be regulated under Bill C-11. Netflix has significant interest in these communications because, as Geist notes: “Netflix pumps billions of dollars into film and television production and content licensing in Canada; it spends more on dramatic film and television production in Canada than any Canadian broadcaster.”

The following table charts Netflix’s logged communication reports for the month of November 2022. Netflix logged no communication reports with the Registry of Lobbyist for the month of December 2022. The information provided in this chart come from Netflix Canada’s profile on the Registry of Lobbyist website.

Communication Date	Lobbied	Subject Matters	Responsible Officer
2022-11-08	Michael Craig, Director \| Broadcasting Chairperson’s Office \| Canadian Radio-television and Telecommunications Commission (CRTC) – Scott Shortliffe, Executive Director \| Broadcasting Chairperson’s Office \| Canadian Radio-television and Telecommunications Commission (CRTC)	Arts and Culture, Broadcasting	Reg Thompson, President
2022-11-24	Ron Ahluwalia, Director of Policy \| Canadian Heritage (PCH) – Ashley Michnowski, Director of Communications \| Canadian Heritage (PCH)	Arts and Culture, Broadcasting	Reg Thompson, President
2022-11-24	Ron Ahluwalia, Director of Policy Minister’s Office, Canadian Heritage (PCH) – Ashley Michnowski, (Acting) Chief of Staff Minister’s Office, Canadian Heritage (PCH)	Arts and Culture, Broadcasting	Greg Maceachern (Consultant)
2022-11-24	Ron Ahluwalia, Director of Policy Canadian Heritage (PCH) – Ashley Michnowski, Director of Communications Canadian Heritage (PCH)	Arts and Culture, Broadcasting	Christopher McCluskey (Consultant)

October 2022 Update for Netflix Services Canada ULC

By: Helen Beny, Ph.D Candidate (McMaster University)

Netflix has also outlined their concerns regarding Bill C-11, the Online Streaming Act. Netflix in particular has warned the committee that the bill could allow the Canadian Radio-television and Telecommunications Commission (CRTC) to serve Canadians content that they may not be interested in watching. In October, the President Reg Thompson registered communications with various members of the Canadian Heritage Office where “arts and culture, broadcasting and consumer issues” were discussed . Following suit, Thompson registered communications with Senator Paula Simmons regarding the same subject matter.

Netflix Services Canada ULC Lobbying Summary

Communication Date	Lobbied	Subject Matters	Responsible Officer
2022-10-03	Jude Welch, Chief of Staff to the Minister Canadian Heritage (PCH)	Arts and Culture	Greg Maceachern (Consultant)
2022-10-04	Paula Simons, Senator Senate of Canada	Arts and Culture, Broadcasting, Consumer Issues	Reg Thompson, President
2022-10-04	Paula Simons, Senator Senate of Canada	Arts and Culture, Broadcasting, Consumer Issues	Greg Maceachern (Consultant)
2022-10-03	Ron Ahluwalia, Director of Policy Canadian Heritage (PCH) Matthew Gray, Policy Advisor Canadian Heritage (PCH) Ashley Michnowski, Director of Communications Canadian Heritage (PCH)	Arts and Culture, Broadcasting, Consumer Issues	Reg Thompson, President