CBC and Netflix are ‘breaking up’

By MixDex Article may include affiliate links

With Disney’s break up with streaming giant Netflix looming, it looks like the company is breaking up with another content partner.

• Netflix and CBC have a production deal where they split the costs of producing shows, which are billed as “Netflix Originals” on the streamer.
• These include the popular “Alias Grace,” “Anne with an E,” “Schitt’s Creek,” “Workin’ Moms,” “Kim’s Convenience,” “Heartland” and “Intelligence.”
• However, now the CBC, which is Canada’s public broadcaster, is pulling back on productions with Netflix.
• Netflix has its own production hub in Canada and has passed the $500 million benchmark it set for itself to invest in Canadian based production.
• One wrinkle in the issue is that Netflix (and other streaming services that produce in Canada) aren’t required to collect sales tax in Canada and don’t have contribute 5% of gross revenue to the Canada Media Fund, which supports local content creators.
• It’s not immediately clear if existing shows produced under the CBC deal would disappear from the streamer.