CBC and Netflix are ‘breaking up’

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.