Netflix, Google get pulled from the record at CRTC hearings

Commission won't play ball with "mere anecdotal information"

Netflix’s contentious appearance at the CRTC’s “Let’s Talk TV” hearings will be erased from the public record, following its refusal to provide the broadcast regulator with key business data.

In a letter sent to Netflix’s director of global public policy Corie Wright yesterday, CRTC secretary general John Traversy said that the streaming video service’s intervention and all supporting documentation will be removed from the public record on Oct. 2.

This includes:

• Netflix’s intervention dated June 27
• The Lemay-Yates Associates inc. reported titled The Evolution of TV and New Media in Canada, dated June 27
• Netflix’s oral submission from the transcript of the hearing, and
• Netflix’s response to the requests for information dated Sept. 22

Netflix made a voluntary appearance before the CRTC on the final day of the “Let’s Talk TV” hearings into the future of the Canadian broadcast system, with Wright making several claims about the service.

They included telling the Commission that many consumers use Netflix and similar services to supplement viewing of traditional broadcasting services; that Canadian content is “thriving” on the service; and Netflix’s commitment to Canadian content is driven by subscriber demand.

However, when pressed by the Commission to provide evidence to support her claims, Wright refused, citing confidentiality concerns. That led to several tense exchanges with both CRTC chairman Jean-Pierre Blais and vice-chairman Tom Pentafountas.

Blais subsequently ordered Netflix to provide information relating to its Canadian activities, including the number of subscribers and its investment in Canadian productions.

“This request was made for a very specific purpose,” wrote Traversy. “The hearing panel is seeking to better understand Netflix’s innovative approach in providing Canadian-made content to Canadian and non-Canadian audiences alike, through non-traditional, consumer-driven platforms.”

Netflix informed the CRTC in a Sept. 22 letter that it would not provide the requested information.

In the letter, Traversy said that the lack of supporting evidence means that the CRTC is unable to evaluate the merits of Netflix’s arguments. “The Commission cannot carry out its duties based on mere anecdotal information,” he wrote.

Traversy said that the CRTC would reach its conclusions based on the remaining evidence. “There are a variety of perspectives on the impact of internet broadcasting in Canada, and the panel will rely on those that are on the public record to make its findings,” he said.

Traversy also wrote a separate letter to Jason Kee, public policy and government relations counsel for Google, informing him that his company’s appearance would be struck from the record.

Kee declined to provide evidence to back up his assertions that “compelling Canadian content succeeds online – all without broadcasting regulation,” and that “Canadian creators, both emerging and established, are building global audiences and earning revenue without having to work through intermediaries.”

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