5% of revenue, not net. Cost of doing business as a streaming entity goes up. What's the impact here? Is 5% of revenue in Canada enough to cause these companies to walk away or is it non-impactful?

    https://arstechnica.com/tech-policy/2024/06/canada-demands-5-of-revenue-from-netflix-spotify-and-other-streamers/

    Posted by FoldItBackandSlapIt

    42 Comments

    1. last-resort-4-a-gf on

      There is a loop hole where if Netflix identifies as a minority then Canada will pay Netflix 5%

    2. Probly not significant but they’ll fight it bc they don’t want the precedent

    3. general-meow on

      Twitch left Korea cause of something similar. Netflix fought it and remained.

    4. ieatporkrindshehe on

      Canada is like the US if you took every single thing and made it worse lol

    5. DarthPineapple5 on

      5% of revenue is a lot. Maybe not enough to walk away in a vacuum (they would just increase prices) but they might do it anyways in an attempt to stop a precedent from being set. Could also become an overall trade relations issue between the US and Canada since its generally unheard of to tax foreign companies in this fashion

    6. KrochKanible on

      You guys got what, 40 million?

      There’s a country just south of you with almost 10 times that amount of people.

      Personally, I think this a great way to tax services out of your country

    7. K1ngofsw0rds on

      Fuck Canada

      They can make thier own streaming service I guess…….. 🤷‍♂️

    8. *demands 5% of Canadian revenue be spent back to create content made by Canadians.

      Legacy media in Canada already has this rule. And they’ve been arguing for it to go away by using streamers as a bullet shield – by saying they don’t have to spend money in Canada so it’s unfair. This closes the loophole.

      Not to mention Netflix already shoots a crazy amount of content in Canada to begin with. I wouldn’t be shocked if Netflix is close to the required spend already.

      This title is misleading and click bait.

    9. I’m so sick and tired of this fake country. Can it collapse so we can finish manifest destiny? Sea to shining sea meant the Gulf of Mexico to the Arctic Ocean.

    10. Soitsgonnabeforever on

      So easy to be Canada.

      Just tag along the best country in the universe and gain on the simple fact that you are less nonsense neighbour compared to the other one

      Suck up to the queen

      Open the flood gates and don’t be bothered about the lack of houses or infrastructure.

      Open stupid unsustainable colleges cos it’s a huge revenue

      Why even promote entrepreneurship when you can just tax well run and profiting companies Ike Netflix

    11. I just realized it’s 5% REVENUE, not profit….

      I love you Canadians, but fuck you guys. You guys are losing your minds up there.

    12. fauxpolitik on

      Trudeau’s administration right now might be the most anti internet government in the western world today with all it’s done and is still trying to do. Canadian regulation is so heavy handed no wonder all their tech talent rushes south of the border the first chance they get

    13. greatestcookiethief on

      in the end of cycle, netflix cost as much as cable. congrats, a full cycle has now completed

    14. America’s hat. Stay inside and don’t watch any TV for 6 months of the year then.

    15. market_shame on

      Everybody is learning from Apple tax. Next up T-Mobile will want a 30% cut. Otherwise it would be like Netflix was selling at a Walmart without Walmart getting a cut. The injustice cannot stand! T-Mobile and Apple must get their 30%!

    16. They’re already getting 15% in sales taxes.

      Canada is where capital goes to die.

    17. CantBelieveIAmBack on

      5% of their entire revenue or just what revenue comes from the citizens? It would make sense if they are trying to put taxes on subscriptions but boy will that make people mad.

    18. Tacocats_wrath on

      As a Canadian, I have to say, I fucking hate all of the bureaucracy and red tape. Canada tries on ts hardest to be un-investable. And the citizens suffer. Same shit with the news sharing bull shit. Now we only get screen shots of news stories. So dumb.

    19. ProjectBOHICA on

      I demand 5% of Canada’s maple syrup be poured down my mouth next Tuesday.

    20. No_Engineering_6636 on

      Netflix generated about $1 billion revenue from Canada in 2023, 5% of that is $50 million, about $65 million CAD. It’s a hell lot, and I guess Netflix won’t just hand in the money without raising price? Essentially who’s paying, the Canadians….

    21. dimebag_101 on

      Wtfm there’s talk if something like this in Ireland. To fund our state broadcaster one of the most corrupt (dodgy expenses) incompetent (crapmcomtenr) organisations that was all about self enriching there mates and taking the absolute piss. This is a huge red flag. Just making up extra taxes.

    22. Odd-Frame9724 on

      Lol Canada owned itself

      “Why are our prices so much higer!!?!?!?!”

    23. Odd-Frame9724 on

      This is the lore reason why America invaded Canada in the Fallout universe

    24. Big-Today6819 on

      Is there not way more companies to do this with?

      Feel weird it’s not a overall thing for companies that move profits if we remove what they will spend the money on

    25. the-burner-acct on

      To be fair, the funding would go to the National Film Board (of Canada). Great filmmakers such as Norman McLaren grew up. And it’s one of the few countries where people can get govt grants for movies. Every cable and broadcast has to pay the fee, it evens the playing field

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