Netflix to Invest $400M in Canadian Film and TV Productions

The American entertainment company, Netflix, revealed its plans to create a permanent production presence outside of the U.S. for the first time with the launch of Netflix Canada and pledged to invest over $400 million in Canadian film and TV productions over the course of five years, as Canada promised more money to transfer Canadian content at home and abroad.

Netflix will reportedly develop TV shows and movies in both English and French, as well as work with local Canadian producers and studios. If Netflix fails to commit to the deal of investment in the given timeframe, the Canadian government can apparently impose fines on the company, the report said.

The statement was part of an extensive review done by Canadian Heritage Minister, Melanie Joly, and included plans to modernize funding programs and review copyright, broadcasting, and telecommunications legislation, according to a report. It is also said that the plan is part of a deal between Netflix and the Canadian government to support innovation in the digital realm.

The Canadian government will increase its contribution starting in 2018 to the fund backing television and digital media. It didn’t disclose the specific amount, but it promised 125 million Canadian dollars over five years for a new export strategy to endorse  Canadian art abroad.

Canada briefly had its own Netflix rival, Shomi, but it went ineffective last year. As of now, the country doesn’t tax digital companies like Netflix and doesn’t plan to anytime soon.

“Today’s announcement affirms there’s more to come as Netflix launches Netflix Canada, our permanent production presence in Canada,” Ted Sarandos, Netflix’s Chief content officer, said in a statement.

“We look forward to continuing our work with Canadian talent, producers, broadcasters, and other local partners to create Netflix originals in Canada for many years to come.”

The streaming service company has worked with Canadian content creators before. With the Canadian Broadcasting Corporation, it developed an Anne of Green Gables series, with the second season in the works. It also produced a miniseries with Canadian filmmakers Sarah Polley and Mary Harron based on the Margaret Atwood novel Alias Grace.

The deal “signals a meaningful partnership in supporting Canadian creators, producers, and Canadian creative work, and in bringing that work to millions of viewers around the world,” Melanie Joly said in a statement.

Meanwhile, Netflix, Inc. traded 0.70%, or 1.27, to $180.70, by 7:57 PM GMT -4. It opened at $181.15, with a session high of $181.95, and a session low of $179.36. Its market capitalization was 78.02 billion, and its P/E ratio was 221.37.

HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can open an account now and make yourself updated with essential news in the market.