Should Internet-based Services be Taxed?

netflix

We live in a generation of online users, where services and information can be found, conveniently, with a click of a mouse. Netflix, an online service that offers many programs such as television shows and movies, and other online video providers has attracted much attention to whether these internet services should be taxed and if Netflix should contribute to the Canadian audio-visual systems. If so, the question lies, what does it mean for Netflix as a business and for here customers?

Under the Broadcasting Act there states numerous regulations in which industries must contribute to Canadian film and television production and what is allowed for establishing its library content. Netflix is able to offer low cost to consumers because the cost of online video delivery is low relative to the physical delivery of DVD’s. Therefor other Canadian broadcasting networks are feeling the negative effects as they try to maintain revenue. How is it that the CRTC (Canadian Radio-television and Telecommunications Commissions) track the content users stream into their homes, it would be almost impossible. Throughout these hearings that have been held over the conflict, other stakeholders have voiced there opinions. Bringing forth ideas to strengthen broadcasting networks such as allowing customers to pay by individual television channels rather then subscribing to a bundled package. It is unknown at this point in time if networks will go forth with these ideas. Being an avid user of the service, I have reason to believe my opinion is biased towards Netflix. Netflix is a pioneer to the online streaming service and are not a TV broadcasting network and therefore should not fall under the broadcasting act. However, while hearings are still continuing on this topic, Netflix has to respect the conditions of the Broadcasting Act and the CRTC.

Cite

Pedwell, Terry. “Netflix tells CRTC consumers should vote with their dollars”. CBCNews. Web. Sept. 19, 2014

 

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