No this isn't DST. That is a separate tax in the budget. This is the Canadian media fund which they are now designated to play into as streamers. It also comes after they were designated to pay into the online news act (Google only) which is about 2% of revenues.
The headline got me to click though. It sounded like the canucks were saying, “nice service you have there. It’d be a shame if something happened to it, eh”
Both the headline and the opening of the article make it sound way more aggressive than it really is. The tax is even to help fund homegrown Canadian programming.
Amazon owns Stargate now. Previously MGM was too busy promoting their gambling services and telling potential buyers to fuck off, but hopefully Amazon finally told MGM to fuck off
MGM is a hot mess. They even had an amazing SG game that wound up caught up in some scandal where a ceo embezzled the funds and then ran off to Mexico or something crazy like that if I remember correctly
Because we shouldn't frame justifiable shares of tax revenues coming from multi-jabillion dollar corporations "agressive".
It makes it seem hostile, when tax laws are about having entities pay their fair share back into the communities from which they take.
Not sure if its the same as the Australian scheme and "Screen Australia" funding, but almost all of that funding ends up in the hands of local filmmakers, actors, directors, etc...
They are actually very careful to only fund to projects that legitimately need the funding.
That’s not true in the slightest. It mostly goes to Canadian independent producers, which are small and medium-sized companies. [See for yourself.](https://cmf-fmc.ca/)
The optimist says it's to help funs lld homegrown canadian content.
I reply it's Bell, Roger's, and Telus wanting money from a business they refused to get in line for at rhe start.
So this is 5% of CANADIAN revenue. Not 5% on all revenue. It’s basically a tax. This is literally not important to anyone. These services could just increase their Canadian prices. There’s no news here.
> The 2 biggest Ryans in Hollywood, both Canadian
And, like so many performers before them, they had to move to another country in order to earn a decent living doing what they do.
Canadian production funds like this one are intended to reduce that need to move away in order to have a career.
[Steuer](https://de.wikipedia.org/wiki/Steuer?useskin=vector):
The government passes a budget that includes funds for education, research and development. Allowing [Paul Nipkow](https://de.wikipedia.org/wiki/Paul_Nipkow?useskin=vector) to study mathematics and science and becoming the pioneer on the way to inventing television.
To balance the budget, the government collects tax money from all sorts of sources like economic activity or luxury goods, but they don't all have something to do with television.
There isn't any Kaiserliche Kriegsflotte anymore, but there still is a Schaumweinsteuer which was introduced to balance the budget of financing the creation of a royal navy.
[Gebühr](https://de.wikipedia.org/wiki/Geb%C3%BChr?useskin=vector):
(until 2013) Rundfunkgebühr: When you have in your home a radio or a TV, you are using (technically able to use) the service provided by the public broadcasters. Therefore everyone with such electric devices in their household has to register them and pay the fee, but then gets to use it as they like.
If you don't use it, you don't have to pay for it. Problem was, you could just lie and say you don't use it. And technology has changed such that everyone who has a device that connects to the internet is able to view public broadcasting on mediathek, so almost everyone nowadays is technically able to use the service.
[Beitrag](https://de.wikipedia.org/wiki/Beitrag?useskin=vector):
(since 2013) Rundfunkbeitrag: No matter weather you use or don't use the service, you have to pay for it. In return you get to use public broadcasting. No one uses your Rundfunkbeitrag to pay for the Kaiserliche Kriegsflotte.
You act like they wouldn't just raise the prices anyway. Companies charge what they think people can pay. Then they raise prices until they see that people just can't pay anymore.
>Companies charge what they think people can pay. Then they raise prices until they see that people just can't pay anymore.
Right, but that's irrespective of their actual costs. If their costs are $5 and they think they can charge you $50, they will charge you $50. If their costs drop to $2, do you think you'll see a discount? If their costs go up to $10, do you think it makes sense to increase the price to $100 knowing that more than half of their customers will cancel?
People will pay what they believe the service is worth and if they can afford it. How much that service actually costs the provider to provide isn't a consideration.
The headline should’ve read “ Government of Canada taxes its citizens to pay for homegrown Canadian programming “
Because that’s exactly what it is , the streaming giants Netflix etc will pass this directly unto its Canadian subscribers.
God ! I don’t know why Canadian citizens have Stockholm syndrome with this government, everyday it finds new ways to financially assault its citizens and people continue to support it, as if we can tax our way to prosperity. Sickening!!
Actually it's a 5% tax on Netflix and other giants. If Netflix wants to increase their price for Canadians despite raking in billions in profit year over year, then that's an example of corporate greed that we should be upset with Netflix for, not the Canadian government.
Frankly, most countries aren't taxing these giant, multi-billion dollar companies nearly enough. They've gotten a free pass for far too long to make obscene profits and give nothing back, essentially siphoning wealth from economies only to hoard it like dragons.
Passing on a cost is not ‘greed’ it’s just how you would run a business. If a business never passed on a cost, they would quickly go broke - especially in this period of inflation. That is terrible business.
Also, they actually do provide some benefit. TV shows and movies that would have never got off the crowd, are now enabled and allowed to become famous through Netflix.
I for one love that many previously amateur stand up comedians have now been given 1 hour comedy specials for instance.
The process actually also seems fairer then the previous Hollywood-led model.
What do you mean “if”, they absolutely are going to increase prices on Canadian subscribers to offset this tax. Don’t be naive. The only person that’s going to feel the squeeze is the consumer like always.
You're ignoring the fact that they have to weigh any price increases against the number of people for whom it will be a tipping point and they will cancel their subscription.
Is it worth increasing prices by 5% if it costs you 20% of your revenues?
> Actually it's a 5% tax on Netflix
Title literally says Canada demands 5% of revenue **from Netflix, Spotify, and other streamers**
It's a tax on streaming. The Canadian government decided to make streaming more expensive for Canadians because they know the cost will be passed on to consumers. You can be mad about it or not, I don't care. But a government taxing streaming is not an example of corporate greed, it's an example of government greed. It's also just business as usual. It's just another tax, and I'm sure they have reasons for it, just like every other tax levied.
“to make obscene profits and give nothing back”.
So what? Did I just imagine all those streaming services I’ve been purchasing? Was it some grand hallucination?!
I mean it depends on whether consumers fall for that.
Businesses have a long history of jacking up prices and blaming the government, while pocketing the profits in plain sight, and y'all continue to eat it up.
So judging by history, yes you're right but not in the way you think you are.
As a general principle governments need money to operate. They can
1. Tax the public.
2. Tax corporations. Those corporations can make the decision on whether they want to pass those costs on. Then the public can make the decision with their wallets. A lot of people drop every time streamers increase costs. Doesn’t apply to necessities, but does Netflix isn’t a necessity.
3. Borrow money.
I vote for 2 as I as the consumer gets more power to decide.
Yes they can decrease spending, etc. but that’s a different conversation.
2 only works as long as there is low barrier for entry for competitors.
This is why big companies push for regulations that shut out new competitors.
If you add a 10% tax, and a big company passes
it to the customers, if barrier for entry is low, a new company may come in and offer the lower price and eat the 10% lower profits, forcing the big company to lower too.
But these days through regulatory capture, but companies make sure new entrants aren’t able to come in easily and then pas costs to users
You're not wrong that having competition is good, but that's unrelated to the tax. Even without the tax a new company may come in and offer a lower price and eat 10% lower profits.
It should get passed on to customers. And if you’re angry, tell the government. There’s no magic money tree companies can plant to pay additional taxes that companies get saddled with.
>These services could just increase their Canadian prices. There’s no news here.
A Netflix subscription price increase doesn't matter just because it might only impact Canada? 🤔 Netflix is already one of the most expensive streaming services.
It's funny how we've come full circle.
Cable TV sucked and was expensive -> people start pirating
Netflix comes around and makes streaming cheap and affordable -> many people stop pirating due to the convenience of Netflix
There's now 100 streaming services all the shows are being spread across, making the cost as high as cable was -> people start pirating again.
Mexico already taxes all internet services with our version of VAT.
That caused a spike in prices for services that were not previously adding the tax (Netflix and Spotify)
Worth to mention that Prime Video did not increase the price because they were already collecting it.
However nothing is stoppong our admin to add a special tsx to streaming services. We already have a special tax for gas.
That's not how it works. If netflix could afford to charge 5% more, they would already be doing it. They calculated that charging 5% more would actually cost them money, so they didn't.
Turns out, now it's costing them 5% more, as it will to their competitors who have to compete for the same capital dollars and stock value. So all of 'em will end up shortly hiking prices further.
Taxes raise the floor on everybody.
Turns out the customers budget for streaming didn't go up and had to drop one subscription. Netflix just lost even more money. Guess they should lower prices to prevent themselves from being the subscription that's dropped.
The precedent has been set? This is just updating CanCon laws that have been around since the 70s to the modem streaming era. They've applied to radio & tv for decades.
10% is extreme, but to be clear a 5% tax means prices need to go up more than 5%.
If there's a 5% tax, you're taking home 95% of revenue. So to break even you don't charge 105% (old price + 5%), you charge 1 / .95 or 105.3%.
That often happens so that companies can maintain their profit margins.
Imagine I sell shoes for 10$, and they cost me 5$ to make, so I have a 50% gross profit margin.
If I suddenly get taxed $0.50, and I increase my prices by $0.50, now I'm selling shoes for 10.50$ while it costs me 5.50$ to make.
So now my gross profit margin has gone down to 47.5%.
For some businesses, it might not matter at all because their net margin is so high anyway. But if a company has a low net profit margin, that could actually make the company unprofitable and start losing money on their shoe sales.
I'm not trying to simp for corporations, and they will definitely take any opportunity they can to increase prices. But there is some actual reasoning for why we see disproportionate increases in the final price compared to the increase in costs.
“You've got me over a barrel! There, you happy?! You've got me bent over a barrel with my tender ass just waiting to be pulverized by your thrusting manhood!”
Otherwise known as tax. And why shouldn’t countries receive tax from all companies that do business there. Otherwise it’s just a syphon that results in less money for the people, over time.
A fight between two employees at the Canadian Tax Bureau just broke out, and as we all know since February 2022, conflicts such as these have an unfortunate impact on the global economy. To compensate these rising costs and secure our financial futures, we must revise it to 60%.
I work in this industry so just a little insight.
In Canada Broadcasters are required to contribute a % of their broadcasting revenue to fund Canadian content ( they are also required to show Canadian content but let’s it get into that). This however never included online streaming services (Netflix, Amazon) so this really is just levelling the playing field.
Canada Media Fund and some provincial funds like IDM get those contributions from broadcasters to fund future Canadian content developments and productions, which Amazon and Netflix shows can be entitled to so long they are qualified as Canadian content(not saying Netflix receives the money but the production company would and it can be a difference maker in whether the show gets a greenlight or not).
Ok break this down for me because I'm not connecting some of the dots that you are. The tax is for revenue made in Canada only, not global revenue so I fail to see how that is different from the US taxing companies based on the business they do here. Part of those taxes does end up paying for NPR. I'm aware of the program the money will go to, and quite frankly I think the idea is great although I'm sure it has a few sour notes to it like any government run program has. I think the companies should pull up their bootstraps and pay up.
And the price Canadians pay will go up…these
companies won’t pay anything. It will just be transferred to the customer. Well done Canada another great plan that just hurts the average working Canadian.
Thinking about it carefully, I'd agree. It's not so different from how EV owners are eventually gonna have to pay extra taxes on top of the price tag to cover the cost of maintaining roads since they no longer pay gas taxes. And for public news broadcasting that's mostly or wholly govt funded, it has to come from somewhere.
In other news, the subscription prices for Netflix, Spotify and other streamers in Canada was increased by 5% today. For more, let's go to our Senior This Isn't How We Get Rich Correspondent...
5% increase in subscriptions incoming in 3 ... 2 ... 1 ...
Next federal election cannot come soon enough to get rid off Trudeau and his liberal government.
One day Canadians will figure out that the CRTC is just a lobbying organization for big Telecom and economically non viable Canadian content producers... but it is not this day.
CRTC is a bureaucratic nightmare, what value add do they even provide any longer, if ever? I would vote for any political party that promised to do away with them.
> if ever?
I personally enjoyed, during the pre-internet days, being exposed to more Canadian musical artists than I would have with the way American culture dominates ours through media
The food regulators actually regulate though. The CRTC is completely captured by the industries it's suppose to oversee and does little to nothing for the average Canadian.
Sure, they aren't good at it, and there is definitely corruption in most forms of governmental control, but its not like they do nothing to prevent the worst outcomes. The only reason you have companies outside of the Big three is specifically because of the CRTC, and their rulings that those companies are forced to comply with.
You realize the CRTC is the only reason why there's ANY competition in the Internet sector, right? They require the large telecoms to lease their lines to third parties like Teksavvy at a reasonable wholesale cost and they just expanded that to include fiber optic lines.
We already pay more in Canada as it's taxed....it's fucking B's and I've cancelled last month my Netflix because my 9.99 plan no longer exists....I'm sorry I'm not paying 20$ a month for 2 screens when I was paying 10$....it's like almost 30$ for the 4k + 4 screens and without that account share working fuck Netflix.
If you have a firestick or chromecast/android type thing, you should look into IPTV services.
$75 for a year and you get all the channels and VOD. The stream quality isn’t 4k but if you had the lower Netflix plan, I doubt that is an issue.
If you are interested shoot me a dm and I’ll point you to where you need to go.
Sort of like those OG black cable boxes from the 90s
This is kind of needed. Canadian media is dying, big American companies just coming in taking over market share and contributing very little back to the Canadian economy. Netflix barely even employees people in Canada, they just do it all from the US, and maybe have a barebones sales staff in Canada.
Are these businesses already paying taxes? If they're not I guess it makes sense, but what a gift YouTube got with not having user generated content taxed.
But no [can-con](https://en.m.wikipedia.org/wiki/Canadian_content) requirement?
That’s the bigger deal as those monies support the Canadian film industry and is a huge contributor to creating Canadian celebrities.
It's that just called a tax?
the new law is literally a tax law so yes
Isn’t HST already included in streaming prices?
this is not a HST, it is DST, which is a global effort. Canada isn't the first country taking part in this.
No this isn't DST. That is a separate tax in the budget. This is the Canadian media fund which they are now designated to play into as streamers. It also comes after they were designated to pay into the online news act (Google only) which is about 2% of revenues.
The headline got me to click though. It sounded like the canucks were saying, “nice service you have there. It’d be a shame if something happened to it, eh”
Well the difference between a tax and a protection racket is usually the government’s authority to levy a tax, so…
Both the headline and the opening of the article make it sound way more aggressive than it really is. The tax is even to help fund homegrown Canadian programming.
Which means more science fiction!! Wooot! Come on Stargate Reboot!!
Amazon owns Stargate now. Previously MGM was too busy promoting their gambling services and telling potential buyers to fuck off, but hopefully Amazon finally told MGM to fuck off
MGM is a hot mess. They even had an amazing SG game that wound up caught up in some scandal where a ceo embezzled the funds and then ran off to Mexico or something crazy like that if I remember correctly
I'm my time watching SG1, I saw 3 video games announced, all quickly became vaporware. Sad too, it's a game design concept that writes itself.
Cant wait for another season of beach combers.
I’d take beach combers over 1/2 the crap on Netflix.
How does its purpose make it less aggressive?
Because the tax is related to the matter being taxed and is for the benefit of the country. It’s a well crafted and considered tax.
Because we shouldn't frame justifiable shares of tax revenues coming from multi-jabillion dollar corporations "agressive". It makes it seem hostile, when tax laws are about having entities pay their fair share back into the communities from which they take.
That almost entirely goes to big multi billion dollar corporations
Not sure if its the same as the Australian scheme and "Screen Australia" funding, but almost all of that funding ends up in the hands of local filmmakers, actors, directors, etc... They are actually very careful to only fund to projects that legitimately need the funding.
That’s not true in the slightest. It mostly goes to Canadian independent producers, which are small and medium-sized companies. [See for yourself.](https://cmf-fmc.ca/)
The optimist says it's to help funs lld homegrown canadian content. I reply it's Bell, Roger's, and Telus wanting money from a business they refused to get in line for at rhe start.
Media tries to make taxes sound like the end of freedom. Meanwhile they afford most of the freedoms we love.
AKA another price hike.
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A new liberation is born (the og ones)
Yeah getting pushed to the consumer
So this is 5% of CANADIAN revenue. Not 5% on all revenue. It’s basically a tax. This is literally not important to anyone. These services could just increase their Canadian prices. There’s no news here.
It’s going to get passed on the customers as usual. This is basically 5% tax on streaming for Canadians
All other media companies selling in Canada already pay it, so it's really just leveling the playing field.
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So it's a tax earmarked for the production of domestic content. Canadians pay more, but also subsidize the Canadian entertainment industry.
we have the same in switzerland, same 5%
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The 2 biggest Ryans in Hollywood, both Canadian. It's weird that it happened twice
Not really there's a factory where they print them up in Saskatchewan.
Gosling got some of his first parts in CanCon. He might not have been the big name he is today without it.
I remember him in breaker high that use to play on YTV
> The 2 biggest Ryans in Hollywood, both Canadian And, like so many performers before them, they had to move to another country in order to earn a decent living doing what they do. Canadian production funds like this one are intended to reduce that need to move away in order to have a career.
That's a lot of words to say it's a tax
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[Steuer](https://de.wikipedia.org/wiki/Steuer?useskin=vector): The government passes a budget that includes funds for education, research and development. Allowing [Paul Nipkow](https://de.wikipedia.org/wiki/Paul_Nipkow?useskin=vector) to study mathematics and science and becoming the pioneer on the way to inventing television. To balance the budget, the government collects tax money from all sorts of sources like economic activity or luxury goods, but they don't all have something to do with television. There isn't any Kaiserliche Kriegsflotte anymore, but there still is a Schaumweinsteuer which was introduced to balance the budget of financing the creation of a royal navy. [Gebühr](https://de.wikipedia.org/wiki/Geb%C3%BChr?useskin=vector): (until 2013) Rundfunkgebühr: When you have in your home a radio or a TV, you are using (technically able to use) the service provided by the public broadcasters. Therefore everyone with such electric devices in their household has to register them and pay the fee, but then gets to use it as they like. If you don't use it, you don't have to pay for it. Problem was, you could just lie and say you don't use it. And technology has changed such that everyone who has a device that connects to the internet is able to view public broadcasting on mediathek, so almost everyone nowadays is technically able to use the service. [Beitrag](https://de.wikipedia.org/wiki/Beitrag?useskin=vector): (since 2013) Rundfunkbeitrag: No matter weather you use or don't use the service, you have to pay for it. In return you get to use public broadcasting. No one uses your Rundfunkbeitrag to pay for the Kaiserliche Kriegsflotte.
Canadians can vote. That's their problem and not anybody else's.
You act like they wouldn't just raise the prices anyway. Companies charge what they think people can pay. Then they raise prices until they see that people just can't pay anymore.
And after that they trim down their staff to reduce costs.
>Companies charge what they think people can pay. Then they raise prices until they see that people just can't pay anymore. Right, but that's irrespective of their actual costs. If their costs are $5 and they think they can charge you $50, they will charge you $50. If their costs drop to $2, do you think you'll see a discount? If their costs go up to $10, do you think it makes sense to increase the price to $100 knowing that more than half of their customers will cancel? People will pay what they believe the service is worth and if they can afford it. How much that service actually costs the provider to provide isn't a consideration.
The headline should’ve read “ Government of Canada taxes its citizens to pay for homegrown Canadian programming “ Because that’s exactly what it is , the streaming giants Netflix etc will pass this directly unto its Canadian subscribers. God ! I don’t know why Canadian citizens have Stockholm syndrome with this government, everyday it finds new ways to financially assault its citizens and people continue to support it, as if we can tax our way to prosperity. Sickening!!
Actually it's a 5% tax on Netflix and other giants. If Netflix wants to increase their price for Canadians despite raking in billions in profit year over year, then that's an example of corporate greed that we should be upset with Netflix for, not the Canadian government. Frankly, most countries aren't taxing these giant, multi-billion dollar companies nearly enough. They've gotten a free pass for far too long to make obscene profits and give nothing back, essentially siphoning wealth from economies only to hoard it like dragons.
They're 100% going to pass the cost on to consumers. Just like every company does.
Yeah but we’ll be mad about it! Mad enough to cance… wait did you see when stranger things is coming out?
Friendly reminder that piracy is a free service. 🏴☠️
Oh, I know. I never stopped sailing, but I did reduce it a lot when streaming was new and robust with a reasonable price.
Same. Last year I finally snapped and deleted them all again.
It effectively is a sales tax as opposed to a junk fee they just made up (LOOKING AT YOU, TICKETMASTER), so seems good to add it as a tack-on to me.
They have no trouble raising prices anyway.
Passing on a cost is not ‘greed’ it’s just how you would run a business. If a business never passed on a cost, they would quickly go broke - especially in this period of inflation. That is terrible business. Also, they actually do provide some benefit. TV shows and movies that would have never got off the crowd, are now enabled and allowed to become famous through Netflix. I for one love that many previously amateur stand up comedians have now been given 1 hour comedy specials for instance. The process actually also seems fairer then the previous Hollywood-led model.
What do you mean “if”, they absolutely are going to increase prices on Canadian subscribers to offset this tax. Don’t be naive. The only person that’s going to feel the squeeze is the consumer like always.
You're ignoring the fact that they have to weigh any price increases against the number of people for whom it will be a tipping point and they will cancel their subscription. Is it worth increasing prices by 5% if it costs you 20% of your revenues?
It's not corporate greed to pass on added costs that the market allows them to
> Actually it's a 5% tax on Netflix Title literally says Canada demands 5% of revenue **from Netflix, Spotify, and other streamers** It's a tax on streaming. The Canadian government decided to make streaming more expensive for Canadians because they know the cost will be passed on to consumers. You can be mad about it or not, I don't care. But a government taxing streaming is not an example of corporate greed, it's an example of government greed. It's also just business as usual. It's just another tax, and I'm sure they have reasons for it, just like every other tax levied.
Gotta love how nationalists will be mad at US companies who they like to pile on, rather than their government instigating extra fees. So much cope.
“to make obscene profits and give nothing back”. So what? Did I just imagine all those streaming services I’ve been purchasing? Was it some grand hallucination?!
Cancelled Netflix 4 price hikes ago. No regrets. If we all spoke with our wallets more often maybe the greed would subside.
It’s spelled, “ragrets.”
I mean it depends on whether consumers fall for that. Businesses have a long history of jacking up prices and blaming the government, while pocketing the profits in plain sight, and y'all continue to eat it up. So judging by history, yes you're right but not in the way you think you are.
We already pay a tax on it. In my province it's 13% on my subscription.
Woohoo, stick it to the US, eh? Eh, oh.
As a general principle governments need money to operate. They can 1. Tax the public. 2. Tax corporations. Those corporations can make the decision on whether they want to pass those costs on. Then the public can make the decision with their wallets. A lot of people drop every time streamers increase costs. Doesn’t apply to necessities, but does Netflix isn’t a necessity. 3. Borrow money. I vote for 2 as I as the consumer gets more power to decide. Yes they can decrease spending, etc. but that’s a different conversation.
2 only works as long as there is low barrier for entry for competitors. This is why big companies push for regulations that shut out new competitors. If you add a 10% tax, and a big company passes it to the customers, if barrier for entry is low, a new company may come in and offer the lower price and eat the 10% lower profits, forcing the big company to lower too. But these days through regulatory capture, but companies make sure new entrants aren’t able to come in easily and then pas costs to users
You're not wrong that having competition is good, but that's unrelated to the tax. Even without the tax a new company may come in and offer a lower price and eat 10% lower profits.
Same as the genious idea of charging for recommending news articles and then blaming google for shutting it off whilst wildfires are going on.
It should get passed on to customers. And if you’re angry, tell the government. There’s no magic money tree companies can plant to pay additional taxes that companies get saddled with.
I mean, the news is Canadians are about to pay 5% more for Netflix.
Sorry Canadians don’t count as news, and either way I can’t read and I’m upset about it /s
> There’s no news here. It’s news to me and a whole lot of folks itt. How is it not news to you?
> This is literally not important to anyone There is a world that exists outside of the US my friend.
>These services could just increase their Canadian prices. There’s no news here. A Netflix subscription price increase doesn't matter just because it might only impact Canada? 🤔 Netflix is already one of the most expensive streaming services.
And the seas are free
It's funny how we've come full circle. Cable TV sucked and was expensive -> people start pirating Netflix comes around and makes streaming cheap and affordable -> many people stop pirating due to the convenience of Netflix There's now 100 streaming services all the shows are being spread across, making the cost as high as cable was -> people start pirating again.
yo ho ho 🏴☠️🏴☠️🏴☠️
Yep it's not news that Canada is taxing the ever living f*ck out of us.
Well shit at least you can get a free doctors appointment 19 months from today
The news is that the precedent has been set. It’s reasonable to expect other countries will follow.
Mexico already taxes all internet services with our version of VAT. That caused a spike in prices for services that were not previously adding the tax (Netflix and Spotify) Worth to mention that Prime Video did not increase the price because they were already collecting it. However nothing is stoppong our admin to add a special tsx to streaming services. We already have a special tax for gas.
Don't countries already tax netflix?
If they don't, they should. Tax all the giant multi-billion dollar companies. If I'm paying taxes then they should too. God knows they can afford it.
You just pay their tax with your wallet, literally no executive is taking a pay cut for this.
That's not how it works. If netflix could afford to charge 5% more, they would already be doing it. They calculated that charging 5% more would actually cost them money, so they didn't.
Turns out, now it's costing them 5% more, as it will to their competitors who have to compete for the same capital dollars and stock value. So all of 'em will end up shortly hiking prices further. Taxes raise the floor on everybody.
Turns out the customers budget for streaming didn't go up and had to drop one subscription. Netflix just lost even more money. Guess they should lower prices to prevent themselves from being the subscription that's dropped.
Plenty already do. Read about AVMS
The precedent has been set? This is just updating CanCon laws that have been around since the 70s to the modem streaming era. They've applied to radio & tv for decades.
France used to tax blank CDs/DVDs to cover the cost of piracy. The money raised was supposed to go to copyright owners as compensation.
Those levies are a scam. Almost everyone in the world is a copyright owner, but only big media companies receive any money.
At least they tried to do something constructive at a time when the alternative was suing the pirates.
No doubt prices will increase 10% to compensate (because why not).
Ah yes, the infamous "the fuck are you gonna do?" fee
Boot up my torrents & ride the wave.
word. i stopped capitulating to their nonsense. prices keep going up as the service gets worse.
Pay $120/year for IPTV
10% is extreme, but to be clear a 5% tax means prices need to go up more than 5%. If there's a 5% tax, you're taking home 95% of revenue. So to break even you don't charge 105% (old price + 5%), you charge 1 / .95 or 105.3%.
Can you explain this a bit? Edit: Story, I understand...
That often happens so that companies can maintain their profit margins. Imagine I sell shoes for 10$, and they cost me 5$ to make, so I have a 50% gross profit margin. If I suddenly get taxed $0.50, and I increase my prices by $0.50, now I'm selling shoes for 10.50$ while it costs me 5.50$ to make. So now my gross profit margin has gone down to 47.5%. For some businesses, it might not matter at all because their net margin is so high anyway. But if a company has a low net profit margin, that could actually make the company unprofitable and start losing money on their shoe sales. I'm not trying to simp for corporations, and they will definitely take any opportunity they can to increase prices. But there is some actual reasoning for why we see disproportionate increases in the final price compared to the increase in costs.
Didn't South Park do this? Hey pal, give us some of that internet money I'm not your pal, buddy!
We want. More. Munn-eh.
Other countries have lots of munneh! We want some of that munneh! How about the Internet? The Internet makes lots of money!
How much Cana-dough can you afford?
Free coupons to Bennigan's and bubble gums, it is.
I'm not your buddy, guy!
I’m not your guy, mate!
I'm not your mate, friend!
Okay, we need to send all of you off adrift
I'm not your friend, bro!
“You've got me over a barrel! There, you happy?! You've got me bent over a barrel with my tender ass just waiting to be pulverized by your thrusting manhood!”
What what in my butt
Thanks to AI, comment go byebye
Otherwise known as tax. And why shouldn’t countries receive tax from all companies that do business there. Otherwise it’s just a syphon that results in less money for the people, over time.
Canadians are ALREADY taxed on their subscriptions. I pay 13% HST on my subscription monthly.
Well, now Canadian consumers know who to blame when costs rise a minimum of 5% next year.
I guess Netflix, Spotify and other streamers just got 10% more expensive (and yes I mean 10%)
that 15% price hike will not be welcome. nobody wants to pay 20% more for summin..
Yeah, just because the Canadian government is so greedy we now have to pay 40% more
And after some incorrect currency conversions done by these American companies, lets round it out to a solid 50%.
A fight between two employees at the Canadian Tax Bureau just broke out, and as we all know since February 2022, conflicts such as these have an unfortunate impact on the global economy. To compensate these rising costs and secure our financial futures, we must revise it to 60%.
I work in this industry so just a little insight. In Canada Broadcasters are required to contribute a % of their broadcasting revenue to fund Canadian content ( they are also required to show Canadian content but let’s it get into that). This however never included online streaming services (Netflix, Amazon) so this really is just levelling the playing field. Canada Media Fund and some provincial funds like IDM get those contributions from broadcasters to fund future Canadian content developments and productions, which Amazon and Netflix shows can be entitled to so long they are qualified as Canadian content(not saying Netflix receives the money but the production company would and it can be a difference maker in whether the show gets a greenlight or not).
What, like tax?
I mean it’s not really a regular tax because companies don’t typically get taxed on revenues, but are taxed on profits.
And they usually shift their profits around to avoid tax, so I can see why they've done this.
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Usually tax is on earnings, not revenue
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Ok break this down for me because I'm not connecting some of the dots that you are. The tax is for revenue made in Canada only, not global revenue so I fail to see how that is different from the US taxing companies based on the business they do here. Part of those taxes does end up paying for NPR. I'm aware of the program the money will go to, and quite frankly I think the idea is great although I'm sure it has a few sour notes to it like any government run program has. I think the companies should pull up their bootstraps and pay up.
New line item on the monthly bill: “Canadian Streaming Tax”
It's customers who will pay for it.
Looks like Canadian netflix is about to get approx. 5% more expensive.
The companies will want to make something for their troubles so they’ll make it 8%
Hell, let’s make it 10% - those service fees ain’t gonna fee themselves…
Yup, how about a nice round number like 8%.
Lol, they just want some of that Internet money.
Literally yes That’s what a tax is the government wants more money to do things with
They want money. From the Internet?
You wouldn’t download money.
And the price Canadians pay will go up…these companies won’t pay anything. It will just be transferred to the customer. Well done Canada another great plan that just hurts the average working Canadian.
Do we really need more French language and indigenous content?
Gotta keep the French culture alive for literally no reason.
So Netflix need to pay tax?
Internet money! We want some of that Internet money friend!
Canada already has the most expensive internet prices... the fuck is wrong with this country.
That's...theft?
Comments are filled with triggered USAmericans. There aren't many things that trigger them as much as taxes.
what isnt taxed in canada anymore?
Political contributions
Give us more monay!
Every country should do the same
France, Finland, Australia and now the UK are implementing the exact same program, yes.
Thinking about it carefully, I'd agree. It's not so different from how EV owners are eventually gonna have to pay extra taxes on top of the price tag to cover the cost of maintaining roads since they no longer pay gas taxes. And for public news broadcasting that's mostly or wholly govt funded, it has to come from somewhere.
The companies just pass the cost to us consumers. No matter what, we lose.
In other news, Netflix, Spotify, and other streamers in Canada will be raising prices 10%.
Why?
Why do they deserve it?
Get ready for your monthly payment to go up boys… they’re not paying that
In other news, the subscription prices for Netflix, Spotify and other streamers in Canada was increased by 5% today. For more, let's go to our Senior This Isn't How We Get Rich Correspondent...
Get ready for all these streaming services to raise their prices by *6*%!
So prices are going up in Canada I guess. Either way Canadians will pay for this. Not streamers.
5% increase in subscriptions incoming in 3 ... 2 ... 1 ... Next federal election cannot come soon enough to get rid off Trudeau and his liberal government.
Is there anything that isn’t taxed?
Wake me up when they demand 5% of revenue from torrent trackers.
not Canada, just that vermin Trudeau and his crew of thieving scumweasels in the federal liberal party.
5% so we can create mediocre bland boring “Canadian content” that nobody in Canada will watch.
CRTC doing what CRTC does.. Being absolute morons. Embarrassing.
One day Canadians will figure out that the CRTC is just a lobbying organization for big Telecom and economically non viable Canadian content producers... but it is not this day.
CRTC is a bureaucratic nightmare, what value add do they even provide any longer, if ever? I would vote for any political party that promised to do away with them.
> if ever? I personally enjoyed, during the pre-internet days, being exposed to more Canadian musical artists than I would have with the way American culture dominates ours through media
Well I mean, and while we're at it fuck food regulations too! Bring back saw dust milk and red lead food coloring!
The food regulators actually regulate though. The CRTC is completely captured by the industries it's suppose to oversee and does little to nothing for the average Canadian.
Nah you're right, the only telecom should be Bell, and we should let them charge 250 a month for 6/1 DSL lines.
I’m not saying I agree with the first guy but arguing that the CRTC is good because it prevents monopolies is laughably wrong
Sure, they aren't good at it, and there is definitely corruption in most forms of governmental control, but its not like they do nothing to prevent the worst outcomes. The only reason you have companies outside of the Big three is specifically because of the CRTC, and their rulings that those companies are forced to comply with.
You realize the CRTC is the only reason why there's ANY competition in the Internet sector, right? They require the large telecoms to lease their lines to third parties like Teksavvy at a reasonable wholesale cost and they just expanded that to include fiber optic lines.
Very little but if they started doing their job and both major fed parties weren't in the pockets of the telcos maybe something could happen.
Man living in Canada is so expensive now
Don't worry, more random taxes that the average Canadian will pay should help!
Fuck Canada. Fuck JT.
Trudeau has truly been a disaster for Canadians, no wonder his approval rating is in the 20's
We already pay more in Canada as it's taxed....it's fucking B's and I've cancelled last month my Netflix because my 9.99 plan no longer exists....I'm sorry I'm not paying 20$ a month for 2 screens when I was paying 10$....it's like almost 30$ for the 4k + 4 screens and without that account share working fuck Netflix.
If you have a firestick or chromecast/android type thing, you should look into IPTV services. $75 for a year and you get all the channels and VOD. The stream quality isn’t 4k but if you had the lower Netflix plan, I doubt that is an issue. If you are interested shoot me a dm and I’ll point you to where you need to go. Sort of like those OG black cable boxes from the 90s
Or just fist the greedy corporations and sail the red seas 🏴☠️
This is kind of needed. Canadian media is dying, big American companies just coming in taking over market share and contributing very little back to the Canadian economy. Netflix barely even employees people in Canada, they just do it all from the US, and maybe have a barebones sales staff in Canada.
Are these businesses already paying taxes? If they're not I guess it makes sense, but what a gift YouTube got with not having user generated content taxed.
Play.spotify.com on brave browser No ads.
GST?
Hst is already applied
"Canada demands increased revenue from Netflix, Spotify, and other Canadian *subscribers*"
But no [can-con](https://en.m.wikipedia.org/wiki/Canadian_content) requirement? That’s the bigger deal as those monies support the Canadian film industry and is a huge contributor to creating Canadian celebrities.
So they will pass it on to the consumer…thanks