Netflix proves need to deregulate

6 06 2011

The article can be found here

The stats and the April article can be found here here

Discussion Questions:

1) Do you think its a good idea to deregulate all of the existing regulation imposed by the Canadian Radio-television and Telecommunications Commission?

2)  If Netflix was not regulated and the regulations on the Television industry was not lifted, do you think it will greatly damage the Canadian Television industry in the long run?

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13 responses

6 06 2011
sidkhn

Yes, if netflix was not regulated it would definitely damage the television industry in the long run because first its an american company, meaning all the profits and revenue is being given to the American company thus not bringing in revenue for the canadian televison industry. Secondly, Netflix is a threat to other competitive industries such as blockbuster, rogers etc. Netflix is offering free movies and tv shows for just $10 a month which is insane. So i think the canadian government should definitely keep regulating Netflix.

6 06 2011
Carolyne Wang

1. It is not a good idea to deregulate all of the existing regulation imposed by the CRTC because regulation obtains funds for small Canadian radio stations and Canadian programs that help retain Canadian culture. Without regulation, it is possible that less Canadian content will be in the media and that more American content will begin to dominate Canadian programming and assimilate Canadian culture into American culture. Furthermore, there would be no source of funding for small TV and radio stations, which provide local news and traffic updates to specific regions of Canada.
2. If Netflix was not regulated but other companies were, there would a significant change in consumer demand as more people would choose to switch to Netflix, which is much cheaper and offers more options. Lack of regulation for Netflix would definitely decrease the market share of regulated broadcasting companies since they cannot provide the same services that Netflix does. Damage to the Canadian television industry would occur to some extent, so I believe that the CRTC needs to find a way to regulate new forms of media broadcasting in order to ensure fairness among all broadcasting services, but at the same time allow better quality and less expensive telecommunications services to consumers.

6 06 2011
Steven

If everything was left the way it is now concerning the regulation of Netflix vs. the rest of the TV broadcasts, the Canadian economy would definitely be hit. All the people who subscribe to Netflix would end up with most of the shows, if not all the shows that everyone else has, on demand. If you could get everything you want on demand, why would you want regular cable? I know a few people who used that logic, and actually switched to Netflix and dropped their cable/satellite subscription. The money you pay then goes out of the Canadian economy, whereas, if you had cable from Rogers, the CRTC would have regulatory collections in place, and promote Canadian stations and programs, furthering the film culture, and economy, of Canada. In short, it wouldn’t be good for Canada if things were kept the way they are now.

6 06 2011
lindashidilei

If Netflix was not regulated but other broadcasters did, the situation would be unfair to other companies because of the prices. Netflix isn’t subject to Canadian regulations, as a result, the prices they set could be way under the common prices Canadian pay before the firm entered Canadian market. Other companies could have a huge drop in their revenue compared to Netflix just because Netflix doesn’t contribute tax to Canadian government. Prices could truly make a difference in term of selling products to Canadians even though their products are a little bit differentiate.

6 06 2011
lindashidilei

If Netflix was not regulated but other broadcasters did, the situation would be unfair to other companies because of the prices. Netflix isn’t subject to Canadian regulations, as a result, the prices they set could be way under the common prices Canadian pay before the firm entered Canadian market. Other companies could have a huge drop in their revenue compared to Netflix just because Netflix doesn’t contribute tax to Canadian government. Prices could truly make a difference in term of selling products to Canadians even though their products are a little bit differentiate.

6 06 2011
alexeig

Its not a good idea to deregulate all of the existing regulation imposed by the Canadian Radio-television and Telecommunications Commission, because then there is basically no point of other businesses establishing in Canada if were not getting any benefit from them. Since NetFlix is so successful in the States, deregulating would be just taking advantage of the freedom of creating profit in our country. No money would be contributed to Canada’s economy as well as small local broadcasting stations would go out of business and create job losses. If we don’t regulate NetFlix than there’s no point of them doing business here in Canada. Not regulating would be taking a huge risk for this country.

6 06 2011
aenamorado

It is not advisable to deregulate the existing regulation imposed by the Canadian Radio-television and Telecommunications Commission because of the effects it will have to our Canadian small radio stations and culture in general. Funding as well as focus are given to these small broadcasters and this is enabled through these regulations. This is more of a protection for small media groups from the typical small town radio to the local news. Because if we don’t have the regulations protecting Canadian media, we risk a sort of overflooding of American culture and the death of the small-time Canadian media source.

7 06 2011
mikeseo093

1. The popularity of Netflix in Canada is constantly increasing, and will likely increase if no actions are taken. If the Canadian broadcasting companies are kept regulated, they would not be able to compete with Netflix. For example, because Netflix is not a Canadian company, they can set the price low enough such that many people would use Netflix instead of Rogers or other Canadian companies. If the service is similar, it is obvious that most people will use the one with cheaper price. Therefore, it should be deregulated so the Canadian broadcasting companies can actually compete with the American companies like Netflix.

7 06 2011
heshanim

1) I don’t think deregulating is the best idea, because it might shut down all the other small radio stations, which is not good for our country. Also, if it is deregulated our media might not have any program based on our likes/wants because the entire media will be taken over by other foreign programs. Thus, I believe it shouldn’t be deregulated.

7 06 2011
Nahee Kim

If netflix is deregulated, this could really hurt the industries.The reason why it should be regulated is becuase it is not good for the economy. if the are deregulated, netflix will lower the cost which is good because it will increase the customers. However, this will have huge negative impact on other small industries. Other industries will be shutting down becuase of netflix having the lowest with more customers. Therefore, Netflix should be regulated and face the same industry rules in order to be fair for all other industries.

7 06 2011
carolinamilktea

Regulation versus Deregulation is a pretty difficult question. On one hand, we have morality to consider: as canadians, we want to support canadian businesses and give them the home advantage, but at the same time, we don’t want to alienate american businesses either, as they bring a lot of investment and employment into canada. On the flip side is the economic perspective: taxes can be made off of media broadcasters that will help much-needed smaller media outlets and generally benefit coverage; however, the playing field should be even to allow for a competitive market. The current market system is pretty outdated, and I’m sure that one of the things Netflix is good for is urging large service providers such as bell and rogers towards a more convenient, digital path.
As for the treatment of this situation, I would allow netflix to continue to operate in canada, provided it perhaps set up a mirror company here whose stocks could have a considerable canadian ownership. This would keep them within the canadian limits, give taxes to small new outlets, and force the service standards to raise themselves.

7 06 2011
Maria Li

I do not think deregulating netflix would be the best for the economy. If it were deregulated, netflix would be able to set their prices as low as they want. This might cause the downfall of other businesses in the same industry. If netflix is deregulated, Canadian businesses in the entertainment industry will not be able to compete with netflix. Thus this is bad for the Canadian economy in that domestic Canada businesses might not gain customers.

7 06 2011
Maria Li

That was the comment for question number 1. I forgot to put the number before it.

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