Wednesday, February 23, 2011

Streaming video a threat to cable: Producers' group

An association representing television-and film-production companies says policymakers need to consider whether Netflix and similar Web services should be charged a fee to help fund Canadian productions. The Canadian Media Production Association believes Netflix, and other services that offer streaming video content, such as Hulu, Google TV, Apple TV and iTunes, represent a threat to the current business models of the cable companies. If people quit cable, or even scale back to use these Web-based services, it will have an impact on the funding of Canadian content. Cable companies in Canada are required to use part of their revenue to fund Canadian productions and must also dedicate part of their programming to Canadian content, but Netflix and others have no such requirements.

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