We are not paying VOD tax in France, Netflix says

In a letter to Canadian regulator the CRTC, Netflix says it has not agreed to French regulations regarding film distribution and VOD taxes.
September 23, 2014

Sorry we couldn’t be more accommodating, Netflix appeared to tell the CRTC on Monday.

In response to a CRTC demand on Friday to release information such as subscriber numbers, the U.S. streamer withheld sensitive business data, only offering up screen shots of its Netflix Canada website and other general business information.

However in a separate Sept. 22 letter obtained by Playback Daily, Netflix does provide answers to certain undertakings promised to the CRTC.

For example, Netflix tells the CRTC it has no agreements to pay a VOD tax to the French or Dutch governments, nor did it conclude an agreement with the French government to only show films that are over 3 years old in the distribution market.

“Netflix’s service in France respects the release windows for theatrically exhibited films,” the U.S streamer advised the regulator — meaning that it respects deals it has in place with the content providers, not the French Culture Ministry.

Also regarding its Netflix France service, the U.S. company told the CRTC it has not discussed with the French government local oversight of the algorithm used by Netflix to ensure French content is “appropriately positioned” on the home page.

Back in Canada, Netflix disclosed to the CRTC that, regarding the question of federal and provincial privacy laws, Netflix “complies with the requirements of the Personal Information Protection and Electronic Documents Act, S.C. 2000, c. 5, in addition to other Canadian (federal and provincial) privacy laws that may be applicable.”

“Netflix remains willing to continue discussing these issues with the commission in a constructive manner. If you have any questions in connection with the foregoing, please do not hesitate to contact the undersigned,” Wright told the CRTC in her Sept. 22 correspondence.

Image: Cathedrale de la Major/Marseille Tourism

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