Shaw, which owns cable, satellite-TV, and broadcast-TV operations, reportedly told a Commons heritage committee last week that those foreign services are "undermining" the ability of Canadian broadcasters to pay for domestic content and sapping their revenue streams. Shaw pays about $150 million annually for local content and to help keep producers flush through the Canadian Media Fund. (See Shaw Puts Up $2B for Canwest.)
"Why should we be burdened with anchors and costs? The reason Netflix can offer an $8.99 service is because they have no costs other than acquiring the content," Shaw president Peter Bissonnette said, according to The Globe and Mail.
His concerns are being raised weeks after Netflix launched a streaming-only service for the Canadian market. (See Netflix Streams to Canada .)
Bissonnette told the committee that Netflix streaming is already consuming about 5 percent of Shaw's capacity. Shaw, like fellow MSO Rogers, employs a usage-based Internet service model that could eventually take hold in the US because the Federal Communications Commission (FCC) 's latest attempt at codifying network neutrality rules would apparently allow for it. (See Net Neutrality Sweep: Everyone's Ticked and Rogers Takes Internet Meter to the Masses.)
— Jeff Baumgartner, Site Editor, Light Reading Cable