14 DAY TRIAL // Netflix is standing up for its users and it’s refusing to hand over confidential subscriber information to the Canadian broadcast regulator.
The company was ordered to provide the Canadian Radio-television and Telecommunications Commission (CRTC) with customer data, as well as information related to the Canadian content it creates or provides to subscribers.
Netflix isn’t bending to the will of the regulator, however. While the company admits to responding to some CRTC requests, it will not be handing over confidential and competitive sensitive information. However, Netflix says it is open to work constructively with the company.
CBC News notes that the statement comes in the middle of regulator’s consultation hearings regarding the future of broadcasting rules where they’re discussing the option of allowing cable customers to create their own personalized cable packages.
On the other hand, Netflix isn’t your regular broadcaster, so it’s rather unclear even if the regulator can enforce its will upon the company that streams TV shows and movies over the Internet.
Michael Geist, law professor at the University of Ottawa, thinks that Netflix felt pushed into the corner on the bigger issue of CRTC’s authority to regulate online new media. “The issue has been simmering for over a decade, but everybody took a hands-off approach. Once there was a threat from the CRTC on Friday, it really did force Netflix’s hand,” Geist said.
Netflix: Regulating the Internet will hurt customers
Netflix has already stated that trying to regulate the Internet to help boost Canadian content will hurt customers instead of being beneficial for them. The statement was made during one of CRTC’s hearings last week, where other twelve organizations testified in front of the regulator.
Netflix and other online video providers have a high impact on traditional TV broadcasting, which is the main issue that the Canadian regulator is picking on.
Netflix Global Public Policy Director Corie Wright said that the company believes the regulatory intervention online is unnecessary, adding that viewers should be allowed to vote with their dollars and eyeballs to shape the media marketplace.
CRTC didn’t exactly like the attitude adopted by Netflix and the fact that the company didn’t immediately comply with the request for subscriber information. Not only would providing such info represent a violation of customer privacy, but it would also put Netflix at risk as a company. More specifically, the US company is concerned that the data could find its way to the public, which would make the service vulnerable to exploitation by competitors.