The Canadian Government Is Teaming Up With Netflix - Here's Why

Federal government's Creative Canada policy heavy on digital media, with “adjustments” for Canada Book Fund

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"Our goal is clear: As a government, we have a core responsibility to continue to protect and promote our stories and our culture", Joly said.

The government said it was seeking agreements with other digital players to invest similarly in the creation and distribution of Canadian content.

Netflix is also bound to supporting French-language content through a "market development strategy for Canada", which will include "pitch days" for producers, recruitment events and "other promotional and market development activities". Canadian media companies would like to see Netflix subjected to the same regulations, but the government is not imposing them on the streaming service in the new policy.

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"We look forward to continuing our work with Canadian talent, producers, broadcasters and other local partners to create Netflix originals in Canada for many years to come". This has raised concerns over the loss of Canadian content, worries over how to compete with streaming services and calls for streaming taxes - with the proceeds going to fund Canadian programming. Reactions from Canada's media providers are mixed, but more details about Netflix's deal with the Canadian government still needs to be revealed.

The trend started in 2012 two years after Netflix began offering streaming services in Canada - and is expected to accelerate over the coming years, said the Convergence Research Group, which authored the study.

She also said the recent rise in Netflix fees in Canada were not connected to the Liberals' new plan.

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Joly had previously ruled out a "Netflix tax" during the consultation.

The government on its side will give a boost to the Canada Media Fund and spend United States dollars 125 million on a creative export strategy.

Ted Sarandos, Netflix's chief content officer, added: "Fans around the world are already falling in love with Netflix originals produced in Canada".

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Ottawa will seek to expand worldwide co-production treaties to grow production budgets and attract financing partners, she said.

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