CANNES – Heritage minister Mélanie Joly in late September surprised the industry by unveiling a $500-million agreement with Netflix to make Canadian content that was light on deal-points, including how much the U.S. streaming giant currently spends north of the border.
To understand cash-rich Netflix's Canadian ambitions, just follow the money.
"They already spend at that level, maybe more," Michael Hirsh, CEO of WOW! Unlimited Media, said of Netflix's $100 million a-year pledge for Canadian content. He should know. Netflix was a major buyer of Hirsh's kids TV content when he helped run DHX Media, and WOW! recently sold Netflix the Konami video game-based Castlevania series.
A Canadian industry focused on Netflix picking up local primetime dramas like Anne and Alias Grace has overlooked the streaming giant looking to Canada as it ramps up originals that target kids and parents.
WOW! Unlimited's Hirsh said his company has five or six unspecified kids series in production for Netflix that typically are only unveiled a few days before the U.S.-based streamer launches them on its global platform.
Other Canadian animated series besides Castlevania already on Netflix's worldwide platform include Entertainment One's Cupcake & Dino and Guru Studio's True and the Rainbow Kingdom.
Andy Yeatman (pictured), Netflix's director of kids and family content, on Sunday walked on stage at MIP Jr. in Cannes as a clip from Beat Bugs, a Canada-Australia co-production where each episode features a Beatle song, played in the background.
Ted Bentley, chief creative officer at Atomic Cartoons, which does the 3D animation on Beat Bugs, said his company has three other animated series in production for Netflix on a fee-for-service basis, where the U.S. video streaming giant retains all rights. He added Netflix, Amazon and Hulu represent a growing market for their series, now that funding from traditional Canadian broadcasters is shrinking.
"Netflix, Amazon and Hulu, they're spending real money. They want high end content and they're willing to pay for that.” – Ted Bentley, Atomic Cartoons
"Netflix, Amazon and Hulu, they're spending real money. They want high end content and they're willing to pay for that," Bentley told Cartt.ca
Netflix's Yeatman, during his MIP Jr. address, said his company is aggressively growing its kids programming with international appeal as the streamer's young viewership is growing faster overseas than in the U.S. market. "We have more subscribers watching kids and family programming internationally than in the U.S.," he told the MIP Jr. audience.
Yeatman outlined a co-production model familiar to Canadian producers: Netflix completes a project's financing, nabs the worldwide rights outside of a home market, while the U.S. streamer takes the second window after a local market broadcast premiere. That way, Netflix Canada subscribers can access a kids and family series after it bows on a Canadian broadcaster.
Yeatman said in 2017 Netflix will stream 37 originals for kids and family, including from Canada, after launching 15 original programs targeting children in 2016.
He added Netflix's goal is to get every member of a subscribing home, including children, having a favourite show. "It's the parents who sign up for Netflix and keep paying the monthly fee, Yeatman explained.
The global kids content boss wasn't available to talk to Cartt.ca on Sunday, to respond to speculation Netflix may acquire the non-broadcasting assets of DHX Media (which is for sale) as it doubles down on original kids series that keep worldwide subscribers happy.
Atomic Cartoons' Bentley said Netflix nabbing DHX Media could "narrow the way" the streaming giant buys shows from Canadian producers. "It could make it more difficult to produce shows," he added.
However, Fred Siebert, Wow! Unlimited chief creative officer, said his company is riding the wave of digital disruption, and keeps iterating with new linear, OTT and mobile content as legacy distribution models fracture. "I don't think we've seen the whole evolution of this new business model, because Netflix has only recently become a producer," Seibert argued.
Netflix Canada competes against Winnipeg-based on-demand kids’ streaming platform Ameba TV, but president and CEO Tony Havelka tells Cartt.ca his ad-supported and subscription Internet TV service is more niche than the U.S. behemoth.
"Netflix is at a completed different level," he insisted, while noting he has added Ameba TV to Amazon Prime, allowing Amazon Prime customers unlimited access to Ameba’s kids content as a way to compete with Netflix.
"They deliver viewers. They deliver payments," Havelka said of his tie-up with Amazon.
MIPCOM, which launched Monday, continues through Wednesday in Cannes.
Photo taken from MIPCOM web site.
