Netflix fends off criticism over Canada investment

(Reuters) – Netflix Inc (NFLX.O) said on Tuesday it had received formal approval to start a C$ 500 million production unit in Canada and sought to quell talk that it had asked for special tax benefits for investing in its first such unit outside the United States.

The maker of Emmy-winning shows such as The Crown and Black Mirror said last month it was in talks with the Canadian government for an investment over a minimum of five years.

That decision was part of a broad review under Canadian Heritage Minister Melanie Joly, which included plans to modernize funding programs and review copyright, broadcasting and telecommunications legislation.

The government did not tax Netflix as some had proposed, opening the streaming service provider to criticism in Canada. (

Netflix said on Tuesday its Canadian investment was approved under the Investment Canada Act, and that no tax deals were part of the approval to launch its new Canadian presence. But is also said it was not paying sales tax in line with existing Canadian laws.

“Netflix follows tax laws everywhere we operate. Under Canadian law, foreign online services like Netflix aren’t required to collect and remit sales tax,” said Corie Wright, Netflix’s director of global public policy. (

The company also said it would spend an additional C$ 25 million ($ 20 million) over five years toward “market development” in the country, hosting recruitment drives and cultural events to boost the local production community.

Reporting by Nivedita Bhattacharjee; editing by Patrick Graham and Saumyadeb Chakrabarty

Our Standards:The Thomson Reuters Trust Principles.


Exclusive: Former HPE Executive Named CEO of This Cloud Company

Saar Gillai brings years of networking experience from Cisco, HP, and HPE to Teridion.

Saar Gillai, a former Hewlett-Packard Enterprise senior vice president, is now CEO of Teridion, an Israeli-American cloud-based networking company.

Teridion, with offices in San Francisco and Israel, aims to speed up the transit of content and data from one data cloud to another. The four-year-old company puts its software on rented servers in Amazon amzn Web Services, IBM ibm SoftLayer, Microsoft msft Azure, and Google goog Cloud Platform. There it acts as a traffic cop for data that needs to move. Teridion’s technology finds the best route between any clouds at a given time, Gillai tells Fortune.

“We map the Internet in real time and change routes on the fly, so if there’s an outage in one area, we route around it,” he said.

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Teridion customers include Box box and Egnyte, both of which rent cloud storage capacity to customers. Those companies use their own data centers as well as data centers run by the big cloud providers as needed. That means it’s necessary for them to be able to move data between cloud data centers to get the best price. The major cloud players often cut prices to compete with each other. That makes such data transferring a key concern to cost-conscious customers.

Related: Welcome to the Era of Data Center Consolidation

Gillai has a lot of experience in networking. He was at Cisco csco from 1998 to 2005 before joining 3Com, a Cisco rival that was acquired by pre-split Hewlett Packard in 2010. As senior vice president, he helped lead HP’s cloud computing effort for two years. Then in 2014, when HP split into HP Inc., hpq and HPE hpe , he went with HPE where he remained until last year.

As CEO, Gillai succeeds Chris Keene, who held that position for a year.

“Saar Gillai is well respected in both the cloud and networking worlds,” Teridion chairman Ronnie Kenneth said in a statement. “He brings more than 20 years of building innovative and successful businesses,”