Netflix isn’t about to open its piggy bank to subsidize Canadian content production.

“We’re spending now on Canadian content by licensing it. We’ll be expanding that. But basically we’re guided by what subscribers want to watch,” Netflix CEO Reed Hastings told Playback Daily on Tuesday.

Canadian content creators have urged the CRTC to bring Netflix Canada into the country’s regulatory framework, from where it would help underwrite local indie production.

But Hastings, in Toronto to tub-thump for Netflix Canada, ruled out direct broadcast subsidies for Canadian programming.

“We don’t think that should be applicable on the Internet,” he said.

The Netflix boss, in a fight with major Canadian Internet service providers (ISPs) over usage-based billing, said his general counsel met last week with the CRTC to denounce data caps for Canadians.

“The main thrust of our argument is caps are not a good way to deal with congestion. And we’re not sure there really is much congestion,” Hastings argued.

“But caps are an excellent way for incumbent companies to raise revenue and that’s most of the motivation,” Hastings added.

Netflix Canada on Tuesday said it has reduced the default settings for its picture and audio quality, and so the bandwith usage, to protect subscribers from facing overage fees.

“The ISPs, when they put in caps, the charges are very lucrative, so we’re trying to make the best service possible,” Hastings said.

The Netflix boss ventured that, over time, Canadian ISPs will raise their Internet data caps, and so put less pressure on Canadian online video viewers.

Netflix Canada this summer will launch a French language website, and start licensing French-Canadian programming.

But Hastings ruled out opening a Canadian office for the U.S. video streaming giant, adding Netflix Canada will continue to be run from his company’s California base.