Netflix isn't really "online". Yes, it uses the internet as its transport layer. But it in all other respects is a closed content delivery platform, akin to a cable subscription but with the convenience of on-demand rather than traditionally scheduled broadcast TV.

The CBC has rightly identified this. They know that most people get Netflix by plugging a box into their TV, just as they used to with a cable box. The CBC is not proposing the regulation of the web, it's proposing regulation of a platform that is essentially cable delivered over a different pipe.

Edit: moreover, the content that is on Netflix isn't open like the web, it's closed content protected by regional distribution contracts.

How would you regulate Netflix then? The CRTC mandates that 55% of broadcasted content in Canada through traditional means is Canadian based content, with on demand streaming services I can't possibly see a healthy way to regulate this.

What about YouTube premium? They offer content more akin to traditional television, and it's very much American dominated. Is that "not really 'online'" either? Does it need the same manner of regulation that it seems they're looking to impose on Netflix?

Both Netflix and YouTube have far more content than what is promoted up front to every user. The regulation need not insist that 55% of the content archives be Canadian (that would be absurd). The regulation could focus on what content is featured on the home page.

So nobody need fear their favourite Netflix show being taken away. This would only affect what users see when they first sit down to watch. That would have a powerful effect. I think it would be enough to keep Canadian shows going so that Canadian culture can be maintained in a distinct form.