they'd need to get every ISP and VPN provider in the country to block access to it,
You make that sound hard.
If they block it from about 5 companies that'll cover most of the countries reasonable choices, and most of the remainder are just resellers of bandwidth from the big ones.
And blocking VPN providers? Why bother? Only a small fraction will bother using one. Just because people -can- get around it, doesn't mean most of them will bother trying.
Meanwhile the cable and dsl providers would probably jump for joy at at a government ordered netflix ban. It eliminates a significant competitor, and a huge source of bandwidth usage all in one fell swoop, and if anyone complains its the governments fault.
So no, your full of it, if you think netflix can just 'laugh in their faces'. It would be pretty easy for Canada to toss them out if they wanted to. Blocking access at the cross-border links, and seizing any netflix equipment in the country. I'm not in favor of any such draconian action, don't for a second think it isn't both possible and easy.
then continued on happily taking credit card payments and sending traffic to Canada.
Given they have to license content separately specifically to send it to Canada this would not make the slightest bit of sense. The ONLY content they can turn a 'blind eye' to, would be Canadian's paying from a US address/US card and funnelling traffic through a VPN. And they can only do THAT as long as its not a big enough issue to get them in trouble with the rights owners -- who will start demanding netflix blacklist VPN providers etc.
It's not Netflix fault that Canada doesn't produce any noteworthy cultural exports. Lots of other good stuff, sure, but TV and movies not so much.
Two words: "Hollywoord North" I mean seriously, Canada may not produce much worthwhile truly independent content but its been very successful at using Canadian content requirements coupled with tax incentives to create a pretty substantial tv/movie production industry where one would otherwise not exist, creating jobs, and funneling some money into Canada in the process.