When it's American broadcasters going after Canada's icravetv, American courts had no problem getting a US court order that basically ended the service, because it was a rebroadcaster.
Can anyone seriously argue that Netflix isn't also rebroadcasting TV content?
Two weights, two measures. What a mess! And really, whatever solution will be a mess.
The difference is that NetFlix gets permission for rebroadcasting -- they have a license. That's why they don't have the same selection that other rebroadcasters do -- because they're licensing content on a show-by-show basis, not taking the OTA stream and routing it over the Internet.
This case is kind of unfortunate, as both the CRTC and Netflix are in the wrong, and both sides are unwilling to back down and come to a reasonable compromise, as that would threaten their power base.
The problem here is that the CRTC can stop all payment via Canadian credit cards to Netflix, and Netflix can support customers paying via alternate methods who are willing to stream over a VPN -- so the result of this conflict is that both sides lose, and the citizen (not consumer, although them too) loses even more.
But this whole thing is really about Rogers and Shaw lobbying the CRTC to block foreign competition for their new Shome project. CRTC is probably quite happy to be flexing their "muscle" in this situation after continually taking a beating from US lobbying interests on allowing US content onto Canadian networks.
So yeah; it's a huge mess to sort out.