Netflix to Bow Canadian Streaming Service21 Sep, 2010 By: Erik Gruenwedel
Netflix co-founder and CEO Reed Hastings Sept. 22 will be in Toronto to formally bow a subscription-based streaming service — the first international business venture for the Los Gatos, Calif.-based online DVD rental pioneer.
Spokesperson Steve Swasey said Hastings would provide further details about the service during a press conference.
First announced in July, the streaming-only service is expected to launch at around $9 per month, which Netflix executives have characterized in previous presentations as an optimal price point for digital distribution.
Netflix has said that 50% of its 14 million subscribers watch at least 15 minutes of streamed content (mostly TV programming) per month. Since 2008 Netflix has significantly increased its subscriber base through expansion of its Watch Instantly streaming service via a myriad of media devices, connected televisions and video game platforms, including Sony’s PlayStation 3, Nintendo’s Wii and Microsoft’s Xbox 360.
Netflix’s move into Canada has reportedly resulted in consolidation among several cable operators (Shaw Communications and Canwest Global Communications Corp., for example) seeking to bow lower-priced Web-based content distribution services.