Netflix to launch in Canada

Movie rental service Netflix will finally make an international debut when it launches in Canada sometime this fall, although pricing for the new service hasn’t been revealed.

Netflix charges $8.99 up to $16.99 for monthly subscription packages in the United States.  The Canadian service will initially launch in English only, but a French version has also been promised.

Netflix to launch in Canada

Netflix currently distributes movies via physical DVD’s in the mail as well as online video streaming that supports PCs, mobile devices, video game consoles and set-top boxes.  The streaming features are currently only available to United States based Netflix subscribers who pay at least $8.99 per month.

Analysts expect Netflix to expand in other international markets in the future, as the movie rental company has enjoyed increased broadband growth rates.  However, Netflix will have to delay future international launches if it struggles to attract new subscribers north of the border.

Netflix may have to create custom movie distribution agreements with other movie copyright groups in Canada and abroad — the company has had trouble dealing with some movie studios, but has also been able to secure custom distribution agreements.

Expansion into Canada is more good news for Netflix, who also recently announced a new distribution deal with Relativity Media, a major victory that will allow subscribers to instantly stream more new release titles.

This is just further proof the company has been able to stay at the forefront of media delivery.  Netflix transitioned from a DVD-by-mail company into a multi-platform streaming company that has put Blockbuster and other movie services in danger.

A few months ago, Netflix admitted streaming content costs more than its DVD-by-mail business model, but said it’s a necessary cost to ensure it stayed ahead of the market.