Netflix in Canada: Entering the Fray

Netflix, Inc. is a fast-growing U.S. DVD-rental and video streaming service that has just entered the Canadian market. This case covers the period immediately following its entry into Canada with a low price monthly subscription service whereby viewers could view video content streamed to their TV’s or multi-media devices. Netflix’s entry threatened to change the way video content was viewed in Canada and as such it had potential to heavily impact a number of incumbents in Canada. Netflix’s streaming only model in Canada created new service for customers which was not necessarily as strong as the offering in the US, for instance the range of titles was relatively limited. The Netflix entry also provided potential for upside for some players. This meant that the best reaction from players is not immediately obvious.