Netflix in Canada: Entering the Fray

Netflix, Inc. was a fast-growing U.S. DVD-rental and video-streaming service that had just entered the Canadian market. This case covers the period immediately following its entry into Canada with a low-price monthly subscription service through which viewers could get video content streamed to their TVs or multimedia devices. Netflix’s entry threatened to change the way video content was viewed in Canada and, as such, it had the potential to heavily impact a number of incumbents in Canada, such as Blockbuster. Netflix’s streaming-only model in Canada created a new service for customers that was not necessarily as strong as the offering in the United States; for instance, the range of titles was relatively limited. The Netflix entry also provided potential benefits for some players, such as Rogers, who could profit from increased Internet usage. This meant that the reaction from players was not immediately obvious.