A conference call for investors was held on January 26th, 2011 in regards to the performance of the Canadian version of Netflix in the last quarter of 2010, durring which CEO Reed Hastings addressed the usage based billing issue.

In response to a question relating to the impact of usage based billing on his company, Reed Hastings stated that the company is “definately worried” about the situation. And that he is concerned that some of his company’s clients might not discover their UBB limitations until one or two billing cycles, describing this issue as a pottential “significant negative for Netflix“.

Mr. Hastings believes that the cost to deliver a gigabite to consumers is marginal, at “well less than a penny“, so he believes his company will be able to negotiate reductions of the associated fees and higher caps with the help of some of Canada’s consumer groups and internet providers.