Netflix

Netflix Canada Responds to UBB

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.

Netflix Now In Canada

Netflix is now online in Canada and offering unlimited film and television downloads at $7.99 per month.

Unlike their American counterpart, they are not currently offering rentals by mail. But Canadians can now stream videos to their desktop and laptop computers, Wii, PS3 and mobile devices like the iPad and iPhone.

The company promises to add the XBox 360 and internet compatible Blu-ray players and televisions shortly to their service. And the service will be available on the Apple TV device soon as well in Canada.

BTW, those wishing to try the service can do so for one month, for free. Details can be found on the Canadian Netflix site.