Netflix to double content acquisition in Canada

Netflix Inc. reported a profit for its Canadian operations in the third quarter of 2011 and said it plans to double its spending on acquiring content for the Canadian service. “We're excited enough by the opportunity in Canada that, over the next year, we are doubling our quarterly content spending,” the company wrote in a note to investors. The company said it will start by "adding in Q4 hit feature films in their first pay window, such as 'True Grit,' 'Black Swan,' and 'The Chronicles of Narnia: Voyage of the Dawn Treader,' along with considerable high profile feature films just coming out of their first pay window, and premium catalog film titles, as well as many TV series.” The company said the emphasis on adding content will mean the Canadian service “will have comparable content quality" to what it offers in the U.S. and that it will be spending a population-adjusted equivalent. “This investment will push contribution margin back under in Canada for a few quarters, and our plan is to achieve consistent positive contribution profit starting in Q3 of next year, two years after our initial launch," the note said. Netflix also announced that it plans to launch in the U.K. and Ireland in the first quarter of 2012. The company's third-quarter results posted a decline in about 800,000 subscribers in the U.S. market following a price hike.

Netflix to double content acquisition in Canada

Brief | October 25, 2011

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