Soon Netflix is going to face some serious competition in Canada, as not one but two companies are gearing up to launch their own video streaming products. These two companies are actually the top telecom carriers in Canada and are known as Bell and Rogers. The two carriers are eager to bring in their own video streaming products, which could give Netflix tough competition in the region. On the other hand, Netflix is not afraid of the competition and is looking forward to the competition at the highest level. Besides being one of the most popular services in Canada, the on-demand media streaming service also possesses rights to a large catalog of original and exclusive content.
During an interview with The Globe and Mail, Netflix CEO, Reed Hastings said that, “Linear television has been very successful … but it’s ripe for replacement. They are now realizing they have good content and that they need to make it on-demand and convenient to access. They are a few years late, but that won’t matter in the long term. What will matter is if they can get in there and really improve the television experience.”
The Globe and Mail also reported that, “The number of subscribers to traditional television services continues to increase in Canada, but the rate of growth has slowed considerably and is expected to begin declining within a few years as more viewers turn to alternatives for their content. About 12 million Canadian households subscribe to traditional television packages, compared with two million for Netflix. But Netflix is on a different trajectory, doubling its number of subscribers in the past year as it bulks up on content and introduces original shows such as Hemlock Grove and House of Cards.”
However a majority of consumers including Netflix customers think that the two carrier do not have a chance to beat Netflix in the video streaming business. A online commenter said that the strategy of Netflix is to “offer a good service at a fair price” with “no lock-in and no game playing,” whereas the strategy of Bell is to “charge as much as possible for a service as poor as they can get away with, then back it up with horrible customer service and onerous contract terms.”
In contrast Netflix provides high quality service, which enabled the company to boost its user base in Canada by 50 percent during last year, according to the Media Technology Monitor’s report.
Source: TechVibes
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