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We're not an effective cable competitor.ĬBC: Do you hope to eventually get those shows from the big networks eventually, and how soon might it happen?
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For people who love movies and TV shows, and who want the on-demand experience, it doesn't cost that much to also get Netflix. It's not quite as useful, but there's still a great market for it. They use the motorcycle sometimes when the weather's good, and it's fun and joyful and doesn't cost as much as a car. People use a motorcycle and they also have a car. The example I use is that we're more like a motorcyle and cable is more like a car. You don't get something that's about one-tenth of the cost and have it be an effective substitute. It's not priced as a substitute - it's so much cheaper. Hastings: We don't have any sports content, we don't have any reality show content, current seasons in television we generally don't have, so you're right, it's not a substitute for cable. What do you say to those who are disappointed? The real focus is getting content that people want to watch and that's manifest in subscriber growth, so if we program the service really well and have lots of great content at this incredibly low price, then we'll succeed.ĬBC: Many Canadians had hopes and expectations that Netflix could replace their cable and satellite service, but given the dearth of television shows available, that doesn't seem to be the case as of yet.
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You can add thousands of titles that no one wants to watch and then put out good press releases. Hastings: No, and one of the reasons we don't is that title counts can be so misleading. It's more than any one person can watch, so we feel really good about the Canadian content we've got.ĬBC: When other similar services have launched here, they've had projections on how many titles they wanted to add on a monthly basis. In terms of streaming content, it's really great content. Hastings: In the states, it's in combination with DVD, so it's certainly a recognition that we don't have DVD with it. They like that and we'll be able to get more content over time.ĬBC: Is the lower price in Canada ($7.99 versus $8.99 in the United States) a recognition that you don't have as much content available? Ultimately, the monies flow to the producers of the content, and there may be different intermediaries and affiliates, but basically when we put new money into the system and essentially bid up the price on the content, that's good for the content producers. With films it's a little more scattered, but that's generally how it works. If you want the rights to Desperate Housewives in Canada, you have to speak to CTV, while in the U.S. The hope is that we can get the word out with Canadians about what a great value this is - $7.99 a month for unlimited viewing - and if lots of people subscribe, than we're able to put more money in the content and make the service better.ĬBC: With licensing, generally speaking it's the studios that own the rights to shows and movies, while in Canada it's the networks.
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But the big driver is how much can we spend? The more that we can spend, the more we can license. In the reverse, for Dexter we've been able to do a deal with the rights holder in the U.S. As an example, the rights holder in Canada for Mad Men was willing to take our money for that show but in the states, they haven't been. There are some shows in reverse that we have here that we don't have in the U.S., like Mad Men. Hastings: It's two parts: it's a licensing issue and it's budget. In the U.S., you have considerably more television shows from the big networks, but not here. The service offers unlimited streaming of movies and television shows for $7.99 a month through devices such as the Apple iPad, Microsoft Xbox, Sony PlayStation 3 and Nintendo Wii.Ĭo-founder and chief executive Reed Hastings discussed the difference in offerings between Canada and the United States, and the disparity in how much customers in each country can use the service because of download limits, with CBC News:ĬBC: There's a big difference in the content available in Canada and the U.S. Netflix, the online video streaming service, made its long-awaited debut in Canada on Wednesday.