Soon, Netflix (NFLX) will be taking its booming business to Canada, and the movie company’s stock prices could be heading north as well.
The movie provider announced this week that it will begin offering a subscription-streaming service in Canada this fall. While Netflix will not be mailing any DVDs or Blu-rays north-of-the-border, the online streaming service should be a hit among Canadians looking to avoid an icy trip to the cinema or video store.
The move to Canada marks the first international availability of Netflix and should open numerous doors for the world’s largest movie-subscription service.
Netflix has not discussed the pricing on this streaming-only package, but it has reported that it will provide unlimited rental of movies and TV series for a flat monthly rate. A rate of $8.99 is charged monthly for US subscribers, who either stream endless movies or have DVDs shipped quickly to their homes.
While it will initially only be offered in English, the service will be provided in French shortly after launch. No fear for those Quebecois in the major Canadian cities of Montreal and Quebec City.
Netflix’s stock has taken off in recent years, having gained 348% since the start of 2008. The California based company was founded in 1997 and has a current stock price of $120.39 and a market cap of $6.3 billion. Having outperformed earnings estimates each of the last four quarters, this international news only strengthens the stock’s already impressive resume.
Conversely, Blockbuster (now trading on the pink sheets as
BLOKA) has absolutely tanked during the same time. Currently trading at $0.12 per share, Blockbuster was delisted from the New York Stock Exchange in early July, and seems poised for bankruptcy at any time.
Since Netflix establishment, Blockbuster has felt the heat. Consumers clearly have been enjoying the option of having movies mailed directly to their homes rather than running to the local movie store. The internet-subscription service offered by Netflix has only increased consumers’ lethargic attitude towards the once popular Blockbuster.
Clearly, the sky is the limit for Netflix. Once the Canadian trial of its internet-subscription service proves successful, which seems inevitable based on its American popularity, Netflix will most likely move to larger international markets.
Europe and Asia may not be too far off for this emerging movie giant. Again, more bad news for Blockbuster.
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