Netflix Price Increase Coming to Canada TOO!

By now you’ve seen it on the news, read about it on a blog or in the news paper or heard about it on the radio – On July 12, 2011 Netflix USA announced a price increase of 60% to Netflix USA customers starting September 1, 2011 citing higher operating costs as the main reason behind the price increase.

Although no price increase has been announced by Netflix for Canada if you think your safe or sheltered from a price increase think again!  Thanks to the CRTC Netflix Canada has even higher operating costs than it’s USA division so if a 60% price increase is needed in the USA to maintain profitability a price increase is surely required in Canada it’s just a question of when?

I predicted back in February one this blog netflix-monthly-subscriptions-on-the-rise  that Netflix would increase its’ monthly subscription price in Canada this fall and that prediction still holds.  I believe Netflix will monitor the the impact of it’s price increase in the USA first and use that data to determine a price increase strategy for Canada.
While the price increase in Canada may not be as steep as US subscribers, Netflix Canada will increase it’s just a question of when and by how much.

While consumer reaction in the US has been vocal on blogs, emails, chat rooms, facebook and twitter, Netflix will analyze the impact to their bottom line to determine a pricing strategy this fall for Canada.  Netflix believes that while verbal reaction is strong in the US actual subscriptions will be minimally impacted while revenues and profits will continue to rise.

The case for a price increase in Canada is much stronger that the US because up in Canada Netflix has little or No Competition.  In the USA Netflix has Amazon, Apple, Hulu, Boxee, Google TV and others waiting for the opportunity to scoop up disgruntled Netflix Customers, in Canada most of Netflix competition comes from Cable and Satellite Companies expensive VOD and PPV services rather than Direct Streaming via the internet competition.

If Netflix doesn’t raise their price in Canada this fall look for a price increase to be announced in Canada for February or March 2012 after the Christmas holiday and buying season.

Based on the US pricing and Canadian operating costs we predict Netflix to bump their Canadian pricing to somewhere between $9.99 – $12.99, it’s just a matter of time.

for more on Netflix Canada read our recent post:  Is Netflix Doomed After Price Increase?

blog link: is-netflix-doomed-after-price-increase

 

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7 Responses to Netflix Price Increase Coming to Canada TOO!

  1. Jackie Matthews says:

    Is there anything you have to do if you are moving? I cannot seem to find a telephone number to call and get some info. HELP PLEASE

    • djsedm says:

      Hi Jackie, there no need to call or transfer, Netflix service works by streaming movies over the internet and is not physically tied to a specific house address like traditional telephone, cable or utility services. Your netflix account will continue to be the same however you can log into your account settings and update your information on-line. If you wish to contact netflix you can also do so via their website or your account information page. If you are moving within the same country CANADA then your netflix account will work at your new address location, if you are moving across the border to the US then you will have to set up a new netflix.com (USA) account.

      Good luck with your move and thanks for reading techtipsandtoys!

  2. dave says:

    If netflix has an increases with the amount of content it has in Canada right now I see no reason to stay. Netflix has way more content in the U.S. I would pay a litle more if the content was the same in Canada but not now. If there is an increase well thanks for the past service Netflix but I guess cable will have to do for now! There will be others out there offering the same service at lower prices I am sure..
    Actually, if anyone knows one now let me know!

  3. While netlix may not have any competition in Canada it also doesn’t offer as much in Canada due to CRTC regulations. We like it for the kids’ cartoons and it’s worth $8 a month for only that purpose. We rarely ever (3 times) watch regular movies via Netflix, it’s only for the kids’ cartoons.

    Hike the price in Canada and we’ll cancel our subscription for sure. We still have our Shaw T.V which is our main source or television and Netflix is not worth more than $8 a month for the out-dated shows it offers in Canada.

    Operating cost? For what? It’s all digital. If you can’t run the business on $8/month subscriptions for streaming digital movies, you are doing something vitally wrong.

  4. Josh says:

    If you’re looking for a good list of what is available for Netflix Canada, check out netflixcanadacompletelist.blogspot.com. It shows new arrivals, and a COMPLETE list of shows, ordered by release date and alpha. The regular Netflix interface leaves out a lot when you are just browsing…you have to actually search for specific items to find everything.

  5. Neil G says:

    The price increase was for DVD rentals only and we don’t have DVD rentals in Canada. I never did really understand the mail order system, because when I want to watch a movie, I want to watch one now, not two weeks from now. In BC video stores are closing as fast as they can liquidate their stock. 4 closed in my town over the last 3 months. Sorry, make that five.
    I’m guessing the people who are on the DVD plan still have 12:00 flashing on their VCR.

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