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Insanity: Watching the same movie, expecting a different ending

July 20, 2010

Netflix is coming to Canada and the reaction from the local cinemas and brick’n’mortar video rental places is one of extreme…. Blasé

This is the same Netflix that essentially busted Blockbuster, is invading home VoDs and in my mind is poised to be (even more) one of the most disruptive companies in the home entertainment market. Netflix has played a considerable role in essentially making my cable subscription redundant.

Yet the reaction up in Canada to this new player?

“Netflix is starting with zero base in Canada. We have 70 million people coming through our doors annually. I think we understand the movie business,” Cineplex CEO Ellis Jacob said.

Umm… yeah a few years ago Netflix also had zero customers and now has over 12 million

Even as competition heats up, Blockbuster Canada is confident in the strength of its traditional rental business, said Barry Guest, vice-president and general manager. “The stores still play a prominent role in rental in the Canadian marketplace,” he said. Blockbuster is also looking online, though he wouldn’t give any details as to when such a service might be available. “It only makes sense for us to deliver our content any way customers would like.”

Riiiiight, people love video rental stores in Canada. Why stay at home and have a DVD sent to you when you can trudge through sub-freezing temperatures and snow banks to visit a Blockbuster?

Anyway, I’ve been wondering for a while why Netflix hasn’t made it up to Canada. It looks like the video and cinema business are about to get pretty interesting up there.

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