Tuesday, September 24, 2013
Netflix's growing popularity poses challenge for CRTC
The Globe's Steve Ladurantaye reports that Netflix Inc.'s explosive Canadian growth has seen the online service activated in about 17 per cent of Canadian homes, the country's broadcast regulator estimates in a report to be released later this week that underlines the rapid changes shaking the television industry.
An annual report from the Canadian Radio-television and Telecommunications Commission says the streaming video service grew by 70 per cent in 2012 in Canada, which translates into about 2.5 million households. The actual number is likely higher, given that the data is almost a year old and does not account for the surge in Netflix popularity with the launch of original shows such as Emmy-winning House of Cards.
"[Netflix] has to be the simplest value proposition anywhere," said Kaan Yigit, president of Solutions Research Group."One price, no commitment, cancel any time and it works on practically any device."
"We're looking at a communications environment that is radically different from what it was only 10 years ago," CRTC vice-chairman Peter Menzies told the annual conference of the Canadian Cable Systems Alliance on Monday.
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