Netflix
Inc. has plenty to cheer about. As was expected
for some time now, its largest competitor Blockbuster Inc. filed
for bankruptcy to tried to shed its onerous debt and regain a
competitive footing. With new streaming options and a growing
presence on consoles, mobile devices, and set-top boxes (even its
content-distribution rival Apple's new iTV) Netflix seems poised to
continue to punish its less “net-ready” rival.
However,
the company should perhaps be a bit concerned about comments delivered by its chief executive officer, Reed
Hastings. According
to the The
Hollywood Reporter,
when Mr. Hastings was asked about whether Americans would be offended
that they were paying more that a dollar more than their Canadian peers -- $7.99/month CAD ($7.76 USD) versus $8.99/month USD -- and responded:
How
much has it been your experience that Americans follow what happens
in the world? It's something we'll monitor, but Americans are
somewhat self-absorbed.
So
are Americans too self-absorbed to notice that their foreign
competitors are getting better deals? Or
is the CEO of Netflix mistaking apathy for self-absorption?
It's important to note that the movie selection in Canada is slightly different due to licensing. Also, Canadians don't have the option of receiving DVDs by mail with their Netflix subscription. But given the fact that Netflix dropped new DVD releases in favor of greater streaming, it still seems that the U.S.'s northern neighbors might be getting a bit better deal.
The complaint brings to mind automaker General Motors' recent gripe that
the U.S. government was giving tax breaks to Chinese EVs, but China
was not
giving taxbreaks to American EVs.
Update: Friday, Sept. 24, 2010 11:20 a.m.
Mr. Hastings has since apologized for the statement, writing in a blog post:
I was wrong to have made the joke, and I do not believe that one of the most philanthropically-minded nations in the world (America) is self-absorbed or full of self-absorbed people. The pricing Netflix is offering in Canada, $7.99 per month, does not include any DVD-by-mail option, and that is why it is cheaper than our $8.99 USA plan which has both DVD-by-mail and streaming in one plan. We are looking at adding a streaming-only option for the USA over the coming months.