Netflix has revolutionized the way people watch TV and are entertained. As a video streaming company, Netflix has assisted in eliminating the need for physical movie rental options. However, Netflix is now proving to be a competitive threat against cable companies and broadcasters. Forced to reevaluate their business models, cable companies have two major disadvantages when compared to Netflix. Firstly, Netflix offers their product for only $8.99, whereas most cable companies are forced to sell packaged deals for a price starting at $30. Furthermore, one contributing factor to Netflix’s success is the fact that it is not regulated by CRTC. This is a substantial upper hand for Netflix as it is able to provide the content demanded by consumers without any restrictions. Due to the fact that many Netflix subscribers also utilize satellite service, competition is for the moment relatively stable.

References:

http://business.financialpost.com/2014/09/01/how-netflix-inc-is-forcing-canadian-cable-companies-to-up-their-game/?__lsa=0826-a7e9