Netflix, the popular online movie rental service, launched in Canada last month, providing consumers with the option to download an unlimited number of movies and television shows for a flat monthly fee.  While the Netflix debut was marred by an ill-advised public relations stunt that involved actors masquerading as excited consumers, my weekly technology law column (Toronto Star version, homepage version) notes that the long delays in migrating the service north once again raised questions over why popular online services rarely view Canada as a priority destination.

Canada’s legal framework makes for a convenient explanation, but the reality is that subtle legal differences are rarely the primary rationale for business and marketing decisions.  Moreover, Canadian privacy, e-commerce, and intellectual property laws are compliant with international standards and recent surveys have found that business executives view Canadian protections as better than those in the United States. As the Canadian government readies its national digital economy strategy, identifying the real reasons behind delayed entry into the Canadian market is a crucial piece of the puzzle.  

At least three explanations come to mind.

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