Netflix Q4 time. Here is the Canadian comment on the content going forward in the letter to shareholders. They do not specifically mention spending the same population-adjusted amount like they did before, but do mention increasing content in the next 2 quarters.
In Canada in Q4, we enhanced our offering with fresh movies and TV shows from existing output deals, as well as new deals. For TV, we’ve significantly improved our television catalog with new content from FOX, Sony, and AMC and for film, we have continued to add Pay 1 film titles such as “Black Swan,” “True Grit,” “The Chronicles of Narnia” and “Rango,” as well as great catalog titles like “Pulp Fiction.” The 5 addition of lots of compelling new shows and movies both drove increased hours viewed per member and member acquisition during the quarter.
The market opportunity in Canada is exciting enough that we continue to invest in the content library, meaning that we’ll run at roughly break even for two quarters, and we expect to return to a positive contribution profit starting in Q3 of this year, two years after our initial launch. Our plan after that is to grow our contribution margin as we continue to grow our membership.