It’s official: Netflix is profitable in Canada

Money (2)

Got your breath back?

Netflix is profitable in Canada.

Reporting its second quarter results, the U.S. video streaming giant on Tuesday said that, after entering the Canadian market nearly two years ago, it is now making money north of the border.

“We achieved a small contribution profit in Canada in Q2 and expect to remain profitable in this market going forward, as we manage our content and marketing expenses to grow more slowly than members and revenue,” Netflix said in its earnings commentary.

“We intend to steadily increase our contribution margin in much the same way as we are doing for our U.S. streaming business,” it added.

Netflix Canada now reaches into over 10% of Canadian homes with stepped-up content like Rise of the Planet of the Apes and Kung Fu Panda 2, and scale to continue meeting audience demand here.

“Our Canadian service continues to grow well – in both subscribers and hours viewed,” Netflix said Tuesday.

On the TV side, Netflix Canada is also showing the first four seasons of Breaking Bad and all six seasons of Lost.

The Canadian performance is key for the U.S. video streaming giant as it remains under pressure to show growth in the rest of its international markets, including Britain and Ireland and Latin America.