- Associated Press - Monday, July 19, 2010

SAN FRANCISCO (AP) - Netflix Inc. will make its international debut this fall when the rapidly growing movie subscription service offers video over the Internet in Canada.

The expansion announced Monday resolves the mystery of where Netflix will take its first step outside the United States. The company had laid out plans to move beyond the U.S. borders earlier this year without identifying a target market.

The question of how much the Canadian service will cost remains unanswered. Netflix’s most popular packages in the U.S. cost $9 to $17 per month. The company, which is based in Los Gatos, Calif., could provide more details Wednesday when it’s scheduled to release its second-quarter earnings.

This will mark the first time that Netflix has offered a service confined to delivering video over high-speed Internet connections. All its U.S. subscription packages combine Internet streaming with DVDs delivered through the mail.

DVDs remain the most popular feature among Netflix’s 14 million subscribers, although Internet streaming is steadily gaining usage as Netflix makes more titles available for digital delivery and more households connect their TVs to the Web.

Netflix’s lowest priced package for DVDs and unlimited Internet video is $9 per month.

The Canadian service initially will be available in English only, with a French version expected to come later.

If Internet streaming catches on in Canada, many analysts expect Netflix to enter other countries, with Britain considered to be the next logical candidate for expansion.