Impact: Canada will be an excellent test case for Netflix’s ambition to become an all-streaming distributor of digital entertainment. As DVDs and Blu-ray discs will not disappear anytime soon, this online video retailer will not be able to abandon its original disc distribution business in the U.S. anytime soon. Yet Netflix can leverage its excellent reputation to take advantage of the penetration of broadband Internet connections worldwide. We think French language support will be the key hurdle for the company. If successful, Spanish localization should be next, and that would open up Latin America – a very important market for Hollywood entertainment.