Zip.ca Sees Positive Growth

OTTAWA, ON — February 13, 2009

Just as Netflix reported positive growth numbers in the U.S., Canadian DVD rental provider says that it has had a good six months, and projects further growth in the coming months.

On January 26, Netflix reported 26 per cent year-over-year subscriber growth for the fourth quarter of 2008 when compared to 2007, and 19 per cent revenue growth. In the fiscal year, revenue was up 13 per cent.

Meanwhile, Zip.ca, which has been in business for five years and is really the only option like Netflix that we have north of the border, says that membership has risen 15 per cent over the past six months, nine per cent of which occurred in just the latest quarter.

"With all of the economic uncertainty in the market, people are becoming more cautious of how they spend their entertainment dollars and they see the value in the service we offer," says Curt Millar, COO of Zip.ca. "Regardless of what else is going on, people are still looking to be entertained, and DVD rentals are one of the most inexpensive forms of entertainment around."

At a time when customer loyalty is of the utmost importance, Zip.ca has also employed some clever strategies. For example, the company sent every customer that has been with Zip.ca since its inception a new DVD to keep.

Like Netflix, Zip.ca mails DVD movies to members for free, and charges a small price for a subscription to its service.

By: Christine Persaud
www.hereshow.ca