Executives at Netflix (NFLX) say the company mistakenly coached extras used in a corporate video to tell the Canadian media how enthusiastic they were about the company's video streaming service, which launched in Canada this week.
The company reported that having the extras talk to the media at a Toronto event launching its $7.99 a month video streaming service north of the border was a mistake.
"Simply put: we blew it," wrote Netflix spokesman Steve Swasey on the company's blog. "We didn't intend to mislead the media or the public, and we can understand why some have raised questions. We're sorry that our misfire has given Canadians any reasons to doubt our authenticity or our sincerity."
Netflix has been boosting revenue and pulling market share from companies such as video-store chain operator Blockbuster Inc. (BBI) with its combination of by-mail DVD delivery and video streaming service in the U.S. The company, which will report third-quarter earnings next month, said in July that second-quarter profit surged 34% as sales jumped 27% from a year earlier to $519.8 million.
Blockbuster earlier today said it filed Chapter 11 as part of a plan to slash the company's debt from almost $1 billion to an estimated $100 million.