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Netflix CEO Reed Hastings at Netflix headquarters in Los Gatos, Calif., Friday, May 16, 2008.

Paul Sakuma/AP Photo/Paul Sakuma

Canadian video-on-demand services will face a challenge from a California-based company later this year.

Netflix Inc. says it's expanding into Canada with an Internet subscription service that will deliver movies and TV episodes to televisions and computers for a monthly fee.

Similar Internet online programming services are being rolled out by several Canadian companies, particularly Quebecor's Videotron and Rogers Communications.

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Netflix says Canada will be the inaugural international market for its Internet subscription service.

The company didn't announce how much it will charge for the service.

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