The popular movie and TV show streaming and rental service, Netflix, has announced it would expand its streaming content service to north of the boarder starting some time in fall.

The company currently offers content streaming from the cloud to a variety of consumer electronics, including televisions, through Microsoft’s gaming console the Xbox 360 (including the other current next-generation gaming consoles), and personal computers, among other devices.

The company only said it would expand its reach into Canada in fall, but declined to release information relating to a more specific time frame or possible pricing.

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Sources familiar with a new deal in the works between YouTube and Sony Pictures told CNet the partnership will bring full-length films such as Spider-Man to YouTube.

The news comes as YouTube, the leader in online video sharing, faces intensifying competition from newer rivals such as Hulu (News Corp, NBC joint venture) who provide excellent quality full-length shows. Rival NetFlix also provides a very extensive online film library but requires a reasonably priced monthly subscription fee. Despite YouTube holding the top spot (by a significant margin) as top video sharing site, the company must continously innovate as new competitors with superior products launch.

In related news, Walt Disney last week announced it had licensed content to YouTube as well.