Rogers and Shaw shutter Canadian SVOD start-up shomi

Shomi desktop interface (Credit: shomi)

Canadian MSOs Rogers Communications and Shaw Communications will shutter their SVOD joint venture, shomi, just two years after its launch. 

The joint venture, which will wind down on Nov. 30, costs Rogers US$75 million to $105 million, which it will write down for the quarter ending Sept. 30, according to a company statement. 

Shaw already wrote down a $38.53 million loss in July. 


How To Lower the Cost of Ownership of Your Cable Access Network

This white paper presents a cost analysis of a virtualized cable modem termination system (CMTS) deployed in a distributed access architecture (DAA). Learn how to eliminate traditional CMTS constraints, efficiently enhance your network performance and more.

“Rogers today thanked its customers who subscribed to Shomi for trying out a Canadian innovation,” Rogers said in its statement. 

The cable companies offered shomi as both a stand-alone service and a complementary product for cable pay-TV services. However, the platform didn’t achieve its objective — to slow down U.S. behemoth Netflix, which has amassed 5.2 million subscribers in Canada.

Combined with Crave, the SVOD service launched by Canadian telecom giant BCE Inc., shomi only gathered around 700,000 subscribers, according to Solutions Research Group. 

Meanwhile, Rogers itself has begun integrating Netflix into its product portfolio. For example, it’s offering a year free of Netflix for those who sign up for its 4K service. 

For more:
- read this Reuters story

Related articles:
Canada's Rogers and Shaw launch shomi SVOD service
Canada's Rogers and Shaw team up to take aim at Netflix

Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

Peacock, NBCUniversal’s recently launched streaming video service, is rolling out 20% discounts on annual Premium subscriptions for Black Friday.

How can we defend ourselves? Mostly, it’s a matter of common sense.