Canadian Streaming Service Shomi To Shut Down In November
Oct 01, 2016, 00:25
A joint venture from Canadian telcos Rogers Communications and Shaw Communications launched in November 2014, Shomi was originally available only to its cable and internet customers. While thanking customers who tried the service, the company noted the core audience remained just too small for another season renewal. Rogers told the market it will post a loss of between $100 and $140 million on the investment when it next reports quarterly earnings. What it clearly didn't make Shomi, however, is a business that is considered financially viable by its owners.
In a followup email, the company said further information such as layoffs and how customers may be able to continue watching content exclusive to Shomi would be released in the coming days. (SJR_B.TO,SJR) are shutting down Shomi, the subscription video-on-demand service run by the two Canadian companies.
But questions had swirled about Shomi's future ever since Corus Entertainment Inc. acquired the media assets from Shaw Communications earlier this year, and decided not to buy Shomi.
Shomi parents Rogers Communications and Shaw Communications this week chose to shutter the SVOD net in the face of stiff market competition.
"There's no change in the status of CraveTV", George Cope said in an interview Tuesday with The Canadian Press.
"We recently approached 900,000 subs and even today we are not far off that number, which would likely make Shomi a top ten service in North America", he said. CraveTV came onstream in 2014 and was originally available only to subscribers of cable services such as Bell (TSX:BCE) and Telus (TSE:T).
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