This is a response to Kamil Kulewski’s post to:
http://www.huffingtonpost.ca/2016/09/26/shomi-shut-down_n_12202070.html
https://blogs.ubc.ca/kamilkulewski/
Kamil Kulewski discusses the factors that lead to Shomi’s, Rogers Communications Inc. and Shaw Communications Inc.’s video and movie streaming service for existing users, downfall. One major reason for Shomi’s closing was because of the inclusiveness to only Rogers and Shaw customers. The decision to limit their target market had put them in a disadvantage. With a narrower range of customers, Shomi lost its potential to grow and capture customer loyalty. When Shomi decided to open their service to all Canadians, it was a little too late – Netflix had already established a strong presence in the Canadian market.
Towards the end of the article, Kamil mentioned that with Shomi out of the picture, Bell’s CraveTV can square off against Netflix Canada. Although, Shomi’s departure from the market has created space for CraveTV to expand, I believe that they have little chance against the continuously growing monopoly. When Shomi announced they were closing down, they had less than 700,000 users while Netflix had a whopping 5.2 million subscribers.
Though there are many points of parity between Netflix, Shomi, and CraveTV, all providing online movie and video streaming, Netflix clearly stands out above the other two. Netflix uses a freemium business model to reel in new customers. Their free one-month trial allows the user to experience different special features – points of parity. Not only does Netflix offer movies, television shows, and foreign films; they will deliver DVDs and Blu-rays right to your door step. Their DVDs and Blu-rays include behind the scenes, director’s comments, and interviews. Although I am not a current Netflix user, their intuitive recommendation algorithm catches my attention. The system will suggest movies and shows based off of my preferences and previous ratings I gave to make sure I do not miss any shows. These key features will draw me in at lightning speed. Netflix continues to gain control of the Canadian market as more users are captivated by their service and many features.
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Articles:
http://www.elementsofcinema.com/general/netflix.html
Picture:
http://mikesbloggityblog.com/wp-content/uploads/2016/01/PicMonkey-Collage1.jpg