A New Netflix Rival Has Appeared

http://www.theglobeandmail.com/report-on-business/new-rogers-shaw-video-streaming-service-to-match-netflix-cost/article20204045/

Surprisingly, two of Canada’s largest communication companies have joined together to create a new service in the television industry. With the declining usage of cable television, I was sure  that both Shaw and Rogers had to find another way to reestablish themselves in the television market. Especially since the appearance of Netflix, more and more users like to watch shows customized to their preferences instead of waiting for it to appear on TV. Especially with the increase in the amount of time people spend on their computers, tablets and phones, this decision will entice customers to Shomi by being able to stream videos, not just from television sets, but from other devices too. There is even the potential of other Canadian Media companies joining Shomi and help to expand the brand. This idea is an intelligent move for both Rogers and Shaw, firstly for combining their resources to create the new video streaming format Shomi and also because this will give both companies the opportunity to reestablish themselves in the television media field.

In addition, with the conflict between the CRTC and Netflix, Canadian customers are being prevented from streaming American Netflix. Many consumers find it unfair that American Netflix viewers are able two view twice the amount of titles than what is available on the Canadian service. With the unsettled Netflix viewers because of this issue, Shomi can take advantage opportunity to take away some of their customers. At the same price of $8.99 a month, Shomi will pose itself as a new threat to Netflix TV in Canada. Depending on the number of titles and selection offered from Shomi, this venture can be either a complete success or an utter failure for both Shaw and Rogers.

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