Rogers faces $106M loss after shutdown of shomi streaming service - Mobile World Live

Rogers faces $106M loss after shutdown of shomi streaming service

27 SEP 2016

Canda’s top operator Rogers will sunset its streaming service shomi on 30 November and expects this to cause losses of CAD100 million to CAD140 million ($106 million) in its Q3 results.

The losses relate to the “carrying value of its investment and a provision related to future liabilities in shomi.”

The service was launched in August 2014 with Shaw Communications as an answer to Netflix, offered as an add-on to Rogers and Shaw cable and internet subscribers and also as a stand-alone subscription to cord-cutting viewers.

Rival Bell Canada soon followed with a service of its own called CraveTV.

However, earlier in the year Rogers began offering a one-year Netflix subscription to customers who signed up for a two-year contract for its new 4K TV offering.

Melani Griffith, senior vice president – content at Rogers, said shomi is “like a great cult favourite with a fantastic core audience that unfortunately just isn’t big enough to be renewed for another season”.

“We will be reaching out to eligible customers in the coming days as we have a wide range of premium experiences available for people to enjoy,” she added.

Shaw wrote down its part of the joint venture in July, incurring a CAD51 million accounting charge, according to Bloomberg.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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