Shomi Didn’t Work Out as Planned, But “Aspired” to Move Beyond TV: Rogers

Rogers today unveiled grand plans to invest $1.5 billion over 10 to 15 years to develop a 10-tower condo development in Mississauga, dubbed M City. The land was originally purchased by company founder Ted Rogers for $170,000, a generation ago. The development is a family-run project, independent of Rogers Communications.

The company’s deputy chairman—and son of the late Ted Rogers—Edward Rogers, did comment on the announcement of the impending shutdown of the company’s streaming service, shomi, though, reports Reuters.

Rogers said “We’ve aspired to move beyond just the television, and Shomi was one foray into that.” He continued to say “While that didn’t work to what was planned, it hasn’t diminished our enthusiasm and hunger to invest,” referring to the company’s plans to launch Internet-based television by year’s end.

Shomi was a failed experiment that lasted two years (a partnership with Shaw), and is expected to hit the company with a $100-$140 million write down, for the third quarter, ending September 30th. The service will end as of November 30, 2016.

Rival Bell, already has 1.27 million IPTV customers, so Rogers has some work to do to catch up.

Despite the setback, Rogers emphasized he still sees the company as a dividend growth stock, adding “We are committing to our company, committed to the people that own our shares and thanking them and giving back to them in the form of dividends as the company grows.”

Shomi was a nice attempt, but it’s not that easy to just launch a streaming service and instantly compete with the Silicon Valley gurus at Netflix. Will Bell’s CraveTV be next on the chopping block?

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  • awkpain

    Primarily a tv show service offered only to people who have cable (Shaw/Rogers)? Where could they possibly have gone wrong?

  • MrBambinoDent

    It was available for everyone a long time ago!

  • MrBambinoDent

    I left Netflix to Shomi after Netflix enforced geoblocking a while ago, now i don’t know if I should go back to Netflix even though I despise them as a company!
    I liked Shomi, they had some nice shows that were not on Netflix, hate to seem them shut it down!

  • noname

    Technology it sucks hard. No Linux support, very CPU intensive on windows and frequent crashes on Firefox (windows).
    I have this service included with my rogers internet, but still happy with Netflix.

  • iverge

    They obviously didn’t do a good job in advertising that, if you still have people with that perception.

  • Corey Beazer

    They are (were) all basically the same price since Netflix upped their rate. With no contracts I’ve just been jumping back and forth between all three services using my Apple TV. No complaints…. Just hope Netflix and Crave get access to the content Shomi had.

  • ticky13

    You despise Netflix over Rogers? Man, your priorities are all messed up.

  • swotam

    Netflix has to enforce geoblocking because of the agreements they have with the content providers, in part because those providers have agreements with other providers. It’s not just Netflix being “mean” and stopping you from watching content you aren’t legally allowed to watch in Canada, they’re upholding the agreements they signed with the people who produce the content you want to watch. Yeah, I used to do it too and it sucks, but I don’t blame Netflix for it.

    For example, in Canada right now you can watch all the Star Trek shows while in the US you cannot. Someone else either has the rights to stream that content, or perhaps Netflix couldn’t renew their rights to that content for contractual reasons, so legally they aren’t allowed to have their US customers watching it. In order to prevent that, they need to geoblock, there’s really not much else they can do.

    If you want to be mad at someone, be mad at the content providers for not allowing Netflix to stream the stuff you want to watch, or for having exclusive contracts with streaming services you don’t subscribe to. Netflix doesn’t want to block you, they have to block you, there’s a difference.

    Also, Netflix on their worst day is still a million times better than Rogers on their best day.

  • MrBambinoDent

    lol I know Rogers are evil but with Shomi I was at least supporting a Canadian business even if they don’t deserve the support!

  • MrBambinoDent

    I know how this works, but the little consumer in me just wants a better line up, that’s all 😀

  • MleB1

    All of these streaming services – and the users who take advantage of them – rely on bandwidth. And, short of the pricier internet offerings out there offering ‘unlimited’ service with no caps, these services (and reasonable daily use of your internet) will burn thru your subscribed service in little time. Shomi and Crave (so Rogers, Shaw, Bell) not only charge a monthly subscription service, but then ding you with pricier internet plans / overage penalties to cover it. All’s good for them. Rogers recent offer of ‘free’ Netflix might cover the subscription price, but they’ll make it back on internet caps – especially as Canada has some of the smallest caps / priciest internet anywhere.

    Sure you can go 3rd Party (like TekSavvy), but in the end, you end up with the Big Three’s ‘last mile’ service and what they deign to offer these 3rd Party providers.