Tuesday, March 31st13.0°C
25326
24949

Rogers readying a Hulu-like streaming service to compete with Netflix: report

TORONTO - Rogers is preparing to launch an online streaming service in the coming months that would compete with Netflix, according to a report in the online trade magazine Cartt.ca.

Industry sources suggest the service would more closely resemble Hulu Plus, which offers consumers in the U.S. digital access to new TV shows for a monthly fee, said Cartt.ca editor-in-chief Greg O'Brien.

Rogers has spent more than $100 million on content deals to build a robust catalogue of TV shows and movies that subscribers would be able to stream on demand, said O'Brien, who added that his sources did not know how Rogers intends to price the product.

"From what I understand, $100 million buys them quite a bit," said O'Brien.

"And what it does is it keeps those TV titles and any film titles that they might be able to get away from Netflix in Canada, so it makes the Netflix library weaker."

A spokeswoman for Rogers would not comment on the Cartt.ca story and would only say: "As previously reported, Rogers is looking at opportunities to deliver a (streaming) service. There are no additional details at this time."

Rogers has stated publicly in the past that it takes so-called "cord cutting" seriously. Cord cutting is when consumers stop paying for a traditional television plan and instead make do with streamed content, tap into free over-the-air signals, or watch DVDs and Blu-rays.

"We're kind of in the beginning of what we think is a major transformational stage in the TV world," said David Purdy, senior vice president of content for Rogers Communications, in an interview with The Canadian Press last June, "so we have a ton of questions and we're doing a lot of research these days."

In November, the Convergence Consulting Group estimated about 400,000 Canadian TV subscribers out of 11.8 million have cut the cord since 2011, which is about 3.5 per cent of the market.

Other industry buzzwords are "cord shavers," referring to consumers who have cut back on their TV packages because they're spending a lot of time streaming digital content, and "cord nevers," who are typically younger consumers who have never paid for a TV plan and perhaps never will.

"I definitely believe that if we don't evolve our products and services — the way we have been and are planning to continue to do so — that 'cord nevers' are a very real risk. There's 12.7 per cent of Canadians that don't subscribe to a pay service today and not quite half of that comes from people who have never subscribed to pay television," Purdy said.

Rogers isn't alone in recognizing that the breadth of streaming content available online — which is most often ad-supported but free — is a threat that can't be ignored, O'Brien said.

"Rogers can see the writing on the wall, as anyone in the media industry can, if you're going to have your business cannibalized you better be the one doing it," he said.

"Cable might be the big dog right now but it won't be forever, so you're going to see this is just the way it's going and everyone can see it's going that way. It might look like they're cannibalizing their own business, and in a way they are, but if they don't, someone's going to do it for them."

———

On the web: http://www.cartt.ca

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX14902.44-5.95
S&P CDNX680.07-0.26
DJIA17776.12-200.19
Nasdaq4900.88-46.56
S&P 5002067.89-18.35
CDN Dollar0.7888+0.0002
Gold1183.60-1.20
Oil47.46-1.22
Lumber277.10-2.20
Natural Gas2.637-0.007

 
Okanagan Companies
Pacific Safety0.125+0.010
Knighthawk0.010.00
QHR Technologies Inc1.48-0.02
Cantex0.03-0.01
Anavex Life Sciences0.211-0.004
Metalex Ventures0.04+0.00
Russel Metals24.04-0.36
Copper Mountain Mining1.16-0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.25+0.02
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
221312159-610 Katherine RD
3 bedrooms 2 baths
$189,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


24850