Wednesday, October 22nd9.4°C
23840
22501

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

23511


Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8886-0.0008
Gold1241.90-3.60
Oil79.80-0.33
Lumber330.40+1.70
Natural Gas3.649-0.01

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 





FEATURED Property
20124941065 Tataryn Road
2 bedrooms 1 baths
$249,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22632