Should Netflix Canada be concerned?
Rival telecom giants Rogers Communications (TSX:RCI.B) and Shaw Communications (TSX:SJR.B) have joined up to create Shomi, a video-on-demand service that uses the Netflix model of entertainment streaming.
Like Netflix, the service will be available on tablet, online and set top boxes. However, when the service launches in beta in November, it will only be available to Rogers and Shaw Internet or TV customers.
One way Shomi is attempting to take things up a notch is in how it selects recommendations for customers. While Netflix uses automatically generated algorithms to make suggestions for clients based on past viewing, Shomi claims that it will employ a team of entertainment experts to hand pick shows for each subscriber.
Another difference will be the programming itself. Shomi will have streaming rights to popular TV shows that are still on the air, such as Modern Family, Sons of Anarchy and 2 Broke Girls.
“We’ve taken the time to talk with Canadians to find out what they want and to create an unbelievable user experience,” said Rogers Media president Keith Pelley. “They told us loud and clear – they want all the past seasons of the most popular, current TV shows and they want it to be easy.
“Shomi takes the guesswork out of finding what to watch, acting like a new-age video clerk serving up all the best content based on individual viewing habits.”
Rogers and Shaw say it will have 1,530 movies and TV shows, comprised of 1,200 movies and 340 TV shows. Netflix Canada, according to the blog netflixcanadavsusa.blogspot.com, has 4,457 movies and shows and Netflix USA has 9,538 titles.
Netflix has a leg up in another department: original programming. Many customers are drawn to the service for its exclusive shows such as Orange is the New Black and House of Cards.
Both services will cost $8.99 per month.