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Shomi to shut down

Canadian video-streaming service Shomi is shutting down at the end of November.

Cable companies Rogers and Shaw launched the service two years ago, in an attempt to compete with online video powerhouse Netflix.

When it came online, Shomi featured 1,200 movies and more than 10,000 hours of TV shows, including titles like Parks and Recreation, Sons of Anarchy and Gossip Girl.

David Asch, the senior vice president and general manager at Shomi, said in a statement today that the service is winding down because “the business is more challenging to operate than we expected.”

“The business climate and online video marketplace have changed markedly in the last few years,” he said, adding

Shomi came under some fire after its launch for only being available to Shaw and Rogers customers.The service opened up to everyone eight months after its launch.

Shomi charged its customers $8.99/month for the service, but many got it for free as part of their cable package.

Melani Griffith, the senior vice president of content with Rogers, said in a Rogers press release Shomi had a loyal core audience that “unfortunately just isn't big enough to be renewed for another season.”

In that same release, Rogers said it expects to lose about $100-140 million this quarter, as a result of the shutdown.

Current Shomi customers can continue using Shomi until Nov. 30.



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