Currently, Shomi (a joint venture between cable providers Rogers and Shaw) and Crave TV (a streaming service for Bell TV customers) aren’t yet fully competing with Netflix in Canada. This is because while Netflix is open to anyone with an Internet connection, the first two streaming services are for cable or Internet subscribers only, largely intended to keep cord cutters on board and not really focused on grow streaming businesses on their own.
But after recent complaints from consumer groups, the CRTC (Canadian Radio-television and Telecommunications Commission) now has to decide whether Shomi and Crave TV should be open to any Canadian, whether they have a cable subscription or not.
So what does that mean for the rapidly growing streaming market in Canada?
Shomi is currently available to Rogers and Shaw customers for $8.99 per month. Crave TV is available to customers of Bell TV, as well as Bell TV’s partners: Telus, Eastlink and Northwestel, for $4 per month.
The Public Interest Advocacy Centre and the Consumers Association of Canada argue that Shomi and Crave TV being closed to their own subscribers is limiting Canadian consumer choice and for true competition, the three streaming services should have to compete on an even playing field. If they have to open up to all of Canada, the question becomes: Will the cable companies want to still offer the service?
The worry is that if that is the case, Netflix, with its larger libraries and original content, has a fair chance of shutting down the other services pretty quickly.
Read more at Marketing.
Brief Take: If the CRTC chooses to move forward with these complaints, Canada might have an even more packed house when it comes to streaming deals and content choice for cord cutters - but more likely, Netflix could become Canada’s only streaming service.
[Image courtesy of Shomi]
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