With one in three English Canadians subscribing to Netflix Canada – according to a Media Technology Monitor telephone survey of 2,002 Canadians – Rogers and Shaw have banded together on their own video streaming platform. Called ‘shomi’ (pronounced ‘show-me’) and due to a beta rollout in November 2014, the video streaming service will sell for $8.99/month; the same price as Netflix Canada’s charge to its new Canadian signups.

shomi, which is nearing its debut even as Comcast shifts its strategy for Streampix and Verizon and Outerwall shut-down their own multiscreen SVOD joint venture, will feature 11,000 hours of TV shows from previous seasons, such as Modern Family, Sons of Anarchy, Sleepy Hollow, Shameless, 2 Broke Girls, Vikings,New Girl, 24: Live Another Day, Chicago Fire, The Strain, and American Horror Story. The service will also offer 1,200 movies, and some first-window premieres. Custom picks will be provided to individual subscribers by programming experts as well as by "algorithmic technology." shomi’s content will be viewable on tablet, mobile, online, Xbox 360 and set-top boxes.

The only catch: shomi will only be available to Rogers and Shaw subscribers; at least initially. As a result, the service will not target cord-cutters who have flocked to Netflix Canada; only hopefully stem the tide of cable subs considering making the move to Netflix.

“At beta launch in November, Rogers and Shaw customers will be able to subscribe to the service in the same way that they currently do to all of the services they receive from these companies – and use the same username and password to access shomi as they currently use to access their online services with Rogers and Shaw,” said Marc Dinsdale, shomi’s GM and senior director. “Subscribers will see the service added to their monthly statement in the same way they currently see their cable, Internet, wireless or other services.”

This gap in shomi’s marketing strategy is glossed over during the service’s public unveiling in Toronto and Calgary on August 26. "We've taken the time to talk with Canadians to find out what they want and to create an unbelievable user experience," said Keith Pelley, President of Rogers Media. "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.”

"We keenly understand the media landscape is rapidly changing and that viewers are looking for greater flexibility when it comes to what they watch and how they watch it," added Barbara Williams, Shaw Media’s SVP of content. "shomi is our first step into the new world of content streaming and we're so pleased to be able to bring this made in Canada service to the market."

One of shomi’s biggest selling features is its extremely easy-to-operate user interface. It was created by Ottawa software company You.i Labs, maker of the Kobo Arc tablet interface. You.i’s interactive interface uses "tap-and-hold" submenus, which reduces the number of steps required to select movies. Users can also watch content in a "player window while searching through shomi’s library.

“A great amount of attention and effort was placed on creating a user experience that is more personal and human to our members,” said Dinsdale. “This is reflected in the brand, in the tone of voice throughout the experience, in the content that we have specifically selected for our members, in the user experience that we have created across all devices, and in the selection of technology platforms – all intended to make shomi a simple, understandable and, above all else, pleasurable experience for our members.”

It is impossible to predict just how well shomi will perform against Netflix Canada, and whether Canada two largest cable companies will eventually open up their video streaming service to all Canadians whether they subscribe to cable or not. Nevertheless, shomi’s Marc Dinsdale is optimistic that the new service will catch on. “While we are not in a position to share our membership goals at this time, we have planned for a steady growth in members, content and devices through which shomi will be available, and similarly a growth in the underlying technology platforms and infrastructure to support this growth,” he said.

--Multichannel News technology editor Jeff Baumgartner contributed to this report

Redbox Instant by Verizon, the Netflix-like subscription multiscreen video service, is shutting down on Tuesday, Oct. 7, the joint venture confirmed in this Web posting.

GigaOm first reported about the coming shut-down on Saturday, noting that subscribers were also informed via email earlier in the day. GigaOm reported earlier that Redbox Instant by Verizon had halted new sign-ups in recent months because the service’s monitoring systems had “detected that criminals were misusing our new customer registration process to validate credit card numbers illegally obtained from some other sources.”

The full posting about the coming shut-down reads as follows:

IMPORTANT SERVICE SHUTDOWN NOTICE

Thank you for being a part of Redbox Instant by Verizon. Please be aware that the service will be shut down on Tuesday, October 7, 2014, at 11:59 p.m. Pacific Time.

Information on applicable refunds will be emailed to current customers and posted here on October 10. In the meantime, you may continue to stream movies and use your Redbox kiosk credits until Tuesday, October 7 at 11:59 p.m. Pacific Time.

We apologize for any inconvenience and we thank you for the opportunity to entertain you.

Sincerely,
The Redbox Instant by Verizon Team

The Verizon-Outerwall J.V. launched the service in March 2013, offering a service that was viewed as a potential rival to Netflix, a service that now counts more than 50 million subscribers worldwide. The Redbox Instant by Verizon service provides subscribers with access to a streaming library, plus the option to obtain credits toward DVD/Blu-ray discs that are available at Redbox kiosks. Customers can also rent or buy titles electronically from a separate library, with rentals starting at $3 for 48 hours, and purchases starting at $9.

Redbox Instant by Verizon has not disclosed subscriber figures, but the totals clearly weren’t nearly enough.

“The service is shutting down because it was not as successful as we hoped it would be. We apologize for any inconvenience and we thank you for giving us the opportunity to entertain you,” reads the FAQ about the decision to shut down the service.

The FAQ adds that the service will be providing a full month’s subscription fee refund to customers who paid for, but only received a partial month of service, and that refunds will be automatically applied to payment card accounts no later than October 24. Customers must also use disc rental credits included with their subscriptions by Tuesday, Oct. 7.

Redbox Instant by Verizon said it is “exploring options” for customers who purchased electronic versions of movies that are currently being stored in digital lockers.

Redbox Instant by Verizon has developed apps for a range of platforms, including PC browsers, iOS and Android-powered smartphones and tablets, the Xbox One and Xbox 360, PS3 and PS4, Roku, Chromecast, Fan TV, Samsung smart TVs and Blu-ray players, LG smart TVs, Kindle Fire  tablets, and Windows Phone 8.

A statement from a Redbox Instant by Verizon spokesman about the decision issued Saturday largely echoed the public posting: “The joint management of Redbox Instant by Verizon has elected to cease operation of the service effective Tuesday, October 7, 2014.  The joint venture partners made this decision after careful consideration  The service had not been as successful as either partner hoped it would be.  We apologize for any inconvenience this may cause our customers.”

It was not immediately known how many employees tied to the service would be affected by the decision. “While Human Resources matters are private, I can tell you that the Redbox Instant by Verizon team is made up of talented individuals who made great contributions to the service,” the spokesman added.

The coming shutdown of Redbox Instant by Verizon enters view as Comcast shifts the distribution and sales strategy for its own SVOD offering, Streampix. Comcast confirmed in late September that it had halted sales of Streampix to broadband-only customers and that is was decommissioning its Streampix apps and Web site. However, the Streampix service will continue to be sold as an a la carte option (for $4.99 per month), or given away as a perk, to customers who take certain bundled service packages.

Meanwhile, Canadian operators Rogers Communications and Shaw Communications, are set to launch their multiscreen streaming service, “shomi” in beta form later this month.

Comcast’s Netflix-like “Streampix” service will carry on, but the MSO is making big changes to the way it will sell and market the multiscreen subscription VOD service to its customer base.

Comcast confirmed that it is decommissioning its Streampix mobile apps and the Streampix Web site, and will stop selling Streampix to broadband-only customers. However, the Streampix service will continue to be sold as an a la carte option, or given away as a perk, to customers who take certain bundled service packages.

A Comcast spokeswoman said a small number of broadband-only customers in one region were being offered Streampix. Comcast declined to say how many broadband-only customers there signed up for Streampix, which Comcast sells for $4.99 per month.

The shift in the Streampix distribution strategy came up last week in Comcast’s 300 page-plus filing (PDF) on its proposed merger with Time Warner Cable.

Comcast launched Streampix in February 2012. Streampix started off as a streaming-only offering, and added a download capability to the mix late last year. Comcast has been selling Streampix as a standalone for $4.99 per month, but has also been using it as a complementary multiscreen service with premium-level service bundles, including its triple-play offerings.

In the filing, Comcast said Streampix failed to catch on as a premium, stand-alone video streaming service.  

While Comcast “sought to create excitement around Streampix by offering the online version through a unique online site and app, and offered Streampix to a small number of Xfinity broadband-only customers in one  region, these attracted minimal interest: both the site and the app are being decommissioned, and the standalone offer  was discontinued. Going forward, Streampix will simply be part of the Xfinity TV app and  website like other VOD offerings,” the MSO said. 

Similar language now shows up on the Streampix Apple App Store and Google Play pages: “Streampix has moved to XFINITY TV Go. Comcast customers with Streampix should download XFINITY TV Go to view Streampix content.”

In the filing, Comcast shot down notions from merger commenters that Streampix was being developed to as a launch point of an over-the-top, out-of-footprint subscription video platform.

“It is a branded VOD offering, available on Comcast’s set-top boxes; its unique claim is simply that in assembling the service, Comcast set out to acquire full online rights as well, and highlighted the over-the-top access of the network.”

Despite Comcast’s struggles with Streampix, that hasn’t stopped other MVPDs from developing and launching broadband-fed SVOD services. Canadian operators Rogers Communications and Shaw Communications, which have been grappling with Netflix for about four years, are set to launch their multiscreen streaming service, “shomi” in beta form sometime next month.