Netflix Drives More Canadians to Cut Cable Cord
Canada's biggest cablers shed more TV subscribers during their latest financial quarters
Netflix continues to swallow cable subscriptions in Canada.
The country's major cable operators, reporting their latest financial earnings on Thursday, revealed ongoing cord-cutting as Netflix Canada increasingly dominates online video here.
Shaw Communications reported a 64 percent jump in fourth-quarter earnings to CAN$192 million (US$171 million), on revenue up 1 percent to CAN$1.26 billion (US$1.12 billion). But the western Canadian cable giant also shed 20,166 cable customers during the latest quarter, while adding 11,983 Internet subscribers.
And Rogers Communications, the country's largest wireless and cable TV provider, posted profits down 28 percent to CAN$332 million (US$295 million), on revenue up slightly to CAN$3.25 billion (US$2.89 billion). At the same time, Rogers shed 30,000 TV subscribers, while securing 16,000 new Internet customers.
Cable revenues at Rogers dropped to CAN$864 million (US$768 million), against CAN$873 million last year, as the division was hit by promotional pricing to keep cable TV subscribers from leaving.
Seeing their cable divisions threatened by Netflix Canada, rivals Rogers and Shaw recently pacted to launch their own online video portal, Shomi, to launch in November. Netflix Canada has racked up around 4 million Canadian subscribers since launching in September 2010.
The U.S.-based streamer has also taken aim at domestic broadcasters by earlier this week ordering its first original Canadian production, the Jennette McCurdy-starring miniseries Between, by writer-creator Michael McGowan.