Rogers, Shaw Shut Down Streaming Service

Rogers and Shaw Communications have decided to shut down their streaming video service “shomi,” illustrating once again the importance of scale for over-the-top voice, messaging or video services. As has often been the case, services launched by just one operator fail to gain enough scale to compete.

Over the top voice services run by mobile service providers or telcos have had modest success, and much the same is true for carrier messaging services.

The need for scale is one reason some observers believe it is inevitable that Comcast and Charter Communications will look seriously at acquisitions in the U.S. mobile operator market. Neither firm, by itself, has network assets reaching as much as 30 percent of U.S. households.

That implies that national reach, which some would argue now is required for leaders in the mobile market, must be created, one way or the other.

source: Ovum
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