How Net Neutrality is about to die in Canada

[Grey Fox]

http://www.vancouversun.com/Shaw+challenging+Netflix+with+movie+service/5104710/story.html

CALGARY - Shaw is launching a new movie service it hopes can challenge Netflix and keep viewers paying for the choices offered by the cable giant.

The move to offer Movie Club for a monthly fee comes amid an increasingly aggressive and competitive market, where television and movies now arrive not just from the Shaws and Teluses of the world, but via iTunes and Netflix, and are no longer confined to boxes in the living room.

"It's a smart move to defend themselves against Netflix," said Tom Keenan, a University of Calgary professor who follows technology issues. "Fundamentally, they want a piece of the action.

"They're looking for other ways to tap into that same urge, which is people who want to see movies but are too lazy to trek to the movie theatre or (video store). So there's a sweet spot in there for them, movies people are still talking about that aren't in theatres any more."

He added much will depend on the selections offered by each.

While Movie Club won't match the number of titles available from the streaming video provider, Shaw Communications president Peter Bissonnette believes the choice of newer movies, more HD offerings and a selection that is updated monthly will be selling points.

As well, subscribers to Movie Club — who initially can watch on their TV or computer, with phones and tablets planned to come on line later — can view content without it counting against their data plan.

"There should be some advantage to you being a customer," Bissonnette said.

The issue of download thresholds hit the radar earlier this year when the country's telecommunications regulator effectively killed unlimited plans in Eastern Canada (a ruling it's revisiting this week) and advocacy groups hit back loudly, raising awareness around limits and overage charges.

Services, such as Netflix, can eat up a lot of capacity, especially if customers are frequently watching streaming video.

Shaw, after consulting with customers, devised new data plans that included both higher limits and faster upload and download speeds.

Keenan, who works in the faculty of environmental design, envisions Shaw steering any customer who bumps up against their limit toward the new subscription offering.

"It's a smart move in terms of defending themselves against Netflix," he added.

While Netflix doesn't care who your TV provider is — it works over a number of devices, including Xbox 360s and Playstations — Shaw's service is obviously only available to Shaw customers.

Bissonnette acknowledges Movie Club is also part of developing a strong package to have on offer for those who may have been lured away by Telus' aggressive efforts to entice basic cable subscribers.

The Calgary-based Shaw has been losing those subscribers to Telus and its offer of free hardware, while in the last quarter the number of digital and Internet customers it added were below analysts' expectations.

The more options offered, Bissonnette said — adding he believes they are superior options — the better chance of both retaining and reclaiming customers.

"Customers like being with Shaw and to the extent they can get a compelling service from Shaw without having to go somewhere else...," he said. "When customers move through that contract period, if they're truly looking for an improvement in their experience, we want them to look to us."

Shaw's Movie Club is priced at $12 a month (an extra $5 if you want everything in HD), compared to Netflix's $7.99 rate. It can be accessed from existing digital boxes or through the company's new Gateway product, with about 250 titles available, and updated, monthly as they move from the paid video-on-demand service.

"We think at $12 we've provided a much more compelling service than Netflix," Bissonnette said. "We'll just have to wait and see what our customers think."

[Ed Anger]

Just bend over and take it.

[derspiess]

I think the Verizon-Google proposal for net neutrality is the way to go.  Yes for cable/DLS/etc. ISPs but no for wireless (3G, LTE, WiMax, etc.) to give it time to develop.

Mind you, people's definition of 'net neutrality' seems to be changing over time.

[The Brain]

Wtf is net neutrality? Is it a gay thing?

[Grey Fox]

Wtf is net neutrality? Is it a gay thing?

Grey Fox != Martinus

[Eddie Teach]

You didn't answer the question.