Rogers Shutting Down Video Rental Business, Transforming 460 Stores into Wireless Centres

Posted by Techvibes NewsDesk

First, Blockbuster. Now, Rogers Video. Canadians are officially without a national video rental chain. (And the majority likely won't even notice.)

Rogers is exiting the rapidly shrinking video rental business after revenue from Rogers Video stores plummeted 43% last year to $82 million. Nearly 500 locations across Canada are liquidating stock. Most of the stores will be kept by Rogers and remodelled to showcase the telco's wireless offerings - cellular, television, and internet.

“We wound up our rental business at the end of last week. We are now in the process of liquidating all of the videos and DVDs,” Leigh-Ann Popek, a spokeswoman for the company, told the Financial Post. “All of the locations will stay open but will be repurposed to showcase our wireless sales and service as well as our wireline offerings such as cable, home phone and Internet.”

Rogers' video rental business has been losing money for years. The Toronto-based telecommunications company has wanted out since 2009. With total revenues of more than $12 billion, Rogers won't miss video, which makes less than 1% of its money.

Why is video rental dying? Streaming video, of course. Well over one million households - roughly 10% of Canada - already subscribe to Netflix alone, with many more Canadians giving money to a smattering of similar companies.

Company:
Rogers Communications
Website:
http://www.rogers.com
Location:
Toronto, Ontario, Canada

We are a diversified Canadian communications and media company. We are engaged in wireless voice and data communications services through Wireless, Canada's largest wireless provider and the operator of the country's only national Global System for Mobile Communications ("GSM") based network. Through Cable we are one of Canada's largest providers of cable television services as well as high-speed Internet access... more


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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property. Originally founded in 2002, Techvibes is dedicated to covering social, mobile, and startup news that impacts Canadians. Our editors and nationwide network of reporters combine breaking hyperlocal news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and... more



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