The Financial Post newspaper is reporting today that Shaw Cable has been hit with numerous cease and desist orders from the major movie studios over content on Shaw's new Movie Club.
A source for the studios told the post that Shaw owned Corus Entertainment has only negotiated the rights to show the movies on Corus owned Movie Central and not on Movie Club.
The Shaw Movie Club launched last month in what appears to be an attempt to stop the growth of Netflix in Canada. For $12 a month, $4 per month more than Netflix, the Movie Club gives Shaw digital cable customers access unlimited access to two hundred movie titles in standard definition. Shaw says about ten of those movies are refreshed every week.
When contacted by the Post, Jay Mehr, a senior VP with Shaw responded by saying that under the terms of its studio deals, Corus does have the rights to show the films on Shaw's Movie Club.
Analysts expect the contentious issue will be resolved. In the meantime, Shaw has removed some titles from its Movie Club until the dispute gets resolved.
Discuss in Digital Home's Shaw Cable discussion forum .