U.S. app that lets viewers sample 40 streaming services raises $7 million

Corus Entertainment

09/11/2021 14:00

By Dawn Chmielewski
    Nov 9 (Reuters) - A streaming service that seeks to simplify
the subscription model has raised $7 million from an investor
group led by Canadian media company Corus Entertainment
 CJRb.TO .
    Struum brings the “ClassPass” model, which allows members to
sample a variety of different gyms for a fixed monthly fee, to
entertainment. Subscribers pay $4.99 a month to sample thousands
of movies and television shows across more than 40 niche
services. 
    Positioned as an aggregator, Struum offers users a way to
watch shows from different services without having to subscribe
to each one a la carte. 
    Subscribers receive a fixed number of monthly credits which
they redeem to watch shows, choosing from an eclectic mix of
content, from Echoboom Sports’ action sports programs to
Tastemade’s cooking shows and the BBC Select’s documentaries. It
does not include major services like Netflix  NFLX.O  and does
not intend to do so.
    “The credit-based sampling model is a proven model,” said
Corus CEO Doug Murphy. “So when I first got wind of it … I
thought, ‘Well, this is a lay-up.’ It solves a market need.”
    Struum launched a preview on Apple phones and tablets in
May, attracting tens of thousands of installs. CEO Lauren
DeVillier said the company plans to use proceeds from the Series
A investment to grow its content library, enhance its technology
 and expand the service outside the United States.
    At the same time, it is broadening distribution to Android
devices, as well as to the living room, via Roku, Amazon Fire TV
and Apple TV.
    Murphy said Corus will be Struum’s exclusive partner when
the service launches in Canada, which is expected to happen in
2022.
    The company, founded by Walt Disney Co  DIS.N  and Discovery
veterans, attracted early backing from former Disney CEO Michael
Eisner through his Tornante Company. He said the idea resonated
with him without need for exhaustive research.
    “Not only is aggregation the right idea,” said Eisner. “But
the way they're thinking of aggregating to me makes sense.”

 (Reporting by Dawn Chmielewski; Editing by Cynthia Osterman)
 ((Dawn.Chmielewski@thomsonreuters.com;))