Presto to shutter, fold into new look Foxtel Play

Australian subscription video streaming service Presto will cease operations on January 31. It will be folded into Foxtel’s revamped streaming service in the wake of its buying Seven West Media out of its joint venture.

Presto has been struggling against the USA’s Netflix and the Fairfax Media and Nine Entertainment venture Stan. After being set up by Foxtel in March 2014, nine months later Seven West Media announced it would take a 50% stake. The move was ratified by competition watchdog ACCC in March 2015.

June 2016 figures from Roy Morgan Research found Presto was languishing at a distant third with 142,000 subscribers. In comparison, Netflix had 1.878 million and Stan had 332,000.

Presto customers are invited to move to the new look Foxtel Play which rolls out in December. New packages start at $10 month for 25 channels, and flexible packages offered without the need to sign up to a fixed term contract.

Foxtel CEO Peter Tonagh said, “Foxtel Play will be a simpler, cheaper and more flexible IP delivered product, which will create much better value for Australian consumers.

“It is the logical step for us to take in the evolution of Foxtel’s service. The new offering will mirror the successful launch of HBO Now in the US and Now TV by Sky in the UK.

“Customers who use an IP connection, with their own device and bandwidth will have access to this great new offering. Consumers will be able to sign up by downloading the app to their eligible connected TV, laptop, PC or games console.”

Of Presto’s demise, he added, “It has been great working with the team at Seven on Presto and we look forward to future collaborations.”

Tim Worner, Seven West Media CEO and Managing Director, says the network will continue to work closely with Foxtel, particularly in creating “new programming content.” He would not disclose how much Foxtel paid for its share in Presto.