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Seven West Media signs up for Foxtel’s Presto with TV to be added to streaming mix

presto foxtel and sevenSeven West Media has signed on with Foxtel’s streaming service Presto with TV programming set to be added to the service from next year.

This morning the two companies confirmed the long-expected move, which will see Seven and Foxtel own 50 per cent each of the new entity Presto Entertainment.

No date has yet been set for the new service, which will see some HBO content added to the library as well as rights for some of Seven’s top shows, but it is thought the new offering will be launched in advance of US giant Netflix’s arrival locally in March.

It will also face competition from Nine Entertainment Co and Fairfax Media’s joint venture Stan, which is set to launch early in the new year.

In a statement this morning Seven CEO Tim Worner said: “This new venture sees the leaders in subscription television and our acknowledged strengths in content creation and leadership in broadcast television work together to deliver a new and exciting service to Australians.

“Our growing content library underlines Seven’s future as a content company delivering its programming to our audiences across a range of devices.”

The move leaves Network Ten as the only major free-to-air service yet to announce where it will hang its hat in the increasingly competitive space. However Foxtel currently has a joint bid tabled with Discovery Networks for the network, which would see it logically folded in with the Presto service.

It is unclear whether the service will remain at the $9.95 price point it has been at since halving its price in August after failing to get good enough traction.

Richard Freudenstein, Foxtel CEO, said, “We’re thrilled to be taking these next steps with Seven West Media to establish the new Presto Entertainment service. Customers have already recognised the value of the unrivalled movie programming we’ve had on tap since Presto’s launch and we’re proud to have delivered such a great product.

“TV is the final piece in Presto’s entertainment puzzle and today’s news positions us well to take it to the next level by offering the best in local and international TV to new and future subscribers.”

It is understood that under the deal both parties will kick in marketing collateral along their media outlets, but Seven has said it will add international content to the offering.

Alex Hayes

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