Fairfax says the company’s streaming joint venture Stan is on track to pick up 100,000 sign ups by March, when rival Netflix is due to launch.
The claim about Stan, which is jointly owned with Channel Nine, was made in Fairfax’s half-year financial results released this morning.
The service was launched on Australia Day, however there is no guidance about how many of the projeted 100,000 sign ups are paid and how many were signed up with free deals and promotions.
Access to Stan’s content library, which consists of TV and movies, will set users back $10 a month after completing a 30-day trial.
Fairfax CEO Greg Hywood said: “Stan, our Streaming Video On Demand (SVOD) joint venture with Nine Entertainment Co, launched in January and early adoption is exceeding expectations. Stan is tracking to have more than 100,000 sign-ups by mid-March,” in a press release accompanying the financial results.
The half yearly report also claimed that the trends in subscriber sign ups were running at least 3 months ahead of expectations.
Announced last year, the deal between Nine and Fairfax is worth $100 million, however a significant portion of that is thought to be in contra deals for advertising and marketing.
Stan has already signed deals with SBS and BBC for premium content as well as other major TV franchises from the US such as Better Call Saul.
The service has also enlisted the talents of comedienne Rebel Wilson will front a new marketing campaign across print, online and outdoor to drive uptake.
OTT platform Fetch TV this week confirmed a deal with Netflix that will see the subscription TV platform and its telco partners Optus, iiNet and Dodo, back the US video streaming giant as part of a looming marketing blitz that will coincide with an upcoming Australian launch of the service next month.
Netflix will be supported on Fetch TV’s box, giving its 170,000 customers access to the streaming service through their TVs while Netflix is thought to already have more than 200,000 subscribers in Australia, who access the service via VPN.
Fetch CEO Scott Lorson told Mumbrella this week he would still be open to a similar deal with Stan, but made it clear that Netflix would be its marketing priority.
“We see Netflix as a clear front runner in the SVOD space,” Lorson told Mumbrella. “This deal has been our priority and Fetch TV and our partners will certainly be supporting them at launch.
“We don’t rule out other deals down the track and we enjoy strong relationships with many parties but our current focus is on Netflix.”