Presto will be shut down at the end of January with customers moved to a revamped Foxtel Play product which is set to launch at the end of the year. The announcement follows Foxtel's acquisition of Seven West Media's interests in Presto, a joint venture between Foxtel and Seven West Media.
One of the first streaming platforms to hit the Australian market, Presto's closure is the second major event in a crowded marketplace following competitor Quickflix going into voluntary administration back in April.
It also follow surveys which showed Australian streamers rated Presto as the least satisfactory service compared to rivals Stan and Netflix. Presto's subscription rate hasn't been able to match the behemoth that is Netflix, and has also been trailing behind that of Stan, which is co-owned by the Nine Network and Fairfax. Presto's subscription pricing, which is up to 66% more expensive than Netflix for those that want both movies and TVs in their package, has also been a factor in the service's relatively slower uptake.
Towards the end of this year, Presto customers will be invited to transition to one of the newly revamped Foxtel Play packages, which start at $10 per month, or a $15 per month Drama package that will include first-airings of HBO programming. Foxtel Play is Foxtel's Internet only subscription service, with no need for a cable or satellite connection and no fixed term contracts.
Following the acquisition of Seven West Media's ownership in Presto, Tim Worner, CEO and Managing Director of Seven West Media, promised to continue working with Foxtel on future programming. “We look forward to continuing to work closely with Foxtel, in particular in the creation of new programming content," said Worner.
Foxtel CEO Peter Tonagh, had this to say: “It has been great working with the team at Seven on Presto and we look forward to future collaborations. We are delighted to be able to offer Presto subscribers access to the new look Foxtel Play, which we know will be highly attractive to them."
