Seven West Media’s sale of streaming platform Presto to Foxtel this week has killed off another Australian video content platform, as brands continue to jostle for the position of market leader.
Foxtel said yesterday that users of the Presto platform will be invited to transition into a revamped “Foxtel Play” product when it discontinues the service in January of 2017. Meanwhile, Quickflix, the company that provided a local equivalent to Netflix by providing a DVD rental and later a streaming service in Australia, has emerged from administration. US company Karma Media Holdings has bought the platform, which will continue to deliver services to customers.
So how did the Australian market get to be so crowded, and are mergers and exits inevitable?
Managing director at Telyste Foad Fadaghi says that services with a specific niche have an advantage in the landscape.
“Our belief is that the market will continue to support multiple services, especially specialist services,” he told SmartCompany.
“Things like sporting codes – and there’s also likelihood that individual studios that produce enough content will look at [providing SVOD services].”
However, the streaming world is challenging and the Presto example could be evidence of the need for platform owners to focus entirely on one or product.
“I think the market is likely to be fragmented for some time. The challenge with Presto was that it was a bit of a half-hearted attempt,” says Fadaghi.
The landscape has changed significantly over the past few months, but Australian video companies have been around the last 13 years. Here’s a quick timeline:
The business begins in Australia as a DVD delivery service, similar to the Netflix model of DVD delivery.
The national broadcaster starts putting content online in an on-demand portal, which has grown substantially in scope since, including a live stream of the 24 hour news channel.
Fadaghi says that even today commercial platforms will continue to experience pressure from the offerings of the national broadcasters.
The platform listed on the Australian Securities Exchange in 2005, and announced a streaming service for around $15 a month from a pre-set library.
Online DVD retailer EzyDVD starts its own service.
Internet subscription packages are offered by Foxtel for a number of its shows and channels.
The video streaming service was launched and originally owned by Foxtel before Seven West Media and Foxtel launched ‘Presto Entertainment’ as a joint venture in December 2014.
Nine entertainment and Fairfax Media get in on the action ahead of the arrival of Netflix with an Australia Day launch of Stan’s streaming bundles.
Netflix Australia brings a localised – and critics say limited – library to an Australian audience, with three screen packages starting at $9.95 per month.
Movie streaming provider EzyFlix closes. Its chief executive expressed anxiety to SmartCompany in 2014 over Netflix’s entry into Australia, while analysts observe there will be finite room for players in the Australian market.
Phone providers including Telstra and Optus start ramp up promotional activities with streaming services, integrating them into products like Telstra TV and offering customers free trials as an add on to phone bundles.
Administrators are appointed as the company struggles to raise capital, and call for interested parties for the purchase of the customer database in May 2016.
Significant pressure from Stan sees suggestions that Seven will sell out of its Presto stake. The sale is confirmed in October.
Karma Media Holdings pays Quickflix $1.3 million for the subscription service. This means the operation will continue to trade and 24 staff will stay employed at the business.
Foxtel announces new streaming packages starting at $10 a month, which will include content across a variety of the subscription TV service’s channels. Foxtel chief executive Peter Tonagh also announces more HBO content after the success of the most recent Game of Thrones season being available to subscribers via the streaming service.
All Presto users will be offered Foxtel Play packages after the service is closed in 2017.
