As tipped by ChannelNews Seven West Media has pulled out of streaming content Company Presto with the service set to be closed down in January.
Shares in the streaming Company have been picked up by Foxtel their joint venture partner.
Foxtel, which is owned by The Australian’s publisher, News Corporation, and Telstra, will migrate Presto’s customers onto its Play service, starting in December.
Presto will be closed down at the end of January.
“It has been great working with the team at Seven on Presto and we look forward to future collaborations,” Foxtel chief executive Peter Tonagh said.
“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.”
The Australian said that Presto has struggled to compete with global subscription video-on-demand giant Netflix and Stan, owned by Fairfax Media and Nine Entertainment.
The Australian foreshadowed that Presto would be closed down and rolled into Foxtel Play, which will be retailed at new entry prices, starting from $10 a month.
Seven will continue to produce content for Presto and Play, including two new special episodes of Home and Away. Previous special episodes of the long-running drama have significantly boosted Presto subscriber numbers.
Seven chief executive Tim Worner said he looked forward to continuing to work with Foxtel “in particular in the creation of new programming content.”
