Foxtel buys out Seven West Media’s share in Presto as it’s rolled into Play

Foxtel has bought out Seven West Media’s shares in Presto and unveiled new pricing details ahead for its Play service.

 

Seven West Media has confirmed that subscription TV group Foxtel has bought its shares in the Presto digital streaming joint venture.

As revealed by The Australian, the partners have agreed to a deal that will see Foxtel take control of the venture.

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.”

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.”

Foxtel also unveiled new pricing details and packages for Play, which allows consumers to access Foxtel’s content via an internet connection without signing up to a fixed-term contract.

The new service will have five entry-level tiers, with drama and entertainment packs priced at $15 a month, or $25 for both.

For $10, there will be one option for lifestyle content, documentaries or children’s programs.

Subscribers will have access to linear channels in their selected tiers, along with all associated on-demand, catch up and library content.

Mr Tonagh said Play would mirror Sky’s successful Now TV service in the United Kingdom and HBO’s Now in the United States.

“Foxtel Play will be a simpler, cheaper and more flexible IP delivered product, which will create much better value for Australian consumers,” he said.

“It is the logical step for us to take in the evolution of Foxtel’s service.”

Existing Foxtel Play customers will be transferred to the new pricing, with the package that best aligns to their current service, from December.