Australian streaming startup Stan, the $100 million joint venture between Nine and Fairfax, is growing faster than its owners expected but they’re still unsure if it will ever turn a profit.
Nine boss David Gyngell says the whole video streaming category in Australia has exploded with the entry of US giant Netflix.
Competing with Netflix and Seven and Foxtel’s joint venture Presto, Stan is hoping to offer more Australian content and fast-track shows from the US.
But on whether it will ever make money, The Australian reports Gyngell says: “(We’re) seeing if we can carve out a profitable alternative and a local alternative to what Netflix will be, and that’s yet to be seen.”
“Netflix is yet to be seen if it’s going to make money.
“We don’t see Stan being the saviour of this company long term, we see it as an adjunct to content acquisition and original content deals.”
Stan has more than 300,000 subscribers since launching in January but less than 200,000 are currently paying the monthly $10 subscription fee.
“Stan is running ahead of what we thought it was going to be, but then the category is,” Gyngell said.
“So are we getting our share? I think we are probably keeping in touch, just. We are up against the hottest brand in the world right now in Netflix.”
While Netflix hasn’t revealed its Australian customer numbers, Roy Morgan research estimates in July 737,000 households had used Netflix since it officially launched in Australia back in March.
There’s more here.
*Disclosure: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media
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