Foxtel is killing off Presto

A funeral scene from Home and Away. Matrix/GC Images )

Foxtel is closing its joint venture streaming media business Presto.

Seven West Media is selling its stake in Presto to Foxtel. The terms of the deal haven’t been announced.

Presto will cease on January 31. From December, Presto customers will be able to access the new Foxtel Play product.

The 50/50 Foxtel and Seven West Media streaming media joint venture business was launched in 2015.

The departure of Presto brings the market down to two players, the US giant Netflix and Stan, the Fairfax Media and Nine venture.

Netflix now reaches more than a quarter of all Australians aged over 14, just 12 months after launch, as the astonishing growth of the US-based streaming service continues to dominate the local market.

While Netflix keeps its own figures confidential, the latest data from Roy Morgan Research suggests that as of May 2016, 4.95 million Australians aged over 14 have access Netflix.

Presto was third behind Stan on audience. Stan has 332,000 subscriptions reaching 891,000 Australians, according to Roy Morgan. Presto reaches 353,000 people in 142,000 homes.

The battle for market share is being fought on the content front, with players either doing exclusive deals for new shows or creating their own programs.

Stan has its series Wolf Creek and Presto Home and Away.

Tim Worner, CEO of Seven West Media, said: “We look forward to continuing to work closely with Foxtel, in particular in the creation of new programming content.”

Peter Tonagh, Foxtel CEO, said: “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.”

Two new Home and Away specials will be released this summer under the ongoing partnership between Foxtel and Seven West Media on content production.