Foxtel’s decision to close streaming media platform Presto cost the cable entertainment group $US21 million ($A27 million).
The 50/50 Foxtel and Seven West Media business launched in 2015 is closing in January 2017. From December, Presto customers will be able to access the new Foxtel Play product.
The departure of Presto brings the market down to two players, the US giant Netflix and Stan, the Fairfax Media and Nine venture.
Quarterly results released by News Corp show Foxtel lost $US11 million ($A14 million) for the three months.
“Net income decreased mainly due to the $21 million loss resulting from Foxtel management’s decision to cease Presto operations in January,” News Corp reported.
Presto had 130,000 paying subscribers in September, according to News, putting the service in third place behind Netflix and Stan.
Stan, which launched in January 2015, has more than 600,000 active subscribers and is growing at a rate of 30,000 to 40,000 a month.
Roy Morgan Research says Netflix has 1,878,000 subscribing homes including paid, free trials, and special offers.
For the three months to September, Foxtel’s revenue increased 5% to $US31 million, mainly because of foreign currency fluctuations. The actual increase in Australian dollars was modest.
Foxtel is a 50/50 joint venture between Telstra and News Corp.
* Disclosure: Business Insider is published by Allure Media, which is 100% owned by Fairfax Media.
Business Insider Emails & Alerts
Site highlights each day to your inbox.