Resale deal with Presto to boost Quickflix
[Thu 14/05/2015 11:12 AM]
By Don Groves
Quickflix’s new agreement to resell Presto Movies and Presto TV could be a game-changer for the company which launched in 2003 and has yet to make a profit.
Subject to due diligence and new funding arrangements, Quickflix will replace its $10 a month streaming service with Presto’s content, significantly strengthening its film and TV offerings.
It’s also a win for Presto which will get access to Quickflix’s far wider distribution network which includes smart TVs, X Box, Sony PlayStation and other game consoles.
The deal will “bolster our content proposition and improve our overall economics,” Quickflix founder/executive chairman Stephen Langsford told IF.
One advantage is that Quickflix will no longer have to pay significant minimum guarantees that are standard for SVOD deals.
Langsford said the deal will entail a major upgrade to Quickflix’s user interface to integrate Presto’s content and said the funding arrangements for the upgrade are confidential. Presto is not taking an equity stake in Quickflix.
QFX Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
