Already we've got The Australian behind Quickflix. Maybe Rupert...

Already we've got The Australian behind Quickflix.

Maybe Rupert is planning his entry?

Online video and DVD service Quickflix has made a deal with Presto that will see the company replace its online streaming content with movies and TV shows from the Seven West Media and Foxtel joint venture.
The deal will effectively see Quickflix become a reseller of Presto’s online content, freeing it up from the costly impost of purchasing online streaming rights for movies and TV shows. It comes as the struggling company attempts to fight back against a recent influx of new and better funded competitors, including global giant Netflix.
“As we transition to Presto yes, it will replace our streaming content. Much of our existing streaming content will be and is being replicated by the Presto service,” Quickflix chief executive Stephen Langsford told The Australian.
“Moving to this new format will bring significant improvement for the economics of Quickflix as it means we don’t have to commit to minimum guarantees and SVOD licensing rights any more.”
Financial terms of the deal have not been disclosed and it is subject to commercial requirements before being finalised.
The announcement trebled the market cap of Quickflix from $1.8 million to $5.5m as shares in the company jumped 200 per cent to 0.3c.
If the deal is completed it will see Quickflix resell Presto’s services, allowing Quickflix subscribers to access the latter’s full suite of movies and television content through internet-connected devices like smart TVs, game consoles, tablets and smartphones.
But it also means that the existing streaming content on the Quickflix platform will be replaced with licensed content from Foxtel and Presto. Quickflix will, however, continue to offer its transactional-video-on-demand and DVD mail-out business.
“This is a very significant development for us and it makes lot of sense,” Mr Langsford said.
“We are delighted to be partnering with a content powerhouse like Presto, which is backed by Foxtel and Seven West Media.”
There has been ongoing speculation that Quickflix would be the first victim in the nation’s hotly contested streaming video wars.
Presto, which will also be resold by Telstra to its vast customer base, was launched earlier this year as a defensive play against the Netflix, the global giant in the space. Stan, a joint venture between Nine Entertainment and Fairfax Media, was also launched earlier this year.
Industry analysts believe that the market for streaming content will ultimately support only two or three players leaving the losers as targets for consolidation.
Despite the increased competition for customers in the streaming video space, Mr Langsford said Quickflix was still going strong.
“We are very much alive and kicking.”

http://www.theaustralian.com.au/bus...deal-with-presto/story-e6frg996-1227355561832