Presto finds an unlikely ally in Quickflix

Strikes reseller agreement following the Australian launch of Netflix

Heated competition in the streaming video on demand (SVOD) market has motivated Presto to strike a conditional agreement with 'frenemy' Quickflix.

Presto’s movie and television catalogue will be resold by Quickflix and offered to its streaming customers under the agreement.

Presto and Quickflix’s unlikely partnership was brought about by the stiff competition from recent market entrants, the likes of Stan and Netflix, said Shaun James, the director of Presto’s video on demand (VOD).

"Quickflix's decision to resell Presto follows its strategic review of key players across Australia's streaming entertainment landscape,” James said in a statement.

Quickflix chief executive Stephen Langsford said Presto's parent companies, along with its content portfolio, made it the most attractive partner.

"It was obvious that Presto has the most impressive line-up of subscription streaming movie and TV," said Langsford.

"Streaming is taking off and this agreement will significantly bolster our content offering for existing and future Quickflix customers, whilst improving our overall operating economics."

Packages to be resold by Quickflix include Presto TV and Presto Movies at $9.99 a month, along with the Presto Entertainment bundle at $14.99 per month.

Quickflix currently offers its own subscription streaming service at $9.99 per month.

Competition in the video on demand market intensified following the Australian launch of Netflix in March. The global video on demand service has 53 million subscribers and undercuts all local offerings on price at $8.99 a month.

Netflix’s localised catalogue isn’t as vast as its library in the US; however, it is one of a few providers to offer streaming in the nascent Ultra High Definition (4K) standard.

Stan, a joint venture SVOD service between Nine Entertainment Co and Fairfax media, launched aggressively at around the same time, though it charges $9.99 a month.

The partnership will market Presto’s services to potential customers. The strategic move will help Presto’s parent companies, Foxtel and Seven West Media, claim a larger stake of the market.

Read more: Telstra readies for Galaxy S6 launch with bonus data and bundled Presto

The deal remains subject to a series of "commercial requirements" ahead of its approval and is expected to be finalised in the coming months.

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