Presto cuts Telstra deal to expand subscriber base before Netflix arrives

Just before Netflix goes live in Australia on March 24, Presto has cut a deal with Telstra to boost its subscriber numbers.

The exclusive deal, available immediately, sees Telstra re-sell Presto’s subscription video on demand service to its 16.4 million mobile customers. Presto TV and Presto Movies are available as stand-alones for $9.99 per month while both are bundled with a Presto Entertainment subscription for $14.99 per month

All eligible Telstra mobile customers are being offered a complimentary three-month Presto Entertainment subscription.

Telstra will soon launch a Presto app on its digital set top box T-Box, of which 600,000 are used throughout Australia.

Presto will be unmetered for customers connecting to the service via Foxtel Broadband and Telstra fixed broadband. ISP and data charges will otherwise apply when viewing Presto over mobile networks and via non-Foxtel Broadband or non-Telstra broadband services.

Presto is owned by pay-TV provider Foxtel (which is 50% owned by Telstra) and Seven West Media.

Netflix will be available in Australia and New Zealand on all major broadband operators (as Fetch TV which is carried by rival telcos Optus and iiNet, also unmetered on the latter) some smart TVs, Apple TV, Google Chromecast and mobile devices.

As the battle fever heats up, the question bandied about of course is, can the Australian market cope with Presto, Netflix and Stan?

Shaun James, Director of Presto and VOD tackled it at the Broadcasting Digital Media Summit earlier this week. He said while Presto had already tentatively worked out its sums (including the market share it would need to be sustainable), it would be hard to tell until all the services launch. The services, he explained, would have to wait to see how quick the Australian take-up would be.

“One of the key things we have learnt from the overseas experience is that you build scale very, very quickly,” James pointed out. “Netflix went into Canada and built one million subscribers in 13 months. When these things pay off and the general public understands how to use them, what content is available, what devices they are on, they ramp up really really quickly.”