ASX-listed video streaming and DVD rental company Quickflix has struck an agreement with Foxtel under which Foxtel's Presto streaming service will be available through Quickflix.
"Quickflix will be an affiliate reseller for Presto to reach new subscription streaming customers including the large number of Australians who are still watching DVDs and yet to discover streaming," a Quickflix statement issued to the ASX said.
In addition to a monthly 'all you can eat' library of streaming titles available to Quickflix customers, the service offers 'premium' titles and TV series which incur a fee to rent and are available to both subscribers and non-subscribers.
The agreement will complement Quickflix's transactional streaming options, the ASX statement said. Quickflix will be able to resell the Presto TV, Presto Movies and Presto Entertainment bundles.
"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," Quickflix CEO Stephen Langsford said in a statement.
The agreement between the two companies is subject to conditions including due diligence and funding arrangements, the ASX statement said.
The agreement comes as competition in the streaming market tightens. In addition to Presto and Quickflix offering services, Fairfax and Nine Entertainment joint venture Stan launched earlier this year. The biggest shakeup, however, has been the Australian debut in March of video streaming goliath Netflix.
In April Quickflix announced it had 140,901 customers, including paying customers of 123,553.
Research by Australian startup Pocketbook found that according to a study of the spending habits of 85,000 of its users, Quickflix had captured 3 per cent of the streaming market in Australia.
Announcing results for the quarter ending 31 March, Quickflix reported a loss of $0.85 million
Quickflix entered a trading halt yesterday ahead of today's announcement.
One of the most high-profile revenue measures contained in Tuesday's federal budget was the imposition of a tax on digital goods and services provided by overseas-based companies but consumed by Australians. The so-called 'Netflix tax' won the support of Foxtel.