Look out Foxtel: “Nine Entertainment Co and Fairfax Media are close to forming a $100 million video streaming service,” reports Fairfax Media.Called StreamCo, Fairfax has been in negotiations with Nine Entertainment Co to invest in its upcoming video on demand (VOD) service for several months, say sources.
The $100 million joint venture between the two media giants could be announced as soon as next week, although there are no plans to form a merger as previously rumoured.
The JV will be 50:50, although StreamCo will be operated by Nine for the interim.
The streaming service is tipped to cost $10 per month – identical to Foxtel’s Presto which cut its pricing just this week and Quickflix who also charges the same monthly fee for unlimited streaming.
However, Quickflix boss isn’t fazed by the emerging competition.
“It’s an exciting space, alliances are swirling and we’re running hard. Announcements like today are energizing,” Stephen Langsford, Quickflix CEO told CN.
Nine also recently bought a stake in Quickflix streaming company worth under 10%.
The VOD service would allow both media companies to sell “cross platform advertising deals across television, newspapers, radio and digital,” according to the report and allow Channel Nine to capitalise on the popularity of Internet streaming.
Both media companies have had troubled pasts and will be wishing to future proof earnings in a bid to avoid repeating past mistakes.
Stream Co will run by Nine executive Mike Sneesby and be chaired by Nine Entertainment CEO David Gyngell.
There had been past whispers about Nine launching a streaming service with other free-to-air channels or Foxtel.