Presto launched in 2014, stepping into a market where the streaming groundwork was already “down under way,” thanks to early moves from ABC iView, SBS On Demand, and Quickflix. It arrived as Foxtel’s attempt to build a standalone subscription service, starting with a movie-only offering priced at AU$19.99 per month and backed by major studio deals from Disney, Warner Bros, and Sony.
Adoption lagged almost immediately. The pricing model felt high compared to emerging SVOD norms, and by August of that same year, the monthly cost was cut in half to AU$9.99 in an effort to attract subscribers. Presto had content strength, but the market was shifting fast, and its initial structure wasn’t aligned with where consumer expectations were heading.
Expansion into television: Presto TV and Presto Entertainment
In December 2014, Foxtel partnered with Seven West Media to expand the service into television. This led to the launch of Presto TV and the bundled version, Presto Entertainment, in January 2015. At AU$14.99 per month, the bundle gave access to a mix of movies and television content. The library included popular Australian shows like Packed to the Rafters and Home and Away, along with international hits like Boardwalk Empire and The Sopranos. Presto also offered some Showtime titles and launched its own short-form original series, Let’s Talk About.
Facing growing competition in a crowded market
Presto entered a marketplace that was evolving rapidly. Netflix launched in Australia in March 2015 with strong branding, global reach, and a growing slate of originals. Local competitor Stan also launched with a focus on homegrown productions and a simpler pricing structure. Presto’s split model of charging separately for movies and TV was seen as confusing and expensive compared to the flat fees offered by its rivals.
Marketing efforts and subscriber growth
Presto attempted to compete with promotional campaigns and exclusive releases like Mr Robot. In May 2016, it even launched a graffiti campaign in Melbourne to promote the show Empire. Despite these efforts, it struggled to scale. As of May 2015, Roy Morgan Research estimated that Presto had just 97,000 users, compared to Netflix’s 1 million and Stan’s 91,000. By September 2016, Presto had around 130,000 subscribers but remained well behind its competitors.
Closure and transition to Foxtel Play
In October 2016, Foxtel announced it would acquire Seven’s 50% stake in Presto and shut down the service. Presto officially ceased operations on January 31, 2017. Subscribers were transitioned to Foxtel Play, a revamped IPTV service that offered live and catch-up television with tiered pricing starting at AU$10 per month.
The closure wasn’t without cost. News Corp disclosed a US$21 million quarterly loss directly related to shutting down Presto. Although Foxtel’s overall subscriber base stood at 2.9 million, Presto’s small footprint and lack of growth made the joint venture unsustainable.
Why Presto struggled to survive
Presto had strong studio partnerships, an early-mover advantage, and support from two media giants. But its execution fell short. The dual-pricing structure was confusing, the platform lacked compelling exclusives, and the product experience failed to meet modern streaming standards. The arrival of Netflix and the rise of Stan highlighted Presto’s inability to keep up with faster, leaner competitors.
Presto also suffered from its identity. It was not fully aligned with either the traditional pay TV model or the digital-native strategies of its streaming rivals. As the market matured quickly, Presto found itself stuck in the middle.
What Presto left behind
Although short-lived, Presto’s legacy lives on through the lessons it taught its parent companies. It paved the way for Foxtel’s later, more successful ventures like Binge and Kayo. It also served as a cautionary tale about the challenges of pivoting from broadcast to digital without full commitment or agility.
The story of Presto is not one of failure alone, but of transition. It reflected the growing pains of a local media ecosystem learning to compete in a global streaming economy. It didn’t survive the disruption, but it helped shape what came next.
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