A deal announced this morning between Australian subscription video services Quickflix and Presto, will mean that Quickflix will soon offer Presto's TV, Movie and entertainment channels instead of it's current video on demand content.
The arrangement will take the form of a distribution agreement to circumvent the conditional payouts that Presto would have to pay the Nine-Fairfax company Stream Co if it followed a more conventional route and bought a controlling share in Quickflix.
Quickflix's DVD and pay-per-view segments will be unaffected by the arrangement and are intended to complement the new Presto streaming catalogue.
Presto and Quickflix winners, leaving Stan out in the cold
Though the agreement is still to be finalised, the ability to offer presto's content through Quickflix will benefit both companies significantly.
Presto has an excellent selection of movies and a highly respectable TV offering – areas that the Quickflix streaming service has been well and truly outpaced in, since the launch of Stan and Netflix.
Combining Presto's superior streaming product with Quickflix's profitable DVD service will also allow the company to make a strong business overall.
But Presto also stands to gain a lot from the agreement as it will allow Presto Subscribers to access the service directly through Quickflix's extended device network of apps that include a range of smart TVs, Consoles and media players.
It'll also put Presto's products in front of another 90,000 Australian customers that were signed up to Quickflix's streaming services in March this year.
Presto said that the agreement is expected to be finalised in the coming months.