Seven Network is considering approaches from telco Optus, digital TV platform Freeview, and movie subscription service Quickflix about joining forces for an online streaming service to rival U.S. streaming giant Netflix.
The Australian reports that it was not previously known that Optus, Freeview and Quickflix were planning a foray into subscription video on-demand services.
The service will compete with Netflix, which is considering an official launch in Australia next year.
“There’s quite a list of players circling in the space,” a local television executive told The Australian.
Netflix has publicly downplayed its local aspirations after local network bosses complained to U.S. studios that the maker of Kevin Spacey hit House of Cards was diminishing the value of output deals, the agreements under which the Seven, Nine and Ten networks pay studios fees for television programmes.
Local executives have been concerned that Netflix has attracted an estimated 50,000 to 200,000 local subscribers by flouting international regulations and accepting payments from Australian credit card holders, despite a “geo-block” that could be easily bypassed by internet users.
But Netflix is said to be in talks about output deals for Australian content that can be streamed locally and in other markets.
This comes despite official claims from Netflix that it is focused on expanding its footprint in Europe, where it has recently struck a deal with British cable provider Virgin Media to incorporate Netflix into subscription packages.
Seven is also entertaining overtures from pay-TV operator Foxtel’s Presto, which was launched in March as a beachhead against Netflix before it arrives in Australia.
Presto has also approached Nine and Ten networks.
As revealed by The Australian in December, Nine is working towards launching its own streaming service, codenamed Stream Co., by the end of this year.
A string of explosive emails produced under subpoena in a bitter court battle last week over veteran programmer John Stephens revealed that Seven considered offering Stephens a job on Nine’s Stream Co. to keep him from working at Ten.
The court heard the plan was hatched by Seven chief operating officer Nick Chan.
“Nine have as much of a vested interest in him not going as we do,” Chan wrote.
“He won’t be the first to walk away from a contract.”
But it’s understood Seven has not entered into an agreement with Nine and is keeping its options open.
Seven has held discussions with Nine, but has developed reservations about a tie-up with its biggest rival since the email was sent in March.