Video streaming services such as Netflix, Stan and Presto have been steadily changing the way Australians watch TV shows and movies. It’s a hotly contested space, especially with Netflix being legally available to Australians over the past year.

However it seems that the Australian market doesn’t have quite enough room for Presto, a video streaming service jointly owned by Foxtel and Seven West Media to continue.

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In a statement issued today, Foxtel will buy out Seven’s share of Presto, and close the service on 31 Jan 2017. Presto’s existing subscribers will be migrated to Foxtel’s own video subscription service, Foxtel Play.

For Presto subscribers, the move isn’t necessarily a bad one, as Seven will provide content to Foxtel Play; Tim Worner, CEO and Managing Director, Seven West Media, said: “We look forward to continuing to work closely with Foxtel, in particular in the creation of new programming content.”

Also, Presto and Foxtel Play subscribers will have exclusive Australian access to two new Home and Away specials to be released this summer.

Today Foxtel also announced a revamp of its Foxtel Play streaming service, which will roll out from December 2016. This will consist of new, low entry prices and flexible packages so consumers can have cheaper access to Foxtel’s premium content, without the need to sign up to a fixed term contract.

This is an important step, considering that Foxtel’s subscription cable TV service is under increasing pressure from people’s desire to use video streaming services. Foxtel CEO Peter Tonagh said: [blockquote type=”default” style=”2″]Foxtel Play will be a simpler, cheaper and more flexible IP delivered product, which will create much better value for Australian consumers. It is the logical step for us to take in the evolution of Foxtel’s service. The new offering will mirror the successful launch of HBO Now in the US and Now TV by Sky in the UK.[/blockquote]