Presto has struggled to establish its brand in the crowded streaming market, with boss Shaun James acknowledging the difficulty in being owned by more traditional media players.
Mr James said Presto had been challenged since its launch in March 2014 by its association with parent companies Foxtel and Seven West Media, and was only now starting to create its own identity in a market it shares with Netflix, Stan and others.
The former Warner Music and Network Ten executive said Presto had focused heavily on big ticket content in its early advertising, which attracted subscribers but did not necessarily establish the brand in the minds of Australian consumers.
That had been exacerbated by a crossover in content between Presto and its parent companies, he said.
"If you think of our stakeholders and shareholders in Foxtel and Seven, we're a startup within two very successful established businesses," Mr James told an American Chamber of Commerce in Australia meeting.
"Creating a brand identity and creating a position for Presto has in all honesty not been easy: it's probably been easier for other entrants who have come straight in as new entrants and startups."
Speaking in Sydney on Thursday, Mr James said Foxtel and Seven had been supportive even though they recognised they were occasionally in competition with their own joint venture.
"But at times it's been frustrating," Mr James said.
"If you've got 33 sets of hands on the steering wheel, there's a very good chance you're going to run off the road, so we try to stay away from that."
Mr James admitted that many Australians "gamed" streaming services by consuming heavily during the industry-standard 30-day free trial before cancelling their subscription, but said takeup was healthy with streaming viewed as an adjunct to, rather than a replacement for, other media.
Foxtel includes Presto users in its subscriber numbers.
Mr James acknowledged that the cost of acquiring attractive content was "not for the faint hearted" but said companies had no choice but to respond to consumer demand.
He cited the slump in music industry revenue over the past decade as a salutary lesson of what could happen if consumer demand is ignored.
CD sales collapsed and piracy soared as companies failed to switch to digital distribution.
"The music business was a phenomenally successful business and made a fortune out of shipping pieces of plastic around the world, but when digital came along and consumers said `I'd like to consume music in a different way', they really didn't embrace it and in many cases tried to resist," he said.
"It's well documented what happened next."
Share
