According to The Australian, both parties have agreed on a six-month budget rather than a full financial year agreement. It claims Seven is reluctant to invest any more money into the venture and has indicated to Foxtel that it plans to exit the joint venture.
However Seven CEO Tim Worner recently announced Presto posted subscriber growth of 193 per cent in fiscal year 2016.
“This business is benefiting from Seven’s content production strengths and there are more commissions in the pipeline,” he said.
Presto has been under pressure from the competition of Netflix and Fairfax / Nine-owned Stan.
Fairfax last week said Stan had reached 500,000 active subscribers and was expected to break even in fiscal year 2018, while research firm Telsyte said Presto had 112,000 paid subscribers in June.