Stuff Pix enters movie market, competing with iTunes and Google Play
Internet provider Stuff Fibre is getting into the movie streaming business, offering a catalogue of about 600 movies that can be watched online for $1 to $7 each.
The streaming service, Stuff Pix, is testing its website and app platforms and will launch in early 2018.
Stuff Pix general manager Paddy Buckley said the movies were not exclusive to Stuff Pix, but its prices would be the cheapest on offer.
"With no joining fee and no ongoing subscription fees, Stuff Pix users will pay a one off price for the rental of each movie, and the cost we are going to be offering will be the lowest in the market."
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Any internet user will be able to stream the movies, some of which are produced by Disney, Lionsgate, NbcUniversal, Village Roadshow and Warner Brothers.
Stuff Pix intended to serve the market previously served by video stores and would mostly compete with services such as iTunes and Google Play, he said.
Buckley said consumers may assume Stuff Pix was a play against Netflix, but it was not.
"This is a direct replacement of the DVD store."
The supply of movies to the New Zealand market was undercatered for by other streaming services, Buckley said.
Stuff Pix gets access to movies at what would previously have been the point when they were released on DVD – typically three to four months after they first screen in cinemas.
Stuff Fibre managing director and Stuff Pix chairman Sam Morse said Stuff Pix would stick to movie content, but would consider adding long-form documentaries to its offerings.
It could eventually screen Stuff editorial content if it fitted its criteria.
Telecommunications Users Association of New Zealand chief executive Craig Young said local consumers would respond well to the new platform run by a trusted New Zealand brand.
It was an "interesting play" by Stuff Fibre, and could be a bit late to reach the market, he said.
"All the internet service providers are looking to evolve their offering to differentiate themselves."
However, Young said the pricing range and pay per movie model was competitive and would help Stuff Pix to secure a decent audience in a "tough market" against the big players iTunes and Google Play.
His organisation always welcomed well priced, high value content as it was a means to beat illegal downloading.
Morse said Stuff captured one of New Zealand's largest online audiences and Stuff Fibre provided high quality, fast broadband to stream Stuff Pix content.
Stuff Pix was expected to help Stuff Fibre acquire and retain customers.
A "substantial amount" of money had been spent creating the service.
He could not say how much had been spent on deals with production companies or on software development, citing commercial sensitivity.
Morse said Hollywood production studios agreeing to offer their content was a "real endorsement" for Stuff Pix.
"They have also seen that the DVD high street store has disappeared … And there is a gap there."
Stuff Pix struck the content deals by picking up rights previously owned by the New Zealand arm of Australian-based internet television firm Quickflix.
Stuff chief executive Sinead Boucher said Stuff Pix added to Fairfax New Zealand's variety of business ventures that aim to sustain the funding of its production of journalism.
"We are diversifying into a lot of different things that we think our audience is interested in. We know we cannot rely solely on print."
Stuff Fibre is a joint venture between Fairfax, and a business established by five former Vodafone and Sky TV executives.
Fairfax NZ is the owner of Neighbourly and publisher of Stuff, The Dominion Post, The Press, and the Sunday Star-Times.
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