Quickflix shares gained 10 per cent after emerging from a trading halt to announce it had struck a deal with electronics giant Sony that will give it access to up to 1.3 million households across the country.
The DVD rental play, which announced plans this year to offer a digital streaming service to complement its mailout DVD business, said today it would offer its subscription movie service through Sony's PlayStation 3 from next month.
It comes after the company struck a preliminary deal to stream movies through Sony Bravia TVs in July.
Quickflix chief executive Chris Taylor said it was a major development for the company.
"This is a significant moment in the evolution of IPTV-delivered entertainment in Australia," he said.
In the US and UK, PlayStation 3 is estimated to account for more than 30 per cent of movie streaming by the leading online movie subscription providers in those countries.
The Quickflix movie streaming service on PlayStation 3 will provide unlimited viewing of movies from a constantly changing catalogue, complementing its online DVD and Blu-Ray rental by mail service which provides unlimited rentals each month from a movie and TV series library of more than 50,000 titles.
Sony Computer Entertainment Australia & New Zealand managing director Michael Ephraim said: "This exciting agreement with Quickflix will further enhance PS3's already strong entertainment on demand credentials across TV, games, music and now, an even larger range of movie options."
Shares in the company were 0.8¢ higher at 8.6¢ at 12.15pm.