Seven West Media chief executive Tim Worner used the company's results announcement to confirm it is in advanced talks with potential partners on a video streaming product but said it would not be rushed into announcing a deal.

Fairfax Media this week revealed Seven was in discussions with pay television operator Foxtel to collaborate on a subscription video-on-demand (SVOD) product.

Asked about that report Mr Worner said: "We don't talk about any of our commercial arrangements. We don't negotiate through the press or through the media, we're just not that sort of organisation."

Mr Worner said an announcement would be made at the appropriate time.

"We're not going to be rushed into anything. I don't see this [SVOD] as being the new holy grail that we need to pin our ears back and dive into. I see it as something we need to assess and then make the right decision," he said.

The news came as Nine Entertainment Co and Fairfax Media on Wednesday also confirmed their new joint venture for a subscription video-on-demand service to take on Foxtel and American giant Netflix.

The venture, known as StreamCo, will be owned 50:50 by Nine and Fairfax. The service is expected to launch in the current financial year and will offer a range of local and international programming along with Nine's own content to subscribers for a fixed monthly subscription fee.

The move is a response to rapidly changing consumer habits, as increasing numbers of people spend less time watching linear television and more watching instant downloads of videos and movies.

It is also an attempt to secure a foothold in the market before US giant Netflix, which has more than 200,000 users in Australia, tries to launch officially in the country.

Nine and Fairfax's respective CEOs, David Gyngell and Greg Hywood, will sit on the board of StreamCo, while the business will be run by Nine executive Mike Sneesby.

Mr Gyngell said the combination of the two businesses would provide the joint venture with "unprecedented distribution and awareness".

Mr Hywood said: "SVOD is a proven business model overseas, and we look forward to offering this service to our subscribers, and indeed all Australians. Fairfax will continue to seek innovative ways to engage and expand our audiences, and this is an opportunity to create value through participating in the next wave of media evolution."

Mr Worner said he was not surprised by the StreamCo deal.

"I knew that, just by the sort of people that we've been having discussions with about SVOD, that was a likely tie-up," he said.

Foxtel, half owned by News ­Corporation and Telstra, launched its SVOD service Presto in March, after approaching Seven and its free-to-air television rivals Ten Network Holdings and Nine Entertainment Co last year.

Seven unveiled a full-year net profit of $149.2 million, compared with a net loss of $69.8 million the previous year, which was hit by a write-down of the company's magazine assets.

The free-to-air television, digital, newspaper and print company recorded underlying net profit growth of 5 per cent to $236.2 million although revenue fell by 1.2 per cent to $1.84 billion.

Seven has benefited from earning a record 40.5 per cent share of the metropolitan free-to-air advertising market for the financial year.

"The television result was really strong and that now counts for 72 per cent of group EBITDA so it's becoming increasingly important in the overall result," Mr Worner said.

"But the result also shows the way we are working as one company, so all the media assets are starting to work together more effectively."