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Telstra + Foxtel ‘Treble Play’ Coming?

Telstra + Foxtel ‘Treble Play’ Coming?


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Thats according to Telstra CEO David Thodey, who flagged the “opportunity” for Foxtel to provide such a service in OZ, similar to BSkyB service in the UK, partly owned by Foxtel’s other major shareholder, News Corp.

“I think that just like BskyB has done it in the UK, I think there’s an opportunity for Foxtel to do that and we will continue to look at what’s the right thing for Foxtel because that’s our responsibility to get the best returns from that asset,” Thodey said yesterday.

“It’s purely a financial issue for Foxtel,” he added.

Telstra, who own half of Foxtel, already offers the Pay TV service on a T-bundle with phone and BigPond broadband service, starting at around $100 p.m.

Telstra reported a stellar year for broadband service yesterday, adding over 203,000 new users, with its customer base swelling to 2.6m, but the new customers it would garner as part of a Foxtel ‘treble play’ probably wouldn’t hurt either.

Telstra has 1.4 million bundle customers – a rise of 336,000.

Foxtel also returned good growth for Telstra’s revenue stream – growing 3.6% to $2.2bn and saw an increased uptake of Foxtel multi-room, Foxtel iQ and HD services.

However, the treble play of the three services combined could push Foxtel and Telstra services even further. In the UK, BSkyB is now the largest ‘treble play’ provider with 3.2 million customers, with penetration of 31% of all users.

For all three services, Sky offers start at a very cheap £21 a month or around A$30. No chance it would be that cheap Down Under though.

“We have always said that when you need to do it you can do it,” Thodey said as financials for FY 2012 were released yesterday and a net profit of $5.4bn was announced.

However, Thodey concedes its not “a given” that Foxtel would use Telstra services if they did decide to offer a treble play deal

“Obviously we would have to put in a competitive tender in to them so they will hopefully use our services but that’s not a given.

“They are independent in that sense.”

But since the telco own half of  the Pay TV provider, using Telstra services would be a no brainer.