Telstra to Unveil "TiVo-killer"

TELSTRA is expected to take a major step towards its goal of being a media company early next year when it rolls out set-top boxes that allow internet customers to download films and play them on television.

The launch of a digital video recorder would put Telstra in competition with Foxtel's iQ DVR and Home Box Office on-demand movie service after the non-competition agreement between the two parties expired last month. But sources said Telstra, which owns 50 per cent of Foxtel, was pitching the service as a "TiVo-killer", targeting the Seven Media Group's TiVo DVR and media device.

The box will be given free to broadband internet customers as early as the first quarter of next year, with Telstra expecting customers to upgrade their broadband download package to get the service. Telstra customers are paying at least $59 a month for high-speed broadband that includes unmetered access to existing BigPond content, plus new release movies for an extra $5 each.

Foxtel iQ users pay at least $40 a month for a basic package, plus $10 a month for an iQ box, which allows them to pause, rewind and record live TV programs, and $5.50 each time to download movies. A TiVo costs $699, with other content available free.

Several sources close to Telstra said the company had been working on plans to develop a DVR that would make it easier for its customers to watch BigPond TV and movie content on their televisions, rather than on their computers, moving it closer to the "quadruple play" of delivering fixed line, mobile, broadband and media content revenues.

A spokesman said it was in Telstra's interest to ensure that Foxtel continued to maximise revenues.

Sources claimed the boxes, which would allow people to record and time-shift free-to-air programs as well as download BigPond internet content and services, would cost Telstra less than $200. The internet TV content market is expected to explode next year, with video rental chains, internet service providers, telcos, pay-TV companies, television networks and gaming console makers such as Sony PlayStation and Xbox all competing to deliver content to television sets.

Foxtel chief executive Kim Williams has flagged the launch of on-demand internet download services using Foxtel's iQ box early next year, as well as an iQ2Go portable storage device that would allow people to watch Foxtel programs on other devices.

The internet TV content market seems wide open. In August, Telstra said it had 3.3million retail broadband customers, but sources estimated BigPond's internet TV and movie download service had only about 30,000 users. Foxtel said in June it was in 1.5 million homes, 40,000 of which had taken up iQ DVR. The total number of other DVRs sold in Australia is less than 60,000 a year.

Original Article: Australian IT