Telstra Tipped To Be Looking To Exit Foxtel

Written by David Richards     01/05/2014 | 09:16 | Category: INDUSTRY

The Australian Financial Review is claiming that Telstra could exit struggling subscription TV Company Foxtel who are fighting to hold onto customers.

Telstra Tipped To Be Looking To Exit Foxtel

Telstra Tipped To Be Looking To Exit Foxtel
The business that is 50% owned by News Corporation has been valued at around $4.5Billion, the exit if it happens could create problems for the pay TV Company as their services is carried on a hybrid fibre network owned by Telstra.

In recent months Foxtel has been working to deliver later this year a triple play deal where consumers could buy phone, internet and content services from Foxtel with Telstra being the provider of the communication services. 

THE Fin Review claims that Telstra who at one stage wanted to be a major media Company as well as a Communications Company in Australia has been selling off assets including Sensis and their Hong Kong based CSL operation.

Telstra have not denied the claim at this stage. 

Recently Foxtel launched a premium priced IP service called Presto which is an attempt by the network to lure Australians away from US streaming video giant Netflix and a host of other providers such as Fetch TV, Google, Apple and Quickflix who are providing competitive services to Foxtel.

Several analysts have told ChannelNews that Foxtel has peaked and the Company will struggle to hold onto subscribers as new IP based services are launched in Australia.