Telstra reviews broadband strategy after dumping Beyond - News - Business

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This story was printed from ZDNet Australia.
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Telstra reviews broadband strategy after dumping Beyond

By Iain Ferguson, 0
May 05, 2003
URL: http://www.zdnet.com.au/news/business/soa/Telstra-reviews-broadband-strategy-after-dumping-Beyond/0,139023166,120274234,00.htm

Telstra is poised to review its broadband content model after confirming it will not renew a distribution agreement with online production company Beyond Online Ltd for its sports, entertainment and science broadband channels.

Telstra sources said the company would not renew its deal to distribute the culture, arts and entertainment channel RedKarpet.tv, the science and technology channel Endeavor.tv or the sports channel TheCrunch.tv once it expired on 30 June 2003.

The telecommunications carrier, which initially signed the agreement with Beyond Online Ltd about 18 months ago, during the "content is king" era, is understood to have made the decision in line with its move towards a model whereby its broadband content and access strategies are more closely intertwined.

It is understood Telstra's head of broadband, Justin Milne, is expected to undertake a comprehensive review of the carrier's broadband content strategies in late July.

ZDNet Australia also understands Telstra's move was a factor in the decision of Beyond Online Ltd's board of directors, announced on 27 March, to sell the company's existing assets and operations. Beyond Online Ltd said in its announcement "the company will continue to meet all its existing contractual commitments to 30 June 2003, after which these will expire and not be renewed".

However, the board said the decision was subject to approval and added that it would "consider any alternative proposals received for the re-direction of the company's assets".

Telstra presently has a four-pronged content focus, based, according to executives, on appealing to existing broadband customers and stimulating broadband uptake. Its key content initiatives include the entertainment channel, www.thebasement.com.au; sport, through its rights to the Australian Football League and National Rugby League Web sites; online news and GameArena, an online games network with news resources, information and multi-player games.

Telstra executives noted that while blue-chip initiatives such as the AFL site attracted up to 600,000 unique visitors per month, the three Beyond Online Ltd channels were attracting only a few thousand visitors between them.

The executives said the carrier was moving to reposition its content strategy away from a portal focus, to using compelling, unmetered content to provide value for access customers.