Advanced Television

Telstra creates digital media division

November 18, 2011

By Colin Mann

Australian telco Telstra is to consolidate its media businesses into a single division to increase focus, drive new opportunities and better utilise the company’s many media assets. Speaking at Telstra’s annual update for institutional investors, CEO David Thodey noted that the telco was a leader in online digital media with multiple assets which, including FOXTEL, earn A$4 billion (€2.96bn) in annual revenues and employ approximately 4,000 people. “Telstra’s digital media division will bring these assets together for the first time and enable us to implement a co-ordinated media strategy that delivers long-term shareholder value,” he explained.

The new division, to be known as Telstra Digital Media, will be responsible for managing Telstra’s end-to-end media capabilities including Sensis, BigPond, Trading Post, IPTV, FOXTEL and other content arrangements.

“As digital media and video content continues to grow it is important that we build network infrastructure to meet this demand. We will also continue to integrate this content, making it available to our customers across multiple channels including mobiles, tablets, home entertainment systems and the Internet,” added Thodey.

The new division will be headed by Rick Ellis, an experienced media executive who will join Telstra in early 2012 after completing his role as chief executive of the New Zealand broadcast television and digital media company, Television New Zealand.

“I am delighted that Rick Ellis, a media executive with vast experience and strong networks, will be leading our media strategy. Rick has led a complex media organisation, established digital businesses and cultivated strong relationships with content generators, integrators and distributors around the world,”  Thodey said.

Thodey revealed that Telstra would invest A$100 million over four years to upgrade its media infrastructure, suggesting that the investment would help bring to life Telstra’s digital home, and enable its enterprise and business customers to more efficiently deliver broadcast-quality video streaming services to end-users over any device connected to the Internet.

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