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Telstra launches digital media group, hires TVNZ boss Rick Ellis to run it

Rick Ellis, boss of Television New Zealand, has been unveiled as the man to run Telstra’s new digital division.

The creation of Telstra Digital Media – an umbrella group that houses media businesses Sensis, BigPond, Trading Post, IPTV and Foxtel – was announced today.

CEO David Thodey said: “Telstra is a leader in online digital media with multiple assets which, including Foxtel, earn $4 billion 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.”

Ellis will start in January.

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

In the announcement, Thodey said the company would be investing $100m to upgrade its media infrastructure over the next four years, “to help bring to life Telstra’s digital home, and enable Telstra’s enterprise and business customers to more efficiently deliver broadcast-quality video streaming services to end-users over any device connected to the internet.”

The news comes as Telstra announced ‘low single-digit percentage growth’ in revenue for September.

September was the month that Telstra announced the creation of the Telstra Advertising Network from the merger of Sensis Digital Media, Telstra Classifieds and BigPond Advertising – which led to a number of redundancies.

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