Warnings Telstra’s move into video streaming could create a low-cost rival to Foxtel

Roku2

The Roku2 which Telstra is set to use to launch its service

Telstra’s decision to ditch its T-Box offering in favour of a new streaming device to rival Apple TV has led to warnings it could erode its part-owned pay-TV service Foxtel’s customer base.

This morning the telco announced it is partnering with tech company Roku to launch Telstra TV, a streaming service offering customers easier access to services like Netflix, Stan and Presto (which Telstra has a stake in through its 50 per cent ownership of Foxtel), and stop offering its popular T-Box product to new customers.

There have been suggestions the service may also support a weekly “sports pass” that would give consumers access to a selected sports channel, such as Fox Sports, leading media buyers to question what Telstra’s intentions are in the sports rights market.

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