Telstra hastens Fetch TV pursuit to take on Apple, Google

Telstra is planning to buy a 51 per cent stake in subscription video service Fetch TV for an undisclosed sum, with plans to merge its streaming device and build an aggregation platform that can compete against international companies such as Apple and Google.

Industry sources, who spoke anonymously because the talks are confidential, said the two companies remain in advanced talks about a deal that could be completed before the end of the month.

Meanwhile, Telstra’s pay TV and streaming company Foxtel, which is jointly owned by Rupert Murdoch’s News Corp, is in the final stages of deciding whether to push ahead with a public listing after spending months building a prospectus. Should they go ahead, both transactions could dramatically reshape the local media landscape.

Fetch TV, Telstra and Foxtel declined to comment.

Multiple media industry sources expressed confusion earlier this month when this masthead revealed Telstra’s plans to takeover Fetch TV, given its 35 per cent ownership of Foxtel.

Foxtel, which also runs Kayo Sports and Binge, has long been considered a competitor to Fetch TV despite the latter never bidding against it for major sporting rights or exclusive content agreements.

Fetch, which was launched in Australia in 2008, gives customers access to content via the internet. Its set-top boxes – the Fetch Mighty or the Fetch Mini – can be bought outright for $449 or $169 respectively, but are sometimes included as an add-on to internet packages with companies such as Optus and Vocus (which runs iPrimus and Dodo).

The box allows access to streaming services such as Netflix, YouTube, Amazon Prime Video and Stan (although subscriptions to these services must still be purchased) and access to free online TV services such as 7Plus and 9Now. Users can also buy or rent of films and television series through its online store.

Industry sources said Telstra’s strategic interest in Fetch was related to its established position as a local aggregator. If it does succeed, it would mean that Telstra TV users (more than 1.4 million in 2019) will use Fetch TV. Fetch TV chief executive Scott Lorson said last year the product operates in 670,000 households and has 750,000 billings when including people who run the service in multiple rooms. This combined figure would give it scale to compete against products like the Apple TV and Google’s Chromecast.