Telstra is expected to scrap its T-Box personal video recorder and internet television device.
Foxtel is understood to be developing a cheaper set-top box in addition to its anticipated state of the art IQ3. The cheaper box will carry Foxtel’s Presto subscription video on demand [SVOD] service launched in March 2014. It's possible the two companies will share the cheaper set-top boxes.
T-Box is a personal video recorder that delivers free-to-air channels, pay TV and Telstra’s content services including the telco’s AFL and NRL rights to the big screen and BigPond Movies with recording and catch-up capabilities.
Foxtel, which is jointly owned by Telstra and News Corp, has overhauled its own tariffs , slashing the price of its basic cable and satellite service from $49 to $25. It is due to launch into broadband early next year, reselling Telstra’s wholesale service.
Telstra dropping the T-Box is part of a strategic rethink of its bundled broadband, telephony and entertainment strategy. Its new approach could include several devices which target different customer and pricing segments.
It remains unclear whether the T-Box brand will be used in the new regime or remain on the current set-top box, which Telstra will continue for existing customers.
Foxtel chief Richard Freudenstein says they continue to be leaders in IPTV [internet-based television], with the number of customers using Foxtel through T-Box growing by 111,000 to 185,000 subscribers in total. And we’ve now sold 761,000 T-Boxes.