Telecom dumps Intertainer for Sky TV in exclusive content deal

Telecom has ditched content provider Intertainer Asia and signed an exclusive content deal with Sky TV that will come into effect should the telco wish to offer video on demand services.

Telecom has ditched content provider Intertainer Asia and signed an exclusive content deal with Sky TV that will come into effect should the telco wish to offer video on demand services.

Telecom launched its trial of video on demand over DSL under the brand name JetVideo in December (JetVideo could lead to rethink of DSL pricing policy) using content provided by Intertainer, a local subsidiary of troubled US content provider Intertainer. Intertainer has a number of partners, including Warner Brothers, Universal Studios and MGM Studios, however Intertainer US was forced to shut down operation last year after filing a legal suit against most of its content providers for breaching terms and conditions.

Intertainer Asia claims this would not affect its content agreements in this part of the world.

Telecom has worked with Sky TV in the past, offering deals that include home line rental, JetStream Starter and Sky TV's digital TV in one package. Telecom's public affairs manager John Goulter says the company hopes to offer similar packages again from October.

"The deal allows for two things - one is the straight resale of Sky as part of a Telecom package and we're working to have that package in the market by October."

The other part of the deal is the re-transmission of Sky over the Telecom network.

"We're working on that in the coming months in the view to putting together a product to take to market. The agreement means if and when we do that Sky will be the exclusive supplier of content."

Goulter says the trial of JetVideo has concluded and the company has learned a great deal about what customers are looking for in such a service.

"They're after greater choice of content and interactivity, so they want movies on demand rather than a scheduled programme."

Telecom has indicated it will be revamping its entire JetStream DSL product family this year. At the launch, then group marketing manager for consumer, Sandra Geange, said billing for JetVideo would require a rethink on the whole billing structure for JetStream itself.

"We will have to look at the whole JetStream billing model before we launch this product commercially."

JetStream charges users by the megabyte, something which would price any movie billed in such a way out of most users' reach. Movies typically run in excess of 2GB of data.

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