According to an Australian Financial Review article entitled Studios pursue Optus in pay TV drama, Warner Bros, MGM, Disney, and Village Roadshow are suing the telco for ‘damages and failing to pay an estimated hundreds of millions of dollars owed to MNC under their supply company.'
According to the report, when Optus renegotiated a channel-sharing agreement with MNC in 1999, Optus has agreed that if it increased its charge to its subscribers, the additional revenue should be shared 50:50 between Optus and MNC.
MNC also said that its revenue sharing agreement with Optus ‘extended to any revenue earned where the telco bundled its telephony and internet services with pay TV – which was the only way Optus sold pay TV following its alliance deal with Foxtel.'
