The move which will hurt Seven Media's plans to roll out a competing network based around the Tivo set top box is seen by several analysts as being a much needed service as 2 million HD TV's are forcast to be sold next year.
Foxtel is set to take HD head on with a new HD iQ set top box, new HD channels spanning sport, documentaries, news, documentaries and movies. It is also rumoured that Foxtel has held discussions with Sony Computer Entertainment who are keen to deliver HD content next year to a new Sony PS3 or new Sony entertainment console which will allow gaming and the viewing of web and Foxtel content to a Sony device.
According to Kim Williams there are problems associated with allowing a third party to access the Foxtel service via a third party device. "We are constantly upgrading the firmware and software inside a Foxtel set top box. This is critical as we have to take responsibility for guaranteeing delivery of the Foxtel service".
Patrick Delany Executive Director of Content and Delivery at Telstra acknowledged that Foxtel had had talks with Sony about the PS3 but refused to elaborate on where the discussions were at.