Leading ISP's Optus and iiNet have mounted a major marketing campaign for their online movie and TV services which are delivered via a new Fetch TV media player.
Last year Fetch TV launched a brand new player which is significantly superior to the set top box offered by Foxtel (review coming shortly) this and the quality of the content delivered by Fetch TV has not gone unnoticed by analysts who believe that the high quality of the Fetch TV service over what Foxtel is offering is a major advantage for Fetch TV partners.
A recent Credit Suisse report that recommended a buy for iiNet said that the bundling of Fetch TV services will reduce churn and add margin for the fast growing communication Company.
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The report added 'Fetch TV, iiNet and Optus have launched above-the-line campaigns for Fetch TV and we believe this will be an increasingly important product for iiNet over the next three years to manage churn (particularly through the NBN migration) and also add incremental profit".
Analysts believe that Fetch TV now poses a more significant threat to Foxtel in the long term as key partners such as Optus and iiNet move to take on Telstra and their T Box which also offers the Foxtel service.
Also delivering the Fetch TV service is Westnet and Adam Internet.
The big advantage of the Fetch TV offering is that users can pause, rewind and record content to a 1 TB drive as opposed to a 500GB drive with Foxtel they can also record both free to air and content streamed over the Fetch TV box.
The new Fetch TV interface makes the Foxtel offering which is more than 5 years old look archaic especially when viewed on a tablet.