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Has Retail Slump Hit Telstra?

By Oonagh Reidy | Thursday | 06/06/2013

Telstra insists BigPond Shopping closure was "not about performance"

The closure of BigPond Shopping came as part of a review of Telstra's digital media assets, a company spokesperson told SmartHouse. Last week, Telstra informed customers it would be closing Big Pond Shopping store's virtual doors from June 30. 

"The closure of BigPond Shopping was not necessarily about performance," the rep insisted when quizzed about the profitability of Telstra online store, which sells everything from electronics, DVDs and homeware.  

The decision "was more about simplifying operations ... and focusing on our core entertainment offering", the spokesperson added.

The decision was made to rationalise its digital content services as part of its new strategic direction into digital media. 

Telstra has pushed hard into Digital Media in the past year, and has made Foxtel (which it owns 50% of) content available on more of its Telstra T-Box services, as traditional revenue streams from fixed line and Sensis fall away. 

MOG music streaming, and IPTV T-Box with Foxtel and mobile services sport are at the heart of Telstra digital content services, and are core revenue earners in that division. 

Telstra also plans to introduce more content "bundles" of T-Box and Foxtel content, Big Pond Movies and other TV services. 

BigPond Shopping has been running in various guises since 2008, first as a newsletter-type catalogue.

The telco will partner with external players on offers from time to time but has no external replacement for Big Ponds Shopping planned, the spokesperson added.

Telstra has no big closing sale planned for BigPond prior to June 30, but is offering subscribers 10% off this week.  

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