X

Optus has found itself in hot water, as various Hollywood movie studios have launched legal action against the company for breach of contract.

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.’

 

Foxtel took over an estimated $600 million worth of Optus programming liabilities to the Hollywood studios and other program providers and allowed the groups to share content. And since various packages are worth over $150 per subscriber, the damage claim could equate into millions of dollars.

After an agreement struck by Optus with the studios in 1999 regarding a cost per subscriber (CPS) increase, the MNC warned Optus about the price cap issue in 2004, when MNC exercised an option to extend the 1999 agreement until mid-2009. However, MNC claims that Optus has ignored or rejected the claim.

In the article, an Optus spokesperson said: “As with most businesses, from time to time, third parties will raise various disputes in relation to business activities. Unfortunately, at times these can’t be resolved without legal proceedings, and Optus is required to defend claims made. Optus regards this case as an unjustified grab for cash and we are vigorously fighting it.”

ELX DIG Crosscat Promo 728x90 Mar25 Hollywood Takes On Optus
728x90 Hollywood Takes On Optus
FA 979 HN MDF SG14 14gen 728x90 1 Hollywood Takes On Optus
728X90 1 Hollywood Takes On Optus
MaxRanger4K Leaderboard 728x90 Hollywood Takes On Optus
Arlo EOFY25 728x90 Hollywood Takes On Optus
JBL TourPro3 728x90 Hollywood Takes On Optus
Uniden Channelnews SoloX July 2024 728x90 1 Hollywood Takes On Optus
728 x 90 Hollywood Takes On Optus
HAIER Series 600 FLW HPD Pairs 728x90 1 Hollywood Takes On Optus
BlueAnt 4SQM PumpAirUltra 728x90px Hollywood Takes On Optus
BEL2535 BPB024 4SQ Banners 728x90 Hollywood Takes On Optus
241211 SAV Ruark CNewsJan Leader Hollywood Takes On Optus
Px7 S3 728x90 1 Hollywood Takes On Optus
Westan 728x90px Hollywood Takes On Optus
Flick of a switch 728x90 1 Hollywood Takes On Optus
ChannelNews AZ100 728x90 Hollywood Takes On Optus
Hisense KV BannerAd 728 90 Hollywood Takes On Optus
728x90 Hollywood Takes On Optus
AU X8 Banner 728x90 Hollywood Takes On Optus
Marshall 728x90 1 Hollywood Takes On Optus
GOTHAM 728px x 90px Hollywood Takes On Optus
728x90 Hollywood Takes On Optus
hitachi banner 728x90 Hollywood Takes On Optus
Skullcandy 728x90 1 Hollywood Takes On Optus


YOU MAY ALSO LIKE