There WILL Be Blood: Internode Slash Fetchtv Fee As Telstra, Optus Invade

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Telco’s move fast. Internode has just slashed fetchtv price by 30% in a frantic bid to attract more IPTV viewers to its service. This comes the very same day as Telstra announce a $100 million mass investment in video streaming infrastructure. The price cut strategy is a bid to attract more customers to Internet Protocol TV, the Adelaide based ISP said today.

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Watch this space: IPTV set to explode Down Under.

Internode managing director, Simon Hackett, announced the change on Whirlpool forum earlier today and the move now means there is a bloody battle in the IPTV space ahead as telco’s Optus and Telstra as well as providers like Quickflix and fetchtv alike scramble for customers.

Last month, Optus announced its own fetchtv service for $10 a month which includes PVR set top box, free to air channels as well as Facebook, Twitter, meaning Internode had to drop their prices to compete.

SmartHouse queried the number of fetchtv customer users on the service to date, but was told Internode does not give numbers for individual subscriber services, only total numbers.

And although the “official” date for the new prices is November 23, Internode says new customer will gain the benefit of the reduced fetchtv prices from today.

Prices have been cut by $10 for its full service to $19.95, while fetchtv Lite now costs just $9.95 per month – down from $14.95.

Internode’s BYO fetchtv set-top box is now down to $14.95 for fetchtv Full and $4.95 for fetchtv Lite, while the outright purchase price of the fetchtv Set-Top Box (STB) is now $299.

Existing customers will also be moved to the new pricing automatically.

The service provides subscribers with Video-on-Demand movies and programming, time-shifted television, free-to-air TV channels as well as YouTube and Facebook access.

“This new pricing means a number of cool things,” Hackett said today.

“As well as a much lower cost, these new prices create a consistent $5 differential between the ‘rent’ and ‘buy’ paths for access to the fetchtv set-top-box.

“Because it now costs only $60 a year to rent the fetchtv STB on a 24-month term, we expect the ‘rental’ path to remain the more popular choice.”

 

“Customers who sign up from now until the new pricing is loaded on the website will have their bills adjusted to bring them into line with the new pricing,” he said.

“Existing Internode fetchtv customers will also benefit from our new prices automatically, with the revised monthly charges appearing on their bills within the next few monthly billing cycles.”

“As digital media and video content continues to grow it is important that we build network infrastructure to meet this demand,” David Thodey, Telstra CEO said today at the $100m video infrastructure announcement as well as new Digital Media enterprise, encompasing T Box, Foxtel and all digital content into one division.

Video currently accounts for around one third of Telstra’s total web traffic, Thodey also revealed

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