TELSTRA FETCHES STAKE IN SET-TOP BOX MAKER

TELSTRA will acquire a majority stake in streaming box maker Fetch at a valuation of about $100m.

The telco will invest about $50m into Fetch as part of the deal, including for the provisioning of onboarding Telstra TV customers onto the Fetch platform.

Telstra TV has about 800,000 active subscribers, which were using a product from US company Roku.

Fetch has bout 670,000 active subscribers, and the company’s incumbent shareholders, Astro Holdings, will retain a 49 per cent stake in the company.

Fetch’s set-top boxes are sold in JB Hi-Fi, Harvey Norman and the Good Guys, as well as from telcos including Optus, Vocus and Aussie Broadband. It is unclear what will happen to those arrangements.

“While the current Telstra TV product remains popular, the underlying technology platform needs to evolve to support a deeper level of engagement through content offers, account management and rewards through Telstra Plus,” said Telstra’s executive in charge of technology Kim Krogh Andersen. “It also needs to support future entertainment options and be delivered via the hardware options customers want including smart TVs.”

Fetch’s set-top boxes provide access to pay TV channels, as well as streaming services such as Netflix and YouTube.

The deal is subject to ACCC approvals, and comes amid a period of rampant competition for the streaming industry.