According to the Sydney Morning Herald, Telstra is in talks with Netflix about how to jointly market, promote and host the hugely popular streaming video provider’s services, despite Telstra being part owner of Foxtel’s Presto platform.
The Sydney Morning Herald
reports that Telstra was set to integrate Netflix’s equipment, known as Open Connect Appliance (OCA) servers, into its data centres. This equipment allows the telco to store Netflix’s movies and TV shows
in Australia rather than sourcing from overseas, which is more expensive, and is often a precursor to closer partnership deals.
“Yes we have agreements in place regarding network connectivity and are working on opportunities to integrate the service on appropriate platforms,” a Telstra spokesman told the newspaper.
The move comes as a surprise, since the telco owns 50 per cent of pay TV provider Foxtel, which directly competes against Netflix through its rival streaming video service Presto.