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RealTime IT News

Telstra Signs Content Distribution Agreement with Access1

[Sydney, AUSTRALIA] Telstra has signed a deal to serve content from multimedia provider Access One to customers of its Telstra Big Pond Internet access service.

The product will be co-branded as 'Access1 brought to you by Telstra Big Pond'. The umbrella content distribution agreement will give Telstra the right to stream all of Access1's broadband content through its networks. "Depending on future negotiations," said Access1 chairman David Spence, "the agreement will allow Telstra Big Pond Advance users to view Access1's specialty channels from its broadband portal." Telstra currently has just under 40,000 broadband customers.

In addition to content delivery, Telstra and Access1 are banking on a second revenue stream to be generated by Web advertising. "Not only are we delivering 'TV-like' channels of content - we are creating a new market for the delivery of full-motion interactive advertising, where advertising can be served to individual users or demographics," said Mr Spence.

Access1 claims the platform will provide advertisers with a higher response rate by allowing targeted campaigns. "Unlike television where the advertiser has no control over who sees the advertisement, the Access1 model allows advertisements to be much more focused, much more effective and hence much more valuable."

The scope of the deal will be broadened later this year as Telstra rolls out its DSL Internet access product to consumers and SMEs. Users of Telstra's DSL, cable and satellite services will access the content, along with customers of Access1's own satellite network, currently being rolled out nationally.

The deal with Telstra is not exclusive, said Access1 claiming that finding "other similar distribution agreements [was] seen as a priority."