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ARTICLE · 04 FEBRUARY 2012

Did Telstra Pay $153M for Nothing?

A decision of Federal Court may mean that Telstra overpaid for internet and mobile phone AFL broadcast rights.

AustraliaMedia, Telecoms, IT, Entertainment

In April 2011 Telstra bought the exclusive right to broadcast AFL games over the internet and the mobile telephone network for $153M. Yesterday, a decision of Justice Rares in the Federal Court may mean that Telstra paid far too much.

The decision concerned the Optus TV Now service which allowed Optus customers who subscribe to the service to record the (amongst any free to air TV) AFL games and watch them with as little as a 2 minute delay. Optus has not paid AFL or any rights holders to offer the service.

Justice Rares decision is essentially that the TV Now service provides the same service as that of a personal video recorder (or PVR such as Tivo or Foxtel IQ). Currently the Copyright Act allows individuals to record free to air television on their own video recorder for personal use to watch at a more convenient time.

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