Wednesday, November 23, 2005 - Murdoch and Trujillo in internet talks

The man whose company almost destroyed Firefly and the man who last week told us he'd shed 12,000 Australian jobs, got together to plan strategy (you'll notice that I hold the two events on an almost equal level of infamy).

Well, O.K., they just got together for a meet and greet, a cup of tea and some bikkies. Still, it's an interesting coming together of two very powerful men in the Australian Media/Telecommunications scene.

"The pair discussed the future of Foxtel, Australia’s dominant pay-TV platform in which Telstra has a 50 per cent stake and News Corp 25 per cent. Mr Trujillo has said he is keen for Foxtel to take advantage of technology to increase its market penetration.

However, both companies declined to give details of the outcome of the talks or what else was discussed.

Analysts believe they would likely have touched on the implications of Telstra’s announcement last week that it would launch a movie download service for broadband subscribers.

One analyst said: “The boundaries are being blurred so much it is hard to know what the opportunities are and for whom. Telstra needs movie content for its download services but, then again, Murdoch might be concerned that it could become a rival to Foxtel’s own movie services.” "

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