Telstra proven error: Replace T-box (Netgem) with a low-cost unit !

Telstra sinks profits in IPTV over the past 18 months, after changing its T-box (made by Netgem) by a new a low-cost unit last september 2014! 

Telstra IPTV economic returns, does not cease to fall, after discontinue T-Box sales, at september 2014!

... Even more subscribers, the return falls!

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See Telstra IPTV Subscribers Growth:

FY2014: 185k
1H 2014 190k
FY 2015: 221k
1H 2015 224k

1) Telstra IPTV revenue falls -19% at half year 2015
   (period ended 31 December 2015!

2) Telstra IPTV revenue falls -23.4% at full year 2015 
   (period ended 30 June 2015)

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(18 Feb 2016)
"... 
SLIDE 18 – MEDIA
Telstra Media continued to deliver ‘Better with Telstra’ content experiences to create value from our core business through Media ‘In the Home’ and Media ‘On the Go’.
In the Home, we continued our strategy to bundle with core fixed products, including the launch of Telstra TV in October 2015.
Foxtel from Telstra revenue grew by 8.7% to $350m and subscribers grew 17.9% to 660,000. This growth was due to the increased take up of the Telstra entertainer bundles.

The shift in focus towards Foxtel from Telstra in our bundle offers has impacted IPTV revenues which were down 19.0%, reflecting the transition from T-Box sales to Telstra TV sales.

Excluding revenue from T-Box sales and Foxtel on T-Box, IPTV revenue grew 12.3% due to net IPTV subscriber growth.

IPTV subscriber growth of 17.9% included 92,000 new SVOD subscribers across T-Box and Telstra TV. 

SVOD growth was partially offset by a decline in Foxtel on T-Box subscribers – down from 190,000 subscribers in the first half of FY15, to 132,000 in this half. As at 31 December 2015, we had 43,000 Telstra TVs in market. 

The Telstra TV represents an opportunity to provide a media experience for customers who aren’t traditional Pay TV customers, but also capitalise on the rapidly changing media landscape. We know that customers who bundle media services are happier and stay with us for longer.

Media ‘On the Go’ revenue decreased 17.1% due to declining legacy mobile download services. This reflects a shift in strategy from direct media revenue towards differentiation and data usage across Telstra's core products. We achieved 41% revenue growth from our AFL and NRL subscribers.

=> The decline in movie downloads reflects the transition from T-Box to the Telstra TV platform. ..."

Sources:
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20D/Analyst-briefing-presentation-and-materials-2016.pdf