CABLE & WIRELESS OPTUS AND DISNEY SIGN NEW DEAL

Cable & Wireless Optus today announced a deal with The Walt Disney Company to significantly vary the current arrangements for the Disney Channel. This follows the successful negotiations for movie content with Hollywood studios including Disney, announced recently.

Chris Anderson, Chief Executive of Cable & Wireless Optus, said this deal would guarantee the immensely popular Disney Channel will remain part of the Optus Television line-up while substantially reducing the fees paid by Optus.

The deal involves significant cost savings to Optus. It also involves the possibility of Disney appearing on other Optus platforms such as high speed cable modem and the Internet.

"As with the movie content deal we signed recently, this agreement is a win/win for The Walt Disney Company and Optus. The new agreement again provides Optus with flexibility, moving us away from harsh and unrealistic minimum subscriber guarantees, and will provide Disney with the opportunity to increase its audience.

"We will continue to feature the Disney Channel on our network and Disney will now be able to license the channel to other Pay TV operators. At the same time Optus can include other family channels on Optus Television."

"Our prime concern is with the delivery of the best family entertainment content available. The idea of non-exclusive content has great appeal to Optus as we are about sourcing inspiring content and providing it throughout our integrated communications systems.

"Again, this deal is not dependent on our rivals agreeing to share content - if Disney wants to license other providers that is now up to them. The opportunity for further rationalisation of the structure of the Pay TV industry is now possible, but from Optus' view this deal is already a big move forward," Mr Anderson said.

Paul Donovan, Chief Commercial Officer of Cable & Wireless Optus, said the company's dealings with Disney may see additional Disney content included on other Cable & Wireless Optus platforms.

"We are currently investigating including Disney content on our new high speed cable offering called Optus @Home. Family entertainment will be a central element of Optus @Home and we are looking forward to providing more information on this and other possible content agreements in the near future," said Mr Donovan.

For more information:
Melissa Favero
Cable & Wireless Optus
Phone: 02 9342 5030