Telstra's outgoing head of pay TV says the telecommunications giant may have to invest more in creating its own content to succeed against local and international rivals.

Telstra director of internet-based TV and Pay TV Eric Kearley is a highly experienced media executive who was poached from Television New Zealand in 2012. He is one of three senior media executives leaving the telco over the coming weeks as part of a change in leadership at the company.

Telstra recently launched the Telstra TV box, which is made by a US provider. But will it also start making its own media content?

Mr Kearley said it was vital for telcos to supply their customers with content like movies, TV shows and sports in order to drive up broadband usage. But he also hinted that Australia would face more convergence between internet providers and content creators.

"Telstra TV... is a good example of the merger between the telecommunications and media industries," he told the Informa OTT Summit in Sydney on Wednesday. "There are very few paid media companies left that are telcos and telcos who aren't paid media companies.