Astro's connectivity plan may not be enough to revive fading fortunes in content

Despite offering a wide selection of local and global content, Malaysia's top TV provider struggles to convince its users to spend on subscriptions. While a new ISP business faces tough rivalry, investors are taking note

Astro expanded beyond its traditional offerings by adding OTT partnerships and media-streaming apps, but its financial performances paint a dimmer picture

While investing in its content-centric model, its efforts have come at a steep price, significantly weighing down the company's profits

Despite Astro's valiant efforts, consumers are opting for other streaming platforms and pirated broadcasts

Its plan to be an internet service provider is also struggling as established rivals are dropping prices, expanding networks, and increasing speeds

In late February, Astro—the Malaysian satellite television giant with a RM 3.1 billion (US$691.3 million) market capitalisation—held a promotional event at Kuala Lumpur’s Suria KLCC shopping mall. There were lights, cameras, celebrities, and performers garbed in cartoon ensembles. The whole affair was for the company to showcase its products and services. But, beneath the superficial glamour lay a deeper story of a giant company fighting to keep its head above water in an ever-evolving industry.

Despite its decades-long near-monopoly in Malaysia’s satellite TV, Astro is struggling to retain subscribers and lure new ones to its offerings.

In the quarter ended October 2022, Astro’s revenue dropped ~9.3% compared to the same period in the previous year, and operating profit took an ~18% dive.

AUTHOR

Rahul Sachitanand

Rahul has over two decades of experience in journalism across Asia. He's worked across top publications such as The Economic Times, Business Today, and Campaign Asia-Pacific and worked in Bangalore, Mumbai, Hong Kong, and Kuala Lumpur.

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