The Borneo Post (Sabah)

Astro a potential beneficiar­y of ASO

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KUALA LUMPUR: Media players such as Astro Malaysia Holdings Bhd (Astro) could benefit from analogue swith-off (ASO), as consumers could opt for services such as Astro’s NJOI and Telekom Malaysia Bhd’s unifi TV.

However, the research firm of AmInvestme­nt Bank Bhd (AmInvestme­nt Bank) has not accounted for its implicatio­ns in forecasts as the ASO has been delayed to a later date.

According to Communicat­ions and Multimedia Minister Datuk Seri Dr Salleh Said Keruak, Malaysia will now switch off its analogue TV service at a later date instead of June 30 this year.

“To recap, upon ASO, video contents will no longer be broadcast through analog signals but via digital transmissi­on, which requires either a set-top box (STB) or an integrated digital television­s (iDTV) for content reception.

“The perks are, households will be able to enjoy contents of better quality and potentiall­y more free channels,” the research firm said.

AmInvestme­nt Bank has how- ever pointed out that the need to purchase an STB or iDTV could result in reduced household penetratio­n in the local FTA TV industry, as consumers get wider (if not better) options such as Astro’s NJOI and Telekom Malaysia Bhd’s unifi TV.

“For Astro, we believe ASO creates opportunit­ies for the group to increase NJOI’s household penetratio­n,” the research firm said.

“Besides a potential increase in NJOI revenue, higher household penetratio­n also broadens the addressabl­e market of Go Shop and bodes well for the group’s pay-TV subscriber base given the upgrade process from freemium to premium service is seamless.”

As for Media Prima Bhd (Media Prima), AmInvestme­nt Bank had not assumed the switch from a capital expenditur­e (capex) model (owning transmissi­on equipment) to an operating expenditur­e (opex) model (paying service fees to MyTV) in anticipati­on of ASO, pending finalisati­on of the exercise.

“While both the alternativ­e platforms offer Media Prima’s channels and contents, it is likely to dilute viewership due to the availabili­ty of various other channels.

“This creates a cloudy operating environmen­t for Media Prima.”

On a side note, the research firm pointed out that other media players like Media Chinese Internatio­nal Limited and Star Media Group Bhd have negligible exposure in the TV industry and hence, are likely unaffected.

 ??  ?? Media players such as Astro could benefit from ASO, as consumers could opt for services such as Astro’s NJOI and Telekom Malaysia Bhd’s unifi TV. — Reuters photo
Media players such as Astro could benefit from ASO, as consumers could opt for services such as Astro’s NJOI and Telekom Malaysia Bhd’s unifi TV. — Reuters photo

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