Astro's Brave New World

Astro All Asia Networks is introducing significant innovation and change to its existing TV product as it looks to retain its dominance in Malaysia’s next cycle of media development.

Innovation does however, come at a cost: Astro’s capEx bill will likely reach RM550-600 mil./US161-176 mil. for FYE Jan. 2011 and RM300-400 mil. for FYE Jan. 2012. Operating costs meanwhile, are expected to top RM100 mil. and RM150 over the next two fiscal years.

Investments are going towards the wiring of MDU blocks (so that customers in these areas can receive Astro’s new services branded B.yond) as well as STBs, subscriber acquisition and marketing. 

Astro will no longer expense its STB costs going forward and will instead capitalize the costs, amortizing the expense over three years.

A new product
The new investments will bring on new, improved services including PVR, interactive products, NVOD and HDTV. There is also likely to be a repackaging of existing linear product with more packs available, but less channels per package.

According to Astro COO Henry Tan, the initial take-up of Astro B.yond HD since its launch in Dec. 2009 has been solid and there will likely be more momentum ahead of the FIFA World Cup tournament in June. Astro B.yond currently offers five HD channels – Astro Supersports HD, ESPN HD, HBO HD, National Geographic HD and History Channel HD. Tan said more HD channels would be introduced in the coming months.

He added that at present, Astro’s subscriber base in Malaysia stood at 2.9 mil., representing 48% household penetration, and it had set a target of 500,000 homes migrating to the new HDTV platform by FYE Jan. 2012.