皇冠体育app:HLIB Research maintains 'buy' call on Astro
PETALING JAYA: Competition and the proliferation of illegal television boxes, along with the sprouting of new streaming services, is having an adverse effect on Astro Malaysia Holdings Bhd’s subscription and advertising revenue.
But it is not the only broadcaster facing these negative issues – with even Netflix experiencing similar declines.
However, Astro has several initiatives in place, including providing its own broadband bundles and streaming services, to combat the decline.
Hong Leong Investment Bank (HLIB) Research said the drop in subscription revenue is being led by the proliferation of the use of illegal TV boxes, which allows users to stream paid content for free.
Unifi TV is bundled with other Telekom Malaysia Bhd (TM) services (Internet and telephone), apart from other streaming services.
This was accompanied by lower household income and operating restrictions caused by the pandemic, leading to declining household subscriptions.
Social restrictions from the pandemic negatively impacted commercial subscriptions, the research house added.
The decline in advertising revenue was due to the advent of digital advertising, such as on Facebook and Google, which caused a cannibalisation of market share from traditional advertising channels and Astro’s declining user base in its broadcasting assets (TV and radio).,
Netflix’s loss of 200,000 and 970,000 subscribers in its first quarter 2022 (1Q22) and 2Q22 respectively, was the group’s inflection point, stoking concerns of stagnating growth and possibly the beginning of a declining trend, HLIB Research said.
With regards to Astro, both its subscription and advertising revenue marked a year-on-year (y-o-y) decline in its 3Q18 financial results.
HLIB Research said there have been some key developments that could possibly help turn things around for Astro.
The Copyright (Amendment) Act 2022 will help reduce the number of illegal TV boxes being used and sold. It allows Astro to take legal action against illegal TV Box sellers and illegal distributors of its content.
With the launch of its own broadband service, Astro is able to provide a similar value proposition to its customers as TM, with the convenience of a single bill and additional cost savings from bundles.
Instead of directly competing with streaming services for viewership, Astro has pivoted its strategy to become a streaming service aggregator and provides more value in its content bundles.
With Malaysia entering an era endemicity and with stronger job security, HLIB Research believes this should also buck the decline in household and commercial subscriptions.
It said more advertisers should start returning to traditional channels of advertising such as TV and radio, especially with the launch of Astro’s addressable advertising.
THE littoral combat ship (LCS) scandal and the rising cost of living could prove problematic for Barisan Nasional at the upcoming general election, MCA secretary-general Chong Sin Woon said.Chong said BN should have held general elections immediately after the Johor election as the coalition had gained momentum and it was the perfect time to hold polls.With this LCS scandal, Wong said, the opposition parties now have ammunition to use against BN.“This is the opposition party’s tactic, just like they hyped up the 1Malaysia Development Bhd (1MDB) scandal to win the last GE,” Chong told The Malaysian Insight.“BN must learn from its past mistakes and not repeat them.”Last week, the Public Accounts Committee (PAC) released its report on the Defence Ministry’s purchase of six LCSs from BNS through direct negotiations.Although the government had paid the manufacturer RM6 billion, not a single ship had been delivered.According to the original schedule, five LCSs should have been delivered to the ministry this month.Chong said a royal commission of inquiry should be set up to investigate the LCS scandal.“The whole coalition should not be dragged down because of this, and BN cannot just explain it away.“While we don’t know when GE15 will be held, we don’t want the LCS to be held over our heads.“BN should not give the impression that it is trying to cover up the LCS scandal, it must get ahead of it.”Prime Minister Ismail Sabri Yaakob has also ordered the Malaysian Anti-Corruption Commission (MACC) and the Attorney-General’s Chambers (AGC) to speed up investigations.Umno president Ahmad Zahid Hamidi had earlier said that given the rate of inflation, it would not be wise to hold the general elections next year.Ismail, however, has held on despite pressure from his party leader, insisting that an election would only be called when it was favourable to BN.Chong said inflation and the rising cost of living was a global problem, but it was disheartening to see measures implemented according to the wishes of political parties due to the composition of Ismail’s government.He said effective measures could only be put in place when a sole party governed, instead of “having too many cooks in the kitchen.”“Investors will also doubt the stability of a multi-party government.”Only when BN came back to power without the need for other political alliances would political and economic stability be achieved, Chong added. – August 17, 2022.更喜欢这个