Astro to invest further in global streaming services

Astro plans to double down on global streaming services on its platform and offer more local content through Astro Originals. This comes as the company intends to continue investing in its transformation plans, especially in the area of content, streaming, customer experience, data, addressable advertising, broadband, and tech infrastructure, Euan Smith, the group's COO and CEO of TV, told Bernama.

The company will also "reimagine [its] business models" by using digital, data and technology, Smith said, calling the company "an incredibly effective machine" that provides users with the best content. Astro also understood that the OTT space in Malaysia was becoming too saturated due to the increasigng number of services. Hence, it embarked on the plan to aggregate more global streaming services on its platform.

According to Smith, services such as BeIN Sports Content, BBC iPlayer, and Zee 5 are currently in the pipeline. It currently works with Disney+ Hotstar, HBO GO, iQIYI and Netflix. In June, Astro rolled out its addressable ad service which will leverage its first-party data. Through this, Astro said advertisers and brands will be able to showcase different advertisements to different households who are watching the same programme.

For the first quarter of 2023 ended 30 April 2022, Astro saw a 9% revenue dip to RM962.1 million. The company also said in its earnings release that it will continue to invest in its transformation plans to simplify processes and better serve consumers.

Meanwhile, Astro also saw the Copyright (Amendement) Act 2022, which was gazetted in February 2022, as a major step forward in addressing digital piracy, resulting in criminalisation of the sale of illegal streaming devices. It also criminalises the distribution or sharing of unauthorised copyright content through applications, websites, and hyperlinks by any party through messaging applications or social media platforms.

According to a research report by Hong Leong Investment Bank released last month, Astro witnessed a revenue decline to due to the proliferation of the illegal streaming devices and competition from other streaming services, among other factors. The decline in ad revenue was also due to Facebook and Google dominating the market and Astro's declining user base in its broadcasting assets TV and radio.

However, the tide is turning for Astro, especially with its strategy of becoming a streaming aggregator instead of going head-on with global players. With Malaysia entering the endemic phase and with stronger job security, the bank predicts this would also buck the pandemic-led decline in household and commercial subscritions.

Meanwhile, with the various industry headwinds facing digital ad companies such as Facebook and Google, as well s as narrowing ROI gap on ad spend as compared with Astro, the research report said more advertisers will start returning to traditional channels of advertising such as TV and radio, especially with the launch of Astro's adressable advertising.

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