Malaysia Satellite Industry Overview

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Malaysia Satellite TV Industry Overview - 2015 Page 1 of 4

MALAYSIA SATELLITE TV INDUSTRY OVERVIEW 2015

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Prepared by: ronshah (www.fiverr.com/ronshah) Email: -deleted- Date: 6 April 2015

Version: 1.1 Satellite TV Industry in Malaysia Malaysia Direct Broadcast Satellite is heavily regulated and each individual/business that requires to install a Satellite Receiver in their premises requires a license that has not been easy to obtain. As such there is no availability of legal free Satellite service for residential/business as prevalent in other parts of the world. The only Satellite TV license is provided to Astro All Asia Networks (Astro) to provide direct broadcast satellite (DBS) / Direct to Home (DTH) Pay TV service. Malaysias Direct Broadcast Satellite sole satellite provider, Astro All Asia Networks provides coverage via its own satellite the MEASAT-1. It operates as a direct broadcast satellite (DBS) Pay TV service. HDTV has been made available. Astro has substantial coverage in residential as well as commercial establishments such as bars, restaurants, hotels, dorms, and hospitals. Malaysia Pay TV Industry.

DTH satellite will remain the most popular pay TV medium in Malaysia but competition is increasing from rival platforms.

Astro exists as the sole DTH satellite pay TV operator and continues to

dominate the market with over 3.3m subscribers.

Unlike many other Asian markets, pay TV piracy has posed a limited threat to operators in Malaysia.

The Malaysian pay TV industry is dominated by satellite while IPTV is also important and cable has been reintroduced recently. Unlike many other Asian markets, pay TV piracy has posed a limited threat to operators in Malaysia largely due to the sophistication of set-top boxes deployed. This has facilitated steady growth in the Malaysian pay TV market as is shown by the increase of subscribers from 2.3m in



2007 to over 3.5m by the end of 2012. Astro Malaysia Holdings (Astro) is the leading pay TV operator in Malaysia and the largest in South East Asia by subscriber base. Astro launched its DTH pay TV service in 1996 and in 1997 was granted the exclusive rights to operate DTH services in Malaysia until 2017 and non-exclusively to 2022. Astro surpassed the 1m subscriber milestone in 2003, 2m in 2007, 3m in 2011 and had reached just over 3.3m by the end of March 2013. The company also distributes content via IPTV and OTT platforms. The Astro B.yond IPTV service launched in 2011 and is delivered through fibre optic broadband in partnership with Time Dotcom Berhad. Astro recently extended its IPTV coverage after signing a ten-year partnership deal in April 2013 with broadband operator Maxis for the delivery of its B.yond IPTV and Astro On-The-Go OTT services via Maxis' fibre broadband network. The Astro B.yond IPTV subscriber base has grown from 3,000 in January 2012 to 11,000 by the end of January 2013. Astro also provides additional services such as its Astro B.yond Personal Video Recorder (PVR) service and initiated Malaysia's first High-Definition TV (HDTV) broadcast in December 2009, both of which are split out in our new Malaysian data set. The other major pay TV service in Malaysia is HyppTV, owned and operated by incumbent telco Telekom Malaysia (TM). TM launched the IPTV service in 2004 and has since migrated delivery of the service to Malaysia's High Speed Broadband (HSBB) network. TM also operates a web TV service called Hypp.TV that delivers content to a personal computer. Malaysia's newest pay TV operator is ABNxcess which launched in June 2013 and is the sole cable TV operator in the country. Several other pay TV operators have attempted to enter the market but have struggled to achieve success largely due to the high cost of content, technology and funding. Previous entrants include cable TV operators Mega TV and U Television, formerly known as MiTV. Mega TV launched in 1995 before ceasing operation in 2001 while U Television suffered a similar fate closing its business in 2006, just one year after launch. Fine TV also launched its IPTV service in 2005 which continues today but to date the service remains only a marginal player with an estimated 20,000 subscribers. Meanwhile, the Malaysian Government collaborated with Astro to provide free DTH satellite television in Malaysia from February 2012. The non-subscription based DTH satellite TV service called NJOI, pronounced 'enjoy', is Malaysia's first free satellite TV service offering 22 TV and 20 radio channels to 209,000 customers as at end January 2013, up from 132,000 in the previous quarter. IHS expects the free service will continue to drive further increases in viewership across Malaysia particularly among lower income households.



Facts at a Glance Astro Household Penetration

Pay TV Households

Free Satellite (NJOI) Households

About Astro Malaysia Astro Malaysia Holdings Sdn Bhd is Malaysias leading integrated cross-media group with operations in 4 key businesses: Pay TV, Radio, Content and Digital. Launched in 1996, Astro today has a 50% penetration of TV homes in Malaysia or 3 million customers, making it a key pay TV operator in Southeast Asia. Astro broadcasts over 130 channels, of which 12 are in HD, is a leading edge innovator with its introduction of HD, 3D and PVR a first in Malaysia, and also Video On Demand and IPTV service. It is the leading aggregator, creator and distributor of original multi-language content of various genres across multi-channels. Its radio network both terrestrial and digital covers all key languages cumulatively reaching 11.5 million listeners a week and ranked among the top 10 stations in the country. Its digital arm involved in digital publishing, applications and platforms as well as publication of entertainment and lifestyle magazines locally. Visit http://www.astro.com.my/iptv/ Retail Market of Satellite TV products and accessories in Malaysia. Malaysia has a very strong retail Electronics and ICT industry that provides a broad spectrum of devices and services. The retail Industry for accessories in the Satellite TV industry also operates by similar retailers/distributors. As such to penetrate the Satellite TV products and accessories market, it is suggested to approach current retailers / distributors to carry the product. The Body/NGO that oversees and acts as the voice of the ICT industry in Malaysia is PIKOM The National ICT Association of Malaysia (http://www.pikom.org.my). PIKOM represents the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 1400 comprising companies involved in a whole spectrum of ICT products and services which commands 80% of

2013 2014 3.276 million 3.442 million

2013 2014 52% 56%

2013 2014 0.209 million 0.442 million



the total ICT trade in Malaysia. It has a comprehensive directory of multiple companies across the spectrum of ICT including products and accessories retailers and distributors. PIKOM does not provide a hardcopy of the directory listings of its members but the directory can be viewed and searched online at: http://www.pikom.org.my/cms/AllProductByCat.asp?CatID=53&type= A Snapshot of some distributors and retailers are also included in the attached spreadsheet. However, I would suggest to visit the link above to get a more comprehensive listings and details (including size and sales turnover) of the required companies in Malaysia. These would be the best option to start marketing the product and accessories to the retail market in Malaysia. Attached Information and Further Background Readings:

1) ICT Distributors.xlsx 2) Malaysia Communications & Media Statistics 2014

(communications_multimedia_statistics.pdf)

Malaysia Satellite Industry Overview

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