KUALA LUMPUR (June 4): Astro Malaysia Holdings Bhd is emerging as an aggregator of streaming and broadband services following its recent tie-up with Disney+ Hotstar, said Citi Research.
According to the research firm, more of such deals in the coming quarters will allow the multi-platform content and consumer company to aggregate streaming platforms, complemented by its rich domestic and vernacular content.
“We think such an initiative is a positive step towards Astro attaining a sustainable business model, albeit at lower margins compared with its traditional pay-TV business, which we see as being in structural decline,” it said in a note on Thursday.
Citi Research also said Astro’s fixed broadband bundles should help it to design compelling consumer offerings.
Disney+ Hotstar was launched in Malaysia on June 1, 2021, both as a standalone service similar to Netflix, as well as in partnership with Astro.
The research firm noted that Disney+ Hotstar costs RM18 per month as a standalone, but Astro is offering it at just RM5 per month as an add-on for its movie pack customers.
Citi Research said Disney+ Hotstar also joins movie and video streaming website, iQiyi, and video-on-demand streaming service, HBO GO, as another compelling content partnership stitched together by Astro.
“We see Astro benefiting from movies being premiered on its platform as cinemas remain shut.
“Moreover, it remains ahead on local or vernacular content,” it said.
In addition, Citi Research said broadband bundling opportunities under the mandatory standard on access pricing (MSAP) regulation means that Astro can design compelling pick-and-choose offerings for customers under one billing system.
At the closing bell, Astro’s share rose six sen to RM1.17 with 14.64 million shares traded.
