Astro is planning to launch four Ultra HD live sports and entertainment channels.
KUALA LUMPUR: While Maybank Investment Bank Research is encouraged that Astro
Malaysia Bhd is evolving with the times, it is unsure how well Ultra High Definition (UHD) content will be taken up, given the competitive operating environment.
The research house said on Thursday that it believed the move was an effort to recreate the success that Astro had with HD content, which saw ARPU surging from RM82 in FY1/10 to RM100 today.
It maintained its earnings estimates, Hold call and RM2 target price on the counter pending more details.
Astro will commence commercial broadcasting in UHD in October 2018.
It launched UHD content on Sunday, August 12 with the trial broadcast of the Liverpool vs. West Ham and Arsenal vs. Manchester City Barclays Premier League matches.
The research house noted that Astro plans to offer UHD content to SuperPack subscribers who yield ARPUs of over RM140 at no extra cost to them to retain and attract new SuperPack subscribers.
“With intense competition from Android TV boxes, it remains to be seen how well UHD content will be taken up.
“ASTRO will also have to swap out set-top-boxes (STB), lease more satellite transponders and incur more content cost,” it added.
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