KUALA LUMPUR: Astro Malaysia Holdings Bhd stands to benefit from the Malaysia Communications & Multimedia Commission (MCMC) chairman's pledge to battle content piracy.
In a recent briefing, MCMC chairman Al-Ishsal Ishak said he will ramp up efforts to combat content piracy starting October 2019.
This will narrow Astro's decline in TV subscription revenue if not driving it to recover altogether, said Maybank Investment research in a note.
According to the research house, Al-Ishsal told analysts that the Customs Department, Royal Malaysian Police, Ministry of Domestic Trade & Consumer Affairs and MCMC already meet regularly to plan on how to combat content piracy.
"While details were lacking, the conversation seems to confirm our earlier understanding that MCMC and the content providers (e.g. ASTRO) are in discussion with the 21 internet service providers in Malaysia to deny internet access to Android TV boxes," said Maybank.
The research house added that it hopes the MCMC will also investigate e-commerce websites that sell Android TV boxes and even ban Android TV boxes altogether.
Maybank maintained its buy call on Astro with an unchanged target price of RM1.72.