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Wednesday, November 6, 2013

Astro`s price change to pass on rising content costs

06/11/2013, Kuching: Astro`s act of raising the price of its family pack by RM2.00 per month and the sports package by RM6.00 per month effective November 24, 2013 aims to pass on the rise in content cost which had been escalating, especially for premium content like international sports where the English Premier League (EPL) takes up a big chunk of Astro`s spending on sports programming.

In addition to the cost per channel rising, Astro has also increased the number of channels for sports to 14, which includes four high definition (HD) channels, noted the research arm of CIMB Investment Bank Sdn. Bhd (CIMB Research)

It also added 16 new standard definition (SD) and 10 HD Channels to the Astro Family Pack. Since the inception of the pack in 2007, Astro has not adjusted the rate.

 

IMPACT::While GST will only be implemented in 2015 and that the government does not have a firm date in starting the gradual cut in subsidies, we believe consumer sentiment would be hit negatively and this may cause subscribers to terminate Astro`s services or downgrade  to cheaper packages.

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