Astro's streaming aggregator ambitions take shape with Netflix tie-up

Astro's aim to position itself as an aggregator of streaming platforms is taking shape. Yesterday, it inked a partnership with Netflix to bring the latter's streaming service to Astro's platform. Customers will be able to access Netflix first on their connected Ultra Boxes and subsequently on connected Ulti Boxes in the coming months. Having Netflix with their Astro subscription will also provide users easy access for payment in a single bill. 

Netflix is the latest streaming platform to join the broadcasting company's growing family of streaming services - Astro GO, Disney+ Hotstar, HBO Go and iQIYI. Earlier this month, it also launched a new streaming service named sooka offering both free and paid content. The platform focuses on aggregating and curating content such as live global sports action, Malaysian dramas and entertainment programmes, and sooka exclusives and originals that resonate with Millennials on a mobile-based streaming platform. 

Henry Tan, group CEO of Astro said that Astro seeks to be the “number one entertainment destination for Malaysians” by offering streaming services alongside its own originals, vernacular signatures, live sports and local blockbuster movies. “Our announcements to date will extend our leadership in delivering the best entertainment experience to Malaysians,” said Tan. Tony Zameczkowski, vice president for business development APAC, Netflix said that the partnership with Astro allowed for Netflix to bring a multi-device entertainment experience to more Malaysians. 

The company recently posted a 1% year-on-year (YoY) revenue increase to RM1.06 billion for the financial year ending 31 January 2022. Its profit after tax and minority interests jumped 91% YoY to RM141 million while its adex increased by 21% YoY to RM109 million, outperforming the 9% advertising industry growth. At the same time, GoShop witnessed a 21% YoY increase to RM115 million.

Prior to the Netflix announcement, a research report by Citi was favourable about Astro’s new initiatives, commenting that its strategy of positioning itself as an aggregator of streaming platforms is taking shape. Citi said it sees Astro with its scale as “favourably placed” to push such an aggregation strategy which can put it on a sustainable business mode albeit at lower profitability.

Moreover, Citi said that with Astro’s wide scale, the company is also better placed to attract cinematic content on its platform in the wake of COVID-19. “We think the bigger focus remains on digital initiatives the company has announced in the last few months, and likely more in the coming quarters, which in our view have the potential to put it back on a sustainable business model,” Citi added. Meanwhile, CGS-CIMB said this “plug-and-play” convenience will not only make Astro’s service more attractive for "cord-nevers" but should push down its installation costs in the long run.

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