Will the Era FM incident affect Astro’s ad revenues?

Astro Audio’s Malay-language radio station ERA FM has triggered public outcry after posting a video on its social platforms featuring three Pagi Era morning show hosts (Nabil Ahmad, Azad Jasmin and Radin Amir Effendi Ahmad Aruani) mocking a Hindu kavadi ritual, while chanting “Vel Vel” and laughing.  

Recently, it was reported that the Malaysian communications and multimedia commission (MCMC) issued a notice of intent to suspend the station’s licence. To which, Astro Audio has apologised and pledged full cooperation with authorities, and confirmed it would respond to the notice within the 30-day deadline. It said it a statement "We view this matter seriously and are committed to complying with all relevant regulations.” 

A+M has reached out to Astro Radio for comment. 

Don’t miss: Astro promises to strengthen content review as Era FM hosts receive major backlash 

The incident has drawn mixed reactions across social platforms. According to media monitoring and social listening company DATAXET Nama, the overall sentiment towards the incident was overwhelmingly negative at 95%. Most of the comments (45%) condemned the Era FM hosts for their culturally insensitive actions and perceived mockery of Hindu religious practices.  

Meanwhile, 35% of the comments calling for severe punishment and boycotts dominated the discussion, reflecting widespread anger and disapproval, said social listening firm DATAXET Nama. Another 10% of online discourse highlighted alleged inconsistencies in the response to the perceived religious offences and inaction, in contrast against the perceived swift action against the presenters.  

DATAXET Nama also found a few comments which injected racial and religious bias into the discourse, expressing anxieties surrounding shifting social norms and perceived bias. However, there was a small minority of 5%, who either defended the DJs, suggested the offense was minor, or argued that the reaction was disproportionate, while a few offered neutral observations. 
 
Its word cloud surrounding the incident included words such as ‘agama’ (religion), ‘mempersendakan’ (make fun of), ‘hina’ (contempt), ‘adib’ (manners), and ‘habis’ (finished, or over).  
 

The media monitoring firm found that the word cloud highlighted the controversy’s core focus on religion, indicating that the incident was predominantly viewed through a religious lens. It also found that the comments online focused on public offense and disapproval, as well as a desire for accountability, and alleged double standards.  

Industry reactions

On the PR front, the steps Astro has taken thus far are headed in the right direction as it came out strong and decisive with the announcement of an internal investigation, the suspension of those involved, and its cooperation with authorities and government bodies, said Dave Prem, senior director at Redhill Malaysia in a conversation with A+M. 

“What is needed next, is follow-through and transparency that will address the issue at a systemic level. A lot of spotlight has been placed on the hosts and producers and while there can be no denying their wrongdoings, there is a sizable public concern around the more systemic conditions that led to this incident. There will be questions about approval processes, management involvement and overall culture.” 

Regarding the active steps which Astro can take to win back credibility, Prem added that Astro must be cautious to keep the momentum around communication going when it comes to corrective steps at this systemic level, adding that findings of internal investigations should be made public. 

“Details as to how they are improving processes should also be laid bare, once ready — whether this be more stringent approval processes for content, workshops with relevant stakeholders or cultural sensitivity training.” 
 
“Diversity, equity and inclusion (DEI) may be a touchy subject to some nowadays, but it is something Astro will have to lean hard on to show that the right parties are being involved in rectifying processes long-term and endorsing their corrective measures. Whether it be directly at Era FM, through the involvement of personnel from their other radio stations, or external parties— a cynical audience will only potentially be converted through outside influence and not that of the offending party alone.” 

Prem also mentioned that it would be advisable for a face from Astro to be the focal point of cultural change moving forward, just as how the company has let people and personalities be the selling point of their content and programming. “It is not enough for the statements to be made by the entity as a whole, as they will inevitability be perceived as cold by an already jaded society.” 

Nothing says accountability than having a face and voice to attach to it— and this needs to come from the top.

Will this hit Astro's ad sales?

A former radio industry professional, speaking anonymously, told A+M that the controversy is unlikely to impact Astro’s ad revenue or listenership, as it comes down to the brand’s integrity and whether advertisers see the issue as forgivable. 

“Audiences often separate content from the brand, especially when the controversy involves individuals rather than the company itself. It will depend on the Era FM’s younger Malay audience and whether they are deeply affected by it,” they said.  

However, they noted that it would be interesting to see if the revenue for THR Raaga, Astro’s Tamil radio station, will be impacted. This is keeping in mind DATAXET Nama’s earlier findings that a majority of the public discourse was focused on religion. Checks by A+M found that the comments section on THR Raaga’s Instagram account were limited, while Era FM’s comments section was turned off completely.  

Recalling a similar crisis, the former industry professional said “A few advertisers left but returned with time. The overall impact was minimal because the brand was rooted strongly in integrity, credibility and trust.” They also pointed to The Edge’s suspension over its reporting of the 1MDB scandal, where advertisers initially pulled out but later returned. 

“Ultimately, the authorities will take necessary action based on investigations. The station could face fines, and within the organisation, individuals may be reprimanded. However, there’s no definitive yes or no answer regarding ad revenue—it depends on advertisers’ values and whether they see the issue as forgivable.” They personally believed that Astro’s ad revenue will remain intact, as the controversy will eventually fade. 

Recent developments 

Days after the incident, the the Malaysia Hindu Sangam (MHS), which previously called on all Hindus to lodge reports against the incident, has accepted the apology issued by the three radio presenters.

On the other hand, T. Ganesan, president of MHS, said the incident should still serve as a lesson for all Malaysians on the importance of respecting all religions and cultures, according to a report by Bernama. However, he noted that an apology alone does not absolve the individuals from the consequences of their actions, and urged the authorities to take appropriate action.

Meanwhile, M. Saravanan, deputy president of the Malaysian Indian Congress party, reportedly said that the proposed suspension of Era FM’s licence was “harsh”, as it would be unfair for the other staff at the radio station to suffer because of the wrongdoing of a few presenters.  

He added, according to several media reports, that in the holy month of Ramadan, the public should embrace unity, forgiveness and fairness with regards to the incident. Saravanan said that the DJs have made a serious mistake but are now facing repercussions.


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