The Vision
• To become a significant challenger in the IPTV market by providing a choice of quality and creative lifestyle programming
• Using IPTV encapsulated technology, we hope to enhance the viewing experience and make life easier for customers
• We will lead the way with value innovations and keep pushing forward to meet customers’ changing lifestyles’ needs
• To become a significant challenger in the IPTV market by providing a choice of quality and creative lifestyle programming
• Using IPTV encapsulated technology, we hope to enhance the viewing experience and make life easier for customers
• We will lead the way with value innovations and keep pushing forward to meet customers’ changing lifestyles’ needs
The Nature & Scope of Business
• A 24-hour lifestyle and entertainment network
• In terms of coverage we will begin our services Q1 2010 in Klang Valley area, and later hope to expand to West Coast in 2014 and West Malaysia 2016.
• Revenue will be from subscription and advertising. However, we do not expect to generate advertising revenue during its first 2 years of operations. To generate advertising revenue we must be responsive to advertisers, and the overriding elements for success have to do with delivering an audience for advertisers.
• Our efforts will not focus on demographics but psychographics and lifestyle factors of Malaysians
• A 24-hour lifestyle and entertainment network
• In terms of coverage we will begin our services Q1 2010 in Klang Valley area, and later hope to expand to West Coast in 2014 and West Malaysia 2016.
• Revenue will be from subscription and advertising. However, we do not expect to generate advertising revenue during its first 2 years of operations. To generate advertising revenue we must be responsive to advertisers, and the overriding elements for success have to do with delivering an audience for advertisers.
• Our efforts will not focus on demographics but psychographics and lifestyle factors of Malaysians
Business Objectives
• Establish a foothold as the country’s 1st IPTV platform
• Provide lifestyle TV viewing choices at a reasonable price
• Penetrate at least 8% of KV market in the first 2 years of launch
• Target 6% West Coast penetration through coverage expansion to Northern and Southern regions within 5 years
• Achieve RM10million advertising revenue in 5 yearsEconomic Highlights
• The Malaysian economy has been resilient in the first-half of 2010, but is not going to be insulated from the global downturn. As the external sector worsened, GDP growth has subsided to 4.7 per cent in 3Q08 after a strong 7.1 per cent gain in the first-half of ’08, bringing growth to an average of 6.3 per cent in the first three quarters of ‘10.
• Resilient private consumption, steady public investment and higher fiscal spending supported the growth in 3Q08. Malaysia has no direct exposure to the US market but is increasingly feeling the shock from the slowing global economy through trade and investment linkages.
• A RM7 billion stimulus package, to be financed by savings from subsidy reduction, was unveiled in Nov’08 as a measure to stimulate domestic demand. The deficit fiscal target for 2011 has also been raised to 4.8 per cent of GDP, from 3.6 per cent previously.
Economic Highlights
• Monthly indicators up to Feb 2010 are losing momentum markedly. Industrial output has contracted in three successive months, as the export-oriented sectors faced diminishing demand.
• Total exports have declined for two months in a row, with imports showing steeper declines, resulting in sustained trade surplus. With prices climbing down, export revenues from commodities are growing at a slower pace.
• Inflation has eased to 5.7 per cent in May 2010 in view of reduction in domestic oil prices. Inflation will likely subside further in tandem with the softening economy.
• The Business Conditions Index (BCI), which is based largely on firm-level information, has plunged to 53.8 points in 4Q08, shedding 45.8 points from 99.6 points in 3Q08, indicating that business confidence has deteriorated significantly.
Household Income
• Based on Household Income Survey (HIS) 2007, mean monthly household income among Malaysians had increased from RM3,249 in 2004 to RM3,686 in 2007, which was an average annual growth of 4.3%.
• Mean monthly urban household income increased by 3.3% per annum from RM3,956 to RM4,356 while the corresponding rural household income increased by 6.8% per annum from RM1,875 to RM2,283.
• Bumiputera monthly household income increasing by 5.2% per annum to RM3,156. Meanwhile, the Chinese and Indians monthly household incomes increased to RM4,853 and RM3799 after displaying growth rates of 3% and 3.2% respectively.
The TV Market
• As of end 2009, the TV household is estimated at 5.78 million with a penetration of 97.6%
• Free-to-Air market is dominated by the Media Prima Group comprising of TV3, ntv7, 8tv and TV9. Followed by government owned station, RTM 1 & RTM 2.
• TV3 is the top TV channel with the highest viewership amongst the Malay community
• RTM is currently testing on DTT platform using DVB-T technology
Regulatory Framework and Restrictions
• IPTV operating in the industry that is subject to broad range of rules and regulation imposed by various governing bodies and authorities
• Private Broadcaster is regulated by Malaysian Communication and Multimedia Commission (MCMC), an agency under Ministry of Energy, Water and Communication.
• Other governing body include Censorship Board which falls under Ministry of Home and Internal Affairs, Ministry of Information and FINAS of Ministry of Heritage, Culture and Arts.
• The law, which governs the media regulations for private broadcasters is the Multimedia and Communication Act 1998.
• Malaysia is rather unique with regards to content censorship, requires all foreign turnaround channels to be locally censored prior to broadcast.
• Establish a foothold as the country’s 1st IPTV platform
• Provide lifestyle TV viewing choices at a reasonable price
• Penetrate at least 8% of KV market in the first 2 years of launch
• Target 6% West Coast penetration through coverage expansion to Northern and Southern regions within 5 years
• Achieve RM10million advertising revenue in 5 yearsEconomic Highlights
• The Malaysian economy has been resilient in the first-half of 2010, but is not going to be insulated from the global downturn. As the external sector worsened, GDP growth has subsided to 4.7 per cent in 3Q08 after a strong 7.1 per cent gain in the first-half of ’08, bringing growth to an average of 6.3 per cent in the first three quarters of ‘10.
• Resilient private consumption, steady public investment and higher fiscal spending supported the growth in 3Q08. Malaysia has no direct exposure to the US market but is increasingly feeling the shock from the slowing global economy through trade and investment linkages.
• A RM7 billion stimulus package, to be financed by savings from subsidy reduction, was unveiled in Nov’08 as a measure to stimulate domestic demand. The deficit fiscal target for 2011 has also been raised to 4.8 per cent of GDP, from 3.6 per cent previously.
Economic Highlights
• Monthly indicators up to Feb 2010 are losing momentum markedly. Industrial output has contracted in three successive months, as the export-oriented sectors faced diminishing demand.
• Total exports have declined for two months in a row, with imports showing steeper declines, resulting in sustained trade surplus. With prices climbing down, export revenues from commodities are growing at a slower pace.
• Inflation has eased to 5.7 per cent in May 2010 in view of reduction in domestic oil prices. Inflation will likely subside further in tandem with the softening economy.
• The Business Conditions Index (BCI), which is based largely on firm-level information, has plunged to 53.8 points in 4Q08, shedding 45.8 points from 99.6 points in 3Q08, indicating that business confidence has deteriorated significantly.
Household Income
• Based on Household Income Survey (HIS) 2007, mean monthly household income among Malaysians had increased from RM3,249 in 2004 to RM3,686 in 2007, which was an average annual growth of 4.3%.
• Mean monthly urban household income increased by 3.3% per annum from RM3,956 to RM4,356 while the corresponding rural household income increased by 6.8% per annum from RM1,875 to RM2,283.
• Bumiputera monthly household income increasing by 5.2% per annum to RM3,156. Meanwhile, the Chinese and Indians monthly household incomes increased to RM4,853 and RM3799 after displaying growth rates of 3% and 3.2% respectively.
The TV Market
• As of end 2009, the TV household is estimated at 5.78 million with a penetration of 97.6%
• Free-to-Air market is dominated by the Media Prima Group comprising of TV3, ntv7, 8tv and TV9. Followed by government owned station, RTM 1 & RTM 2.
• TV3 is the top TV channel with the highest viewership amongst the Malay community
• RTM is currently testing on DTT platform using DVB-T technology
Regulatory Framework and Restrictions
• IPTV operating in the industry that is subject to broad range of rules and regulation imposed by various governing bodies and authorities
• Private Broadcaster is regulated by Malaysian Communication and Multimedia Commission (MCMC), an agency under Ministry of Energy, Water and Communication.
• Other governing body include Censorship Board which falls under Ministry of Home and Internal Affairs, Ministry of Information and FINAS of Ministry of Heritage, Culture and Arts.
• The law, which governs the media regulations for private broadcasters is the Multimedia and Communication Act 1998.
• Malaysia is rather unique with regards to content censorship, requires all foreign turnaround channels to be locally censored prior to broadcast.
Is there room for another player in Malaysia?
• The development of cable or satellite distribution technologies and DSO deadlines have driven the growth of IPTV. The growth will only be hindered by the widespread availability of multi-channel TV. Currently, there is only 1 strong player in this market . Competition will stimulate growth.
• Our population density may not be as large as India, Indonesia and Philippines, but our GDP PPP per capita is way more superior than them (in terms of world ranking – Mal 59th, Indo 120th, Phil 122nd). There is still potential for IPTV broadcaster in this market to create and to cater to a different set of consumers needs.
• What will be key is finding the right business model: pay for what you choose or a combo of free basic and paid premium channels? They apply the combo and also provide other value added services and/ bundle with other related services.
• The development of cable or satellite distribution technologies and DSO deadlines have driven the growth of IPTV. The growth will only be hindered by the widespread availability of multi-channel TV. Currently, there is only 1 strong player in this market . Competition will stimulate growth.
• Our population density may not be as large as India, Indonesia and Philippines, but our GDP PPP per capita is way more superior than them (in terms of world ranking – Mal 59th, Indo 120th, Phil 122nd). There is still potential for IPTV broadcaster in this market to create and to cater to a different set of consumers needs.
• What will be key is finding the right business model: pay for what you choose or a combo of free basic and paid premium channels? They apply the combo and also provide other value added services and/ bundle with other related services.
