Astro eyes bigger subscriber base amid streaming pressures

By the Editorial Team · Friday, October 2, 2026

Astro Malaysia Holdings is concentrating on regaining subscribers and boosting revenue through content-driven packages and expanding digital businesses while cutting costs amid rising competition from global streaming platforms. Despite strong local film performance and international partnerships, the company reported a net loss and declining revenue in FY27, prompting cautious analyst outlooks and a recent "sell" rating.

Astro Malaysia Holdings Bhd is focusing on rebuilding its subscriber base and enhancing revenue from its content and related businesses as it faces mounting competition from global streaming services and alternative content platforms. The company is also continuing efforts to streamline its legacy cost structure in order to remain competitive.

For its financial year ending January 31, 2027 (FY27), Astro is prioritizing the acquisition of new customers through content-driven and value-oriented subscription packages, alongside expanding ancillary businesses such as Sooka, digital advertising, and BizOne. Cost reduction in its traditional operations remains a critical strategy amid persistent pressures from over-the-top (OTT) platforms and unauthorized TV devices.

Kenanga Research, which recently participated in a company briefing, noted that Astro is seeking to broaden the reach and value of its intellectual property through strategic partnerships with international streaming platforms. Astro’s locally produced films and series have consistently featured in Netflix Malaysia’s Top 10, with titles like "Sheriff: Narko Integriti," "Dongeng Sang Kancil," and "Project High Council" achieving notable rankings. Additionally, Astro Shaw commands a significant share of the domestic box office, capturing 52% of the local gross market in FY27 to date, generating RM59.7 million from releases including "Malaikat Malam" and "Polong," with further titles like "Chelot" and "Terbang" scheduled.

Kenanga suggested that the company’s expanding portfolio of intellectual property could yield increased earnings by extending monetization opportunities beyond traditional television into regional syndication and international streaming markets. However, challenges remain due to intensifying competition from global OTT services, unauthorized streaming devices, and emergent AI-powered music platforms.

In contrast, TA Research expressed a more cautious view, highlighting that Astro’s pay-TV revamp under Astro One had not produced the anticipated growth in subscriptions. The shift of customers to lower-priced subscription tiers has led to subscriber attrition and a decline in average revenue per user (ARPU), contributing to overall revenue declines. TA Research pointed out that while management anticipates ARPU stabilization, the persistent weakness in subscriber numbers warrants a conservative outlook until clearer signs of recovery become evident. Following this, TA Research discontinued coverage of Astro, assigning a "sell" rating with a target price of six sen.

Financial results reflect these challenges, with Astro reporting a net loss of RM25.8 million for the second quarter of FY27, compared with a net profit of RM16.39 million a year earlier. Revenue declined 7% year-on-year to RM633.75 million for the quarter. For the first half of FY27, the net loss was RM24.24 million, reversing from a net profit of RM29.87 million in the same period the prior year, with revenue decreasing 7% to RM1.29 billion.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.