HBCM4303/ABBM4103

FACULTY OF APPLIED SOCIAL SCIENCES

HBCM4303 / ABBM4103

INTERCULTURAL COMMUNICATIONBROADCAST MANAGEMENT

Semester: September 2016

 Table of Contents

Introduction ................................................................................................................................... 2

Mega TV ..................................................................................................................................... 2

ASTRO ........................................................................................................................................ 3

Differences between Mega TV and Astro ................................................................................... 5

Market Penetration..................................................................................................................... 5

Satellite vs Cable......................................................................................................................... 8

Coverage Distance .................................................................................................................... 10

Key success factors of Astro ....................................................................................................... 12

Contributing in Achieving National Goals ............................................................................. 12

Empowering its People ............................................................................................................. 13

Putting Customers First ........................................................................................................... 14

Managing the Media ................................................................................................................ 15

Conclusion ................................................................................................................................... 16

References .................................................................................................................................... 17

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Introduction
Mega TV
Mega TV was the first granted pay-tv in Malaysia in 1985. It was the consortium of the public
broadcaster RTM and TV3, a commercial station controlled by the rulings coalition to provide up
to eight pay-tv channels. Although it was launched 1985 but only in 1995 Mega TV are fully
broadcasting as an MMDS to 3000 first subscribers in the Klang Valley, where the capital situated.
Mega TV re-broadcast five specialized transnational television channels namely CNN,
TNT/Cartoon Network, ESPN, Discovery and HBO. But unfortunately some of the news items
and documentaries were sensitive to Malaysian government and ASEAN neighbours. Thus some
of the news items were deleted from its re-broadcasts (Azizal & Kartini, 1997).

Mega TV are not solely broadcasting the entertainment, news and documentaries but also
the advertising. Mega TV carried the advertising on the regional channels and had some Malaysian
advertising spliced in. Mega TV claimed that in the late 1990s, its had about 95000 household
subscribers and 3000 hotels rooms. This contradict with the advertising industry report where they
estimated that they only had about 70000 subscribers after aggressively targeting market segments
such as marketing executives and airline staff with discounts and free installations.

In late 1990s, Mega TV had plans to expand to the rest of Peninsular and next to East
Malaysia. But its growth was seriously affected by the emerge of its new rival ASTRO. This was
perceived by Mega V and TV3 as a breach of understanding by the government which though
already a 30 per cent investor in Mega TV, subsequently became a 15 percent investor in ASTRO
also. By the early 2000s, Mega TV positioning itself as offering the best in each programming
category such as CNN for world news and HBO for movies, against the overwhelming 22 channel
offered by ASTRO. Although it was available free of charge, Australia Television or known as
ABC Asia-Pacific did not qualify for carriage on the Mega TV service due to diplomatic strains
between countries. Unfortunately, after several arising issues Mega TV ceased its transmission in
2001 (Doyle, 2002).

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ASTRO
All-Asian Satellite Television and Radio Operator or popularly known as ASTRO is a Malaysian
direct broadcasting satellite (DBS) pay TV service. Owned by the MEASAT Broadcasting
Network Systems, Malaysia direct to home (DTH) satellite television service provide 22 channels,
24 hours per day, seven days a week and eight radio channels to its subscribers. Measat was a
consortium comprising under an investment holding company of the Malaysian government,
various Bumiputra trust and a company owned by family trust of Ananda Krishnan, a Malaysian
Indian businessman closely associated with the prime minister. Within a few months of its launch
it was able to achieve 35000 subscribers and further grow. Its growth was very dramatics compared
to Mega TV with only 70000 subscribers for ten years.

The licensing of Astro was designated by government to bring an estimated 100000

owners of private but illegal satellite dishes in East Malaysia into its subscribers fold. In fact,
Astro acknowledge that enforcement of the law was proceeding apace, now that there was a
Malaysian alternative to direct viewership of transnational television. Astro offered a wide range
of transnational and in-house channels, the former were downlinked and subjected to government
censorships at its ground facilities, the All-Asia Broadcast Centre and then up-linked for
rebroadcast to subscriber homes (Astro Annual Report, 2014).

The programming strategy of Astro was that of providing immense choice of channels, at
least two of each genre and up to 480 hours of programming per day, characterized by its own
executives as comparable to magazines available in a bookshop. As of early 1997 it claimed to
produce 1000 hours of programming in-house, commission a further 500 hours and purchase 5000
hours of imported programming per month. Now Astro had successfully expanded its services into
Video-On-Demand (VOD) access to run movies, concerts and major sport events, as well as access
to tele-shopping, home banking, internet and other interactive data services. Astro was broadcast
via the Measat satellites which had footprints covering not just Malaysia but much South and East
Asia in addition to eastern Australia (Azizal & Kartini, 1997).

In late 1990s witness the termination and retraction of its in-house business news and
rebroadcast CNN channel after being criticized by the Malaysian government over coverage of
domestic political and economic issues (Eastman & Ferguson, 2013). Nevertheless, by far Astro
have become the most growing pay TV in Malaysia with the records of every each of Malaysian

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house equipped with minimum of one Astro decoder. Thus it can be conclude that Astro has
successfully become the successful pay TV in Malaysia.

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Differences between Mega TV and Astro
Market Penetration
Market penetration can be define as the successfulness of the business to sell their product or
services is a specific market and it is measured by the amount of sales volume of an existing good
or service compared to the total target market for that product or services (Astro Annual Report,
2014). Market penetration is the key performance metric for a business growth strategy. This
involve persuading current customers to buy more and new customers start buying or even
converting customer from their competitors. This could be implemented using methods such as
competitive pricing, increase in marketing communications or utilizing reward systems such as
loyalty points/discounts (Doyle, 2002).

Market penetration establish market growth for a company. It is all about finding new ways
to boost sales and keep customers loyal and increase market share. Market penetration should be
accompanied by developing a new marketing strategy to entice more customers to purchase or
continue purchasing. Become price competitive as a swaying factor for customers to choose your
product or services over another company. Next is use special promotions or offers to grab
attention. And utilize the Boston Matrix to decipher which product or service benefits further
investment and time and which can be disregarded. Moreover, purchase a competitors company
(in mature markets) to expand share (Gershon, 2001).

Thus from this we can see that Mega TV actually has failed in term of market penetration
as compared to Astro. Although Astro launched later than Mega TV but in term of the performance
Astro beat Mega TV. While Mega TV is only focusing on Klang Valley area for their business
with 70000 subscribers, Astro had already pass it by offering their product and services to the
whole Malaysian including East Malaysia with the total number of 3.5 million subscribers. Being
aggressive in the market penetration could help Mega TV to growth further but maybe due to some
factor that hinder their growth have put them at the very end of their business where they have to
ceased their operation. Astro for instance have seen the opportunity from the very beginning as to
sustained their business they have to penetrate every market by taking the risk. Being the second
company that offer pay TV services to the Malaysian, giving they advantage to see how the trend
of the consumer preferences. These had allowed them to sustained in the business until now.
Therefore, it can be conclude that Mega TV market penetration is less than Astro.

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TV Channel Offered

Being the pay TV provider, the business should offer a wide range of the available TV channels
to sustain in the industry. The business should be keep on growing from time to time but at the
same time consider how the market situation. Here comes the responsibility of the marketing
department, where they should do the market research for the company to be able to see what they
should offer for their customer and what preferences of their customer. To be able to compete in a
very competitive market a business should be active in their research and development to enable
them offer variety of services and product which is not available in the market and unique. Only
then it can ensure that the business will stay in the market.

For instance, Astro offered more than fifty channel to its customer ranging from family,
learning, news, variety, movies, Korean and etc. (Astro Annual Report, 2014). As compared to
Mega TV, they only offered 8 channel which are very limited in number to its customer. As far as
the business is concerned the more available services and product do you have in the market the
more preferable you are to your customer. Thus to be the choice of the market, Mega TV should
have offering more product and services to their customer. Variety of channel being offered by
Astro have put them at top although they are new in the market as compare to Mega TV which
have been five years I before Astro (Straubhaar & Larose, 2004). Not only that in each pack that
Astro offered to their customer consists of variety of channel while for Mega TV its only offer a
single channel. For example, Astro Family pack there are over 40 channels being offered ranged
from general Malay, Chinese, Indian and English channels. With only these Astro have easily beat
Mega TV.

Furthermore, as compared to Astro, Mega TV does not offer any Radio station channels
which is regard as important for the market need. Apart from that Astro also in advantage as
compare to Mega TV because they offered radio station channel for free to its customer. Thus this
can be seen to be the factor why Astro can sustain its business until now. Thus it can be conclude
that there is a huge difference between the number of channel offered by Mega TV and Astro and
this become the clear evidence and reason why Astro still standing until now as the only pay TV
services that available in Malaysia.

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Figure 1 Astro Channel list

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Satellite vs Cable
Cable television transmission is a system of delivering television programing to paying subscribers
vs radio frequency signals transmitted through coaxial cables. A cable channel or sometimes
known as cable network is a television network available via cable television. Cable television has
gone through a series of evolution around the world including Malaysia. It primarily can only serve
a very small community. In its early system cable television can only carried maximum of seven
channels as its equipment was unable to confine the signal discreetly within the assigned
bandwidth (Gershon, 2001). As equipment improved, maximum twelve channel can be carried.
This is why Mega TV can only offer eight channel to its customer. The bandwidth of the amplifiers
also was limited, where the frequencies over 250 MHz were difficult to transmit to distant portions
of the coaxial network, and UHF channels could not be used at all. To expand beyond 12 channels,
non-standard midband channels had to be used located between the FM band. Thus this have put
a challenges to Mega TV to move beyond what they desired for which is to provide variety of
channels or entertainment to its customer.

Figure 2 Transmission cable

As compare to Mega TV, Astro used satellite television transmission where the television
programming is delivered using signals relayed from space radio stations, for example DVB
satellites. The signals are received via an outdoor parabolic reflector antenna which usually
referred to as satellite dish and a low-noise block downconverter (LNB). A satellite receiver then

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decodes the desired television programmed for viewing on a television set. Receivers can be
external set-top boxes, or built in television tuner. Satellite television provides a wide range of
channels and services especially to geographic areas without terrestrial television or cable
television. The most common method of reception is direct-broadcast satellite television (DBSTV)
which also known as direct to home (DTH). The direct broadcast satellite television signals were
earlier analog signals and later digital signals and both require a compatible receiver (Gershon,
2001). Digital signal may include high-definition television (HDTV). Some transmission and
channels are unencrypted and therefore free to air or free to view, while many other channels are
transmitted with encryption requiring a subscription.

Thus from the description provide we can see that there are a lots of differences between
cable and satellite TV that are being use by Mega TV and Astro. Therefore, its clearly explain why
do Astro can offer more channel as compared to Mega TV which only can offer up to 12 channels.

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Coverage Distance
To receive cable television at a given location, cable distribution lines must be available on the
local utility poles or underground utility lines. Coaxial cable brings the signal to the customers
building through a service drop, an overhead or underground cable. If the subscribers building
does not have cable service drop, the company will have to install one. The cable companys
portion of the wiring usually ends at a distribution box on the building exterior and built-in cable
wiring in the walls usually distributes the signal to jacks in different rooms to which televisions
are connected (Gershon, 2001). This is why Mega TV could not extend its transmission coverage
because to done so they have to invest a huge amount of money for the installation of the cable
and the distribution box. Beside the cost of the installation, Mega TV also have to finance all of
the maintenance cost which sometimes could be the huge cost to them. In order to maintain one
distribution, box it cost about RM320 and if there is 8750 distribution box that need to be maintain
it cost about RM3 million for only maintenance cost. Beside cost that is higher the coverage
distance also very limited in which as we can see from the geographical of Malaysia it would very
impossible for all over Malaysia have the access to the cable television as its need a lots of cable
installation before we can enjoy the services.

Figure 3 Distribution box

As compared to Astro which using satellite transmission it is much easier and can convey
higher distribution of frequency to all over the Malaysia. Its only need the dishes, set-top boxes
and wired to enable the television to receive the signals. Thus it can cover a wide area including
remote area. Satellite television, like other communications relayed by satellite starts with a
transmitting antenna located at an uplink facility. The uplink dish is pointed towards a specific

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satellite and the uplinked signals are transmitted within a specific frequency range, so as to be
received by one transponder tuned so that frequency range aboard that satellite. The set-top box
demodulates and converts the signals to the desired form. This is why we can see now not only
Astro can offer wide range of entertainment form television channel to radio. The wide coverage
of Astro transmission television channel has put Astro as the most preferable broadcasting
company (Eastman & Ferguson 2013). Up to date Astro have successfully offered and covered
wide area of its television transmission which include all area in Malaysia ranged from Perlis till
to the top of Sarawak. Thus it can be conclude that Mega TV has a very limited coverage as
compare to Astro.

Figure 5 Astro set top box

Figure 4 Astro dish

Figure 6 Astro transponder

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Key success factors of Astro
Contributing in Achieving National Goals
As far as Astro is concern government support is very critical for the success of its business. Thus
it is necessary for Astro to establish relationships with the authorities a different level particularly
in the constituencies of which Astro is operated. As media is conglomerate, Astro present in half
of the countrys households play a significant role in nation building and social influence. Aligned
with the governments goals in fostering continued peace, social harmony and economic growth
(Media, 2016). Astro prides itself in promoting unity in diversity through a shared consciousness
and experience.

Astro is unique where its already reach 3.5 million Malaysian households provides an
extraordinary position for Astro as a company to practice corporate responsible in their business
operations. On a practical level, government authorities with long-established relationships with
the communities in which Astro operated in, as well as other local and national stakeholder groups,
play a crucial role in convening and facilitating discussion between their work and their
stakeholder representatives. Many of Astro CR project aimed at demonstrating goodwill in the
community require extensive government-led consultations which may related to regional
economic planning, environmental permitting or exploration licensing, details on land and assets
or the design and management of infrastructure (Astro Annual Report, 2014). Therefore, a good
rapport with government through a shared vision and managed expectation is key in Astro to carry
out project that benefit the company and the nation as a whole.

Engaging Their Regulator

The nature of Astro business requires strict compliance to a number of crosscutting media and
security related regulations. Astro TV and radio companies are subject to the Communication and
Multimedia Act 1998 (MCMC), governed by the Ministry of Information, Communication and
Culture (MICC) while its production and publishing businesses are compelled to observe the
regulations set by the National Film Development of Malaysia (FINAS) and the Ministry of Home
Affairs. Astro regularly engages its regulators and related government agencies to ensure
compliance. Regulatory compliance trainings are held no less than twice a year, where relevant
employees are briefed on the governing regulations (Astro Annual Report, 2014). In addition,

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Astro publications also go through equally stringent filtering procedures during the editional
process.

Empowering its People

Astros success is impacted and influenced to a large extent by the actions and behavior of internal
stakeholder. At Astro, they believe that its people are the driving factor behind it every
accomplishment and milestone. It is therefore crucial to ensure a healthy working environment to
make sure that its employees are mentally and emotionally invested in their work as the largest
contributors to Astros success. Astro Kasih was strategically designed to engage it employees in
a Volunteer Program which has proven to have tangible benefits to its employees, shareholders
the community and the company alike (Astro Annual Report, 2014). At Astro, they aspire to be
the employer of choice and to play a key role in developing talent both on and off-air, embracing
diversity as its key strength. Thus, Astro remain committed to build a high performing and engaged
workforce. Their focus is to successfully nurture and build both on and off-air talent, who are
empowered to innovate, to drive best in class operations and to execute on their strategic
imperatives.

Figure 7 Activities done during training

Astro have been awarded the Most Popular Graduate Employer in Broadcasting/Media at
Malaysias 100 Leading Graduate Employers Award for two consecutive years, 2011 and 2012
(Astro Annual Report, 2014). At Astro, they believe in providing employees a continuous learning
and high performing environment as part of their talent retention programmed. They encourage

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their employees to develop and acquire different skill sets so that they will be better prepared and
adapt to an evolving media landscape. Throughout the year, their employees should attend various
training and development programmed to enhance their leadership, technical and soft skills.

Putting Customers First

Over the years, Astro learn to a place a high value on listening to their customer to help them
understand their current and future needs. This also allows as to gauge satisfaction levels of the
current services that Astro provide and gives them opportunity to solicit helpful feedback on
potential programs or initiatives. Astro have designed and implemented an extensive engagement
process to gather specific and targeted information to guide their future organizational activities
and procedures. The growing public awareness on sustainable practices has also drawn Astro
attention on ensuring that their product, services and business operations have the environment at
its best interest. This year alone, Astro close its first commitment period of their 3 years
Environmental Strategic plan (2009-2011). 2012 a particularly important to Astro as it marks the
end of their first commitment period to the Astro Environmental Strategic Plan (Astro Annual
Report, 2014). As they review their progress, they are taking extra care in evaluating their strength
and weaknesses, achievement and areas for improvements so that they can redefine their low
hanging fruits and realign their environment goals for bigger and better successes.

Figure 8 Astro personal entertain the customer

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Managing the Media
According to Eastman & Ferguson (2013), they stated that media has a considerable influence on
public opinion and can improve or harm how Astro are viewed in equal measure. It is therefore
crucial to keep a close and transparent relationship with the media to ensure that Astro are not
portrayed incorrectly on issues related to their work. The channels of communication with the
media extent widely considering their own stake in the business. Astro use press releases to provide
information about their product launches alongside publishing them on its own media channels
which are readily available to the public. Astro also publish financial result, announce important
events and detail of its response to significant issues. In the digital age, Astro also use various
forms of media, platforms, some of which have evolved into medium of interaction for it various
teams conducting marketing and customer engagement, research and analytics, internal
communications, customer service and human resources.

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Conclusion
The launched of Mega TV which is the first pay TV have embarked the evolution of the pay TV
services in Malaysia. Although Mega TV not view as successful as Astro but being the pioneering
to the industries have open Malaysian eyes and preferences among Malaysian as a consumer. The
evolution of technology had great effect to the development of the broadcasting industries
especially the evolution of the television program. Now that we have only the only options for pay
TV in Malaysia have limit Malaysian preferences toward television industries. These also have
contribute to many problems that arise our television industries today. Being the only broadcast
company in Malaysia have put pressure to Astro to be excellence in their services.

It was clear that the differences between Mega TV and Astro have change the Malaysian
preferences from cable TV to satellite TV. Its relevant to the theory that when you pay for
something in return you want a very quality services. Same apply to Astro and Mega TV. While
Mega TV can offer limited channel to its customer, Astro offered a wide range of channel which
have put them at the top as compared to Mega TV. Coverage distance also of the differences that
being encounter from company where Astro have wide coverage which use satellite transmission
as compare to Mega TV which use cable transmission. Lastly differences encounter from both
television industries is the market penetration were Mega TV have very limited market penetration
as compare to Astro which able to penetrate the market started from Perlis until Sarawak.

Astro could not success without a proper plan to it. There are several factors that contribute
to Astros success which include contributing in national goals, engaging their regulator,
empowering its people, putting customer first and managing the media. Astro believe that this
factor has contribute much to their success and growth. Being the only pay TV in Malaysia have
not only put pressure to Astro to provide a quality services and product to become an innovative
in such a way that benefit to all level of Malaysian community. Thus it can be conclude that in
order to sustain in any industries research and development should be done to keep in track on the
development of the world. Living in fast changing world require a progressive change in the
industries and be active in everything.

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References
Azizal, A. & Kartini, F. (1997), A View about Communication in Malaysia: On the
Threshold of Development. Paper presented at the Pacific and Asian Communication Association
Convention, Honolulu.

Doyle, G. (2002), Understanding Media Economics, London: Sage Publications

Eastman, S.T. and Ferguson, D. A. (2013), Media Programming Strategies and Practices,
9th ed., Wadsworth.

Gershon, R. A. (2001), Telecommunications Management: Industry Structures and

Planning Strategies. Mahwah, NJ: Lawrence Erlbaum Associates.

Media Prima Berhad Official Website. Retrieved October 23, 2016 from
www.mediaprima.com.my.

Retrieved on 23 October 2016 from

http://www.astro.com.my/mediaroom/articles/art_4633.html

Retrieved on 23 October 2016 from

http://www.greyreview.com/2011/04/20/astropartnerswithtimedotcomtorolloutastrobyoniptvservi
ces/). Astro partners with TIME dotcom to rollout Astro Beyond IPTV services, Greyreview.com

Straubhaar, J. and LaRose, R. (2004), Media Now: Understanding Media, Culture and
Technology. Belmont, CA: Wadsworth.

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