KUALA LUMPUR, Nov 11 — The hike in Astro’s subscription rates from November 24, the first in two years, has irked certain parties with some saying it is “unjustified” while others scream monopoly.
The Malay Mail speaks to Astro Chief Operating Officer Henry Tan to get his views on the matter.
The Malay Mail (TMM): Explain the price hike.
Henry Tan (HT): We do not own the Barclays Premier League or the World Cup. We are the middleman, the licensee. We pay for the broadcast rights and if the price of the broadcast rights keeps going up, we have to share the cost.
Look at the wages of footballers. Who is paying them? Ultimately, the fans and viewers have to foot the cost. The average salary of footballers has increased by some 300 per cent over the past 10 years.
It is not just about buying the rights. There are shows to produce, expensive equipment including state-of-the-art outside broadcast (OB) vans to air live matches, studios to build and talents to pay.
TMM: But many are unhappy paying additional RM6.
HT: No one likes a price increase but if you want first-class sporting content, then it comes at a premier price. We are trying our best to mitigate the cost, including increasing the prices gradually and add more value to the product to balance the increase.
To be frank, the RM6 increase is not even sufficient. The terms change annually after every season and this is determined by the seller, not the buyer.
I believe most people would not understand this until they go abroad. Then they will realise it is so cheap here.
TMM: How much have you spent in buying the rights?
HT: We are not allowed to disclose broadcasting cost as it is part of the terms of our contract with the rights holder. But I can say that the price to the Premier League rights since we started in 1997 till today has multiplied by 20 times.
There was a spike in the last five to six years and it is not just a problem in Malaysia.
The exchange rate for the rights is sold in USD, euros or in pound sterling while we charge customers in ringgit.
We will still not be able to match the cost we paid despite the RM6 increase.
TMM: Astro is often criticised as monopolising the industry…
HT: What monopoly? Telekom Malaysia has bought two channels from us. Is that a monopoly?
If we are considered monopolising the industry, then why were there other bidders from Malaysia bidding (for the rights to the Premier League)?
You have to put your money where your mouth is. When a particular content works well in the country, people will say Astro monopolise. What if the show doesn’t get the ratings? Stop being a sore loser.
TMM: Are you willing to share your content?
HT: We have always been open to other channels provided the deal is on commercial terms. We are not a charitable organisation.
