Saturday, August 29, 2009

TM announces Q2, to spend RM350 on IPTV contents

ON AUGUST 21, Telekom Malaysia Bhd, the country's dominant fixed-line operator, said second-quarter net profit more than doubled due tohigher unrealised exchange gain on foreign currency borrowings of RM123.2million.

The company posted a net profit of RM266 million, up from RM114.7 million (which excluded results from the demerged Axiata Group Bhd) in the same period a year earlier.

The company also added that it plans to spend RM350 million on IPTV contents over the next 3-4 years. Sounds a lot? Think again.

RM350 million over 3-4 years would represent an annual expenditure of about RM117 million a year over a three-year period or RM87 million over a four-year period. In comparision, Astro spends more than RM800 million on contents in FY2009 alone. In FY2008, it spends more than RM700 million on contents.

Does this means that TM's IPTV content will not be competitive? Not necessary. Spending less on contents will translate to higher possibilities of TM tieing up with media owners. It does not need to buy the contents (such as rights for football games). Instead, it can tie up with companies like Media Prima (which has TV3, NTV7, 8TV, etc under its belt) or Astro -- allowing Media Prima viewers or Astro viewers to watch their programmes via IPTV platform, instead of conventional platform.

Imagine, if Astro and TM tied up, allowing users to watch Astro programmes via IPTV ... This could mean that viewers can watch their favorite programmes even when it's raining.

Below are some of the financial highlights:

1. Q2 revenue grew 1.1 per cent (quarter-on-quarter) and 0.9 per cent (year-on-year) to RM2.13 billion.

2. Net profit grew over 800 per cent (quarter-on-quarter) to RM266 million. Q109 revenue: RM27.7 million.

3. Broadband customer grew by 37,000 in Q2.

4. Fixed-line customers, which was declining for more than four consecutive quarters, grew by 0.7 per cent QoQ.

5. ARPU for its business phone lines and Streamyx grew from RM74 and RM87 in Q109 to RM78 and RM88 respectively in Q2.


mafiz said...

Apart from being an all weather delivery platform, IPTV gives you multicasting as well as video on demand capability.

To me content should be viewer centric. Let customer define contents that fit their household. It's OK not to invest big initially.

Future content business model should be selling 'more of less'. Sell more variety and create more choices. Main income no longer comes from selling Top hits movies or music. Indy producers are gaining popularity.

With IP, the media pipe to home is almost infinite. Think of it as YouTube on your TV screen but with greater QOS.

CZQ said...

i think it's just 'starting', TM want to go to Cable TV after it deploy Fiber to home...


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