This article first appeared in The Edge Malaysia Weekly on May 11, 2026 - May 17, 2026

FOR the first time in 20 years, pay-TV operator Astro Malaysia Holdings Bhd (KL:ASTRO) will not be the primary broadcaster for the Fifa World Cup, the most widely viewed and followed sporting event in the world.

Telecommunications giant Telekom Malaysia Bhd (KL:TM), one of the country’s largest government-linked companies (GLCs), is taking over the “live” telecast baton, so to speak.

But not clinching the broadcast rights may turn out to be a blessing in disguise for Astro, observers say, as the returns may not be commensurate with the elevated costs for the global sports fest.

In a statement released last Wednesday, Astro said the company is disappointed that its “fair and competitive bid” for the broadcasting rights was not accepted by Fédération Internationale de Football Association (Fifa), the international governing body of association football.

On the same day, Communications Minister Datuk Fahmi Fadzil confirmed that national public broadcaster Radio Televisyen Malaysia (RTM) and TM’s Unifi TV have been selected as the official broadcasters of the Fifa World Cup 2026 in Malaysia.

While the final amount was never officially disclosed, it was widely reported in recent weeks that Fifa had initially sought about US$50 million (roughly RM195 million) for the Malaysian broadcasting rights, although some reports later suggested the fee could be lowered to around US$35 million (about RM137 million).

Despite the latest announcement, it should be noted that Astro may not necessarily be walking away empty-handed.

The media and entertainment firm said it is in discussions with the new rights holders to “explore opportunities” for World Cup matches to also be carried on its platforms — Astro, NJOI (its free-to-air service) and Sooka, its over-the-top (OTT) streaming app.

“This would significantly extend reach and accessibility to millions more Malaysians at home, on business premises and on mobile devices,” the Main Market-listed company said.

Notably, Astro acknowledged that the economics surrounding premium sports content have shifted significantly in recent years, citing rising rights costs, piracy and weaker commercial returns.

“Rising costs, driven by inflation and escalating international sports broadcasting rights, have significantly increased the financial investment required. Meanwhile, rampant piracy has diminished the value of such rights to all legitimate platforms. In particular, the 2018 and 2022 World Cups were extensively pirated events in Malaysia,” it said.

Astro also pointed to unfavourable match timings and limited lead time for advertisers and sponsors as factors that weakened the commercial appeal of the tournament.

An equity research analyst covering the media sector says Astro’s failure to secure the World Cup broadcasting rights may, paradoxically, turn out to be financially beneficial for the group.

“I am actually not surprised Astro lost the bid. In some ways, it could even be beneficial for Astro financially,” he tells The Edge.

The analyst observes that the economics of football broadcasting rights have become increasingly difficult, especially for the World Cup, which is now heavily pirated.

“You see many people illegally streaming matches online or using illicit TV boxes,” he remarks, estimating the previous World Cup rights cycle at between RM100 million and RM150 million.

“At a time when Astro is already facing subscriber churn, it is hard to justify taking on such a large additional cost.”

His estimates put sports subscribers at less than 30% of Astro’s overall subscriber base, which suggests that the absence of the World Cup rights may not significantly impact customer retention.

“The majority of subscribers are not sports viewers, so losing the World Cup is unlikely to trigger a major wave of cancellations. The more important content for Astro remains the English Premier League (EPL) because that runs every season and has stronger recurring engagement,” says the analyst, who is of the view that not landing the broadcast rights is potentially a “blessing in disguise” for Astro as sports broadcasting fees have escalated sharply over the years.

“Football rights costs have been escalating aggressively, rising perhaps 20% to 30% every cycle. There comes a point where management has to decide the economics no longer make sense — enough is enough,” the analyst adds.

A check on AskEdge shows that Astro’s net gearing stood at 1.4 times, making it one of the highest-geared media companies on Bursa Malaysia, given that, as at Jan 31, its net debt position was RM1.79 billion.

A corporate observer who closely monitors both Astro and TM says premium football broadcasting rights are often perceived as strategic “must-have” assets, although the financial returns are frequently questionable.

“There is always this perception that owning rights to the World Cup or the EPL is the holy grail for TV operators. But when you look at how much these rights cost versus how much revenue can realistically be recovered, it becomes a very different story,” she says, noting that TM’s acquisition of the rights may not necessarily be an outright positive.

“We know TM has long wanted premium sports rights, especially the World Cup. But the question is whether these rights are a holy grail or a poisoned chalice. It is one thing to win the rights, but another thing entirely to monetise them effectively,” she observes.

Given that the broader football broadcasting landscape remains financially challenging for all operators, the observer believes “Astro may not necessarily be unhappy, and TM may not necessarily be happy either”.

“Somebody still has to shoulder the very high content costs. In this environment, there are really no clear winners and losers.”

As for state-owned RTM, how much has the broadcaster been paying in the past?

In truth, World Cup media rights discussions are inherently complex.

At the time of writing, even China and India — the world’s two most populous nations — are still facing unresolved broadcasting rights issues.

According to Reuters, Fifa has concluded broadcasting agreements in at least 175 territories globally.

Over the years, alongside Astro’s pay-TV coverage, terrestrial broadcaster RTM has periodically secured free-to-air (FTA) rights through government-supported arrangements.

For the 2018 Fifa World Cup in Russia, then minister of communications and multimedia Gobind Singh Deo said the government had allocated about RM30 million for the broadcast rights. RTM aired 41 of the 64 matches, comprising 27 live games and 14 delayed telecasts.

Four years later, for the 2022 tournament in Qatar, then minister Tan Sri Annuar Musa announced that RTM would again carry World Cup matches at a cost of around RM32.5 million. As in the previous edition, RTM broadcast 41 matches, including 27 live games.

In both tournaments, the arrangements were partially supported by private sponsorships and contributions from companies and GLCs, helping to offset costs and ensure continued FTA access for selected matches.

However, the 2026 World Cup will feature 104 matches, up from 64 in previous editions, following Fifa’s expansion of the tournament to 48 participating teams.

Communications Minister Fahmi last week revealed that the government has approved an allocation of RM24 million for RTM to secure broadcasting rights for the “majority of matches”, either live or via delayed telecast.

The Fifa World Cup 2026 will be co-hosted by the US, Canada and Mexico with the opening match in Mexico City on June 11, and the final in New Jersey on July 19.

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