KUALA LUMPUR (July 7): In an attempt to reverse the slide in its subscriber base and provide a simple-to-sign-up instant alternative to combat content piracy, Astro Malaysia Holdings Bhd (KL:ASTRO) is launching an X3 streaming service from July 20 from as low as RM39.99 per month.
“We are responding to Malaysians telling us we are very complicated [to sign up for]. So, we are simplifying the process and hopefully this makes it easy for people to return to Astro,” its interim group CEO Henry Tan told reporters on Tuesday, urging Malaysians to support Malaysian content creators now that they can sign up “in just a few quick moments”.
“We urge Malaysians to stop supporting piracy, which erodes and destroys value for our local content creators,” he added, calling Astro the largest producer of Malaysian content.
While it is intended to be a “no box, no installation and no contract” streaming service, the no contract X3 Entertainment Pack option will only be available from December at RM59.99 per month. The RM39.99 per month X3 Entertainment 12 Pack available from July 20 requires a 12-month commitment, according to presentation slides shown.
Because sports content is “expensive”, consumers who want it will have to pay RM89.99 per month (12-month contract) for the X3 Sports 12 Pack or RM109.99 per month (without contract) for the X3 Sports Pack.
Asked about the potential cannibalisation of existing TV packs, Tan says Astro believes there is “still value” in the existing TV packages while the X3 streaming service “removes the barrier of signing up” for digital-first and digital-savvy individual households who do not want the hassle of dealing with a set-up box installation or commit to a contract.
The cheapest X3 monthly subscription price matches Astro’s current cheapest RM49.90 per month Basic Entertainment Pack, currently sold at a “July 20% off promotional price” of RM39.99 per month versus the usual price of RM49.99, according to data on its website. The Sports Pack is sold at a “July 30% off promotional price” of RM69.99 per month versus the usual RM99.99 per month.
Astro’s Tan says the targeted July 20 launch date was because Astro is still resolving “technical” issues. Incidentally, the Fifa World Cup 2026 final match in New Jersey, US, takes place at 3am Malaysia time on July 20.
Astro’s average revenue per user (Arpu) has slipped to RM93.90 per month as at end-April 2026 compared to RM94.30 per month as at end-January 2026 and RM98 per month as at end-April 2025.
“The softer Arpu is likely underpinned by strong uptake of Astro’s lower-priced Astro One entry-tier packages, consistent with its strategy to deepen penetration of the mass-market segment,” Kenanga Investment Bank Research wrote in a note dated June 16, which also noted weaker-than-expected advertising revenue, unexpected staff redundancy costs and “probable subscriber attrition”.
For the first quarter ended April 30, 2026, for the financial year ending Jan 31, 2027 (1QFY2027), Astro reported a net profit of RM1.6 million compared to RM13.5 million in the previous year's corresponding quarter — and that was after a RM4.5 million tax credit reversed pre-tax losses.
Its TV segment was also RM18.8 million in the red while smaller than the RM25.9 million segmental loss in the fourth quarter ended January 31, 2025 (4QFY2025).
Its total subscriber base had slipped further to 5.13 million as at end-April 2026 compared to 5.18 million at end-January 2026 and 5.24 million as at end-April 2025. Its premium pay-TV subscribers likely also slipped further below two million, The Edge’s back-of-the-envelope calculations show. Astro has not disclosed a breakdown of its premium and freemium subscriber base for more than a decade.
Astro shares closed unchanged at six sen on July 7 to give it a market capitalisation of RM313.55 million. The only two analysts actively tracking Astro both value the stock at 6 sen apiece, according to Bloomberg data at the time of writing, though Kenanga has a “market perform” recommendation while TA Securities has a “sell” call.
“Astro’s pay-TV revamp under Astro One has fallen short of delivering the expected uplift in subscriptions. Instead, the strategy has led to cannibalisation, with customers shifting to lower-priced tiers, resulting in subscriber attrition and Arpu dilution. Consequently, revenue has declined. While management expects Arpu to stabilise, we note the continued weakness in the subscriber base and adopt a more cautious stance on the outlook until clearer signs of recovery emerge,” TA Securities said in a note dated June 16 when cutting its target price to six sen from seven sen following the release of the first quarter results. “A potential re-rating catalyst would be if the Astro One strategy gains meaningful traction and delivers on subscription growth,” it added.