Astro TV considers a new partner

The Astro-PTDV tie-up began in a blaze of publicity in 2005, but has faced significant challenges since. According to an Astro spokesperson, the Malaysian company has been supplying TV content, equipment and technical services to PTDV based on the proposed acquisition of an equity stake.

However, the acquisition has not materialised. “Neither Astro nor its affiliates are shareholders of PTDV as discussions with the current shareholders of PTDV on a proposed joint venture have never been concluded.”

PTDV operates Indonesia’s Kabelvision, in a pay-TV market that has long offered more promise than actual returns. Sources said that Astro may now explore a tie-up with

pay-TV service Aora, which started broadcasting in August. Aora began with a 10-channel introductory package, of which four were dedicated to the Olympics. Recently, it secured the pay-TV rights to the Barclays Premier League previously carried by Astro/PTDV. The company plans a full-commercial launch next year with at least 50 channels.

The Astro spokesperson, however, denied a tie-up, adding that Aora’s usage of Astro’s satellite services remains the only connection between the two companies.

Media consultant Ratna Mahdi said Aora was unlikely to seek partners for the next few months. “All pay-TV operators are doing well without international carriers. PTDV will find it easy to survive without Astro. It is not really difficult to handle things like sourcing content.” Other partnership contenders for Astro are SCTV and Bakrie Group, both of which have pay-TV licences.

Astro’s efforts to break into Indonesia have faced regulatory hurdles and pricing problems. The collapse of the relationship between Astro and Lippo may yet have legal implications, amid allegations of embezzlement and money laundering. PTDV currently has 150,000 subscribers, who now face the loss of Astro’s programming.

Astro’s trademark and licensing agreement with PTDV expired on 1 September. Astro entered the country carrying a warchest of US$1 billion, in the hope of tapping into Indonesia’s pay-TV potential.

Hampered by poor infrastructure and strong free-to-air competitors, pay-TV penetration in the country is currently less than 10 per cent.