KUALA LUMPUR (Jan 19): Digistar Corp Bhd is partnering Indonesian diversified group PT MNC Asia Holding Tbk to provide internet TV services for the Malaysian hospitality and residential markets.
Digistar, through its subsidiary Panorama TV Asia Broadcast Sdn Bhd, has signed a cooperation agreement with MNC on Thursday (Jan 19), aiming to launch the service in May this year, mainly targeting hospitality and healthcare centres.
“We hope to launch [the service] for commercial and domestic segments concurrently, but we will see how it goes, there is still four months until the official launch,” said Digistar’s founder and group chief executive officer Datuk Wira Lee Wah Chong at the signing ceremony on Thursday.
Under the agreement, which is valid for 15 years, MNC will supply its Android set-top boxes to Panorama TV customers.
Digistar owns a 60% stake in Panorama TV, and Muhammad Hamka Mohd Ali owns a 20% stake, while Azman Yusoff and Ong Fee Chong own 10% shareholdings each.
Lee expects the launching of this new internet TV, featuring 40 channels of content and priced from RM10 and above, will excite the industry due to its affordability.
“We target to have one million active subscriptions in five years and open support centres in every state in Malaysia,” said Lee, who currently owns 26% indirect interest in Digistar.
MNC executive chairman Hary Tanoesoedibjo opines that the one million subscription target in five years is rather conservative, considering there are two to three million Indonesians living in Malaysia now.
“There are two to three million Indonesians here, say we capture around 20% of them, that will bring us very close to our target already,” he said, adding that investment required for this venture is likely to be marginal.
“The costs are mainly for the [Android] set-top box, because we already have the content, so the investment is likely to be very marginal,” he said.
Digistar shares remained unchanged at 9.5 sen as at noon market break, valuing the company at RM43.11 million.