KUALA LUMPUR (Nov 13): Astro Malaysia Holdings Bhd unveiled its new Astro Ultra Box that includes the 4K ultra-high definition (UHD) viewing experience, Cloud Recording and a fresh new user interface yesterday.

The Ultra Box uses a hybrid system of satellite and internet technologies, whereby the satellite delivers the best 4K UHD quality, which Astro said will enable sports fans to enjoy UEFA EURO 2020, the Premier League, Formula 1 and La Liga, in the first 4K UHD experience in Malaysia.

The new offering, said RHB Investment Bank's Jeffrey Tan, allows Astro to keep up with viewing trends and technology shifts, with UHD fast becoming the gold standard for media consumption on big screens.

"The company estimates that over half a million homes in the country have 4K TVs, of which 70% are its subscribers. This implies an immediate addressable market of circa 300,000 households. We see a progressive increase in the take-up of 4K services on more content being made available and greater affordability of 4K TVs.

"Subscribers will have access to a dedicated UHD channel (780) with more UHD content available over time. The launch should hopefully mitigate the stiff competition from Android boxes," Tan said in a note to clients today.

RHB is of the view that the new service is another major milestone for Astro and continues to like the stock for its positive commercial execution, attractive yields, and stranglehold over pay-TV households. "We see its strong focus on customer experience and content value proposition as key draws," Jeffrey wrote.

RHB kept its 'add' recommendation on the stock, with a target price of RM1.85, indicating a potential 31% upside. Astro was trading at RM1.41 at the time of writing.

According to Astro's statement yesterday, there is a seamless and unified interface across the new Ultra Box and Astro Go, with Astro Cloud recording available on both.

This means Astro customers can record multiple shows at the same time on the Ultra Box or on Astro Go, and store these in the Astro Cloud, which can be accessed anywhere, anytime. Customers will be entitled to 200 free hours of HD storage and can increase this to 1,500 hours at RM15 per month.

They can also connect the Ultra Box to the internet and enjoy over 50,000 videos on demand at home or on Astro Go. Customers with monthly subscription of RM100 and above can upgrade for free, though a compatible 4K TV is needed to enjoy 4K UHD viewing.

"We are on a journey of continuous improvement to provide our customers with a better experience from customer service, to content, to OTT (over-the-top) for mobility and to the experience at home.

"The Ultra Box takes entertainment to a new level, enabling 4K UHD, Cloud Recording, Play from Start and a new interface that will enhance home entertainment on the big screen," said Astro chief executive officer Henry Tan.

He added that the "Ultra" experience also extends to Astro Go, which is free for all customers, whereby customers would only need to download the app and stream their favourite shows.