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Asian Broadcasting Network is the latest player to jump on the pay TV segment with its upcoming digital cable TV launch. Can it take on pay TV giant Astro and learn from the mistakes of previous operators who had failed rather dismally?
IT was a fairly gala event on the evening of Nov 15 when Nilamas Corporation Sdn Bhd celebrated its rebranding into Asian Broadcasting Network (M) Sdn Bhd (ABN) in preparation for its upcoming digital cable TV launch. Ambitious targets were revealed and lofty promises made, as the management of ABN shared glimpses of its plans as it geared itself to be Asean's most advanced digital cable TV network.
ABN aims to kick off its service some time in the second quarter of 2012, with over 100 channels from day one, with plans of ramping up the offering to over 200 channels within two years of operations. By then, it says, it would have the capacity to offer over 500 channels, said Chief Executive Officer Sreedhar Subramaniam.
The frequent declaration throughout the evening that `our service will work even in rain and storm' was a clear message that ABN was hitting on incumbent Astro All-Asia Networks plc, the nation's dominant pay TV operator, which enjoys more than 50% market share. That the service of the satellite TV operator tends to be inadvertently down every time it rains is a sore point among subscribers, more so after the recent rise in its rates.
ABN is said to be linked to businessman Datuk Kenneth Eswaran, whose listed vehicle is Multi Vest Resources Bhd. However, Eswaran does not sit on ABN's board. Interestingly, two of Multi Vest's directors - Tan Sri Mohamad Noor Abdul Rahim and Datuk Nik Mohd Amin Nik Abu Bakar - are board members of ABN.
Cable TV is not new. It has been around for decades, a proven technology used in many markets, including the United States, the United Kingdom and neighbouring Singapore, where it often commands the largest market share among pay TV offerings. In comparison, Malaysia is an anomaly of sorts, where cable TV only had a brief run and floundered.
Would ABN succeed where the previous sole cable TV operator Mega TV failed? For starters, ABN has more advanced...