ASTRO: A SHORT JOURNEY PAY-TV IN INDONESIA

The growth of local and national TV station (that can be watched without any cost, also known as free to air – FTA) apparently do not followed by the increasing of quality of the program. In other words, although the amount of TV stations and programs are increasing, it was not the case with public’s satisfaction. Most  TV operators offer similar shows

TV viewers feels that they don’t have other choice of program to enjoy, thus they have to follow existing programs. There are many complaints regarding shows that have physical, social and psychological violence, also SARA (harassment toward certain community, child abuse and things that are far from norms, religion and morality) elements. Most of parents are complaining because the TV show are recklessly made and stressing on commercial elements without considering the consequences.

The emerging of Pay TV operators in Indonesia give viewer new alternative for interesting programs. Unfortunately, pay TV’s market has not been developed  thoroughly especially by the market leader, Indovision. Viewers amount is very low compare to its potential.

There are some opinions about conflict of interest between Indovision and the group of company that owned Indovision – MNC, due to their mutual ownership of RCTI and other FTA. If Pay TV penetration is high, it will take the portion of the successful  TV station (RCTI) in the same corporation. Thus, until today, Pay TV’s market in Indonesia is not as big as other developing countries.

Consequently, the emerging of Astro, a new brand of pay TV brought fresh air for pay TV industry. With a strong spirit to penetrate the market, this brand aggressively and continually give customer a clear reason that it is time to have a pay TV.

Astro Nusantara is a pay TV operated by PT Direct Vision since 28 February 2006, a joint venture between Astro All Asia Network plc and PT First Media Tbk, sub company of Lippo Group. There are 48 kinds of channel, including 5 local channels produce and displayed exclusively by Astro, which are: Astro Aruna, Astro Ceria, Astro Awani, Astro Kirana and Astro.

Astro TV’s aggressiveness emerged even more when it controversially get the English Premiere League (EPL) broadcast license. The program that is usually enjoyed freely by every layer of society because it’s broadcasted at FTA TV, now can only be enjoyed by Astro pay TV customers.

Indovision’s respond regarding the emerging of Astro in the market is to make it as a prominent competitor. Indovision’s commercial tries to emphasized on Astro’s insufficiency.  Whereas as a market leader, it’s Indovison’s task to extend market penetration toward FTA despite of fellow pay TV.

Issue that is brought in this case is to resume whether Astro’s strategy to increase customer base with EPL is a positive act for Astro’s brand equity development. The increasing of viewers amount that is not equal to many negative comments about this brand in many kinds of media, especially Internet.

Before the EPL issue resolves, Astro’s management faced other complicated problem, that is conflict between the stockholder which cost the end of Astro pay TV’s operation in Indonesia.

The three years broadcast time is filled by dynamics for Astro. As a new developed brand, it has to be taken from viewers that begin to feel the connection to the brand.