WITH Android TV boxes proliferating across Malaysia thanks to their value-for-money/one-off pricing and wide ranging programme choices, one wonders if the Copyright (Amendment) Act 2022 can be a saviour for ‘monopolistic’ satellite pay TV operator Astro Malaysia Holdings Bhd.
At a glance, the latest law explicitly recognises streaming technology as an avenue to infringe copyright, according to Maybank IB Research.
This is because a reading of Section 43A implies that e-commerce (eg Shopee, Lazada, Carousell) and social media platforms (ie Facebook) that openly sell illegal streaming devices (Android TV boxes) are likely guilty of infringing copyright.
After all, a February 2019 YouGov poll found that 87% of Malaysian TV box owners purchased them from e-commerce and social media platforms.
“The Copyright (Amendment) Act 2022 implies to us that it is potentially very potent in combatting content piracy which has plagued ASTRO over the last six years,” commented analyst Yin Shao Yang in a company update.
“Positively, Section 51B implies that Astro Malaysia as a copyright owner, can ‘test’ purchase TV boxes to determine if anyone is infringing its copyright and take legal action against suspected offenders.”
On the negative side, however, Section 41A (2) implies that the offenders may avoid prosecution if the authorities have issued a written offer to compound the offender “a sum of money not exceeding 50% of the amount of the maximum fine to which the person would have been liable to if he had been convicted of the offence”.
“The related safeguard is that the written consent of the public prosecutor, also known as the Attorney General, must be sought before issuing the aforesaid written offer,” noted Maybank IB Research.
Given that the act is new and yet to be tested in court, Maybank IB Research maintained its earnings estimates on Astro Malaysia while reiterating its “buy” rating and a target price of RM1.36.
“(Our) earnings estimates and target price are premised on Astro Malaysia’s TV subscription revenue inching up 1%-2% per annum after falling 30% over the last six years,” projected the research house.
“We also note that churn may remain high not only due to content piracy but currently fragile consumer sentiment due to purchasing power being eroded by rising inflation. Yet, this act could be a very positive inflection point for Astro Malaysia.”
At 9.43am, Astro Malaysia was up 1 sen or 0.98% to RM1.03 with 1.05 million shares traded, thus valuing the company at RM5.37 bil. – April 13, 2022