Astro's Streaming Wars - Losing the Home Turf

For years, Astro dominated Malaysia’s entertainment landscape. But as global streaming giants flooded the market, consumer preferences shifted. Could the homegrown giant reinvent itself, or was it destined to fade into obscurity?

Dr. Wee Hong LOO | Sunway Business School, Malaysia
Dr. Kenny Guan Cheng TEOH | Sunway Business School, Malaysia
Kim Thanh LE | Nikkei BizRuptors

Published On 05 May 2025

Last Updated On 05 May 2025

At a glance

Country

Malaysia

Founded

1996

Industry

Media & Entertainment

Core Business

Pay-TV, Streaming, Radio, and Digital Content

Abstract

Astro, once the dominant force in Malaysia’s media and entertainment industry, found itself losing ground amid the rise of global streaming platforms such as Netflix, Disney+ Hotstar, and Amazon Prime. 

This case study examines how Astro’s initial monopoly, built on satellite pay-TV services and exclusive local content, began to erode as consumer preferences shifted toward on-demand, personalized, and mobile-friendly content offerings. While Astro expanded regionally into Brunei and Indonesia, it underestimated the rapid digital disruption at home. 

The study mentions Astro’s reliance on a legacy business model, slow adoption of digital transformation, and inadequate response to competitive pricing models and user-friendly streaming experiences. Despite early attempts with service packages, the company failed to fully reposition itself as a standalone digital player, continuing instead with its traditional bundling and satellite infrastructure. As piracy and freemium streaming models further fragmented the market, Astro’s customer base declined, particularly among younger, tech-savvy consumers. 

Through this lens, the case study challenges learners to analyze the strategic missteps that led to Astro’s weakened market position and to explore how it might pivot to remain relevant. It serves as a problem-solving exercise on digital transformation, competitive strategy, and innovation in a fast-changing industry, urging decision-makers to balance legacy strengths with disruptive adaptation in the face of global competition.
 

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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.

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