Supply & Demand Analysis for ASTRO- Satellite television provider in Malaysia.
EXECUTIVE SUMMARY
This report focuses on the subscription-based television market in Malaysia, which is currently an effective monopoly market with ASTRO at its forefront. The background of the market and ASTRO is briefly discussed. The main body of the report comprises of the current and potential application of microeconomic concepts, tools and approaches by ASTRO in relation to its role as a monopoly firm in this market. Particular attention is paid to overall market structure, impact of emerging competitors, firm’s behavior in the market, efficiency issues, profits and regulatory concerns. Discussions on potential future scenarios are covered as well. This report does not constitute an in-depth study on the market but provides interesting thoughts for further research.
TABLE OF CONTENTS
INTRODUCTION Error! Bookmark not defined.
MARKET STRUCTURE/COMPETITIVE ANALYSIS Error! Bookmark not defined.
Supply and demand analysis 5
Income factor 6
Demand factor 7
BEHAVIOUR OF FIRMS IN THE MARKET 8
A monopoly’s revenue 8
MARKET EFFICIENCY AND ISSUE 9
Market efficiency 9
ASTRO profit maximisation (monopoly) 11
The welfare cost of monopoly 12
The deadweight loss 13
Is monopoly profit a social cost? 15
Proposals for ASTRO in short and long term 16
SHORT RUN AND LONG RUN PROFITS 17-24
GOVERNMENT REGULATIONS Error! Bookmark not defined.
CONCLUSION Error! Bookmark not defined.
APPENDIX Error! Bookmark not defined.
Extract of Key Performance Indicators 28
Article 29 REFERENCES 30
INTRODUCTION
ASTRO, introduced in 1996, is Malaysia’s first satellite television. It uses Direct-to-User Service (D.T.U) and is broadcast as a high-powered KU Band transmission utilizing the transponder of the MEASAT satellite and individual decoder boxes in every subscriber’s home.
Besides regular television fare such as movies, news, serials, sports and documentaries, other media are also provided such as radio channels,
This report focuses on the subscription-based television market in Malaysia, which is currently an effective monopoly market with ASTRO at its forefront. The background of the market and ASTRO is briefly discussed. The main body of the report comprises of the current and potential application of microeconomic concepts, tools and approaches by ASTRO in relation to its role as a monopoly firm in this market. Particular attention is paid to overall market structure, impact of emerging competitors, firm’s behavior in the market, efficiency issues, profits and regulatory concerns. Discussions on potential future scenarios are covered as well. This report does not constitute an in-depth study on the market but provides interesting thoughts for further research.
TABLE OF CONTENTS
INTRODUCTION Error! Bookmark not defined.
MARKET STRUCTURE/COMPETITIVE ANALYSIS Error! Bookmark not defined.
Supply and demand analysis 5
Income factor 6
Demand factor 7
BEHAVIOUR OF FIRMS IN THE MARKET 8
A monopoly’s revenue 8
MARKET EFFICIENCY AND ISSUE 9
Market efficiency 9
ASTRO profit maximisation (monopoly) 11
The welfare cost of monopoly 12
The deadweight loss 13
Is monopoly profit a social cost? 15
Proposals for ASTRO in short and long term 16
SHORT RUN AND LONG RUN PROFITS 17-24
GOVERNMENT REGULATIONS Error! Bookmark not defined.
CONCLUSION Error! Bookmark not defined.
APPENDIX Error! Bookmark not defined.
Extract of Key Performance Indicators 28
Article 29 REFERENCES 30
INTRODUCTION
ASTRO, introduced in 1996, is Malaysia’s first satellite television. It uses Direct-to-User Service (D.T.U) and is broadcast as a high-powered KU Band transmission utilizing the transponder of the MEASAT satellite and individual decoder boxes in every subscriber’s home.
Besides regular television fare such as movies, news, serials, sports and documentaries, other media are also provided such as radio channels,
References: Extract of Key Performance Indicators Source : RHB- ASTRO Annual Report 2013, Page 2 & pg 7