Unifi, under TMnet
not only provide wireless line but also provide drama and shows named HyppTV.
Particularly, the number of shows and drama provided by both the firm are
totally different. Unifi focusing on providing wireless line while Astro is the
firms that focus on channeling TV shows. Astro is also a natural monopoly. A
natural monopoly is an industry that single firm production that good or
services that is more efficient. The natural monopoly market structure in
Malaysia is Astro. Astro Malaysia Holding Berhad is a leading unified
consumer media entertainment group in Malaysia and Southeast Asia. Over 130
million or 52% penetration of Malaysia TV households, Publication and Digital
Media. It could be stated that Astro has hold a big market in channeling
hundred of TV shows in Malaysia.
Astro Malaysia
Holding Berhad would affect Malaysia in many ways for example like it would be
an extra income for the country such as government tax. To attract the
consumer, Astro comes out with many promotions that would be cheaper than the
usual price. For example like Super pack 1, super pack 2, super pack 3 and
super pack 4. Super pack 4 only cost RM 125.00 that valued RM 199.95 and plus
6% government tax. In addition, there would be many exclusive channels
for news, kids, learning and variety such as discovery, Disney channel and
celestial movies. When it is on promotion, more consumers will purchase it
because it is reasonable that the amount we need to pay for 160 channels.
The advantage of
monopoly is earning high profits. Astro enjoy high revenue as high as RM3.2
billion. Astro also enjoy the benefits of economic scale as well. However, the
disadvantages of monopoly are incentive and innovate. Malaysia viewer knew that
when raining fade it would be a big problem for subscribers as the signal is
not stable and we could not watch the TV shows.
In conclusion,
monopoly firm had been protected by government by introducing barriers. In my
opinion, it would be more effective to have only one firm than having more than
one firm to compete with each other.
Written By : Loh Jing (0315615)
If a new company were to enter the same competition as Astro, what are the barriers the new company will face?
ReplyDeleteHi suetkeit aung,
ReplyDeleteIf a new company were to enter the same line of business as Astro, both would experience competitions. In a long run, that can be beneficial to consumers. Why? Competitions encourage innovation, improvements, and whatnot. Also, the presence of competitions lowers the price of service provided. Consequently, we the consumers are able to enjoy nothing else but benefits such as stable signal during torrential rain pour, lower prices, more channels, and so forth.
This comment has been removed by the author.
ReplyDeleteif astro is a monopoly then what will you call Media Prima?
ReplyDeleteMay I ask that what are the steps that Astro can take to move into another market structure?
ReplyDelete