Astro, Karangkraf form JV to maximise monetisation potential

Astro Malaysia Holdings Bhd and Kumpulan Media Karangkraf Sdn Bhd aim to maximise the monetisation potential from digital expenditure, licensing and advertising expenditure, among others, through a newly set up joint-venture company.

Via the collaboration, both companies will pursue co-creation of a comprehensive line up of content internet protocols (IPs) across Malay and Islamic verticals.

Astro Group Chief Executive Officer Datuk Rohana Rozhan said following the new venture, Astro would increase its spending of Malays vernacular content to 35 per cent in the next five years from 22 per cent at present.

The content and consumer company has allocated RM1.9 billion annually for content.

Karangkraf CEO Datuk Hussamuddin Yaacub said both parties were at the discussion stage of the company's structure.

"Both companies are in the midst of reviewing the IPs and contents," he said on the sidelines of the signing of the Memorandum of Understanding here Friday.

On Karangkraf's investment in the IPs, Hussamuddin said it was embedded in the publishing costs and involved millions of ringgit, but refused to disclose the amount.

The Malay Archipelago content market is valued at RM48 billion, which makes the local vernacular and ASEAN content of IPs, the new premium.

Astro is beemed to 71 per cent of Malaysian households, serving 21 million individuals on all screens, at home, live, and on demand, while Karangkraf has 15 million readers across its print, magazine publications and online media assets.

-- BERNAMA