YTL Communications eyes multimedia dominance in Malaysia

This is YTL Communications’ first foray into multimedia, in partnership with US start-up Sezmi Corp.

US$850 million has already been spent on infrastructure that will result in 65 per cent coverage in Malaysia at launch.

Prashant Kumar, CEO Mediabrands Malaysia, warns that running a pipeline business like networks and running a content (TV) business are two totally different ballgames.

"Getting compelling content that can create a significant pull is going to be a big challenge; making money on it even bigger,” believes Kumar. "This is not to underestimate what YTL is capable of, but they will need to invest with conviction in the content areas, if they want it to be a key proposition."

YTL Communications’ commitment to content became apparent at the recent CASBAA Convention 2010, where Kathleen Syron was unveiled as their newly-appointed chief content officer.

Syron was most recently head of content at Singapore’s StarHub TV, and before that at Malaysia’s Astro. She is very well-respected amongst the region’s media content and channel-owners.

While it’s too early to gauge reaction to the new service, Kumar anticipates an initial air of cynicism in a country which, aside from P1, hasn’t had a real new big player in the communication market in the last decade, despite several holding licenses.

Comments Dinesh Sandhu, country director Malaysia, Media Contacts, “What it means for advertisers and consumers will depend much on the rates that YTL will charge for subscription, advertising, its content strategy, the take-up rates of 4G phones etc.”

Says Kumar, “4G is the way of the future, there is no doubt. However, whether it’s an idea ahead of its time in the context of Malaysia, is the key question."

Kumar believes that building an extensive network coverage and quality will be the key. "Content experience is what will ultimately bring in the premium. With budget subsidies last week on handsets, the doors are opening on high-specs handsets and that will definitely help,” he says.

Adds Sandhu, “I think it will fly but, as I said, YTL have to get the model right. This is the future of television. If anyone can make a success of it, YTL can.”