DIGI (6947) - Mobile HyppTV for DiGi subscribers
April 13, 2015 : 10:30 AM MYT
DiGi.Com Bhd
(April 10, RM6.25)
Maintain neutral with a target price (TP) of RM5.90: According to news reports, DiGi.Com Bhd (DiGi) will collaborate with Telekom Malaysia Bhd (TM) to offer TM’s Internet Protocol television (IPTV) services (HyppTV) for DiGi subscribers.
Under the collaboration, TM will provide entertainment, sports and video on demand on its HyppTV to DiGi’s subscribers through the mobile application, HyppTV Everywhere.
The mobile service is due to be launched today. While we are positive on DiGi tapping into additional digital content to stimulate mobile data usage, we believe the new service will have negligible financial impact (less than 1% on top line) on DiGi.
HyppTV Everywhere is a mobile (on-the-go) version of TM’s HyppTV’s service which will enable users to view the IPTV channels via smartphones, tablets and notebooks.
Previously, HyppTV was only offered to UniFi and Streamyx, but TM has offered the service since January to any user who downloads the HyppTV Everywhere app (either android or iOS).
The HyppTV Everywhere has two major components: broadcast live TV (free channels such as Channel News Asia and Bloomberg TV, and premium channels such as Warner TV and Cinema World), and Video on Demand (channels such as Cinema World HD On Demand and HyppSports HD On Demand).
Currently, non-HyppTV subscribers can choose three channels from RM15.90 a month or purchase premium channels on an a la carte basis.
We believe dedicated
DiGi-HyppTV Everywhere packages will be offered to DiGi subscribers to differentiate from what is currently being offered.
While we are positive that additional digital content offered by HyppTV Everywhere will be helpful for DiGi to increase data usage by its subscribers, we believe the take-up rate of paid subscription of HyppTV Everywhere by DiGi subscribers will be rather limited as there are plenty of free or competing alternatives available on the Internet.
The collaboration is a good start for DiGi to increase its digital content offering without incurring substantial costs, as well as to drive data usage by its mobile data subscribers.
We reiterate our “neutral” call on DiGi with an unchanged discounted cash flow (DCF)-derived TP of RM5.90. — Public Investment Bank Bhd, April 10.
http://www.theedgemarkets.com
April 13, 2015 : 10:30 AM MYT
DiGi.Com Bhd
(April 10, RM6.25)
Maintain neutral with a target price (TP) of RM5.90: According to news reports, DiGi.Com Bhd (DiGi) will collaborate with Telekom Malaysia Bhd (TM) to offer TM’s Internet Protocol television (IPTV) services (HyppTV) for DiGi subscribers.
Under the collaboration, TM will provide entertainment, sports and video on demand on its HyppTV to DiGi’s subscribers through the mobile application, HyppTV Everywhere.
The mobile service is due to be launched today. While we are positive on DiGi tapping into additional digital content to stimulate mobile data usage, we believe the new service will have negligible financial impact (less than 1% on top line) on DiGi.
HyppTV Everywhere is a mobile (on-the-go) version of TM’s HyppTV’s service which will enable users to view the IPTV channels via smartphones, tablets and notebooks.
Previously, HyppTV was only offered to UniFi and Streamyx, but TM has offered the service since January to any user who downloads the HyppTV Everywhere app (either android or iOS).
The HyppTV Everywhere has two major components: broadcast live TV (free channels such as Channel News Asia and Bloomberg TV, and premium channels such as Warner TV and Cinema World), and Video on Demand (channels such as Cinema World HD On Demand and HyppSports HD On Demand).
Currently, non-HyppTV subscribers can choose three channels from RM15.90 a month or purchase premium channels on an a la carte basis.
We believe dedicated
DiGi-HyppTV Everywhere packages will be offered to DiGi subscribers to differentiate from what is currently being offered.
While we are positive that additional digital content offered by HyppTV Everywhere will be helpful for DiGi to increase data usage by its subscribers, we believe the take-up rate of paid subscription of HyppTV Everywhere by DiGi subscribers will be rather limited as there are plenty of free or competing alternatives available on the Internet.
The collaboration is a good start for DiGi to increase its digital content offering without incurring substantial costs, as well as to drive data usage by its mobile data subscribers.
We reiterate our “neutral” call on DiGi with an unchanged discounted cash flow (DCF)-derived TP of RM5.90. — Public Investment Bank Bhd, April 10.
http://www.theedgemarkets.com
