Y&R, MindShare scoop Astro task

The Malaysian pay-TV operator, which is awaiting regulatory approvals for it to acquire a 51 per cent interest in Lippo subsidiary PT Broadband Media, which operates Indonesia's Kabelvision, has signalled an ambitious expansion plan for the country, targeting 3.5 million subscribers within five years, backed by a US$1 billion war chest. According to Astro chief operating officer David Butorac, WPP companies were appointed after it considered other contenders for the business. "Y&R has been our ad agency in Malaysia for many years, and in moving to Indonesia we looked for agencies who could deliver a great knowledge of our industry and also have some ideas in how we can move aggressively into the market," he said. The appointment marks Y&R's return to Indonesia, after departing the country in 2001. The agency's below-the- line arm Wunderman re-entered last year, and the full-fledged rollout of Y&R is being driven by regional business from Astro, Singapore Tourism Board and Caltex. According to Y&R and Wunderman Indonesia managing director Mohammed Sirajuddeen, Astro's key challenge lies in growing the category, given pay-TV's dismal penetration rate in the country, which currently stands at less than one per cent of the 30 million TV households. "The challenge is to convince people that it offers a value proposition which will help you get the best television in the world and at a price that is affordable," explained Sirajuddeen. Astro's key competitor in the country, Indovision, has struggled to make inroads into the market amid the proliferation of free-to-air TV. "Explaining the concept of multi-channel TV will be key and moving from there to a broad umbrella brand and then segmenting into specific consumer marketing areas," said Butorac. "The brand is not one that exists in Indonesia at the moment." Astro will look to sidestep distribution issues by delivering a digital service via satellite, and will also develop local content for the country.