Bharti Airtel is reportedly in advanced talks to acquire Tata Play (formerly known as Tata Sky), India's largest direct-to-home (DTH) service provider. This move is part of Airtel's strategy to strengthen its position in the digital TV segment and boost its non-mobile revenues with bundled offerings.
The potential acquisition comes after a similar deal in 2017 when Bharti Airtel acquired Tata's consumer mobility business.
The digital TV market has seen a shift with users in tier 1 and tier 2 cities increasingly opting for over-the-top (OTT) streaming services on home broadband, while rural subscribers are moving towards cheaper alternatives like Doordarshan's Free Dish.
Tata Play, formerly known as Tata Sky, is a Direct-to-Home (DTH) service provider in India. It was a joint venture between the Tata Group and News Corporation until 2008, when Singapore investment firm Temasek Holdings acquired a 10% stake from the Tata Group.
Tata Play has been a pioneer in the Indian DTH market, introducing several innovative services and products that transformed the viewing experience for users.
Notably, Tata Play's net loss increases to threefolds for the fiscal year ending March 31, 2024. The company reported a net loss of Rs 354 crore. The Tata Group promoted DTH company's revenue from operations declined by more than 4% to Rs 4,304 crore, while expenses increased by 1.47% to Rs 4,761 crore.
The DTH company has been focusing on enhancing its service offerings and improving customer experience to stay competitive. Tata Sons currently owns a 70% stake in Tata Play, having acquired a 10% stake from Temasek Holdings in April 2024 for ₹835 crore ($100 million).
Bharti Airtel is also a significant player in the Direct-to-Home (DTH) market in India. As of December 2020, Airtel added about 485,000 customers in the DTH segment and logged a sequential revenue growth of just under 5%.
Airtel's potential acquisition of Tata Play is part of its strategy to strengthen its presence in the digital TV segment and boost its non-mobile revenues with bundled offerings. This move would help Airtel compete more effectively with other players in the market, including Jio.
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