Bharti Airtel in Advanced Talks to Acquire Tata Play: Report

Bharti Airtel is reportedly in advanced negotiations with the Tata Group to acquire Tata Play, India’s largest direct-to-home (DTH) service provider, which has been struggling financially. The move aims to strengthen Airtel’s presence in the digital TV segment, which faces increasing competition from over-the-top (OTT) streaming services, ET reported citing people aware of the matter.

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Also Read: Airtel Digital TV Launches New Entertainment Plan With Amazon Prime Benefits

Market Dynamics Shifting Towards OTT

If the sale goes through, it will mark Tata’s exit from its sub-scale content and entertainment operations. This would be the second significant deal between the two business groups, following Bharti’s acquisition of Tata’s consumer mobility business in 2017.

Despite Tata Play’s market leadership with 20.77 million subscribers and a 32.7 percent market share, it has reported widening losses, with its consolidated net loss reaching Rs 353.8 crore in FY24. Airtel Digital TV, while also posting losses, showed growth with a 27.8 percent market share and improved subscriber additions in recent quarters.

According to the report, Tier 1 and tier 2 users are upgrading to over-the-top (OTT) packs on home broadband instead of DTH and cutting the cord to migrate to cheaper online alternatives while rural subscribers are increasingly opting for Doordarshan’s Free Dish.

“The group had bet on the growth of Tata Play and seen strategic value in it until the dynamics of the market changed,” the report said quoting an executive close to the development. “The group has been clear that in any market, it has to be in a position of strength and scale. That did not seem to happen as hoped with Tata Play. On the other hand, Tata Play fits well in the strategic plans of Airtel and its portfolio of offerings to consumers.”