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New Delhi: Bharti Airtel has confirmed that it is in early-stage discussions with the Tata Group to explore a potential merger of Tata Play’s DTH business with Bharti Telemedia Ltd (Airtel Digital TV). The confirmation comes after reports suggested that the deal could lead to Airtel owning over 50% of the merged entity.
What the Merger Could Mean
Strengthening Airtel’s Non-Mobile Business
Helps Airtel expand beyond telecom by bundling DTH, broadband, and telecom services into a single subscription package.
Provides access to Tata Play’s 20 million subscribers, enhancing Airtel’s overall customer base.
One of the Biggest Mergers in the DTH Space
Would be the second major DTH merger, following the 2016 Videocon d2h-Dish TV deal.
Expected valuation of the merged entity: ₹7,000 crore.
Disney to retain its stake in the new entity.
Tata Group may retain two board seats under a non-binding agreement.
The Evolution of Tata Play
2004: Launched as Tata Sky, a joint venture between Tata Sons & 21st Century Fox.
2019: Walt Disney Company acquired 21st Century Fox’s stake in Tata Sky.
2022: Rebranded as Tata Play to expand into OTT aggregation services.
The Declining Pay-TV Market
Subscriber Base Falling
The pay-TV market has declined from 120 million to 84 million homes in recent years.
DTH subscriber numbers dropped from 70 million in FY21 to 60 million in FY24 (TRAI data).
OTT platforms are rapidly replacing traditional cable and DTH services.
What’s Next?
Airtel and Tata Play will continue discussions, but a formal deal is yet to be finalized.
If approved, the merger could reshape India’s pay-TV landscape, creating a dominant player in the DTH & broadband bundling market.
