Tata Play and Airtel Digital TV are reportedly in advanced talks to merge their direct-to-home (DTH) businesses, according to an Economic Times report. The merger, which is expected to take place through a share swap, aims to address the growing dominance of live streaming services and a decline in DTH subscriptions. Upon finalisation, Airtel is set to hold a majority stake of over 50% in the newly formed entity, helping the telecom giant increase its revenue from non-mobile segments.
Tata Play, previously known as Tata Sky, was initially launched as a joint venture with News Corp. In 2019, Walt Disney took over the company’s stakes following its acquisition of 21st Century Fox. The merger is expected to give Airtel access to Tata Play’s vast subscriber base, which currently serves nearly 20 million homes.
This merger will likely pave the way for combined subscription offerings, allowing customers to access broadband, telecom, and DTH services through a single plan. This deal comes just a few years after the merger of Videocon d2h and Dish TV in 2018, marking it as another major development in the DTH industry.
The operations of the merged entity are estimated to be valued between Rs 6,000 crore and Rs 7,000 crore. Airtel’s senior management is expected to take control of the combined entity, while Tata will maintain a role with two seats on the company’s board. Disney will also retain its shareholding in the new entity.
The two companies currently boast a combined subscriber base of 35 million paid users, with total revenues exceeding Rs 7,000 crore for FY24. The merger is expected to bring further consolidation to the DTH sector as audiences increasingly shift towards digital platforms.
Earlier this year, another major merger was finalised with the launch of Jio Hotstar, a rebranded version of the popular streaming platform. This shift follows Disney’s exit from the Hotstar merger, with Jio taking full control. The new app, went live just approximately two weeks ago, ahead of the highly anticipated ICC Championship League.