Bharti Airtel is merging its DTH business, Airtel Digital TV, with Tata Play through a share swap deal. Airtel will hold a 52-55% stake, while Tata Play’s shareholders, including Tata Sons and Walt Disney, will retain 45-48%. This move aims to expand Airtel’s broadband and entertainment services by bundling telecom, broadband, and DTH.
The Biggest DTH Merger Since 2016
This deal follows the Reliance-Disney Star India-Viacom18 merger, forming JioStar. If approved, it will be the largest DTH merger since Dish TV and Videocon d2h combined in 2016.
What This Means for Airtel and Tata Play
Airtel Digital TV, under Bharti Telemedia, will gain access to Tata Play’s 19 million homes and 500,000 broadband users. The combined entity will serve 35 million paid subscribers with FY24 revenues exceeding ₹7,000 crore. The businesses are valued at ₹6,000-7,000 crore each.
DTH Market Trends and Challenges
The pay-TV market is shrinking, with the subscriber base dropping from 120 million to 84 million homes. TRAI reports DTH users fell from 70 million in FY21 to 60 million in FY24. Meanwhile, telecom companies are bundling OTT content, giving them a competitive edge. DTH players like Tata Play are shifting towards digital services to stay relevant.
Regulatory and Financial Hurdles
Bharti Telemedia and Tata Play face regulatory issues, with pending license fee disputes—₹5,580 crore for Airtel and ₹3,628 crore for Tata Play. Additionally, Tata Play’s valuation has dropped from $3 billion pre-pandemic to $1 billion, adding financial pressure.
What’s Next?
Due diligence will begin soon. If successful, the merger will reshape India’s TV and broadband landscape, allowing the companies to offer integrated services and compete more effectively in a rapidly evolving market.
