Bharti Airtel, led by Sunil Mittal, is reportedly in advanced discussions with the Tata Group to acquire Tata Play, India’s largest direct-to-home (DTH) service, which has been struggling with losses.
According to sources, the move is part of Airtel’s strategy to strengthen its position in the digital TV market amid growth challenges. The acquisition would also enhance Airtel’s bundled services, aiming to boost non-mobile revenues through a more comprehensive offering.
Furthermore, following the earlier sale of its consumer mobility business to Bharti Airtel in 2017 the potential sale of Tata Play would mark the Tata Group’s complete exit from its content and entertainment ventures. This deal was the first major divestment under Tata Sons Chairman N Chandrasekaran’s leadership, signaling a strategic shift for the group away from the telecom and entertainment sectors.
Additionally, due to changing consumer preferences the DTH market has been facing challenges. Notably, Urban customers in Tier-I and Tier-II cities are increasingly switching to over-the-top (OTT) streaming services through home broadband, while rural audiences are gravitating towards more affordable options like Doordarshan’s Free Dish. This shift has intensified the pressure on traditional DTH operators to explore new growth opportunities and adapt to the evolving market landscape.
Negotiations between Bharti Airtel and the Tata Group have been underway for several weeks, with sources indicating that an official announcement is expected soon. As of now, Tata Sons has not released a formal statement on the matter.
An executive close to the development said, “The group had bet on the growth of Tata Play and seen strategic value in it until the dynamics of the market changed. 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.”