8 Oct 2024
It acquired Tata’s consumer mobility business in 2017 and absorbed it after two years.
Tier 1 and 2 customers are opting for OTT packs over DTH, and rural subscribers are choosing Doordarshan Free Dish. Hence, Airtel is ready to strike a second deal with the Tata Group to boost its presence in the OTT segment.
Tata Play, formerly Tata Sky, is the market leader with 20.77 million users and a 32.7% share. Airtel ranks second with a 27.8% share. Tata Play removed some Sony channels to cut the losses, leading to a spat between the two.
Tata Sons bought Temasek Holding’s 10% stake in Tata Play for ₹835 crore in April, thus bringing its ownership to 70% and company valuation to $1 billion. Airtel may buy Tata Play for a similar amount as the Temasek deal.
After merging with 21st Century Fox, Walt Disney absorbed Sky’s 30% stake in Tata Play. Disney now plans to quit TV distribution after its merger with Reliance Jio.