Tata Sons has secured regulatory approval from the Competition Commission of India (CCI) to acquire an additional 10% stake in Tata Play from Baytree Investments (Mauritius) Pte, an affiliate of Singapore’s sovereign wealth fund, Temasek Holdings. This move will increase Tata Sons’ ownership in Tata Play to 70%, further strengthening its hold on India’s direct-to-home (DTH) and digital content distribution market.
Tata Sons Strengthens Control Over Tata Play
The deal, announced on Monday, marks a strategic step for Tata Sons in consolidating its position in the DTH sector. Walt Disney retains the remaining 30% stake in Tata Play, maintaining its presence in the joint venture.
The acquisition comes at a time when the DTH industry is facing increased competition from digital streaming platforms. By raising its stake, Tata Sons aims to reinforce Tata Play’s market position and drive future growth in both satellite TV and digital content.
Tata Play-Airtel Digital TV Merger on the Horizon
In a related development, Tata Play and Airtel Digital TV are reportedly in advanced talks to merge their satellite TV businesses, forming a $1.6 billion entity. The merger aims to counter the growing dominance of over-the-top (OTT) streaming services and retain market share in the evolving media landscape.
Tata Play and Airtel Digital TV collectively accounted for over 35 million paid subscribers as of September last year, representing more than half of India’s 60 million DTH subscriber base, according to a government report.
Strategic Move Amid Shifting Industry Trends
The Indian media and entertainment industry has been rapidly shifting towards digital streaming, prompting traditional satellite TV operators to explore consolidation and diversification. The Tata Play-Airtel Digital TV merger is expected to create a more competitive entity capable of offering a wider range of services, including hybrid satellite and streaming content.
With Tata Sons increasing its stake and the potential merger on the horizon, Tata Play is well-positioned to strengthen its foothold in the Indian entertainment market and adapt to changing consumer preferences.
