Airtel-Tata Eye DTH Merger: Can It Save the Sinking Satellite TV Players?

Sunil Bharti Mittal-led Bharti Enterprises and N Chandrasekaran-chaired Tata Group are holding discussions to merge their financially troubled direct-to-home (DTH) businesses, Airtel Digital TV and Tata Play. In a statement to exchanges last week, Airtel said the development is “at a discussion stage only”.  The move by the two major players has come at a time when DTH giants are fighting a survival battle amid the DTH industry is going through uncertain times. 

The growth of OTT platforms and increasing demand for more live streaming content has resulted in the shrinking of the DTH industry. According to a report by the Telecom Regulatory Authority of India (TRAI) published in September last year, DTH subscribers dropped from 64.18 million in Q3 FY24 to 59.91 million in Q3 FY25. On the other hand, user penetration for OTT is projected to increase from 35.8% in 2025 to 42.25% by 2029, stimulated by the availability of cheaper mobile data, growth in rural internet penetration, and growth in smartphone users in India. 

Also Read: Dial M for Mukesh

DTH Giants Survival Battle 

Despite the overall change in the landscape, within the DTH industry, Airtel’s Bharti Telemedia with 29.38% and Tata Play with 31.99% market share have maintained a dominant position. 

Ananay Jain, director and media industry expert at Grant Thornton told Outlook Business that although the declining DTH subscribers are representing a changing landscape for content consumption in the country, it doesn’t mean the sun is setting for the DTH industry players. DTH players are employing different strategies to stay relevant, including hybrid models, strategic partnerships, flexible pricing, and technological upgrades. 

Also Read: Tata Play, Airtel Digital TV Eye Merger to Overcome DTH-Driven Challenges

“In rural and semi-urban regions, where high-speed internet is still a distant dream. DTH remains a lifeline for daily entertainment...And even in bustling urban centers, DTH is far from obsolete. The shift is clear: the future of entertainment is not about choosing between DTH or OTT but about embracing both,” said Jain. 

In 2020, Tata Group launched their OTT app Tata Play Binge across multiple platforms, including Android, iOS, Android TV and Fire TV. Prior to this, in 2019, Bharti Airtel had launched their digital platform Airtel Xstream to allow consumers to stream content of their choice on television, PC or smartphone. 

“Airtel Xstream is India’s first converged entertainment platform that will cater to needs of a new generation of consumers looking for seamless entertainment across multiple screens at home and on-the-go,” Adarsh Nair, chief product officer at Bharti Airtel, had earlier said during the launch, according to the company’s statement. 

While DTH giants entered the OTT market nearly six years back, they are far from holding a key position as the sector is dominated by players like Netflix, Amazon Prime Video, Jio Hotstar, Sony LIV, Zee5 and ALT Balaji. 

Also Read: Nayanthara vs Dhanush: How a Netflix Documentary Lands Actress in a Rs 10 Crores Lawsuit

Airtel and Tata are fighting a dual battle. On one front, they are losing grip of the DTH industry and on the other, they are struggling to create space for themselves in the OTT market ruled by established players. Now whether the speculated merger will resolve the DTH-OTT dilemma of troubled players requires a patient act of wait and watch.