Will the Airtel-Tata Play merger breathe new life into DTH?

The merger seeks to redefine India's DTH market through telecom, broadband, and content bundling, but can it withstand OTT's rising dominance?

- JAIDEEP GHOSH

Amid a digital revolution rapidly reshaping how audiences consume media, the traditional DTH satellite model faces unprecedented disruption from mobile-first viewing and streaming innovations.

In a bid to strengthen their grip on India's fast-shifting telecom and entertainment landscape, India's top two Direct-to-Home (DTH) operators, Airtel Digital TV and Tata Play, have unveiled plans to merge, pending regulatory nods. Structured as a share swap deal, this partnership aims to forge a newer model, blending telecom, broadband, and entertainment services. Together, they hold a commanding 60% of the subscriber base (35 million users) and 72% of the revenue pie (Rs 7,000 crore). Yet, both companies are grappling with losses.

The Airtel-Tata Play merger signals a strategic shift as telecom-backed DTH models emerge to counter declining standalone satellite TV services. Blending telecom, broadband, and content could create a hybrid model, but success depends on execution, pricing, and consumer adoption.

This merger marks a strategic shift, transferring the reins of a standalone DTH business to a telecom giant to tap into the rising demand for bundled offerings as the DTH market slides downhill.

SATELLITE DTH: A FADING FORCE

Amid a rapidly evolving media landscape, the traditional DTH satellite model is losing relevance, facing intense disruption from streaming platforms and mobile-first consumption. The rise of OTT services like Netflix, Amazon Prime, and Disney+ has fundamentally altered viewing habits, drawing audiences away from linear television.