Bharti Airtel, led by Sunil Mittal, is in advanced discussions with the Tata Group to acquire Tata Play, India’s largest direct-to-home (DTH) service provider. This move comes as part of Airtel’s strategy to consolidate its presence in the digital TV sector, which is facing stiff competition from over-the-top (OTT) platforms, Economic Times reported today.

The acquisition could potentially bolster Airtel’s non-mobile revenues by offering bundled services to consumers.

The deal would mark Tata’s exit from its loss-making content and entertainment operations, a sector that has seen diminishing returns in recent years. This would also be the second major collaboration between the two business conglomerates, following Airtel’s acquisition of Tata’s consumer mobility business in 2017.

As more consumers, particularly from tier-1 and tier-2 cities, are shifting to OTT services via home broadband, traditional DTH services like Tata Play have been struggling to grow. Additionally, rural audiences have increasingly turned to Doordarshan’s Free Dish service for affordable content, further eroding the customer base for DTH providers.

This acquisition would enable Airtel to enhance its digital services portfolio, making it more competitive in the evolving entertainment landscape. As the market continues to shift towards digital consumption, this deal could serve as a major step for Airtel in the OTT and content delivery space.