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The landscape of Indian entertainment is poised for a significant shift as Tata Sons receives the green light from the Competition Commission of India (CCI) to increase its stake in Tata Play.
The regulatory nod clears the path for Tata Sons to acquire an additional 10% ownership from Baytree Investments (Mauritius) Pte, an affiliate of Singaporean sovereign wealth fund Temasek Holdings, solidifying its control over the direct-to-home (DTH) and digital content distribution platform.
This strategic acquisition will elevate Tata Sons’ stake in Tata Play to a commanding 70%, underscoring the conglomerate’s commitment to the future of the entertainment provider.
With this increased ownership, Tata Sons appears ready to navigate the evolving media consumption habits of Indian audiences with greater agility.
The remaining 30% of Tata Play remains under the ownership of Walt Disney (NYSE:DIS), creating an interesting dynamic in the joint venture.
Tata Play and Airtel (NSE:BRTI) Digital TV eye potential alliance
Beyond the stake increase, whispers of a potential merger between Tata Play and Airtel Digital TV are swirling. According to media reports, the two entities are in advanced stages of discussions to combine their satellite TV businesses, potentially creating a $1.6 billion powerhouse.This potential alliance reflects a strategic move to counter the growing popularity of digital streaming services, consolidating resources to compete effectively in the evolving entertainment landscape.
As of September of last year, Tata Play and Airtel Digital TV collectively served more than 35 million paid subscribers.
According to a government report, this represents a significant portion – more than half – of India’s total DTH subscriber base of approximately 60 million.
This combined reach highlights the potential market influence of the merged entity, should the deal come to fruition, and sets the stage for a fierce battle for consumer attention in the years to come.