Tata Play, a leading direct-to-home (DTH) television service provider in India, reported a significant financial setback for the fiscal year 2024-25 (FY25). The company posted a consolidated net loss of ₹510 crore, marking a 44% increase from the ₹354 crore loss recorded in the previous fiscal year.
Declining Revenue and Subscriber Base
Tata Play’s total revenue declined by 5.2%, falling from ₹4,305 crore in FY24 to ₹4,082 crore in FY25. This downturn is attributed to a shrinking subscriber base, which decreased from 23 million to 18 million. The decline is largely due to intensified competition from free-to-air services like DD Free Dish and the growing popularity of over-the-top (OTT) platforms.
Failed Merger Talks with Bharti Airtel
In an effort to strengthen its market position, Tata Play engaged in merger discussions with Bharti Airtel’s DTH arm, Bharti Telemedia. However, these talks were terminated due to the inability to reach a satisfactory resolution. DreamDTH
Strategic Shifts Towards Broadband and OTT Services
Facing challenges in the traditional DTH sector, Tata Play is investing in broadband and OTT services to diversify its offerings and mitigate losses. The company aims to leverage its existing infrastructure to provide bundled services that include television, internet, and streaming content.
Credit Rating and Future Outlook
Despite the financial losses, Crisil Ratings has reaffirmed its ratings on Tata Play’s ₹8,000 crore bank facilities. The rating agency anticipates that revenue will remain flat in the upcoming fiscal year, with potential stabilization stemming from the company’s investments in broadband and OTT services.
Company Background
Tata Play, formerly known as Tata Sky, is a joint venture between Tata Sons (holding a 70% stake) and Walt Disney (holding a 30% stake). The company has been a prominent player in India’s DTH market, offering a range of television channels and services to millions of subscribers across the country.