Direct-to-home television platform Tata Play (previously Tata Sky) saw its consolidated loss narrow to ₹35.38 crore in FY24 from ₹105.25 crore the previous year, according to data accessed by financial intelligence firm Tofler.
Revenue from operations came in at ₹4,327.07 crore, down 4.32% from ₹4,529.97 crore the previous year. Operational expenses were at ₹3,361.42 crore, against ₹3,137.78 crore in FY23.
The company said, “The industry and competitive environment continued to intensify within the DTH space. NTO (new tariff order) 3.0 led to new subscriber pricing strategies, resulting in slightly enhanced margins for the DTH operators. During the fiscal year, there were some notable advancements in customer propositions and offerings, effectively bolstering the brand and meeting market expectations.” These initiatives were implemented for both the pay TV market and the OTT audience, it added. Sporting events such as the cricket World Cup and Indian Premier League played a pivotal role in boosting viewership on the DTH platform.
Streaming ambition
Tata Play is increasingly trying to reach out to non-DTH subscribers as it includes more services in its OTT aggregator platform Binge. After testing the service with its DTH subscribers for more than two years, the company has opened it up for all connected TVs and smartphones, with no DTH subscription required.
In May, it tied up with Amazon Prime to offer DTH and Binge customers Prime Video content. “Tata Play DTH subscribers can now choose from multiple packs starting from ₹199 per month, that offer a variety of their favourite TV channels along with Prime Lite with Tata Play. In addition, Binge subscribers can enjoy Prime Lite with Tata Play along with over 30 other popular apps at various price points,” the company said.
In June, Mint reported that Bangladesh-based Akash Digital TV has teamed up with Tata Play for the launch of its new OTT service, Akash Go.
With this collaboration, the Bangladeshi direct-to-home (DTH) TV service provider is looking to expand its offerings beyond traditional DTH services to include streaming content accessible on mobile devices.
Also read: Tata Play Binge offers PaaS to go global
The Akash Go app, inspired by Tata Play Binge, mobile application in India, will allow subscribers in Bangladesh to access a range of OTT applications, live channels, and video-on-demand services. It will also feature personalised recommendations based on the viewing history of each user, enhancing their experience.
Binge has a variety of regional, national and international apps across languages, including Disney+ Hotstar, ZEE5, SonyLIV, Jio Cinema, Hallmark, MX Player, Lionsgate Play, Aha and DocuBay.
Disney struggles to offload stake
In late May, Mint reported that Walt Disney Co’s a 30% stake in Tata Play, which it inherited as part of its global purchase of Rupert Murdoch’s 21st Century Fox assets, has become an albatross around its neck.
Disney has been keen to sell its stake in Tata Play to joint-venture partner Tata Group. But there was one problem: the Tatas refused to buy.
In mid-May, Bloomberg reported that the Tata Group had agreed to buy Disney’s stake in the DTH arm at a $1-billion valuation. However, informed sources close to the group told Mint that nobody has shown any interest in buying the stake – neither Tata Group nor Reliance Industries Ltd, with which Disney is merging its local unit Disney Star.
Also read: The curious case of Disney’s 30% stake in Tata Play
“The fact is that Disney doesn’t want anything to do with the distribution business. That’s not their core, and they have been seeking an exit since they acquired the stake following the purchase of the Fox assets,” said one of the persons on condition of anonymity. “While they have approached the Tata Group multiple times, there is no interest to invest or buy back from this side.”
The stake in Tata Play is outside the proposed $8.5-billion merger between Reliance Industries-owned Viacom18 and Disney’s local business, which was announced in February.
As part of the deal, Disney will transfer all its India assets and employees — except its stake in Tata Play, its consumer products business, and VFX studio Industrial Light & Magic (ILM)—to its wholly owned subsidiary Star India.
Also read: All you need to know about the $8.5-billion Disney-Reliance merger