E-commerce giant Amazon is extending its footprint in India by taking over key assets of the well-known video streaming service MX Player from Times Internet. This move indicates Amazon's intent to bolster its presence in the vital Indian market.
MX Player’s Previous Valuation and Deal Details
The transaction, valued at under $100 million, represents a notable decline from MX Player’s earlier valuation of $500 million. Amazon plans to keep the MX Player brand and is likely to integrate some of MX Player’s key executives into their operations.
Strategic Benefits for Amazon and MX Player
MX Player provides Amazon with a valuable distribution and marketing partner. The Indian streaming service has a significant presence in smaller towns and cities where Amazon’s e-commerce platform has not yet fully penetrated. This acquisition might help Amazon connect with these untapped markets.
For MX Player, this deal represents a strategic pivot. Times Internet acquired the app in 2018 for $140 million, initially focusing on video playback capabilities, especially for affordable Android devices. Times Internet then expanded MX Player’s features, turning it into a comprehensive video streaming platform with licensed content, original shows, and even games.
Market Dynamics and Future Prospects
This is not the first time MX Player has attracted attention. In 2022, Sony considered a potential merger, but those discussions did not materialize. Now, under Amazon’s ownership, MX Player is expected to utilize Amazon’s resources to potentially reach a broader audience.
The Indian video streaming market is currently led by Reliance and Disney, who together hold over 50% of the market share. Amazon’s acquisition of MX Player, which holds a 15% market share according to UBS, is a strategic move to challenge this hegemony. While Netflix and Prime Video currently have smaller shares, Amazon’s investment in MX Player demonstrates their commitment to becoming a significant player in the Indian streaming sector.
(Via)
