Amazon’s acquisition of Indian video streaming service MX Player from Times Internet is part of the e-commerce giant’s strategy to expand its services and brand in smaller cities and towns in India. The deal, valued at less than $100 million, comes after nearly two years of deliberation between the two companies.
MX Player will serve as a distribution and marketing partner for Amazon, helping to establish the e-commerce platform as a trusted and popular choice among audiences in smaller Indian cities and towns. This is crucial for Amazon, as its e-commerce service has primarily been popular among urban consumers. By leveraging MX Player’s popularity among demographic groups in these areas, Amazon aims to broaden its reach and attract new customers.
Amazon has been actively expanding its video streaming offerings in India, offering a variant of Prime subscription that includes Prime Video for as little as $9.50 per year. The company also partners with local telecom operators to bundle Prime Video with their tariff plans. In addition, Amazon launched a free, ad-supported video streaming service in India in 2021.
However, Reliance and Disney currently lead the video streaming service market in India, commanding 55% of all monthly active users. MX Player holds a 15% market share, while Netflix and Prime Video each have 3-5% market share. This acquisition will help Amazon compete more effectively in the Indian market and potentially gain a larger share of users.
Times Internet acquired MX Player in 2018 for $140 million and transformed it from a local video playback app into a comprehensive video streaming platform. The app gained popularity in India due to its compatibility with affordable Android smartphones and its support for a wide range of video file formats. Times Internet invested in licensed and original content to cater to the growing demand for online entertainment in India and international markets.
In response to the ban on TikTok in India, MX Player launched its own short-video app called MX TakaTak. However, Times Internet later sold the app to ShareChat, a leading Indian social media platform, in a deal valued at over $650 million.
Overall, Amazon’s acquisition of MX Player demonstrates its commitment to expanding its presence in the Indian market and reaching new audiences in smaller cities and towns. By leveraging MX Player’s popularity and transforming it into a comprehensive video streaming platform, Amazon aims to compete with industry leaders like Reliance and Disney and gain a larger market share in India’s video streaming service market.