E-commerce giant Amazon is expanding its reach in India by acquiring key assets of the popular video streaming service MX Player from Times Internet. It seems that the company is trying to strengthen its presence in the crucial Indian market.
MX Player’s previous valuation was $500 million
The deal, valued at less than $100 million, marks a significant drop from MX Player’s previous valuation of $500 million. Amazon will retain the MX Player branding and is expected to absorb some of MX Player’s key executives.
MX Player offers Amazon a valuable distribution and marketing partner. The Indian streamer boasts a strong presence in smaller locations where Amazon’s e-commerce platform has yet to fully establish itself. This acquisition could bridge the gap between Amazon and these potential customers.
For MX Player, the story is one of strategic shift. Acquired by Times Internet in 2018 for $140 million, the app initially focused on video playback functionality, particularly supporting various video formats compatible with affordable Android devices. Times Internet then broadened MX Player’s scope, transforming it into a full-fledged video streaming platform with licensed content, original shows, and even games.
This acquisition isn’t the first time MX Player has been in the spotlight. In 2022, Sony explored a potential merger but those efforts stalled. Now, under Amazon’s umbrella, MX Player will hopefully leverage Amazon’s resources and potentially reach new audiences.
The Indian video streaming market is dominated by Reliance and Disney, who together control over half of the market share. Amazon’s acquisition of MX Player, with its 15% market share according to UBS, is a strategic move to challenge this dominance. While Netflix and Prime Video currently hold a smaller share, Amazon’s investment in MX Player suggests they are determined to be a major player in the Indian streaming landscape.
(Via)
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