Amazon Acquires Assets of MX Player to Expand in India

Introduction

Amazon has agreed to acquire assets of Indian video streaming service MX Player from the local media powerhouse Times Internet. This move is part of Amazon's strategy to increase its services and brand presence in smaller cities and towns in India. The deal, valued at less than $100 million, highlights Amazon's commitment to expanding its reach in the key overseas market.

Background of the Deal

• Amazon is acquiring some assets of MX Player, including distribution and marketing capabilities.
• The acquisition is a result of nearly two years of discussions between the two firms.
• Times Internet and its affiliate Times Group have been actively selling off digital properties in recent years.

Amazon's Strategy

Amazon aims to leverage MX Player's popularity among audiences in smaller Indian cities and towns to enhance its e-commerce platform's reach. Amazon's e-commerce services have primarily targeted urban consumers, and the partnership with MX Player is expected to bridge this gap.

• MX Player's strong presence among diverse demographic groups in smaller cities makes it a strategic partner for Amazon.
• Amazon plans to retain the MX Player branding to maintain its existing market appeal.

Expansion of Video Streaming Offerings

Amazon has been expanding its video streaming offerings in India to attract a broader audience beyond metro cities. The company offers affordable Prime subscription packages that include Prime Video. Additionally, Amazon has partnerships with local telecom operators to bundle Prime Video with their tariff plans. In 2021, Amazon launched a free, ad-supported video streaming service in India to further diversify its offerings.

Competitor Landscape

• Reliance and Disney lead the video streaming market in India, capturing a significant share of monthly active users.
• MX Player holds a 15% market share, while Netflix and Prime Video each have between 3-5% market share.

MX Player's Journey

MX Player was acquired by Times Internet in 2018 for $140 million. The app, originally from South Korea, gained popularity in India for its unique video playback feature that supports various file formats. Times Internet transformed MX Player into a comprehensive video streaming platform by investing in licensed and original content.

• MX Player expanded its presence internationally, including in the UK and the U.S.
• In response to the ban on TikTok in India, MX Player launched its own short-video app, MX TakaTak, to cater to the growing demand for short-form video content.

Conclusion

The acquisition of MX Player's assets by Amazon signifies a strategic move to strengthen its presence in India's competitive video streaming market. By leveraging MX Player's popularity and reach, Amazon aims to enhance its services for audiences in smaller cities and towns. This partnership highlights the evolving landscape of digital media in India and the increasing competition among major players in the industry.

Overall, Amazon's acquisition of MX Player represents a significant step towards expanding its video streaming offerings in India and catering to the diverse entertainment needs of the Indian audience. Through this collaboration, Amazon is poised to solidify its position in the rapidly growing Indian market and reinforce its commitment to delivering quality content to a wide range of viewers.