Amazon purchases Indian video streaming service MX Player

To popularise its services and brand in smaller cities and towns, in the important foreign market Amazon has agreed to buy major assets of the Indian video streaming provider MX Player from the regional media giant Times Internet. The deal, which values MX Player at less than $100 million, is finalised by the two companies.

As per Amazon spokesperson , “We are always looking for ways to introduce new products and services that help improve customers’ lives. We’re excited to continue to entertain India with the great local originals and exclusive content available across our Prime Video and miniTV services in India.”

As per a report by Tech Crunch, the two companies finalised an agreement for the transaction on June 5. The deal assesses MX Player at below $100 million, significantly lower than its previous capital raise valuation of $500 million.

The report further mentions that following the closure of the transaction, numerous key executives from MX Player are expected to transition to Amazon. Over the past two years, Times Internet and its affiliate, Times Group, have actively sought to divest several of their digital assets. Times Internet initially acquired MX Player in 2018 for $140 million.

A estimate suggest the deal value is around $100 million, significantly lower than MX Player's previous valuation of $500 million. MX Player enjoys a strong presence in smaller Indian cities and towns. This acquisition could help Amazon expand its reach beyond metro areas and attract a wider audience.

The Indian streaming market is fiercely competitive, with players like Reliance Jio and Disney+ vying for market share. This acquisition strengthens Amazon's position in this competitive landscape. However, the future branding of MX Player remains unclear. Amazon might retain the MX Player name or integrate it fully into Prime Video.

Overall, Amazon's acquisition of MX Player's assets is a strategic move to strengthen its presence in the growing Indian video streaming market. By potentially offering a wider content library, expanding its reach, and catering to local preferences, Amazon aims to attract more subscribers and compete effectively in this dynamic space.