According to reports from Techcrunch Amazon would be considering the acquisition of MX Player, one of the largest on-demand video streaming services in India. The operation would aim to further expand its content catalogue, especially in the Indian market.
MX Player is currently managed by the group Times Internetan Indian company based in Gurgaon, which represents the digital arm of Times Group, the largest media conglomerate in India. Amazon’s maneuver would therefore aim to acquire one of the video streaming giants on the Indian market.
Amazon isn’t the only company interested in MX Player
Different sources (again via Techcruch) Amazon would not be the only major company interested in MX Player. Zee-Sony would also be in the running. But why so much interest in this platform?
Besides its popularity – MX Player counts around 300 million users globally – the app is famous for its wide range of original content presented in high-quality video formats on low-cost Android smartphones. In India the app provides access to live cable TV channels, at no cost to consumers. From the point of view of the business model, however, MX Player mainly monetizes thanks to advertisements. MX Player was also one of the first video apps to introduce short videos, right in 2020, in the aftermath of the TikTok ban in India.
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The progressive expansion of Amazon in India
Over the past 10 years, Amazon has extended its reach into the highly competitive Indian market. The company has invested approx 7 billion dollars in the country, with a decidedly atypical business model. Prime Video is in fact available for free in the country, with an ad-supported plan. The paid level, as well as the Prime subscription for deliveries, is instead sold at a very low price (the annual subscription costs around €7).
The video market in India is instead dominated by YouTube, which has about half a billion monthly active users. An incredible figure, especially when you consider that giants like Prime Video and Netflix are struggling to reach 40 million of monthly users in the country.
MX Player instead has about 150 million active users per month in India, and also offers Premium plans in various international markets.