The deliberations are currently underway and that the terms of the deal are yet to be finalised
The move is could be related to Amazon’s bid to bolster its play in the Indian entertainment space
The Indian OTT video segment is projected to clinch a revenue of $5.51 Bn by 2027
Amazon is reportedly in talks with Times Internet to acquire the video streaming platform MX Player. Sources close to the matter said that the deliberations were currently underway, and the terms of the deal were yet to be finalised.
People privy to the development added that the move was part of Amazon’s bid to bolster its play in the Indian entertainment space, according to TechCrunch.
Besides, at least two other players, including Zee-Sony, have expressed interest in acquiring the streaming service.
While the talks are in progress, sources added that Amazon’s offer may also not materialise into a deal.
MX Player operates a similar ad-free service, offering a clutch of streaming options catering to the Indian vernacular market.
It is pertinent to note that MX Player started off as a video player and was acquired by Times Internet in 2018 for $140 Mn. Afterwards, the player pivoted to an OTT streaming platform in 2019, largely catering to the Indian audience and diaspora.
The platform claims to have more than 150 Mn active users in the country and had last raised $110.8 Mn in 2019 at a valuation of $500 Mn. With many media conglomerates eyeing MX Player, its valuation could be higher than what it had last reported.
The news comes amid growing competition in the Indian over-the-top (OTT) streaming service. While Amazon already offers its Prime Video subscription service, bundled with Prime membership in India, it competes directly with MX player in the space.
The ecommerce major has infused billions of dollars in its multiple subsidiaries in the country in the past decade. The report has surfaced nearly two months after Amazon quietly debuted its Prime Gaming service in the country.
Curiously, the development also comes close on the heels of Amazon shutting as many as three of its business verticals in the past few months.
It has also been plagued by widespread layoffs, which have so far seen hundreds of Indian employees being shown the door. The company has also undertaken cost-cutting measures at its India business to offset any challenges from an impending global slowdown.
While these issues pan out, it remains to be seen whether Amazon moves forward with splurging on the acquisition of MX Player.
The Indian OTT space is dominated by Disney+Hotstar and Netflix and largely sees competition at throwaway prices. In the overall market, MX Player also competes with behemoths such as Google’s YouTube and other short-video platforms, which grew in popularity in the aftermath of the TikTok ban in 2020.
As per a report, the Indian OTT video segment is expected to notch up a revenue of $3.76 Bn in 2023 and clinch a market volume of $5.51 Bn by 2027.