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In a recent move to deepen its penetration into India’s digital space, Amazon has obtained control over MX Player from Times Internet, marking a significant progression in appealing to customers in smaller Indian locales.
Wednesday evening saw the sealing of the acquisition agreement by both parties, as per a source privy to the situation. MX Player, now priced below $100 million, falls short of its previous $500 million valuation attained during its last funding event. The informant, speaking on the pretext of anonymity, shared these details with TechCrunch ahead of any official statements.
This transaction culminates negotiations that stretched close to two years, seeking to integrate the offerings of both entities effectively. Over the past couple of years, Times Internet, along with its group affiliates, has been on a quest to divest several of their digital ventures.
TechCrunch had earlier in February of the preceding year shed light on potential discussions between Amazon and MX Player regarding this deal. Meanwhile, Sony, concurrently contemplating a fusion of its India operations with Zee, also displayed interest in procuring MX Player but faced setbacks due to complications with the Zee merger, revealed multiple insiders.
MX Player’s acquisition furnishes Amazon with a potent instrument for distribution and marketing, aiming to resonate with and gain trust from audiences in India’s smaller cities and towns. An associate with insight into Amazon’s strategy pointed out the streaming service’s popularity amongst non-urban demographics. While Amazon e-commerce has predominantly thrived in urban centers, MX Player’s existing brand will continue under Amazon’s wing.
Requests for commentary were not immediately answered by Amazon and Times Internet.
Amazon is on an expansive trail, broadening its video streaming services in India to extend its presence beyond metropolitan areas. Offering cost-effective yearly Prime subscriptions inclusive of Prime Video, the company also forges strategic ties with local telecom providers to bundle streaming services within their plans. In 2021, Amazon unveiled in India a free, ad-funded video streaming platform, further diversifying their services.
Leading the Indian video streaming industry is Reliance with Disney. Following their agreement to amalgamate their media properties in India, they presently garner a 55% share of the country’s streaming service users each month, with MX Player holding a 15% market share. Netflix and Prime Video account for 3-5% each, as per UBS.
MX Player’s journey began with its purchase by Times Internet back in 2018 for $140 million. Originating in South Korea, the application soared to fame in India through features that catered to the local video playback market—a market dominated by more affordable but diverse Android devices.
Post-acquisition, Times Internet embarked on a transformation of MX Player into a full-fledged streaming service by inserting a diverse catalog of licensed and original content. With the advent of online entertainment in India and other nations like the UK and the U.S., this strategy sought to capture an engaged audience.
MX TakaTak, a short-video platform launched by MX Player after the Indian ban on TikTok, was another strategic move to fill the market gap. This venture was later sold to ShareChat, an eminent Indian social network, for a sum surpassing $650 million.
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Frequently Asked Questions about Amazon’s Acquisition of MX Player
- Why has Amazon acquired MX Player?
Amazon’s acquisition of MX Player is strategic; it aims to expand its reach and build trust with consumers in smaller Indian cities and towns, leveraging MX Player’s popularity among these demographics. - What was the valuation of MX Player in this acquisition deal?
The acquisition valued MX Player at under $100 million, significantly lower than its $500 million worth at the time of its last funding. - Will Amazon rebrand MX Player?
No, Amazon intends to retain the MX Player branding post-acquisition. - What share of the video streaming market does MX Player hold in India?
MX Player holds a 15% share of the monthly active users in India’s video streaming market. - How has MX Player transformed since its acquisition by Times Internet in 2018?
Times Internet shifted MX Player from a local video playback app to an extensive streaming service with a rich selection of content, responding to the rising demand for digital entertainment in India and abroad.
