E-commerce giant Amazon has acquired certain assets of MX Player, a popular video streaming service in India, from Times Internet.
The deal marks Amazon's latest move to expand its brand presence and compete in the Indian streaming market, particularly in smaller cities and towns.
MX Player's Value Reduced
While the exact terms of the deal are not public, reports suggest that Amazon acquired MX Player's assets for less than $100 million, significantly lower than its previous valuation of $500 million.
Amazon's Strategy
Analysts believe Amazon is primarily interested in leveraging MX Player's strong distribution network and brand recognition in non-metro areas. This will help Amazon's e-commerce platform reach a wider audience in India, a key overseas market for the company.
Amazon's Growing Streaming Presence
The acquisition comes amidst Amazon's efforts to broaden its video streaming offerings in India. The company has launched various initiatives, including a budget-friendly Prime subscription plan and a free ad-supported streaming service, to compete with local players like Reliance Jio and Disney+ Hotstar.
Future of MX Player
It remains to be seen how the acquisition will affect MX Player's operations and branding. However, Amazon has indicated that it will retain the MX Player name, suggesting a continued focus on the established platform.
