In a move to strengthen its foothold in the booming Indian video streaming market, Amazon has struck a deal to acquire certain assets of MX Player, a popular local platform. The deal, finalized on Wednesday, marks a significant step for Amazon as it seeks to expand its reach beyond major cities and attract a wider audience.

Value of MX Player:

While the exact terms haven’t been disclosed, reports suggest the acquisition value is under $100 million, considerably lower than MX Player’s previous valuation of $500 million. This indicates Amazon might be acquiring specific functionalities or content libraries rather than the entire company.

“We’re excited to continue entertaining India with the great local originals and exclusive content available across our Prime Video and miniTV services,” said an Amazon spokesperson. This acquisition is expected to bolster Amazon’s existing offerings by integrating MX Player’s library of local content.

MX Player boasts a significant user base, particularly in smaller towns and cities. By acquiring its assets, Amazon aims to leverage this reach and establish a stronger presence in these regions. This strategy aligns with Amazon’s broader goal of attracting new users and potentially converting them into Prime subscribers, boosting overall user engagement.

Competition with Other OTTs:

The Indian video streaming market is witnessing fierce competition with established players like Hotstar and Netflix, along with homegrown platforms like MX Player and JioTV. This acquisition allows Amazon to stay competitive by expanding its content library and catering to a wider audience with diverse tastes.

While details regarding the specific assets being acquired and the future of the MX Player brand remain unclear, one thing is certain: this move signifies Amazon’s commitment to becoming a major player in the ever-evolving Indian video streaming landscape.

This acquisition underscores Amazon’s commitment to capturing the Indian market beyond metro cities, and it further intensifies the competition in the streaming space.

Disclaimer: The information provided is based on available sources and may be subject to updates.¹