Amazon to Acquire Assets of MX Player from Times Internet

Amazon Acquires Some MX Player assets

Three points you will get to know in this article:

  • Amazon acquires MX Player assets to grow in India.
  • MX Player’s valuation is now under INR 8.34 Cr, down from INR 4,172 Cr.
  • MX Player sold to ShareChat for over INR 5,425 C after becoming a diverse streaming hub.

Amazon's Acquisition of MX Player in India

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Amazon, the e-commerce behemoth, has reached an agreement to procure significant assets of the video streaming platform MX Player, owned by Times Internet. This strategic deal signifies Amazon’s ongoing efforts to broaden its service footprint in the burgeoning markets of smaller Indian cities and towns. Although the financial specifics remain undisclosed by the company, various media outlets indicate that the valuation of MX Player in this transaction is below INR 8,34 Cr. This valuation marks a substantial decrease from its prior valuation of INR 4,172 Cr.

Strategic Significance of MX Player for Amazon in India

Amazon’s acquisition encompasses specific assets of MX Player, excluding the entirety of the company. MX Player, supported by Tencent among other investors, has engaged in negotiations with Amazon for nearly a two-year period. Meanwhile, Times Internet, the parent entity, has been actively seeking to divest various digital properties over the past couple of years.

“We continuously seek avenues to introduce innovative products and services that enhance customer experiences. We eagerly anticipate the ongoing provision of top-tier local originals and exclusive content through our Prime Video and miniTV platforms in India,”

Amazon recognizes MX Player as a strategic ally for distribution and marketing, particularly in smaller Indian locales. Leveraging MX Player’s established user base in these regions complements Amazon’s predominantly urban e-commerce presence. Preserving the MX Player brand aligns with Amazon’s overarching goal of nurturing and expanding its existing user base. An Amazon representative commented, “Our commitment remains to enhancing customer experiences through innovative products and services. We eagerly anticipate continuing to captivate Indian audiences with our diverse local originals and exclusive content offerings on Prime Video and miniTV.”

Acquisition's Impact on Amazon's Video Streaming Services in India

Amazon has been increasing its video streaming services in India to target audiences beyond just the metropolitan areas. In May 2021, Amazon India introduced miniTV, a free video streaming service supported by advertisements. The purchase of key assets from MX Player is anticipated to improve Amazon’s content collection and market reach in the fiercely competitive Indian video streaming industry, which is currently dominated by Reliance and Disney.

Evolution of MX Player from a Regional Video Playback App to a Multifaceted Streaming Hub

Originally conceived as a regional video playback application crafted by MX Media & Entertainment, MX Player swiftly garnered acclaim for its extensive compatibility with diverse video file formats. The platform underwent a significant evolution when Times Internet secured a predominant share in 2018 for a noteworthy sum of INR 1,170Cr, reimagining it as a multifaceted video streaming hub. This rebranding facilitated the expansion of its offerings to encompass an array of entertainment options such as television series, movies, and interactive gaming experiences.

Expansion into Short-Video Platforms and Venture Divestment

Notably, in response to the prohibition of TikTok in India during the latter half of 2020, MX Player seized the opportunity to introduce MX TakaTak, a short-video platform. Subsequently, this venture was divested to ShareChat in a transaction valued at an impressive over INR 5,425 Cr.

Amazon strategically acquired key assets of the video streaming platform MX Player from Times Internet, aiming to expand its services in smaller Indian cities. The undisclosed financial transaction valuation is significant compared to MX Player’s previous worth. This acquisition underscores Amazon’s commitment to enhancing customer experiences and strengthening its presence in the competitive Indian video streaming market dominated by Reliance and Disney. MX Player’s evolution into a multifaceted streaming hub and foray into short-video platforms reflect its dynamic growth trajectory, culminating in a successful divestment venture worth over INR 5,425 Cr.

Peenak Maheshwari

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