Amazon has agreed to acquire the Indian video streaming service MX Player from Times Internet, marking a strategic move to bolster its presence in smaller cities and towns across India. The acquisition, valued at less than $100 million, is a significant step for Amazon as it seeks to expand its influence in one of its key overseas markets.
On Wednesday evening, Amazon and Times Internet reached a definitive agreement for the acquisition of MX Player. Despite being valued at $500 million in its last funding round, the deal closed at a much lower valuation, under $100 million. The nearly two-year negotiation period between the two firms highlights their efforts to find synergies and strategic alignment.
Times Internet and its parent company, Times Group, have been looking to divest several digital properties over the past two years. Amazon’s acquisition of MX Player provides a distribution and marketing partner that can enhance its e-commerce platform’s reach and credibility in smaller Indian cities and towns, where MX Player enjoys significant popularity.
Previously, Sony had also shown interest in acquiring MX Player while negotiating a merger with media house Zee. However, complications with the Zee deal prevented Sony from moving forward. This left Amazon as the leading contender, ultimately securing the acquisition.
Amazon has been actively expanding its video streaming services in India, targeting a broader audience beyond the major metro cities. The company offers a variant of its Prime subscription for as little as $9.50 annually, which includes access to Prime Video. Additionally, Amazon has partnered with local telecom operators to bundle Prime Video with their services and launched a free, ad-supported video streaming service in 2021.
In India’s competitive video streaming market, Reliance, in partnership with Disney, leads with a 55% share of all video streaming services’ monthly active users. MX Player holds a 15% market share, while Netflix and Amazon Prime Video each capture 3-5%. This acquisition aims to enhance Amazon’s presence and competitiveness in this burgeoning market.
Times Internet acquired MX Player in 2018 for $140 million. Initially popular for its local video playback capabilities, MX Player supported a wide range of video file formats, making it highly compatible with affordable Android smartphones. Times Internet transformed MX Player into a comprehensive streaming platform, offering a diverse range of licensed and original content, including TV shows, movies, and games.
Following the Indian government’s ban on TikTok in mid-2020, MX Player launched its own short-video app, MX TakaTak, to capture the market void. This app was later sold to ShareChat in a deal valued at over $650 million, reflecting Times Internet’s strategic adaptability and market responsiveness.
Amazon’s acquisition of MX Player from Times Internet is a strategic move to enhance its services and brand presence in smaller Indian cities and towns. By leveraging MX Player’s popularity and local market penetration, Amazon aims to broaden its reach and appeal to a wider audience, further solidifying its position in the competitive Indian market.
