Amazon Acquires India’s MX Player Video Streaming Platform

Amazon has reached an agreement to purchase MX Player, the Indian video streaming platform, from Times Internet. This move is part of Amazon’s strategy to expand its presence and increase brand recognition in smaller cities and towns within this crucial international market.

According to a source who informed TechCrunch, the companies finalized the deal on Wednesday evening. As revealed by the source, who wished to remain anonymous as the two companies are yet to formally announce the agreement, MX Player is being valued at less than $100 million in the deal, a steep drop from its previous valuation of $500 million in the last funding round.

Amazon will be acquiring specific assets of MX Player and not the entire company through this deal, which brings to a close almost two years of discussions between the firms as they explored potential synergies between their offerings. Over the past two years, Times Internet and its parent company, Times Group, have been looking to divest various digital assets.

Last February, Amazon entered negotiations with MX Player. At the same time, Sony was pursuing a merger of its India division with media company Zee and showed interest in acquiring MX Player. However, according to multiple sources, Sony’s acquisition efforts were thwarted by issues related to the Zee merger.

Amazon views MX Player as a strategic asset that will enhance its distribution and marketing reach in smaller Indian cities and towns, according to a source familiar with Amazon’s plans. MX Player enjoys significant popularity among these demographic groups, whereas Amazon’s e-commerce platform has traditionally been favored by urban consumers. According to the source, Amazon plans to maintain the MX Player brand.

Amazon has been expanding its video streaming services in India to gain traction beyond metropolitan areas. The company offers a version of its Prime subscription, which includes Prime Video, for a small fee of $9.50 annually. Amazon also collaborates with local telecom providers to include Prime Video in their tariff plans. In 2021, Amazon introduced a free, ad-supported video streaming service in India to further diversify its offerings.

According to TechCrunch, an Amazon spokesperson confirmed that the company has reached an agreement to acquire certain assets of MX Player. “We are always looking for ways to introduce new products and services that help improve customers’ lives,” they said in a statement. “We’re excited to continue to entertain India with the great local originals and exclusive content available across our Prime Video and miniTV services in India.”