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E-commerce major Amazon has signed an agreement to acquire some assets from the Times Internet-owned streaming platform MX Player.
“We are always looking for ways to introduce new products and services that help improve customers’ lives. 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,” said an Amazon spokesperson.
It is to be noted that Amazon has signed an agreement to purchase some assets from MX Player. The transaction is not yet complete.
Amazon has been in discussions to acquire MX Player, the ad-supported streaming space, since early 2023. The company called off the deal around July 2023, but resumed talks again in recent months.
The deal values MX Player at less than $100 million, according to sources, which is a dip from the $500-million valuation when it last raised $111-million financing in a round led by Tencent in 2019.
This development comes after Walt Disney announced a joint venture with Reliance Industries in February, that combines the businesses of Viacom18 and Star India to create one of India’s largest TV and digital streaming platforms.
- Also read: Amazon working with govt agencies to push MSME exports in India: Director Bhupen Wakankar
Bolstering miniTV
The deal is aimed to bolster Amazon’s streaming ambitions in India, which is crucial to its future expansion, due to the rising digital video consumption among consumers.
Currently, Amazon operates a subscription-based streaming service called Prime Video that is bundled with its Amazon Prime subscription service, as well as a free ad-supported streaming service called miniTV, introduced in May 2021.
In July 2023, Amazon launched a standalone Android app for miniTV.
People spend about 45 minutes per session watching content, the company said in December 2023. miniTV is also a key part of Amazon’s strategy to boost its digital advertising revenues in the country.
The asset purchase of MX Player, which has deep penetration in tier 2 and 3 and beyond, will also help Amazon’s rural push.
Times Internet acquired MX Player for ₹1,000 crore ($140 million) in 2018.
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