Amazon has reached an agreement to acquire the Indian video streaming service MX Player from Times Internet, marking another strategic move by the e-commerce giant to bolster its presence in smaller cities and towns across India.
The definitive agreement, finalized on Wednesday evening, values MX Player at less than $100 million, according to a source familiar with the matter. This valuation is significantly lower than the $500 million at which MX Player was valued during its last capital raise. The source, who requested anonymity due to the confidential nature of the deal, shared this information with TechCrunch.
The acquisition concludes nearly two years of negotiations between Amazon and Times Internet as they explored potential synergies. Times Internet and its parent company, Times Group, have been looking to divest various digital assets over the past two years. Reports of Amazon’s interest in MX Player surfaced in February last year. Sony also expressed interest in acquiring MX Player but faced complications due to its concurrent merger discussions with Zee, ultimately derailing the potential deal.
For Amazon, acquiring MX Player offers a strategic distribution and marketing partner to enhance its appeal and trust among consumers in smaller Indian cities and towns. MX Player has a strong user base in these regions, whereas Amazon’s e-commerce service has traditionally been more popular among urban consumers. According to the source, Amazon plans to retain the MX Player branding.
Amazon has been expanding its video streaming offerings in India to increase its footprint beyond major metropolitan areas. The company offers a variant of its Prime subscription, which includes Prime Video, for as little as $9.50 annually. Additionally, Amazon has partnered with local telecom operators to bundle Prime Video with their tariff plans. In 2021, Amazon introduced a free, ad-supported video streaming service in India to further its reach.
In the competitive Indian video streaming market, Reliance, in partnership with Disney, leads with a combined 55% of monthly active users. MX Player holds a 15% market share, while Netflix and Prime Video each have between 3-5%, according to UBS.
Times Internet acquired MX Player in 2018 for $140 million. Originating in South Korea, MX Player became immensely popular in India due to its unique local video playback feature, supporting a wide range of video file formats compatible with affordable Android smartphones common in developing markets.
Post-acquisition, Times Internet transformed MX Player from a local video playback app into a comprehensive video streaming platform, investing in a diverse range of licensed and original content, including TV shows, movies, and games. This strategic shift aimed to meet the growing demand for online entertainment in India and internationally, including markets like the UK and the U.S.
In response to the Indian government’s ban on TikTok in mid-2020, MX Player launched its own short-video app, MX TakaTak, to fill the market void. Times Internet later sold MX TakaTak to ShareChat, a leading Indian social media platform, in a deal valued at over $650 million.
With the acquisition of MX Player, Amazon aims to solidify its position in the Indian market, leveraging the platform’s extensive reach and popularity to enhance its services and brand recognition in smaller cities and towns.
