🤝 Streaming Power Couple: Amazon and MX Player?
Amazon reportedly wants to buy MX Player for $70 million. Will this deal change the OTT landscape of India? ReadOn!
India’s OTT verse is growing at an insane pace!
423.8 million people watch an online video at least once a month.
That’s 30% of our total population.
And that’s 60% of our population with access to the internet (700 mn people in India have access to the internet).
Not convinced?
OTT’s market share in India’s $27 bn media and entertainment industry is set to grow from 7-9% today to 22%-25% by 2030. Meanwhile, television’s market share is expected to fall from 35% to 24%.
Now, all the major players want a bigger slice of this creamy market.
And they’re doing all sorts of things to achieve this.
While Disney+ Hotstar and HBO are breaking up, others are getting into confusing relationships.
Like Amazon and MX Player.
Yes, sources have revealed that Amazon is looking to acquire MX Player from Times Internet Group.
But why?
🤔Why is Amazon Interested in MX Player?
Amazon is already handling two OTT platforms in India.
First is Prime Video, which works on a subscription model.
The second is MiniTV, which you can watch for free on the Amazon shopping app itself if you don’t mind being bombarded with ads every 5-7 minutes.
Now why flirt with a third OTT app?
Let’s take a closer look at MX Player.
🤓 The Magic of MX Player
MX Player started out just as a media player in 2014 but was acquired by Times Internet group (the ones who run Times of India, Economic Times, Gaana and a lot more) in 2018.
Since then, it has become one of India’s top-performing OTT apps.
It is the most downloaded OTT app in India and the third-most downloaded OTT app in the world!
It has 280 mn monthly active users, more than any other OTT platform out there (Hotstar has 221 mn monthly active users)!
How did MX Player get here?
Well, the recipe to build a hit OTT is complicated, but we’ll go step by step.
Step One: Make sure you have a healthy mix of content.
MX Player has it all: From Korean shows dubbed in Hindi to Pakistani shows. From blockbuster Bollywood films to amazing originals like Aashram.
In fact, the second most-watched Hindi show in India was an MX Player original!
Step Two: Put in a tadka of advertisements.
Advertising is the new in-thing for OTTs. A recent report by EY suggests that less than 10% of Indians OTT customers actually pay for OTTs. So, having a freemium model may be the best: you get money through ads if customers aren’t paying for OTT else you get money via subscriptions! MX Player also has a freemium model, with a subscription costing Rs. 499/year.
In fact, according to an Ormax Report, AVOD (advertising-based video on demand) is a bigger market than subscription-based video on demand.
Step Three: Add the garnish of live streaming and games.
An Indian customer never shies away from that little something extra, be it free saunf or free gaming.
With live streaming and games, MX Player gets more downloads, more app visits and more retention.
Now, back to square one:
What will Amazon do with MX Player?
Well, the options are endless.
🤨 Amazon’s Endgame
Amazon’s current MX Player substitute, MiniTV is deep within the app.
Discovering MiniTV is no less than discovering a treasure chest by luck!
Plus, people who come on the app already come with the intention of buying, so MiniTV isn’t pulling newer users. In fact, users who come to window shop could get their dopamine hit from shows and leave without buying anything!
So, buying an AVOD app that people already use makes sense for Amazon.
With MX Player, Amazon will not only get the attention of 280 million users monthly, it could also get their data.
What ads they are watching, which ones they are clicking on, and which ones actually got them to make a purchase?
It could also get a new platform for advertising.
The best part? It could remove competitors’ ads from this platform.
Eyeballs only on Amazon’s products!
Great, right?
At a time when Amazon is facing tough competition from Disney and Netflix in India, MX Player and its unique content could set it apart.
It could rule both the premium segment (with Prime) and the masses (with MX Player).
Win-win, right?
Now, at this stage, we only have one question…
Why is Times Internet selling this goose that lays golden eggs?
🎲 Times Internet’s Play
Times Internet has been on a selling spree lately.
It sold Dineout to Swiggy, it sold GradeUp to Byju’s and it sold content commerce brands MensXP and iDiva to Mensa Brands.
It is also looking for a buyer for Gaana.
Why? Reportedly, the brand is undergoing major restructuring.
🔍 Is the Deal Final?
However, a deal is yet to be finalised.
The problem? Price.
That’s where all negotiations stall.
Times Internet wants $100 million, Amazon wants to give $60 million.
The exact valuation that they settle for, if they do settle, is set to be around $70-80 million.
Amazon has currently moved ahead to the due diligence aspect of the deal.
So, we should be hearing the news of a final offer soon.
But till then, what are your thoughts about the deal? Let us know in the comments!
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