Amazon`s Acquisition of MX Player

Case Code: BSTR684
Case Length: 12 Pages
Period: 2023-24
Pub Date: 2024
Teaching Note: Available

Price: Rs.300
Organization : Amazon
Industry : e-commerce
Countries : India
Themes: Growth Strategy, Strategy Implementation, Competitive Environment,Brand Development

Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

On June 6, 2024, US-based e-commerce major and technology company Amazon Inc. (Amazon) acquired MX Media & Entertainment (MX Player), one of India’s leading video streaming apps, as a part of its strategy to expand its presence in the country’s dynamic digital entertainment market. Valued at approximately USD 50-100 million , the deal was expected to strengthen Amazon’s streaming ambitions in India. . MX Player complemented Amazon’s other video services, including Prime Video and miniTV. “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 official from Amazon. Experts said that this marked further consolidation in the Indian OTT market. The Indian OTT market had experienced a spurt of growth since 2020 and attracted several players. However, the high cost of content development coupled with a low ARPU (Average Revenue per User) of US$ 7.2 made the operations expensive for most of the players. The market had grown highly competitive, and most of the companies were incurring losses as of 2023. The market had also witnessed consolidation and partnerships, prominent among them being the one between Reliance and Disney. This partnership brought together Hotstar and Viacom, which was expected to dominate the Indian market..

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