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

Excerpts

Video Streaming Market in India

As of 2024, the market for video streaming in India was expanding, with a wide range of domestic and foreign platforms vying for viewership. With nearly 60 OTT platforms in existence, Indians watched content across a variety of digital mediums. Rising income, increased data penetration in rural markets, and acceptance across demographics, such as women and older generations, were factors expected to support the country’s online video base..

Amazon Prime in India

Amazon started its operations in India in the year 2013. Given its large population and rising demand, India appeared to be the next logical destination for Amazon. Despite Amazon’s late entry into the Indian e-retailing business, India soon became one of Amazon’s major markets. In June 2016, Amazon launched the Prime membership program in India enabling customers to enjoy unlimited free one day and two day delivery on products with the ‘Prime’ badge on them. In addition to the free fast delivery..

MX Player in Trouble

MX Player experienced rapid growth during and after the pandemic. People confined to their houses started using it to watch videos, listen to music, and play games. The original content it offered also found many takers. The fact that it allowed users to access live cable TV channels and news channels free of cost, helped grow its popularity further. At one point in time, the number of active gaming users reached 25 million. The time users spent on gaming increased. During the initial months of the pandemic, the time spent on gaming reached 70 minutes per user per day..

The Acquisition

Following months of delay and speculation, Amazon and MX Player came to an agreement on June 5, 2024, under which Amazon would to acquire some parts of MX Player from Times Internet As a part of the deal, the employees of MX Player would be working for Amazon and since it was not a full acquisition, the debts of MX player wouldn’t be borne by Amazon..

Exhibits

Exhibit 1: Major Players in the Indian OTT Market
Exhibit 2: Percentage of Monthly Active Users
Exhibit 3: Market Share of OTT Players in SVOD Segment in India as of March 31, 2024
Exhibit 4: Comparison of Amazon prime, Netflix and Disney+Hotstar as of Feb, 2024

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