Amazon India has recently acquired the OTT platform MX Player from Times Internet Ltd, signaling a strategic move by Amazon to expand its presence in the Indian digital media space. Although the exact amount of the markdown is unknown, it is estimated to be around $45-50 million, which translates to approximately Rs 350-Rs 400 crore. TIL had purchased MX Player for an estimated sum of Rs 1,000 crore in 2018.
Despite attempts to seek clarification, MX Player CEO Karan Bedi and Times Internet’s Vineet Jain have yet to respond to requests for comment. However, Amazon Prime Video stated earlier this week that they do not comment on speculation or rumors. According to sources familiar with the matter, a deal between Amazon and TIL has been finalized, with final payments expected to be completed by June 30th of this year. Amazon had enlisted the services of a top consulting firm to conduct due diligence on the transaction. MX Player’s CEO Karan Bedi is said to receive approximately one-third of the deal’s value, with the remainder going to other shareholders. Bedi is expected to remain in charge of the platform for another year. It is noteworthy that despite being the most downloaded app in India and the third most downloaded OTT app globally in 2022, MX Player is being sold at a price nearly 25% lower than its acquisition four years ago. This information was revealed in the State of Mobile 2023 report by data.ai.
About MX Player
MX Player was initially launched as a video player on July 18th, 2011, in Korea. In 2019, the platform was relaunched as an OTT platform with a focus on producing original content. When TIL acquired the platform, it was considered a daring move, particularly given that the company’s previous OTT venture, BoxTV.com, was discontinued in 2016 after four years of operation. However, TIL, the digital subsidiary of media giant Times Group, has decided to sell the OTT platform after operating it for four years.
Growth Expectations for Amazon
Following the acquisition, Amazon Prime Video is poised to experience a four-fold increase in consumer acquisition. While Amazon has roughly 28 million users in India, MX Player boasts nearly 78 million users. This transaction has the potential to intensify India’s OTT competition, particularly at a time when the industry is facing growth challenges and with Reliance Group entering the market. Viacom18 has made a significant move by streaming IPL for free on JioCinema, accessible to users on all telecom networks, as it seeks to gain as many users as possible. Meanwhile, Viacom18 has committed Rs 24,000 crore to acquire IPL’s digital media rights for five years.
In a nutshell, Amazon India has reportedly acquired MX Player from Times Internet Ltd. (TIL) for a reduced price after multiple rounds of negotiations. Although the exact markdown amount is unknown, it is estimated to be around $45-50 million. Following the acquisition, Amazon Prime Video is expected to grow four-fold in terms of consumer acquisition, with MX Player’s nearly 78 million users added to Amazon’s existing user base of approximately 28 million in India. The deal has the potential to intensify India’s OTT competition, particularly with the entry of Reliance Group. Viacom18 has also made a significant move in this regard by streaming IPL for free on JioCinema, accessible to users on all telecom networks, as it seeks to gain as many users as possible.
