Amazon Expands South Asian Presence with Strategic Acquisition of MX Player's Streaming Service

MX Player, a globally renowned Android video player from India, boasts over 280 million users worldwide. Known for its wide support of various audio and video formats, MX Player is available for free but primarily generates revenue through advertisements.

However, MX Media & Entertainment, the parent company of MX Player, isn't just a player developer; it also operates a streaming video business. Consequently, the company has received backing from Tencent, which invested in it for a stake.

Since February 2023, rumors have circulated that Amazon was in talks to acquire the streaming video business of the company. This Wednesday, the market buzzed with news that the two companies had finalized their agreement.

Notably, Amazon's acquisition focuses solely on the streaming video business, not the entire MX Player team, costing the e-commerce giant less than $100 million—a figure significantly lower than MX Media & Entertainment's $500 million valuation from its last funding round.

Following the transaction, several executives from the company will join Amazon, which plans to retain the MX Player brand. The current status of the MX Player app and whether its team will also join Amazon remains unclear.

For Amazon, acquiring MX Player's streaming video business aims to expand its footprint in the South Asian market. MX Player holds rights to multiple videos and cable TV companies, rights which Amazon now possesses. Amazon Prime Video is expected to offer an expanded content library in the South Asian market, particularly in India.

In India, Amazon will face stiff competition, especially against the local giant, Reliance Industries, whose streaming video business merged with Disney at the end of February. This merger has given Reliance a commanding 55% market share in India, while MX Player holds about 15%. Netflix and Amazon Prime Video together account for only 3-5% of the market.