Amazon (AMZN) has solidified its presence in India’s growing streaming market by acquiring MX Player, a leading free streaming OTT platform. This move combines Amazon’s streaming service, Amazon MiniTV, with MX Player, resulting in a new platform that boasts a user base of 250 million. The financial details of the acquisition have not been disclosed.
The new entity, Amazon MX Player, offers a diverse range of premium-quality free content, including popular Indian shows, international content dubbed into regional languages, and original programming. In addition to this free streaming option, Amazon offers a paid service, Prime Video, in India, giving users even more viewing options.
It is worth highlighting that India’s digital video consumption is on the rise, presenting a lucrative opportunity for streaming companies. The country’s video streaming market is projected to grow at a CAGR of 11.1% between 2024 and 2027, according to Statista. Through this acquisition, Amazon aims to leverage this growth and capture a larger share of the market.
AMZN Seeks to Enhance Advertising Revenue
Beyond content, this acquisition also presents significant opportunities for Amazon to boost its digital advertising revenue in India. By combining AMZN’s customer data and MX Player’s presence in India’s smaller cities and towns, the new entity will enable all brands, not just those on Amazon, to target a larger audience through effective advertising campaigns.
Moreover, Amazon plans to keep investing in original content and popular series, providing advertisers with a more effective platform to engage viewers.
What Is the Price Target for AMZN?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 43 Buys and two Holds assigned in the last three months. At $223.43, the average Amazon price target implies a 23.58% upside potential. Shares of the company have gained 18.99% year-to-date.
