It is estimated that by 2020 India will have over 650 million Internet users, more than the combined population of the G7 countries
Marking its entry into the video-on-demand streaming sector of $ 500 million, the Chinese Internet giant Tencent said it had entered $ 110 million in MX Player, a streaming video service owned by Times Internet, the India’s largest digital products company.
Even Times Internet – which MX Player claims to be one of the largest investments in digital streaming in the country – has participated in this round of financing.
Launched in 2011 by the South Korean company J2 Interactive as a video playback app, MX Player’s majority share was acquired by Times Internet in June 2018 for $ 140 million. At the time, the Korean app claimed to have 175 million monthly users in India. In early February, the Times Group restarted the app as a video streaming service, in direct competition with global giants like Netflix, Amazon and Hotstar.
MX Player offers 150,000 hours of content
MX Player said its on-demand video streaming service currently offers 150,000 hours of TV content, Web series, movies and music videos in 10 languages, including over 20 original and exclusive MX series. It also boasts around 100 million active users per day and 275 million monthly active users globally.
“In a relatively short period of time, MX Player has leveraged its vast user base and rich content library to be one of the leading video streaming services in India,” said Jeffrey Li, Managing Partner Tencent Investment. “As the smartphone user base continues to expand in India, we look forward to working with MX Player to further grow its platform, offering original content and a differentiated user experience.”
MX Player plans to use the funds in terms of technology, talent and content
In addition to the recent MX Player funding, Tencent conducted a $ 115 million Gaana music streaming service in February 2018 and USD 175 million in Hike messaging service funding in August 2016.
MX Player plans to use the funds in terms of technology, talent and content. In the statement, Karan Bedi, CEO of MX Player, defined Tencent’s investment as “brilliant support” for its growth and future potential.
“Our vision is to be one of the largest entertainment platforms in the world, serving our users based on their online entertainment needs, starting with video streaming and beyond,” he said.
The OTT video segment is becoming highly competitive
The Indian OTT video market should reach a market potential of between 4.5 and 5 billion dollars by 2023 by half a billion dollars in 2018, according to research firm Boston Consulting Group (BCG). It is expected that the country will have 40 to 50 million paying subscribers by 2023, while around 600 million Indians would consume AVOD (video supported on advertising) as YouTube.
The OTT video segment is becoming, after all, highly competitive. In the last six years it has witnessed a 3.5-fold increase, going from just nine players in 2012 to 32 services in 2018, according to the BCG report.
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