Join our Waitlist for Expert Advice!

This Times Internet-Owned OTT Platform Raised $110 Million Led By China's Tencent As the streaming war heats up with bigger companies launching their own set of services, MX Player's ad-based model could help it ward off competition in emerging markets such as India

By Debroop Roy

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

MX Player has raised $110 million in a new round of funding led by China's Tencent, the video player-cum-streaming entity owned by Times Internet said in a statement on Wednesday.

The video platform—which has a monthly active user base of 175 million in India and 275 million worldwide—sold a majority stake to the digital arm of media conglomerate Times Group last year. Following the deal, MX Player transformed from being a video player that allowed local playback to offering over-the-top (OTT) streaming services.

Launched in February this year, MX Player's OTT service is now live in five countries, the company said in the statement.

Foray Into OTT

India would have more than 500 million online video subscribers by 2023, according to a report released in September by consultancy firm KPMG.

KPMG estimates the number of online video viewers in India will grow from a little over 300 million at 2019 end to more than 500 million in the next 4 years (Source: KPMG)

At a time when the likes of Disney and Apple are getting into the streaming space to compete with established giant Netflix, what helps MX Player's case is it has an advertisement-based video-on-demand (AVOD) model, wherein users are not required to subscribe for a fee.

According to the KPMG report, 42 per cent of people in metro cities who use AVOD services are unwilling to pay for content, while 47 per cent are of the view that enough content is available for free.

Earlier this year, Netflix launched a mobile-only plan in India priced at INR 199 per month, cheaper than its basic plan that comes at INR 499 a month. The attempt, which Netflix later deemed successful, paved the way for the US-based company to unveil plans to try similar plans in other emerging markets.

The MX Player platform, apart from streaming from different networks, has also begun to produce its own original shows. It has an online streaming library of over 150,000 hours of content across 10 languages.

Expansion Plans

According to the statement, the new funds will used by MX Player to acquire talent, expand content base and tech development.

"As the smartphone user base continues to expand in India, we look forward to working with MX Player to further grow its platform by delivering original content and a differentiated user experience," said Jeffrey Li, managing partner at Tencent's investment arm.

Debroop Roy

Former Correspondent

Covering the start-up ecosystem in and around Bangalore. Formerly an energy reporter at Reuters. A film, cricket buff who also writes fiction on weekends.
Leadership

4 Bold Leadership Moves Every Successful CEO Uses to Navigate Change

Ready to turn fear into fuel and lead with confidence? In this article, I share how leaving my corporate job without a plan led me to build a thriving business. Learn four bold strategies to embrace uncertainty and turn challenges into opportunities for growth today.

Data & Recovery

Train Your Company to Avoid Costly Data Breaches With This $30 Bundle

Train in the eight domains of CISSP and protect your business from growing cyber threats.

Starting a Business

Schools Fall Short on Teaching Financial Literacy — Here's 3 Ways Parents Can Raise Future Entrepreneurs

Entrepreneurship is not just for adults. Teaching kids the basics of business and finance from a young age will serve them well in life, no matter what path they pursue.

Thought Leaders

These 3 Trends Will Change What It Means to Be an Entrepreneur in 2025

Here are three entrepreneurship trends from the new Global Entrepreneurship Monitor report that are changing the landscape for the future.

Leadership

Fear is Inevitable. Get Used To It — Here's How the Army Helped Me Through Every Career Change

From combat jumps to job pivots, here's how mastering transitions can help you land successfully in any role — with confidence, preparation and adaptability.