Flipkart could be planning a move into the video streaming space
Flipkartis said to be in talks to purchase a sizeable stake in Hotstar, according to a report in Mint.
- As a sector, video streaming in India is poised for a fast pace of development over the next few years as mobile subscription and internet prices fall and data speeds increase.
- In July, Flipkart partnered with Hotstar to launch a video advertising platform called Shopper Audience Network.
However, that might be set to change. According to a report in Mint, Flipkart is said to be in talks to purchase a sizeable stake in Hotstar as part of a plan to attract more consumers to its website. The reports follow the launch of Flipkart’s loyalty programme, which is in the vein of Amazon’s Prime Membership service.
As a sector, video streaming is poised for a fast pace of development over the next few years. With mobile subscription and internet prices dropping lower and speeds accelerating, more and more people are watching content online. According to PriceWaterhouseCoopers, a consultancy, the over-the-top content space is expected to nearly triple to $823 million by 2022.
A prior relationship
Flipkart already has a relationship with Hotstar. In July, the two companies partnered to launch a video advertising platform called Shopper Audience Network. The platform will facilitate the targeting of personalised advertisements from brands listed on Flipkart’s website. Flipkart will use its treasure trove of user data to direct ads towards customers consuming content on Hotstar.
Flipkart also offers Hotstar’s services to subscribers of its loyalty programme, Flipkart Plus. Hence, buying a stake in Hotstar seems like a natural extension of the Indian e-commerce major’s push to popularise its membership service. Content production is seen as a significant growth area and could prove crucial in attracting customers to Flipkart’s programme. The company was reported to be in talks with Netflix earlier this year regarding a potential partnership. However, it seems that nothing amounted from the discussions.
Diversification a priority
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