Placeholder canvas

Flipkart eyes stake in Hotstar to compete with Amazon Prime, Netflix

Date:

Flipkart has held talks to buy a stake in Hotstar, Star India’s video streaming service, as part of India’s largest online retailer’s strategy to expand into the video content segment.

Flipkart had launched a new video advertisement platform with Hotstar in July. Hotstar is also one of the many Internet partners that Flipkart has brought on board for its relaunched customer loyalty programme, Flipkart Plus.

ALSO READ: Hotstar raises Rs 516 crore, to strengthen content, technology platform

This will attract more Internet consumers and shoppers, three people aware of the discussions told Mint newspaper. The talks have not reached an advanced stage and may or may not result in a transaction, the people cited above said. All three requested anonymity as the talks are confidential.

The demand for video streaming services such as Netflix and Amazon Prime Video offering is at an all-time high, and streaming companies are investing hundreds of millions of dollars, betting that the content business will be the biggest future growth driver in the global consumer Internet economy, Mint reported.

ALSO READ: Online used car startup ‘Shift’ raises $140 million in Series D round

Under the stewardship of chief executive Kalyan Krishnamurthy, Flipkart has identified content as a massive business opportunity for the future and has been attempting to bet big on that, without having to build a Prime Video-like service from scratch. An investment or strategic alliance with Hotstar would go some way in addressing that gap for Flipkart, the people said.

Over the past six months, Flipkart has also held discussions with other large streaming services. According to the three people cited above, Flipkart also held preliminary talks with Netflix for a potential alliance —however, those talks did not progress much, the report said.

ALSO READ:WeWork acquires software startup Teem for an estimated $100 million

Flipkart did not immediately respond to requests for comment. A Netflix spokesperson declined to comment. A Hotstar spokeswoman denied that Flipkart and Hotstar had held any such talks, the Mint reported.

‘This query has no basis in facts. No such conversation is happening with Flipkart or any others. We are well resourced and on a velocity of growth that is ahead of almost every other consumer Internet company in India. As flattered as we are by the rumours, the service is too valuable for such conjectures to be even entertained,” the Hotstar spokeswoman said in an emailed response to a query.

“However, we remain open to partnerships that can help grow the Internet ecosystem in India and beyond,” Hotstar added.

Click here for Latest News updates and viral videos on our AI-powered smart news genie

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Gangster-Turned-Politician Mukhtar Ansari Dies Of Cardiac Arrest

Banda: Gangster turned politician Mukhtar Ansari passed away at...

IPL 2024: Rajasthan Royals Defeat Delhi Capitals By 12 Runs

Jaipur: Rajasthan Royals clinched a 12-run win over Delhi...

FTX Founder Sam Bankman-Fried Sentenced To 25 Years In Prison For Fraud

New Delhi: Sam Bankman-Fried, the renowned founder of cryptocurrency...