Amazon.com, Inc. (NASDAQ:AMZN) continues to make a big push India. With the emerging market’s economy growing, Amazon wants to grab a piece of the pie and get retailers to shop on its website. Not only does it want shoppers, Amazon also wants viewers for its Prime Video service. India is gradually being eyed by some of the biggest retailers in the world today.
Amazon.com, Inc. Investing Big Money in India
Later this year, the firm will launch its popular Prime Video service in India. Because it’s debuting the media platform in over the next few months, Amazon plans to invest about $300 million in original content. This would be in addition to its recently announced $3 billion investment in India.
According to a new report from CNET, the online retail giant has been planning this for quite a while.
Earlier this year, it tapped Aparna Purohit, a longtime film producer in India, as Head of Creative development. It also posted job descriptions for a Head of Business Development for Amazon Video India. It’s also speaking with local production firms for content.
It’s apparent that the firm wants to be the go-to brand for Indian consumers. But it’s also a matter of necessity because Netflix, Inc. (NASDAQ:NFLX) is also making a play for rupees.
The online streaming behemoth has been throwing its money into region-specific content. Netflix has started working with local filmmaking and distribution firms in India. One of its biggest deals to date has been the film adaptation of the gangster thriller novel called “Sacred Games.”
Amazon has not commented on the reports.
The video on demand (VOD) niche is projected to undergo immense growth over the next few years. EY, a consulting firm in the U.S., released a report that found smartphone penetration will increase by 520 million by the year 2020. This means mobile devices will help consumers watch content – nearly half of all content will be consumed by smartphones by the year 2020.
Amazon.com, Inc.’s Impact in India
Amazon CEO Jeff Bezos told an audience at a summit in Washington that he sees “huge potential in the Indian economy.” In addition to making an impact in entertainment, Bezos has noted that it has plenty of room for growth of Amazon Web Services in India.
Last month, Morgan Stanley published research that projects India’s ecommerce market will be worth $119 billion in the next four years. This kind of research is helping fuel Amazon’s desires to expand its platform, establish a fulfillment center and grow Prime.
Experts forecast that India’s middle class will soon boom. Studies have found that India’s earning population will spike by 14 percent to 54 percent in 2018. This means more consumers will have disposable income, and all sorts of companies – retail and content providers – are betting on these trends. And Amazon is rolling the dice and learning from other enterprise’s previous mistakes.
“India is another example of how we globalize an offering like marketplace through customer obsession and a passion for invention,” Bezos said in a letter to shareholders.
No one wonder why Indian shoppers trust the Amazon brand more than any other one else.