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Behind Amazon’s Foray into Reality Shows in India

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Amazon expanding in India

Online e-commerce giant Amazon (AMZN) is ramping up its efforts and gearing up to promote its Amazon Prime Video and Music content in India (INDA), one of the fastest-growing major economies. According to Morgan Stanley’s report, the Indian e-commerce market is projected to rise to $200.0 billion by 2026 from $15.0 billion in 2016.

Amazon launched Amazon Prime in India in 2016, giving competition to companies such as Flipkart and Alibaba-owned (BABA) Paytm.

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Amazon Prime Video and Music in India

Amazon Prime Video is set to roll out a new original series called Skulls and Roses, which is expected to be shown in a reality show format in India. This series would become part of the company’s Unscripted Originals series. Amazon will produce three such shows that are expected to go live later this year.

Amazon has also partnered with India’s big music labels such as Venus Music, Tips Music, Sony Music, Saregama, and Zee Music Company. It also plans to partner with more than 300 regional record labels in India to let Prime users enjoy music in ten different languages.

Amazon’s efforts to add video and music to its Prime bundle are attracting subscribers to Amazon Prime. Prime subscribers would not only get free music and video streaming services, but they can also enjoy early deliveries and first access to deals on its platform. Amazon Prime costs 999 Indian rupees (~$15) annually.

Amazon seeks a substantial growth opportunity in India, where the availability of low-cost data plans has increased the usage of streaming services. By December 2017, India had 481.0 million users, making the country the second-largest online market after China.

According to the latest report by the Internet and Mobile Association of India (or IAMAI) and IMRB, the number of Internet users in India is expected to touch 500.0 million by June 2018. By June 2021, there could be more than 800.0 million Internet users in India, according to Cisco Systems.

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