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Amazon (AMZN) Enters India Film Production With Prime Video

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Amazon (AMZN - Free Report) continues to make strong efforts to expand its footprint in India on the back of its aggressive strategies.This is evident from its latest move of stepping into Bollywood film production.

Reportedly, Prime Video has collaborated with Cape of Good Films, Abundantia Entertainment and Lyca Productions to produce a movie in Hindi namely Ram Setu, starring Akshay Kumar.

Notably, the title means Adam’s Bridge connecting Tamil Nadu with Sri Lanka and depicts Hindu mythology.

The latest move of Amazon seems to be its remarkable step in India, Bollywood and the streaming market of the country.

Further, the move ups the company’s ante against other streaming players like Netflix (NFLX - Free Report) , Disney (DIS - Free Report) , Apple, Alphabet’s (GOOGL - Free Report) YouTube, Zee5, Alt Balaji, Voot and Sony Liv, which are also leaving no stone unturned to bolster its footprint in India that holds promise in many ways.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Growth Opportunities

Per the report from India Brand Equity Foundation, the media and entertainment sector of India is capable of hitting $100 billion by 2030.

Further, the growing proliferation of over-the-top streaming services in the country on the back of increasing Internet user penetration remains a major growth driver.

According to a report from PwC, this particular sector is likely to exceed the benchmark of $55 billion by 2024 by witnessing a CAGR of 10%.

Apart from this, the booming video streaming market of India is continuously inducing the above-mentioned streaming companies to make advances in their offerings.

A Statista report shows that India’s video streaming space is anticipated to generate $1.2 billion in revenues in 2021. Further, the figure is expected to reach $2.6 billion by 2025 by witnessing a CAGR of 20.3% between 2021 and 2025.

Amazon’s Strong Efforts

Amazon’s latest move foray into the film production industry of India is expected to aid it in capitalizing on the above-mentioned growth opportunities.

Further, its expanding content portfolio and deepening focus on regional content libraries remain major positives. The endeavors are expected to continue encouraging the subscription of Prime Video.

Notably, Prime Video has witnessed strong traffic growth on the heels of its hit original series, including Tandav, Mirzapur, The Family Man, Bandish Bandits, and Panchayat along with strengthening Bollywood content.

Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Netflix & Disney in Fray

Netflix has been focusing on strengthening its footprint in India’s growing video streaming market. The company is constantly spending heavily on producing original content for the audience in India.

Recently, the company announced that it will release 41 Indian films and shows this year, which mark its biggest content roster in India to date. Titles will include the likes of Bombay Begums, Decoupled, the second season Delhi Crime, the second season of Kota Factory, and the fourth season of Little Things.

These new titles will be featuring renowned actors and directors, including R. Madhavan, Raveena Tandon, Madhuri Dixit, Karan Johar, Manoj Bajpayee, Neena Gupta and Dhanush.

Meanwhile, Disney+ Hotstar is also gaining solid momentum across the audience in India on the back of its original content like Criminal Justice, Hostages, Aarya, and Out of Love along with live sports, Indian TV shows, and expanding Bollywood and Disney original content.

To Conclude

On the basis of the above-mentioned points, the India media and entertainment industry is experiencing intensifying competition on the back of concerted efforts being made by the streaming players.

Moreover, India has turned out to be a rapidly growing nation, holding immense growth potential for these players on the back of ongoing digitization.

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