MX Player’s revenue drops 63% in FY23, ad revenue declines too
Amid the rise of JioCinema and the expansion of Prime Video and Netflix, Times Internet-backed MX Media & Entertainment—the parent entity of streaming platform MX Player—faces operational challenges. Although the subscription revenue of MX Player surged over five-fold (Rs 12.5 crore, up from Rs 2.4 crore in FY22) and it earned Rs 16.4 crore from branded content in FY23, its revenue plummeted to nearly one-third or 63.32%, from Rs 586 crore in FY22 to Rs 215 crore in FY23, reveals its financial report. The OTT player’s ad revenue also dropped by 17 per cent, from Rs 70.8 crore to Rs 59 crore, in the same period. Interestingly, the platform spent Rs 47 crore on its own advertising and promotion in FY23, compared to Rs 38 crore in the previous year. The company’s profit also saw a drop from Rs 21.6 crore to Rs 14 crore in this period. e4m sent out a questionnaire to the MX Player CEO Karan Bedi and Times Internet Ltd over email to understand their content and growth strategy and how they plan to lift ad revenue. The copy will be updated as and when they respond. It must be noted that MX Media & Entertainment sold its short-video platform,MX TakaTak to Google-backed ShareChat in February 2022. MX Player itself was put on block by Times Internet a year ago. Amazon Prime Video was believed to be the frontrunner to acquire the platform but the deal didn't go through. The platform also saw exits of key people over the last few months such as COO Nikhil Gandhi and Senior Director and Head of Strategic Partnerships Aditya Jhamb. Leader in the past MX Player was launched as a video player on 18 July 2011. Times Internet acquired it in 2018. In 2019, it was relaunched as an OTT platform with original programming. As an ad-supported video on demand (A-VOD) platform, MX Player experienced remarkable growth during its initial years, leveraging its advantage over competitors such as Hotstar, Amazon Prime Video, and Netflix thanks to its already substantial customer base, which surpassed that of premium streaming services two-fold. It found success among the young audiences who preferred consuming video content on their mobile devices without committing to hefty subscription fees. However, the emergence of JioCinema and the rapid expansion of global OTT players like Prime Video and Netflix, which heavily invested in Indian content, have shifted the landscape in recent years, experts say. Impact of JioCinema Karan Taurani - Senior Vice President - Research Analyst, Media, Elara Capital, opined, “The revenue drop for MX Player seems linked to several factors. Firstly, the launch of MX TakaTak coincided with the TikTok ban, boosting their social presence, but it waned quickly. Secondly, they faced challenges in video content aggregation with competitors like JioCinema emerging. Consequently, revenue decline appears sharp, and future scalability seems uncertain.” To rebound, MX Player may need to prioritize unique and high-quality content, especially in web series and filmmaking, to regain traction in the market, Taurani suggests. For more updates, be socially connected with us on
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Tags : Aditya Jhamb Nikhil Gandhi Mx Player Times Internet Karan Taurani