BENGALURU (Reuters) – India’s arm of Amazon.com is in talks with several local movie distribution and media players including cinema chain Inox Leisure Limited for a potential stake, the Indian Express newspaper reported on Tuesday, citing sources.
However, Inox said the report was “factually incorrect” and there were no discussions between the company and Amazon India.
Shares of the Mumbai-based company jumped 14.3% to Rs 346.20 following the report, but pared some of the gains to reach the latest rise of 6%.
Amazon India is planning to expand its Prime Video content streaming platform and is evaluating three to four deals, according to the report. (https://bit.ly/3iUpqgS)
India has been the epicenter of competition for companies like Amazon, Netflix Inc and Walt Disney Inc, all of which are investing heavily to ramp up original streaming content in regional languages.
The e-commerce giant in January launched a low-priced, moveable-only subscription plan for its video streaming service in India, playing down a similar plan by Netflix to attract price-sensitive subscribers.
Prime Video had seen its entry into Hindi film production in March and considers the South Asian country one of its fastest growing markets.
Inox, India’s second largest multiplex chain, has posted a net loss for at fewest five successive quarters since March 2020, when a nationwide lockdown was imposed due to the coronavirus.
Amazon India did not immediately respond to a request for comment.
(Reporting by Shivani Singh in Bengaluru; Editing by Ramakrishnan M.)