Apart from shopping on Amazon and watching movies or web series on Amazon Prime, you can also watch movies sitting in its multiplex in the near future. Looking to diversify the entertainment business of Amazon India. According to the Indian Express report, Amazon can acquire many film and media distribution players, including Inox Ledger, which is one of the largest multiplex chains in the country. Multiplex chains have been badly affected by the lockdown and social distancing rules imposed due to the Corona epidemic. Now the Bharti unit of Amazon, owned by the world’s richest man Jeff Bezos, is considering buying a stake in some of these businesses. According to the news of Indian Express, the business involved in this includes Inox Leisure.
Amazon Prime OTT has less growth than expected
Amazon has been operating an over-the-top (OTT) content business in India since 2016 but it has not grown as much as the company had expected. Last year, after the first six months of 2020, Amazon Prime’s growth was better, but after that its performance was not as per the expectation of the company. According to a report in the Indian Express, the company is in discussions for three to four deals in the entertainment business space, some of which are stressed assets.
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Inox Leisure is badly affected by the pandemic
Inox Laser has been incurring losses since the start of the pandemic last year in 2020. In the January-March quarter, the company had received revenue of Rs 90 crore, which was 75 percent less than the same quarter last year. Inox’s revenue declined due to lack of content. The company had a net loss of Rs 93.7 crore. According to analysts at ICICI Direct, Inox Ledger may suffer a loss of Rs 235 crore in the current financial year 2021-22 due to the fall in revenue. INOX Ledger has 153 multiplexes and 648 screens across the country. Most of these are in the western part of the country. Promoters hold 43.63 per cent stake in this publicly traded multiplexes chain as of June 30. Its shares are trading today at a price of Rs 321.85 with a rise of 6.24 percent.
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Can increase focus in entertainment space
Amazon India had invested $ 150 million (11.15 thousand crore rupees) in the Indian business just before the epidemic. Most of this fund was invested in the e-commerce business. According to the Indian Express report, if Amazon’s deal in the entertainment space is completed, it can shift its focus from e-commerce to the entertainment space. Changes in government policies in the e-commerce space and Mukesh Ambani’s Reliance Retail and Walmart’s Flipkart are facing tough challenges for Amazon. Amazon had earlier started talks to buy a stake in American movie theater chain AMC, but things did not move forward.