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Amazon launches bundling service for video streaming apps in India By Reuters

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© Reuters. FILEPHOTO: This illustration photo, taken March 5, 2020 shows the logo of Amazon Prime Video streaming service. REUTERS/Danish Siddiqui/File Photo

By Sankalp Phartiyal and Shilpa Jamkhandikar

NEW DELHI (Reuters) – Amazon.com Inc (NASDAQ:) launched in India on Friday a bundling option on its video platform for global and local streaming services, in a move aimed at boosting subscriptions.

This launch is timely given the increasing competition in India from domestic and international rivals, which are important markets for U.S. tech companies.

In an interview before the launch, Gaurav Gandhi, head of Amazon Prime Video India told Reuters that customers who subscribe through the Prime loyalty program will be able to access multiple streaming apps from one portal.

Gandhi said that the service solves customer problems, but also allows for multiple logins and log ins. It also helps our partners to benefit from Prime Video’s widespread distribution.

Gandhi stated that streaming apps are being used by Discovery (NASDAQ 🙂 Inc, Lions Gate Entertainment Corp, and Mubi to launch the service. Gandhi also said India is the country in which it will be launched.

Gandhi did not discuss the details of revenue sharing with content partner or any other financial aspects of the service.

Amazon Prime’s loyalty program costs 999 rupees (13.53 USD) annually in India. It offers free delivery and early access to sales deals, as well as free music and streaming video.

India, the world’s second-most populous nation with 1.3 billion people, is a vital growth market for Amazon and its global rivals Netflix (NASDAQ:) and Walt Disney (NYSE:).

Prime Video rival Disney+ Hotstar broadcasts Bollywood films, television shows, and streams India’s most popular cricket league matches. Netflix, however, has been focusing heavily on original local content. An announced merger of India’s Zee and a local unit of Japan’s Sony (NYSE:) Group Corp is also set to create a TV powerhouse that will challenge Prime Video and others in the market.

Amazon invested heavily to acquire and produce local content in India. Last year, Jeff Bezos, its founder said that Prime Video is doing well worldwide but was not doing as well in India. Amazon doesn’t break down user figures by country.

Amazon’s relationship with India is proving to be problematic. It was forced earlier this year to apologize to the Indian government for disturbing Hindu religious beliefs.

Gandhi responded that they learn from mistakes and work to improve.

($1 = 73.8350 Indian rupees)

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