According to a report by the Factor Daily and as reported by C/NET, the Internet’s “King of Things” Amazon.com intends to launch its Prime Video service in India this year, as well as investing up to $300 million to make original content.
(Also read: “Is Amazon the ‘Internet of Things’ King?”)
This is a good time to update your LinkedIn profiles because recent job postings on the social media platform, for professionals, suggest that Amazon India has been quietly working on bringing Prime Video to the country. Amazon (AMZN - Free Report) hired Aparna Purohit, a veteran film producer, as Head of Creative development in January this year. A job description posted on LinkedIn last week seeks a "Head of Business Development" for Amazon Video India.
The Factor Daily report mentions that Amazon has started talks with Bollywood producers and other independent production houses in India to produce local video streaming content as part of this Amazon Prime launch later in the year.
The report comes a month after Amazon CEO Jeff Bezos announced an additional $3 billion investment in India after seeing a “huge potential” in the world's second most populous nation. Mr. Bezos announced this investment plan at the U.S.-India Business Council’s Leadership Summit in Washington in presence of Indian Prime Minister Narendra Modi.
“We have already created some 45,000 jobs in India and continue to see huge potential in the Indian economy,” said Mr. Bezos. “Our Amazon.in [Amazon India] team is surpassing even our most ambitious planned milestones, and I’m pleased to announce today that we’ll invest an additional US $3 billion on top of the US $2 billion that we announced in 2014, bringing our total investment in India to over US $5 billion.”
Amazon Prime Video has made a name for itself with award-winning original shows such as Transparent and Mozart in the Jungle, but the service's availability in only a few regions, which has limited its growth. In contrast, Netflix (NFLX - Free Report) is available in 190 nations, and the company is also actively investing in region-specific original shows to lock international users into its platform.
(Also read: “What's Causing Netflix Stock to Slide Down 13%?” and “Is Stranger Things Netflix's Next Breakout Hit?”)
This plan to localize content appears to be the next step with these global streaming video content services. It makes sense too. To assume audiences in different nations solely want to watch Western influenced cinema would be incorrect. Localizing content is a smart way to draw in new international members. With that being said, the content still has to be of high quality. Amazon has to do more than just simply creating a potential Bollywood-esque series or film. It also has to be well made.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>