What happened: Chinese internet giant Tencent and Indian e-commerce payment company Paytm are planning to invest about $100 million in Indian streaming service MX Player. The fast-growing Indian content-streaming market, which is projected to grow at an annual rate of 22% by 2023, has become increasingly competitive as both local and foreign players crowd in. Tencent and Paytm are still in the final stages of discussion, an unnamed source told Bloomberg, and there may still be changes to the specific terms regarding the deal.
Why it’s important: Tencent has been eager to expand its video-streaming operations outside of China and into Southeast Asia. Last month, the Chinese tech giant launched its first overseas video streaming service in Thailand. Tencent’s video-streaming sites, which have more than 89 million subscribers, saw a 43% year-on-year increase in subscriptions in the first quarter of 2019. Investing MX Player, which was one of the most downloaded entertainment apps worldwide, grants Tencent more exposure to the Indian market.