Flipkart is said to have held talks to buy a stake in Star India’s Hotstar streaming service. This move comes as a part of retailers strategy to grow big on video content and attract more Internet consumers and shoppers, according to people aware with the matter.
However, the talks still haven’t reached an advanced stage so the transaction might or might not result in a transaction. Flipkart already has tie-ups with Hotstar as it launched a new video advertisement platform with Hotstar in July. The talks with Hotstar come at a time when demand for video streaming services is at all time high where companies are investing huge for content.
Flipkart seems to have identified content as next big thing is betting big on it without having to build prime-like service from scratch. An investment or strategic alliance with Hotstar would go some way in addressing that gap for Flipkart. It is also heard that Flipkart has also held discussions with other large streaming services in the past six months.
When asked for a response none of the companies commented. A Hostar spokesperson to Livemint said:
This query has no basis in facts. No such conversation is happening with Flipkart or any others. We are well resourced and on a velocity of growth that is ahead of almost every other consumer Internet company in India. As flattered as we are by the rumors, the service is too valuable for such conjectures to be even entertained. However, we remain open to partnerships that can help grow the Internet ecosystem in India and beyond.