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Xiaomi to compete with Netflix, Amazon in streaming services


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Devices, retail and services are the three financial pillars for the company, of which the company is yet to explore the last one

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After establishing its domination in the Indian smartphone market within five years of its entry, Chinese phone maker Xiaomi now aims to monetise internet services in India to compete with the likes of Netflix, Amazon, Google Pay, and Spotify.

Xiaomi India Managing Director Manu Kumar Jain said that the Chinese technology company wants to earn revenue from streaming of movies and music, digital payments and wallets, and is willing to invest close to Rs 3,500 crore on it, The Economic Times reported.

 

Quote

"Xiaomi globally made less than 1 percent profit margin from hardware or device sales in 2018, and we have stated that will never make more than 5 percent profit margin on hardware. It is the internet services that will make money for us," Jain said.

 

The company wants to promote its streaming platforms, Mi Video and Mi Music. Similar to AirDrop, its transfer tool Mi Drop is already gaining popularity with over 100 million downloads. The company recently launched Mi Pay, a United Payments Interface (UPI)-based payment application.

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