After pretty much dominating the Indian smartphone market – the budget and mid-budget segment at least – Xiaomi recently also dipped its toes in the digital payments services in India with the launch of Mi Pay. In 2018, it also entered in partnership with KreditBee and ZestMoney to launch Mi Credit – a marketplace for instant credit. Now, according to a fresh new report, Xiaomi may be preparing to enter the playing field with an online video streaming service that will compete with the likes of Netflix and Amazon Prime video.
Xiaomi India Managing Director Manu Kumar Jain said that the company is looking to earn revenue from the streaming of movies and music, digital payments and wallets, and is willing to invest a ‘significant portion’ of the recent investment of Rs 3,500 crore for the same, according to a report by The Economic Times.
“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 told the publication.
Further, the company will apparently be monetising streaming content from Mi Music and Mi Video.
Separately, the Xiaomi MD also said that the hefty investment will also be used to expand the company’s offline presence in the Indian market.