The decision comes just two days before the contest for the television and digital broadcast rights of the hugely popular Indian Premier League, a two-month tournament that usually takes place every April and May.
Amazon had decided not to participate in the tender as the company did not find it a viable option for growth in India, the source said, who requested anonymity as she was not allowed to speak to the media on the matter.
A representative of the Amazon Prime Video online streaming platform did not immediately respond to requests for comment.
The withdrawal leaves the field open to rivals like
Star India owned by Disney, which is a major TV broadcaster in the country, along with Sony and its planned acquisition
paid 163.48 billion rupees ($ 2.1 billion) for the rights through 2022.
IPL bidding rights are seen as the key to growth in India’s booming online streaming market.
It is to them that analysts attribute Disney’s huge advantage over rivals in the cricket-mad subcontinent, attracting over 50 million paid subscribers to its platform, Disney Plus Hotstar.