Eros Group, a leading movie production house in India, is in talks with Apple Inc. and several other prominent content distributors to sell its entire content library, mainly consisting of films and music. This was revealed on August 7, 2017 by various sources keeping a close tab on ongoing negotiations. Other key players include Amazon.com, Inc. and Netflix.
The entire deal is expected to be valued at around US$1 billion, familiar sources disclosed recently. The deal may also include the selling of Eros’ digital over-the-top (OTT) platform, Eros Now, housed by Eros PLC. The content library contains more than 3000 films produced in India with Eros India being the key operating company behind the content creation.
Eros’ Digital Over-The-Top (OTT) Platform Vital Part of Negotiation
The bagging of the rights for Eros Now is a key focus of several entertainment conglomerates, telecommunication companies, providers of digital OTT, and media houses. OTT platforms enable subscribers to view films and access TV content using the internet without being tied to any traditional cable package or satellite-TV service provider. Eros Now possesses rights to more than 10,000 films, out of which 5000 are largely owned by Eros’s internal library.
Eros is expectedly being advised by JM Financial. Since the deal is in a very early stage, spokesperson from either Eros or Apple declined to share the details of the deal. However, with speculations being rife, an announcement is awaited in the coming days.
Eros intends to keep more than 50% of the rights it presently owns until December 31, 2025. If the deal materializes, this is likely to up the ante for global OTT providers hoping to capture a share in the India OTT market in the coming years. According to analysts, Eros has been under a severe liquidity crunch for quite some time. As revealed in a recent investor call, the company has decided to shift from large-scale acquisitions to focus on co-productions to ease this concern.