Eros in Discussion with Apple to Sell its Music and Films Library

Published By : 07 Aug 2017 | Published By : QYRESEARCH

Eros Group, the leading Indian movie producer, is having a discussion with Apple Inc., the telecom giant, for selling its entire library of music and films for nearly US$1 bn. The deal is also expected to include, Eros Now, the digital OTT platform of Eros, described as the Netflix of Bollywood. A parallel discussion with the rival media and technology firms, including Netflix and Amazon, has also gained momentum as the company is all set to get on a massive overhaul, which is anticipated to lead to a reverse merger of its NYSE listed parent company, Eros International Plc., into its domestically listed subsidiary unit, Eros International Media by this fiscal year in order to create a single listed enterprise.

Experts are considering this move as an attempt to soothe the nerves of investors, which has been in distress since 2005 frequently over several allegations of non-transparent transactions, corporate misgovernance, fraud, and financial malpractices. However, Eros has always denied these allegations. The Indian listed entity of Eros is a subsidiary of Eros Plc., which owns a hare of approximately 73% in Eros India. The overseas distribution of the movies is managed by Eros Plc. while Eros India is mainly responsible for the content creation. If the deal is successful, the content library of Eros India, that include more than 3000 Indian films, comprising Bollywood and regional movies both, would provide any potential suitor an invincible access to the premier entertainment content as the war over video and music streaming intensifies between telcos, media and entertainment corporates, standalone service providers, and digital OTT enterprises.

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