This year's strong financial performance was underpinned by the box office success of "Housefull", "Dabangg" and "Golmaal 3". Dabangg ranked as No.1 in the Hindi box office charts this year, with Golmaal 3 at 2, Housefull at 4 and Veer at 9*. Regional success was led by the Tamil blockbuster film Endhiran which set new box office records.

	2011 US$'000	2010 US$'000	Change US$’000	Change %
India	108,339	96,221	12,118	12.6
Europe	21,787	19,420	2,367	12.2
North America	8,617	8,094	523	6.5
Rest of World	25,870	25,994	(124)	(0.5)
Total	164,613	149,729	(14,884)	9.9

Following on from the successful IPO of its Indian subsidiary, Eros International Media Ltd, in October 2010, Eros has continued to enhance the strength and mix of its film slate giving it full visibility over releases for the next two years as well as augmenting the catalogue. It is envisaged that the 2011/12 film slate will include an increased number of “blockbuster” releases such as “Ready”, “Murder 2”, “Zindagi Na Milenge Dobara”, “Mausam”, “Rockstar”, “Desi Boyz”, “Agent Vinod”, and "RA One" to name a few. Our recent marketing efforts at the Cannes Film Festival are expected to open a few new markets for these films such as Taiwan and China which will then potentially unlock the value of the film library in those markets in the future.  

Our digital distribution platform is primarily comprised of SVOD, IPTV, mobile and online services. In North America, we have a relationship with International Networks, a subsidiary of Comcast, to provide an exclusive SVOD service called "Bollywood Hits On Demand". The service is now carried on Cox, Rogers, Cablevison and Time Warner. Elsewhere internationally, we provide content to OnDemand for VOD services it provides in the UK and the Middle East, as well as various other platforms such as Singtel.

Our ad-monetised Eros channel on YouTube has received over one billion video views since it launched in 2008, and now achieves over 70 million a month.

We are also one of the largest licensors of Indian film entertainment to a number of key airlines, including Air India, Jet Airways, British Airways, Delta, Emirates and Kingfisher. We license content to IPTV networks around the world such as Netflix, Hulu, Vudu and Aksh.

We distribute and license content throughout the world on Blu-ray and DVDs, through major retail chains (such as Wal-Mart, Asda and Planet-M) and internet platforms such as Amazon, as well as supplying local wholesalers and retailers. We also license third party distributors internationally to provide content dubbed into local languages for consumption by non-south Asian audiences. In India we also engage in corporate bundling sales for DVDs.

Music is integral to our films, and we not only have an Eros music label to directly monetise the music revenues but also create third party licences for the same. The major music revenues are derived from mobile rights, MP3 tracks, sold via third party platforms such as iTunes and Napster, as well as streaming services such as Spotify and Radio digital streaming, physical CDs and publishing/master rights licensing to radio and television channels in India, music synchronization rights and royalties from public performance.

As part of our focus on expanding our music publishing revenues, Eros Music Publishing Limited has signed reciprocal agreements with EMI Music Publishing Ltd, or EMI, where EMI acts as the exclusive sub-publisher for us outside of South Asia, and we represent EMI's catalogue as exclusive sub-publisher of such catalogue within India.

These agreements are aimed to maximise both parties' music publishing revenues in the two different markets. Through the relationship with EMI, we have entered into notable synchronisation licenses for the NBC US comedy series Outsourced, where a number of music tracks have been utilised, and in Caminho Das Indias produced by TV Globo in Brazil, which used an Eros music track as its theme song.

In response to the increased use of animation and visual special effects in films made both within and outside of India, in 2007 we formed EyeQube, a VFX studio headquartered in Mumbai in collaboration with internationally renowned Charles Darby. EyeQube offers services that cover the entire life cycle of VFX, from the initial development, production planning and supervision services to the final delivery of the VFX shots.

EyeQube permits us to create high-end visual effects for our own co-productions as well as Hollywood productions. Among recent projects, EyeQube is working with Red Chillies Entertainment on the high profile film Ra.One, the much-awaited Diwali release of 2011/12. Additionally, EyeQube's reach has extended to regional language films, including the hugely anticipated release of Rajnikant's Rana.

We believe the rise of internet services in India will be heavily influenced by the availability of mobile broadband.

The growth in broadband and 3G technology also indicates a growing market to consume music as well as film content. Eros is currently pioneering an online strategy to launch India's first multiplatform model which will enable consumers around the world to access old, new and original exclusive content. We will work to replicate the Comcast model SVOD service on other platforms and markets around the world.

We expect to add to our monetising YouTube service in the near future. We intend to add an additional layer of pay per view and premium content subscription services, where we will participate as a major content partner.

We have invested in DAM (Digital Asset Management) a system for digitising, storing, cataloguing, retrieving, encoding, transcoding and publishing our content centrally to any platform in the world. Monetising existing content through digital platforms worldwide and creating original short form film based content for digital distribution worldwide will be a major area of focus for the Company.