Core Strengths



 

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  • GROWING ADDRESSABLE MARKET

    Indian media industry has been one of the fast growing sectors in the economy, on the back of:

    • Young India’s propensity to spend on discretionary entertainment
    • Rising per capita income levels ($442 in FY2003 to $747 in FY2008; CAGR of 7.2%)
    • We believe the growing Media and Entertainment sector and improving technologies like Digital screens, VOD and Blu Ray output formats augur well for Eros

    Strong Growth Drivers

  • VALUABLE & EXPANDING CONTENT LIBRARY

    Valuable and extensive content library of over 3,000 film titles built up over three decades and including ‘blockbusters’ from across the years, renders Eros a distinct competitive advantage. Our film library includes Hindi, Tamil and other regional language content, with diversified, balanced product mix of both co-productions and acquisitions.

    A large library provides us stable, recurring cash flows and de-risks the business model.

    The group follows bundling model for content exploitation that reflects portfolio strategy which allows licensing old catalogue films with new and licensing blockbusters with less successful films. It also gives us the ability to exploit old content on new emerging platforms.

    Apart from the above films, the Group also has a slate of regional films in Marathi & Punjabi as well as Tamil films through its 51% subsidiary Ayngaran and some smaller scale Hindi releases.    		  
     
     
             

    Forthcoming Major Releases Include:

    FILM Starcast & Director Producer Release Date
     
    Will You Marry Me Shreyas Talpade , Rajeev Khandelwal , Tripta Parashar, Mugdha Godse, Muzamil Ibrahim - March 2nd , 2012
    Agent Vinod Saif Ali Khan, Kareena Kapoor Illuminati Films, Eros International March 23rd , 2012
    Housefull 2 Akshay Kumar, John Abraham, Riteish Deshmukh, Shreyas Talpade, Asin, Jacqueline Fernandez, Shazahn Padamsee, Zarine Khan, Mithun Chakraborty, Boman Irani, Rishi Kapoor, Randhir Kapoor, Chunky Pandey (Sajid Khan) Sajid Nadiadwala April 5th, 2012
    Vicky Donor Ayushmann Khurrana, Yami Gautam, Anu Kapoor Sunil Lulla, John Abraham, Ronnie Lahiri, Co-Producer - Ram Mirchandi April 20th, 2012
    KOCHADAIYAAN-The Legend Rajinikanth Soundarya R Ashwin FY2013
    Kunal Kohli - untitled Shahid Kapur, Priyanka Chopra(Kunal Kohli) Kunal Kohli Productions FY2013
    Illuminati Films Production No. 3 Saif Ali Khan, Deepika Padukone (Homi Adjania) Illuminati Films/Next Gen Films FY2013
    Rana (Hindi, Tamil and Telegu) Rajinikanth, Deepika Padukone (K. S. Ravikumar) Ocher Studios/Next Gen Films FY2013
    Tanu Weds Manu Season 2 R. Madhavan, Kangana Ranaut (Anand Rai) Eros FY2013
    Rangeelay (Punjabi) Jimmy Shergill & others (Nananiat Singh) Jimmy Shergill Productions FY2013
    3G Arjun Rampal (Shantanu Ray, Sheershak Anand) Next Gen Films FY2013
    Khiladi 786 Akshay Kumar (Ashish R Mohan) Hari Om Productions FY2013
    Yohan: Adhyayam Ondru Ilayathalapathy Vijay (Gautham Vasudev Menon) Eros International and Photon Kathaas Productions FY2012

  • WIDE DISTRIBUTION NETWORK

    We distribute our new and library films using our in-house distribution platform across three major distribution channels mainly theatrical including multiplex chains and single screens, television syndication including satellite, cable and terrestrial; and digital new media and ancillary including music, mobile, DVD, IPTV, SVOD, in-flight, online and VFX production services; to generate diversified revenue streams.

    Theatrical

    We have a strong in-house global theatrical distribution network through our own offices in all the major markets in India such as Mumbai, Delhi, Punjab and Chennai and internationally in the UK, USA, Dubai, Singapore, Australia and Fiji. We have a 360 degree marketing capability within the Company that is integral to our distribution. Generally we secure substantial advances and minimum guarantees from several theatre chains as part of our de-risking strategy.

    Television syndication

    We directly or indirectly license our new and library content to all the major television networks in India such as Star, Sony, Zee and Colours as well as to networks in international and dubbed markets such as Channel 4, SABC, SBS and RTL. In the context of growing demand for premium television content, we have been successful in pre-selling a large proportion of the future slate to secure visibility of revenues that underwrite asignificant part of slate costs.

    Digital new media and ancillary

    Digital new media has been a strong area of growth as music monetisation grows through digital avenues such as online and mobile. Our ad-monetised YouTube channels which have crossed a billion video views and our Comcast subscription VOD model is replicated on other cable platforms around the world. As consumption habits of consumers change, the digital arena is a major area of growth, focus and opportunity for the Company where we have unique advantages as a result of new releases and library content.

    Music and music publishing

    Strong performance driven by pre-sales of music rights within India continues to mitigate risk in the financing of film productions.

  • DIVERSIFICATION INTO TAMIL AND REGIONAL LANGUAGE FILMS

    Tamil Films: Ayngaran   Other Regional Language Films
     
    • Acquired 51% stake with effect from 2008
    • Investment intended to accelerate Ayngaran’s growth and consolidation of Tamil film market
    • Ayngaran is an established player in Tamil content and distribution business
    • Catalogue of over 600 films including “Alaipayuthey”,“Kandukondain Kandukondain”
    • Presence in other select regional language film markets
    • Marathi
    • Punjabi
    • Distribution of “Mee Shivaji Raje Bhosle Boltoy”

  • OUR BUSINESS MODEL

    • Sourcing Content

      The success of our business lies in our ability to leverage our relationships with the creative film industry and talent and acquire and co-produce compelling content. Each year we secure distribution or intellectual property rights to a diverse portfolio of over 75 films, mainly 10-20 mainstream Hindi and the rest regional language films such as Tamil, Marathi and Punjabi.
      Over the years, we have consciously increased our focus on high and mid budget Hindi films because better production values and high profile stars attract larger audiences and higher appeal for television and digital licensing which allows us to utilise a pre-sale strategy to mitigate production risk.
      Typical acquisition arrangement

      • Early acquisition of film at a negotiated price
      • 15-20 year rights
      • First position recoupment of entire minimum guarantee price, followed by all print and advertising costs, followed by a 20% fixed profit on all gross revenues and the remaining profit is shared in pre-agreed ratio

      Typical co-production arrangement

      • Pre-agree budget, star cast,script with co-producer
      • Intellectual property rights in perpetuity
      • Agree fixed production fee and over-budget cap
      • First position recoupment of entire Investment, followed by all print and advertising costs, followed by a 20% fixed profit on all gross revenues and the remaining profit is shared in pre-agreed ratio

    • Distribution Formats

      We distribute our new and library films using our in-house distribution platform across three major distribution channels mainly theatrical including multiplex chains and single screens, television syndication including satellite, cable and terrestrial; and digital new media and ancillary including music, mobile, DVD, IPTV, SVOD, in-flight, online and VFX production services; to generate diversified revenue streams.

      Theatrical

      We have a strong in-house global theatrical distribution network through our own offices in all the major markets in India such as Mumbai, Delhi, Punjab and Chennai and internationally in the UK, USA, Dubai, Singapore, Australia and Fiji. We have a 360 degree marketing capability within the Company that is integral to our distribution. Generally we secure substantial advances and minimum guarantees from several theatre chains as part of our de-risking strategy.

      Television syndication

      We directly or indirectly license our new and library content to all the major television networks in India such as Star, Sony, Zee and Colours as well as to networks in international and dubbed markets such as Channel 4, SABC, SBS and RTL. In the context of growing demand for premium television content, we have been successful in pre-selling a large proportion of the future slate to secure visibility of revenues that underwrite asignificant part of slate costs.

      Digital new media and ancillary

      Digital new media has been a strong area of growth as music monetisation grows through digital avenues such as online and mobile. Our ad-monetised YouTube channels which have crossed a billion video views and our Comcast subscription VOD model is replicated on other cable platforms around the world. As consumption habits of consumers change, the digital arena is a major area of growth, focus and opportunity for the Company where we have unique advantages as a result of new releases and library content.

      Music and music publishing

      Strong performance driven by pre-sales of music rights within India continues to mitigate risk in the financing of film productions.

    • Distribution Territories

      Our content is primarily distributed to the 1.2 billion people in India as well as audiences in over 50 countries internationally including the expatriate South Asian populations concentrated in countries such as the UK, USA, Canada, Dubai, South Africa, Australia and Singapore as well as markets that consume dubbed and subtitled Indian films such as Europe, South East Asia and the Middle East.