Mumbai: Eros International is investing $25 million, or about Rs 160 crore, in developing original content for its fully-owned online channel ErosNow.
It may be noted that the promoters of digital content platform nxtGTV had confirmed their plans of investing 250 Crore to create original content for their platform that includes content such as celebrity mobiles series produced exclusively for mobile audience.
Jyoti Deshpande, Group CEO and Managing Director of Eros International said, “Original content is the way forward”.
In India for the official marketing launch of ErosNow, Deshpande refused to comment on recent media reports that two of Eros International’s top shareholders, Temasek and Fullerton Fund Management, were in talks to acquire up to 10 per cent stake in ErosNow.
A couple of people close to the NYSE-listed company is ready to dilute up to 10 per cent stake in the online channel and, according to media analysts, it could fetch up to Rs 500 crore.
Jyoti Deshpande said, “We are poised to take advantage of the briskly growing broadband penetration and the imminent launch of 4G technology to reach out to the potential audience offered by close to a billion mobile connections.”
Also, a huge upsurge is expected in advertising spend on the digital platform. A Goldman Sachs report predicted it to touch $2.7 billion by 2020.
“As consumption patterns change globally, Internet entertainment networks have begun to replace traditional, linear television,” Deshpande said. “With the strength of our vast content library, Eros will reinvent itself from a film studio to a more consumer facing content and digital company in the next phase of growth,” added Deshpande.