The Strategist

Silicon Valley giants to buy 3 thousand Indian movies

08/08/2017 - 17:32

Apple, Amazon and Netflix are negotiating purchase of a film library of one of the leading Bollywood studios, Eros International. According to Reuters, the future deal will include purchase of 3 thousand movies of the film company. Volume of the contract can reach $ 1 billion.

One of the leading Indian film studios, Eros International, is negotiating with three American hi-tech companies (Apple, Amazon and Netflix) about selling 3,000 movies. The deal could be worth $ 1 billion. Reuters news agency and Indian newsmaker The Economic Times were the first to report on the talks, referring to its own sources. The subject of the deal is reportedly to be the digital service Eros Now, which owns the rights to demonstrate more than 5 thousand films and 250 thousand audio records in most of the languages of India. Representatives of Eros Now say that the platform currently has 55 million registered users both in India and abroad.

Experts note that the deal will be particularly beneficial to Amazon or Netflix, which have already launched their own streaming services in India.

As reported by Reuters, Eros has been more or less actively engaged in the search for potential partners six months ago and even negotiated with major Indian and international companies such as Sony, Zee and Viacom. Nevertheless, these negotiations were unsuccessful.

Representatives of the American companies declined to comment on the reports, and Eros International Media Ltd itself reported that "it is engaged in any strategic negotiations conducted by our parent company ... Eros International Plc with various potential partners."

After the reports, Eros’ shares rose by 16%.