Shareholders of Eros International has prompted the Bollywood’s biggest studio to focus on building a digital streaming service in India's mobile internet market instead of focusing on making a foray in the television industry.
Initially Eros had a plan for setting up a movie and a music channel involving an investment up to $50 million. It had a plan to takeover the entire Bollywood television network B4U as part of this strategy.
However, now the plans of the company changes after a group of shareholders, led by UK-based Knight Assets & Co, which owns about 3 per cent stake, cautioned against launching traditional television channels. According to Knight Assets, which has 30 per cent share of Bollywood box office, Eros must instead accelerate customer acquisition for its Netflix-style subscription-driven digital platform, ErosNow.
Investors are betting on ErosNow to make it a core business, a potential game changer in the company's stock market valuations, as rising mobile internet penetration would boost entertainment media as much as online shopping. Indian e-commerce leaders and consumer internet startups raised around $5 billion last year at cumulative market valuations topping $35 billion.