The platform also allows users to choose a specific section of the tune or video to send from sources like YouTube and SoundCloud. In addition, PingTune enables artists to create and own official profiles so that they can interact and deliver content directly to fans. Eros says that the acquisition will strengthen its digital platform and will be part of its Eros Digital subsidiary. “Music plays an incredibly important role in Bollywood films. We believe our acquisition of PingTune extends our already robust music offering, and is an excellent addition to the ErosNow platform,” Rishika Lulla Singh, CEO of Eros Digital said in a press statement.
PingTune (formerly known as Tuneit) had raised $1.6 million seed funding in 2013 from Rupert Hambro (former Chairman of Hambros Bank) and Dominic Perks (serial entrepreneur and active investor). At the time, PingTune had said that it would move its business model eventually to selling Mp3s and other music-related items.
It’s also worth noting that Eros tied up with messaging platform WeChat in June and as part of the deal, it allowed WeChat users to listen to music, watch videos and get Bollywood gossip and news through its official channel.
Eros Digital strategy
Following investor calls to focus on their digital platform in June, Eros has been beefing up its digital offerings. The company also canned its television network plans. The company had earmarked an investment of $50 million in 2012 to set up a movie and music channel and as part of the strategy was looking to buy Bollywood television network B4U.
In July, Eros announced that it would produce three original shows which would be streamed on its video on demand platform Eros Now. It also mentioned that Eros Now would premiere some of its recent Bollywood releases on the digital platform first and then on TV. At the same time, Eros has tied up with Anil Kapoor Film Company to co-produce an Indian adaptation of a popular international sitcom.
For the quarter ended June 30, the company reported a net profit of Rs 53.4 crore growing 48.9% year-on-year. On a sequential basis, net profit increased 3.29% from 51.7 crore in the preceding quarter. The company’s total revenues stood at Rs 480.6 crore which was up 96.5% from Rs 244.6 crore in the same quarter last year. Total revenues grew 3.22% from Rs 465.6 crore from the previous quarter.