Eros Now, the digital streaming platform from Eros International, now has 58 million registered users and over 2 million paying users. The registered users include users from across the world from WAP, web and app.

The company now has a definition of what a paid user is.

Paying subscribers means any subscriber who has made a valid payment to subscribe to a service that includes the Eros Now service either as part of a bundle or on a standalone basis, either directly or indirectly through a telecom operator or OEM in any given month be it through a daily, weekly or monthly billing pack, as long as the validity of the pack is for at least one month.

Eros now has tie-ups with 20 telecom operators. For example, it’s deal with Idea is also a platform deal where the telecom operator will allow Idea 4G customers to watch movies, originals and short form videos at Rs 49 per month, while its partnership with telecom operators, Ooredoo in Kuwait and Qatar, and Du in the UAE, are for mobile billing integration.

It also digitally premiered 15 films on the app from its release slate.

With this, Eros reported digital and ancillary revenues of $17.22 million for the quarter ended December 2016 (Q3Fy17). This was a decline of 22.5% from $22.2 million in the same quarter.

Last quarter, Eros Now had set a 5-year target of at least 15-20 million subscribers worldwide with a blended annual ARPU of $5 from India and $30 internationally with 80% of the target subscribers from India and the remaining 20% internationally.

The digital businesses also includes YouTube channel, and more significantly, it’s distribution via cable based VoD services called “Bollywood Hits On Demand” with Cox, Rogers, Cablevision and Time Warner, apart from services in the UK and the Middle East.

Financials: Overall revenues decreased 5.3% to $57.35 million for the quarter, from $60.45 million revenues in the same quarter last year. Net profit stood at $11.48 million for the quarter, compared to the loss of $2.43 million in the same quarter last year.

Theatrical revenues:  Theatrical revenues decreased by 22.9% to $19.9 million from $25.8 million for the three months ended December 31, 2015, mainly due to no high budget films. The adverse impact of Rupee demonetisation by the Indian government in November 2016 resulting in decreased footfalls in cinemas in India. Note that these revenues are significantly dependent on the number of film releases in a quarter.

Television syndication revenues: Revenues from television syndication increased by 61.6% to $20.2 million from $12.5 million for the three months ended December 31, 2016, mainly due to a significant contribution from catalogue sales while in the comparable quarter in 2015.

Regional segmentation of revenues
India: For the quarter, revenues decreased by 42.4% to $19.6 million in the three months ended December 31, 2016, compared to $34 million in the three months ended December 31, 2015 mainly due to the negative impact of the rupee demonetisation on cinema footfalls.
North America: Revenue from North America decreased by 85.4% to $0.6 million in the quarter, compared to $4.1 million in the same period last year. This was on account of relatively lower theatrical revenues from the film slate and lower catalogue revenues.
Europe: Revenue from Europe decreased by 6.3% to $5.9 million compared to $6.3 million in the same quarter last year.

Download: Financials