It’s 5.30PM on Thursday, 23 August, but the offices of film production house Eros International in Andheri, Mumbai, are buzzing with activity. Meetings are still being held. Calls are being made. Tea is being served. This is unusual in Mumbai, where most office-going people leave their desks at this time to avoid the rush hour. But today isn’t business as usual. Eros is announcing its financial results to the Nasdaq Stock Exchange the following day.
Buffering business models
Streaming services and telcos: A match made in heaven…for now
At the moment, telecom companies are bundling streaming services such as Eros Now and Netflix with data packs. This drives data consumption for telcos and helps streaming platforms gain viewers. But the current arrangement isn’t sustainable. How will it evolve?
Eros and other video streaming platforms are growing their paid subscriber base through partnerships with telecom operators
Eros, for example, grew its paid subscriber base from 100,000 to 10.1 million in the past three years
Currently, it is a symbiotic relationship where video streaming is increasing data consumption and telcos cover the costs
But newer business models have to emerge as this honeymoon period won't last forever