Eros Now has one of the largest libraries of local and regional language content in the Indian marketplace. A third-party valuation that was done in February, 2020 (accordingly, not giving effect to any benefit or detriment in value attributable to COVID) by one of the market leaders providing global valuation services resulted in a valuation of approximately $1 billion for the Eros library.
Eros Now has a large and growing number of both paid subscribers and registered users. As of June 30, 2020, Eros Now reached 33.8 million paid monthly subscribers and 205.8 million registered users, increases of 60% and 24%, respectively, over the same period last year. While the total revenues generated from Eros Now, and the individual average revenue per user, still have room to grow, they remain, one of the top players in the digital OTT streaming space in India.
With the recent merger of Eros Now with STX, the content running through the Eros Now Prime platform, as well as the ultra-premium co-production content, the brand is producing with some of the largest global players like Amazon and Netflix, laying the groundwork for a massive opportunity.
STX has consistently been leading the innovation in Hollywood to a cost-effective model for both the production and distribution of feature film content. What initially began as an effort to produce feature films at a significantly lower price point, and then to utilize an innovative financing structure to cover approximately 50-70% of the cost of our feature films through a combination of international minimum guarantees and production and tax incentives, has recently expanded to a point where STX has been able to spend dramatically less than its competition in marketing theatrical releases for comparable films. That has meant substantially less risk in each film produced, significantly greater profit potential on each film in success with a far higher return on invested capital for successful films relative to our competitors producing similar movies.
