India`s Eros in early talks with Apple, others to sell content library: source

MUMBAI (Reuters) – Indian movie production house Eros Group is in preliminary talks with Apple and other major content distributors to sell its entire content library of films and music, a source familiar with the matter told Reuters on Monday.

The other parties in the fray include Amazon and Netflix, but talks are in very early stages, said the source, who declined to be named as the discussions are private.

India’s Economic Times reported the talks earlier in the day. The newspaper, which cited multiple sources familiar with the matter, said the deal could be worth around $1 billion.

Eros Group, whose Eros International Plc is listed in New York, and Netflix were not immediately reachable for comment.

Apple said it does not comment on speculation, while a spokeswoman for Amazon also said “the company does not comment on rumor and speculation”.

Amazon and Netflix have been pushing especially hard to make inroads into the burgeoning Indian content streaming market, and have bulked up their Bollywood offerings significantly in a bid to lure new subscribers.

The deal may include Eros’ digital over-the-top (OTT) platform, Eros Now, the Economic Times report said. With OTT platforms, subscribers can view films and TV content via the internet, without having to sign up with a traditional cable or satellite-TV service provider. (bit.ly/2vvW1Dg)

JM Financial is advising Eros on the deal, the report added.

Shares of the India-listed Eros International Media rose as much as 9 percent in early trading on the National Stock Exchange to their highest since July 31. The stock was up 5 percent at 220.85 rupees ($3.47) at 0600 GMT.