Eros International inks Rs 640 million multi-film TV syndication deal with Zee

MUMBAI: Eros International Media has inked a multi-film content licensing deal worth Rs 640 million (Rs 64 crore) for exclusive broadcasting of certain movies across Zee Entertainment’s television network.

This takes the cumulative revenue visibility from pre sales of music & television rights of new & catalogue films for FY2011 and FY2012 to Rs 2.40 billion (Rs. 240 crore).

The company has been successful in creating a de-risked business model by sourcing content through co-production deals, regional diversifications and enhancing revenue predictability by pre-selling to satellite networks as well as music licensing and exploiting films on other formats through Eros International’s extensive distribution network. The Rs 2.40 biliion television and music syndication deals will start augmenting revenues and deliver earnings that have attractive margins in FY2011 and FY2012.

The deals concluded encompass a selection of catalogue films from Eros International’s content library including recent blockbuster releases and yet to be released titles.

3 Idiots along with some catalogue films have been licensed for exclusive broadcast on Sony Entertainment Television, The Akshay Kumar-John Abraham starrer Desi Boys, the Saif Ali Khan starrer Agent Vinod, the comic caper No Problem and some other films have been licensed for exclusive broadcast on Zee Network, Ranbir Kapoor – Priyanka Chopra’s recently released Anjaana Anjaani, Shah Rukh Khan’s RA.One, Ranbir Kapoor – Imtiaz Ali’s Rockstar and a set of other films have been licensed for broadcast on Star Network.

Eros International had also announced a deal with T-Series for music rights where the two companies joined hands on the music side for a select slate of films, Anjaana Anjaani being the first to be released under that initiative.

Eros International Media managing director Sunil Lulla said, “It gives us immense pleasure to be associated with leading players in the Indian media domain. We have a well diversified business model which enables us to minimize risk through exploitation of growth opportunities provided through multiple sources of media platforms. Hence we aim at tapping the opportunities offered in television and music syndication through licensing and pre-selling our strong catalogue, thus contributing towards our performance. This pro-active marketing strategy will be beneficial for the channels to further strengthen their viewership and at the same time ensure successful monetization of content for us, thus making it a win-win situation for all.”