EROS stock surged 38% on September 19, 2019, after announcing a collaboration with Microsoft (MSFT) to build an online video platform on Microsoft Azure targeted at its consumers around the world.

This is a unique association for Microsoft in India in the online video space. Eros Now will leverage Microsoft Azure for three areas of technology development: Intuitive Online Video Platform; Interactive Voice Offerings and Personalized Recommendation Engine. Commenting on the announcement, Rishika Lulla Singh, CEO- Eros Digital, said, “The Online Video market has brought a paradigm shift in the way technology is used and will be used to enhance the customer journey and user experience. We at Eros Now have been the earliest movers in the adoption of technology which is a core strength of the brand. The objective and the goal of this collaboration is to ensure we become the primary innovators for the video business and a gold standard for the others to follow. We have immense respect for Microsoft as a company to help us innovate and pave the path for the next generation of online video.”

On September 16, 2019, Eros Now, a premier Indian OTT entertainment platform with more than 154 million registered users, announced its partnership with ROKKI, AirAsia’s in-flight WiFi service provider. The partnership will provide access to the on-demand platform’s programming using guests’ own devices while on board WiFi-enabled AirAsia flights. The goal of the alliance is to improve passengers in-flight experience through access to the vast content library of Eros Now.

Powered by ROKKI, AirAsia WiFi will host a variety of Eros Now’s compelling content that guests can watch for free. It will also host a microsite that will enable guests to discover more of the OTT platform’s offerings and purchase discounted subscription plan vouchers on board. The voucher offers one-month access to the OTT platform’s premium content that boasts over 12,000 Bollywood movies, original shows, Quickies, music and other content available on the digital video streaming platform.

Commenting on the partnership, Rishika Lulla Singh, CEO, Eros Digital, said “On-the-go consumers are always on the lookout for interesting content. Our intent has always been to deliver the best of services to meet end users’ demands and expectations. By partnering with ROKKI, AirAsia’s in-flight WiFi provider, we plan to attract the in-flight consumers by offering Eros Now’s vast collection of Bollywood movies which remains to be a popular choice apart from Originals, Quickies and more.”

Sargunan Seenivasan, Head of ROKKI, said, “In line with ROKKI’s continuous efforts to transform the inflight experience through our key offerings – entertainment, connectivity, and e-commerce – our partnership with Eros Now is another step towards creating a dynamic and engaging experience through content-driven commerce. Being able to enjoy Eros Now’s curated content on board and subsequently purchase subscription vouchers takes the experience from inflight to onground seamlessly.”

While revenue is not bad, revenue growth has been difficult for the company to achieve over the last 5 years. Could the Microsoft deal change some of that? Yes. But for now, revenue growth is just not present in Eros International.

EROS stock in the daily time frame shows a possible turnaround play.

We are not adding EROS stock to the GST Portfolio at this time because of management’s lack of ability to create sustained revenue growth. Nevertheless, readers may be able to make short-term profits in the stock.

Disclosure: We do not hold any position in EROS stock.

Eros International In the News