EROS stock is moving up on Monday after Eros International plc (NYSE:EROS) reached a deal to support Dolby Technology (NYSE:DLB) in its streaming platform.
Video streaming is an industry that has exploded in the past few years, and 2019 is clearly turning out to be a particularly eventful year, with many new platforms being launched. One of the little known but premier OTT platforms is Eros Now, which belongs to the India-based company Eros International.
In a new development, the company announced that its shows will now be available for streaming in Dolby Atmos® immersive audio and Dolby Vision® ultra-vivid imaging technology for some content on the platform. Among the select content on the platform that is going to be available in those formats are the original shows that have been created by Eros.
The timing of the announcement is opportune since the Diwali festive season has already begun, and viewers will be able to enjoy top-of-the-line Bollywood films on Eros. The Chief Executive Officer of Eros Now, Ali Hussein, stated, “We are delighted to partner with Dolby to bring quality content and technology within the premises of all our subscribers across the world. Eros Now is India’s first true Subscription VOD OTT platform and we will continue to invest in superb content and technology.”
EROS stock is up 17% at $2.06.
The company is likely expecting a bump in subscribers due to this development, and it remains to be seen whether it gets a spike during Diwali or not.
Poor Quarterly Results
This move is probably instigated by the fact that Eros International missed its estimates in the first-quarter financial results earlier this month. The company’s earnings were pegged at only 2 cents a share, and that’s a long way off from analysts’ estimates of 12 cents a share.
The quarterly sales failed to meet estimates, as well. Analysts had expected total sales to be $55.74 million on average, but Eros generated sales of only $43.5 million. This reflects a 27.7% drop from the sales figures in the same quarter last year.
EROS stock is down over 75% year-to-date.
Featured image: DepositPhotos © AndreyPopov