Eros International is one of the most recognized film organizations in the world; its logo for instance is seen on millions of movie posters, DVDs and blue ray jackets, on billboards, across television screens, electronically and in cyberspace. In 2012 the company was recognized as ‘The Best Under a Billion’ companies in Forbes Asia.  In 2014 its Executive Chairman, Kishore Lulla is honored with the Global Citizenship Award by AJC (American Jewish Council). Over the years, AJC has paid tribute to leaders who share its values and vision.  Past AJC honorees include Michael Bloomberg, Ted Turner, John Paulson, Clint Eastwood, Jeffrey Katzenberg, and Steven Spielberg to name a few.  The South Asian News interviews Kishore Lulla, Executive Chairman of Eros International Limited.

Eros International is today the most respected Indian film entertainment company worldwide.   How did it all start out with your Dad Arjan Lulla 37 years ago?

Eros started out as a distribution company across Mumbai and London. The company was founded by Dad in 1977 to export Indian films to the world. He was a thinker ahead of the times because he tapped into a market which was practically non-existent. The overseas market is now, as you know, a crucial territory he practically predicted the potential of acquiring overseas rights of films to cater to NRI audiences globally. It is this pre-emptive thinking which puts Eros International ahead of the pack and that is the governing spirit and philosophy for us. In the process, he gave India one of its most significant exports – Bollywood! He was conferred the Dadasaheb Phalke award in 2009 for the globalization of Indian cinema and his risk taking abilities among other things and that has been a huge influence on me. True to his indefatigable spirit, he continues to be an active participant and provides us with his supervision and guidance.

How old were you when you took on the role of heading Eros International? And what are the major initiatives you’ve taken to make your organization a household name the world over?

I’m the eldest of four siblings and was initiated into the family business while still in college over three decades ago. For me, the family business was the only way of life and the only thing I really wanted to do. I would attend classes and then work along with dad after classes, helping with everything – right from delivering films to selling rights etc. I realized even then that the Indian film business had the potential to become a global phenomenon.

The foundation of Eros’ business is built on a number of pioneering efforts and innovations. We started our journey to build a global distribution network in the 70s and took to the VHS format. The first buyers were incredibly from Israel, an unlikely market for Indian films even then! Today, we are effectively distributing over 70 Indian films in over 50 countries in 25 different languages, both dubbed and subtitled. Our tie-ups with leading cable companies like Comcast, Time Warner Cable and many others were also a result of our efforts to reach our target audiences.

In 2006, Eros was first listed on the AIM market in the UK and subsequently in India in 2010. In 2013, Eros became the first Indian Media & Entertainment Company to be listed on the New York Stock Exchange. We have always tried to explore new avenues and in 2012, realizing the potential of digital; we launched ErosNow, the company’s on-demand entertainment platform providing the very best of Indian entertainment – movies, television and music to consumers worldwide.

You are often referred to as a visionary for Indian cinema and often emulated by peers such as Yash Chopra films, Dharma Productions and the UTV group.  What do you have to say about this?

We have had the advantage of realizing the export potential of Bollywood.  We are pleased that the industry as a whole benefitted from our strategy. This is a relationship driven business and Eros has ongoing and fabulous relationships with talent, producers, distributors and multiplex owners. We are all growing players in an evolving market and our larger goal will always be to build the Indian entertainment industry exponentially.

Talk to us about shareholders, stakeholders, the board, the value of your organization, and the future for investors

In November 2013, Eros became the first Indian Media and Entertainment Company to be listed on the NYSE.  While we have come a long way, the future looks extremely exciting for us.  As India becomes the world’s fastest growing economy, we have an opportunity to create a globally relevant company in the years to come. As we widen and deepen content creation and distribution, there is more work to be done in building on the crossover appeal of Indian movies. We’ve only just seen the beginning of that trend. We are fortunate to have the guidance of an outstanding Board of Directors, amongst others, including David Maisel, who was Chairman of Marvel Studios and has been a part of building the “Angry Birds” and “Iron Man” franchises and also Rajeev Misra, who is Head of Strategic Finance Group for SoftBank Group.

Investors who have reposed faith in us include globally respected names such as Capital Research, Temasek, Blackrock, TIAA-CREF and many more who have a reputation for long term commitment to the companies they invest in. Along with such faith comes a high degree of responsibility and the management team at Eros is fully focussed on making an exciting future happen for its stakeholders from the current market capitalization of the company that is about USD 1billion.

What are your plans for ErosNow? Do you think digital media and cell phones are the projection devices for new cinema?

Absolutely, digital is the future of entertainment. New cinema is screen agnostic. We launched ErosNow to engage a new digital generation of South Asians globally. It is an online entertainment service similar to the Netflix model, specializing in South Asian content and offers a selection of hit movies, music videos, audio tracks and original television programming. It is the one stop to cater to all your entertainment needs. We are possessive about our consumer and want to ensure that he or she does not feel the need to visit any other platform!  That really is the core proposition of ErosNow.  As a brand of Eros International, ErosNow has full access to the largest digitized Bollywood film library, apart from film content by other Indian studios like UTV and Viacom as well as television content by Zee and Sony.

For those of us who are unaware of the Business of Cinema, can you give us a low-down on how the process works?

Like any other business, filmmaking is about getting the processes right, maximizing earning potential of existing markets and aggressive detection of new potential revenue streams. It is also a changing, evolving model, so you have to constantly reinvent. Right from the genesis of a story idea to script development, to getting the right director and cast in place and even as the film is in progress, we would have already cracked the marketing campaign which will work for the positioning of the film.  Once that campaign is locked, it’s about execution till the day of release and sustaining the film through the correct distribution plan. Everything is monetised from music, to clips, to in-film, to satellite to ring tones. Today, the first week of a film’s release matters the most, as almost 60 to 70% of theatrical revenues come from week one.  But finally, if you can get the content right, that becomes your most pivotal strategy. The film’s lifetime increases exponentially with good word of mouth. However much your business model changes, some things don’t go out of fashion – like good, compelling storytelling!

Eros International seems to be extremely savvy in areas of taking on the distribution rights of blockbusters (A-grade stars, multi-million dollar budgets).  We’ve never seen the small or mid-sized budget film make it on your list. 

That’s where you are mistaken. Last year two consecutive successes – Badlapur and NH10 are classic examples of content driven cinema which were produced, marketed and distributed by Eros, not to forget predecessors like Vicky Donor and English Vinglish. Can you call any of these safe crowd pleasers? Which is not to say we will not produce the mass entertainer; a good, robust model is a mix of blockbuster big ticket films as well as films which creatively push the envelop like ‘Tanu Weds Manu Returns’, ‘Bajrangi Bhaijaan’, ‘Dil Dhadakne Do’ and ‘Bajirao Mastani’.

What is your take on the present day Indian film industry? 

The industry has a new creative energy where talent (stars and directors) are understanding and appreciating the need to work in conjunction with the studio and participate in the whole commercial process. They are willing to go the extra mile to control budgets and making films more viable and profitable for the studio as well as themselves, thereby a win-win situation for both. Eros was one of the first studios in India to encourage this model of co-productions inviting talent participation in the film monetization process.

Which are your favourite films? 

I don’t want to come up with a specific list. I enjoy all kinds of cinema and across genres; it could be Sholay, Kagaz Ke Phool or Kuch Kuch Hota Hai. What is exciting me presently, not just as someone who makes films, but as a viewer, is the diversity in content that our industry is now showing. Look at Badlapur, it completely pushed the envelope on what a conventional hero is expected to do; or look at Queen – about a girl not looking for marriage or love. Within the realms of commercial cinema, this kind of inventiveness is exciting. Among the super commercial entertainers, PK showed how big budgets can be molded in with a thinking message. I also enjoy films that are just out and out entertainers, which give the audience the unabashed joy of pure Bollywood.

Jude Paul Fernandes/jude@thesouthasiannews.com