We have recently started acquiring music rights to add to our Eros India Library. We have developed our own music label, Eros Music, to exploit music rights by publishing and distributing Indian film soundtracks and songs. In 2006, Eros Music launched its first release, the soundtrack to the Indian film Omkara. Since then we have released Namastey London, Cheeni Kum and more recently Kambakht Ishq, Love Aaj Kal and Aladin.

While music is used as a tool to promote the release of a film by releasing the music album 6-8 weeks prior to the film's release, it is also an important source of revenue. Music rights are mainly monetised in three different ways: digital rights, physical rights and ancillary rights. Digital rights include mobile ringtones, downloads and wallpapers monetised mainly through telecommunication platforms. We have an arrangement with Virtual Marketing India Private Limited wherein we have a revenue-sharing arrangement that classifies our slate of music and they automatically pay us a minimum guarantee fee for the exploitation of the music rights in these films through telecom and mobile. With the growing number of Value added services ("VAS") and 3G in mobile, we believe digital rights will be an important revenue contributor in the future.

Physical rights involve using our retail distribution network to distribute and sell audio cassettes and CDs, where we sell through organised retail such as Planet M and also work through wholesalers and retailers nationally through our regional sales team.

Ancillary rights involve revenues from licensing songs to radio and television channels to play on their networks, as well as royalties from public performance of these songs when they are played in public places and at events. For example if a song is played at a cricket match we would receive royalties for the same. While we license music content directly to radio and television networks we collect other ancillary revenues from public performances through Phonographic Performance Limited, a body which monitors, collects and distributes royalties to its members.

A key focus for us is to continue developing our music catalogue and exploiting our music content.

We have set up a publishing division to sign up writers, composers and other artists and administer their worldwide publishing rights for a commission. We have signed artists including Pritam, Pyarelal Sharma, Shravan Rathod and Jaidev Kumar.