Eros STX Global Corporation (NYSE: ESGC) jumped 12.8% after its entertainment platform Eros Now and Xfinite announced the expansion of their collaboration regarding the Mzaalo platform. Mzaalo is a gamified streaming platform expected to attain ten million subscribers by the end of 2021.
Eros Now partners with Mzaalo platform
The partnership expands Eros Now’s coverage in advertising video-on-demand (AVOD) while at the same enabling Eros Now to establish its main subscription video on demand (SVOD) offering. AVOD is a fast-developing segment of India’s streaming market which is showing massive growth potential. The partnership will add to the already available 25 premium TV streams and the VOD platforms, with plans to increase content providers to 200 in the future. Considering Xfinite’s creative business strategy, the arrangement validates ErosSTX position in digital asset growth including blockchain tech usage. Since Xfinite picked the scalable blockchain for its fast adoption, Algorand will be the main blockchain infrastructure.
Regarding the partnership, Ero Now CEO Ali Hussein said that complete monetization of the Eros Now platform is one of the company’s strategic imperatives. He said the plan includes expanding into advertisement-supported streaming, which the Mzaalo agreement does. In addition, there is a monetization opportunity of the over 224 million Eros Now subscribers.
Mzaalo brings premium content to consumers
Mzaalo joins the Eros Now ecosystem of distribution partners, including Bharti Airtel, Vodafone Idea, BSNL, Tata Sky, Apple, Amazon, and Roku. Hussein added that as Mzaalo grows, the partnership will help provide ErosSTX with an appropriate combination of fixed and guaranteed cash payments with variable revenue participation.
As a decentralized application (dApp), Mzaalo is based on Algorand blockchain that runs a gamified streaming service with over 15,000 hours of premium content. Consumers can have free access to premium content from Eros Now thanks to the Mzaalo dApp.