Eros Crime (German Edition)
It is true that whereas Kleist embarks on his headlong descent without ambiguity and never deviating from his single track, Goethe, in appearing to tone down the subject, could be said to allow escape routes into potential interpretations: And where Kleist's manner is shrill, exacerbated and over-excited, Goethe lulls us with his wealth of verbal melody and his air of the serene wisdom of old age, thus diverting us from the terrible object of fascination that occupies his mind as it did Kleist's: Richard Wagner was less bashful about it. Twilight reigns even in the first bar of the overture.
In the first act a deadly potion is offered and turns out to be a love philtre; in the second, the night of love turns out to be an hour of dedication to the "longing for death in love" - the "Liebestod" - but not discreetly, as in Goethe's "strange sensation" felt by candlelight, but with jubilation, rejoicing and triumph - very much in the spirit of Kleist although, as befits an opera, in much simpler language. And in the last act all is at stake: She is only briefly irritated by his failure to pay proper attention to the timing and arrive too soon; then "she gazes at Tristan's body with increasing rapture" and delivers the longest orgasm in musical history about seven and a half minutes before falling dead in his arms in her own turn.
Kleist took less time about it on November 21 , on a height by the banks of the Kleiner Wannsee near Potsdam. A waitress at the nearby inn told the police who questioned her that she had taken "fifty paces" after hearing the first shot, and was still thinking, "Those strangers! Fooling about with a gun! That means that there must have been less than a minute between them. He needed that time to make sure that his companion - one hesitates to write "his lover" - was really dead after he had shot her in the heart, the shot passing through her ribs below her left breast; then perhaps to lay her down she was found lying on her back with a contented smile on her face , throw away the pistol he had just fired, pick up a freshly loaded one he had brought three with him to be on the safe side , kneel down between the woman's feet and then fire the bullet through his mouth and into his brain.
Orpheus stands at the beginning of the history of those who, for the sake of love, refuse to accept death. There were others who, while still alive, ventured to steal a glance at the shadow world of Hades, or take a step into it, but none who, like Orpheus, entered the realm of the dead to bring his beloved back to life.
The name of Orpheus stands for a wealth of other achievements and brilliant actions, as well as this not entirely successful bravura performance. He is the forefather of lyric song, the art of words and music; his singing was so extraordinarily beautiful that he captivated and calmed not only human beings but also animals, plants, even inanimate nature and the elements.
He succeeded, through the power of art alone, in at least partially civilising the unpredictable, wild and violent world, making it decorous and pleasant. He is regarded as the patron of marriage and also, curiously, of the love of boys, and as the inventor of magic.see
Patrick Süskind explores the link between Eros and Thanatos | Books | The Guardian
His cult spread from Thrace through the entire Greek and later Roman world. Until the end of classical antiquity and even in the early Middle Ages, the reputation of Orpheus was so great that the early preachers of Christianity had no option but to exploit his popularity and adopt parts of his cult for instance veneration of the good shepherd into their own religion, associating them with Jesus.
Although not without emphasising that the cult of Orpheus was primitive idolatry, that Jesus surpassed Orpheus in every respect, even as a singer whose song banished the demons and other demi-gods and minor gods forever, and that he tamed the wildest of all animals, mankind itself, leading him back to heaven. In addition, they claimed, he not only challenged but actually overcame death, both in his own person and on behalf of all humanity - he would do it at no lower a price - not to mention those whom he raised from the dead en passant and unlike Orpheus successfully.
But I will allow myself to say that, whether or not they succeeded, the three resurrections, in particular the rising of Lazarus, performed by Jesus of Nazareth in the Biblical account cannot, in my opinion, compete with the magnificent failure of Orpheus of Thrace, either in daring or in poetic and mythological power. After his return from the underworld and the second, final loss of his beloved Orpheus fell into deep melancholy and abjured the pleasures of life, meaning the love of women.
Finally, when the singing youth turned them down, they stoned him to death, tore him to pieces, scattered his limbs and threw his head, nailed to his lyre, into the nearest river, where as it floated away it continued to call "with death-cold tongue, with fleeting breath, Eurydice - ah, hapless Eurydice! The life of Orpheus ends not with a well-judged "It is finished", representing the final moment of a grand plan for the salvation of the world, but with a simple lament for the one woman he loved. It began with the same lament.
While the coming of Jesus as Messiah was prophesied, while he was born the Messiah and was the Messiah all his life, Orpheus entered myth and history as a man in mourning. He had lost his young wife when she was bitten by a poisonous snake. He is so inconsolable at her loss that he does something which may well appear to us mad, but is easy to understand: It is not that he questions the power of death in itself or the fact that it has the last word, still less is he concerned with overcoming death on behalf of all mankind or achieving eternal life.
He wants only this one woman back, his beloved Eurydice, and he wants her back not forever and ever, just for the length of a normal human life, to be happy with her on earth. So Orpheus's venture into the underworld is not to be regarded as suicidal - he was no Werther, no Kleist, and certainly no Tristan - but as a bold venture looking towards life, and indeed desperately fighting for it. Plato, incidentally, blames him for that in the Symposium.
Phaidros mocks the "weak musician" Orpheus, who lacked the spirit to kill himself for love and preferred to make his way into the underworld alive, as if that were child's play! For unlike Jesus, Orpheus cannot count on divine assistance in his daring exploit, although if - as many say - he was the son of Apollo he must have had good connections with Mount Olympus. On the contrary; he knowingly and willingly transgresses against divine order by making his way into the realm of the dead.
But in no way, he says, does he wish to question the unbounded power of the rulers of the dead souls by intruding, uninvited, into the fields of shadow and asking them to set Eurydice free. Moreover he has come down to the underworld not out of calculation or curiosity or with evil intent, but solely for the sake of love. Love, he says, is a power that no earthly man can elude, and he believes that the light of love can sometimes make its way even into the deep darkness of the underworld.
Was it not the power of love that once brought its rulers together? If the tales are true, did not Hades himself in his youth, driven by passionate love and ignoring an arrangement with his divine colleagues, carry Persephone away from a flowery meadow and down to Orcus?
Moths to a flame
Let the rulers remember their own youth, he pleads, their own love, and for the sake of love put mercy before justice and let Eurydice go free. If not, he too, Orpheus, will not return to the living world, but stay here among the dead. He said all this in song. And lo and behold, he succeeds. The rulers of the realm of the dead give him his beloved back - though on the well-known condition that on their way home to the world above he must not turn and look back as she follows him.
- Historical Dictionary of Spanish Cinema (Historical Dictionaries of Literature and the Arts).
- Tolstoy and the Purple Chair: My Year of Magical Reading.
And now he makes a mistake. He is happy, and who can blame him? He is overjoyed at his success. After all, he has done something that no one has ever done before: The cause is won, his triumph is complete. And in the exuberance of his happiness he begins to sing again, not a lament now, of course, but a jubilant hymn to life, to love, to Eurydice.
The beauty of his own singing enraptures him so much that he underestimates the danger still threatening his venture, perhaps no longer even sees it - for that danger comes from within himself. Orpheus, we must remember, is an artist, and like all artists not without vanity, or let us say not without pride in his art. No opera singer can go on performing with his back to the audience for very long He can't do it. It is against his nature. Orpheus, suffering the double torment of being unable to turn to himself and thinking that he had perhaps been cheated from the first, held out for an astonishingly long time.
He was "on the very verge of light", writes Virgil, already on safe ground himself, back in this world, when his self-control cracked. Presumably he no longer expected to see her behind him. He could have lived with divine fraud, he could have taken refuge in thoughts of rage and revenge. But now that he turned round, he saw to his surprise and indeed horror that she really was there, not two paces away but still on the wrong side of the border, and he lost her through his own fault.
She looked at him, as horrified as he was, and with endless melancholy but no reproach breathed a barely audible "Farewell", and sank back into the underworld forever. The story of Orpheus moves us to this day because it is a story of failure. That wonderful attempt to reconcile the two mysterious and primeval forces of human existence, love and death, and move the fiercer of the two to come to at least a small compromise, failed in the end. The story of Jesus, on the other hand, was triumphant from the beginning to the bitter end in his confrontation with death.
Only twice did he show human weakness: Through their relationships and expertise, our management team has also built our global distribution network, which has allowed us to effectively exploit our content globally. Our strategy is driven by the scale and variety of our content and the global exploitation of that content through diversified channels.
Specifically, we intend to pursue the following strategies:. Co-produce, acquire and distribute high quality content to augment our library. We will continue to leverage the longstanding relationships with creative talent, production houses and other key industry participants that we have built since our founding to source a wide variety of content.
Our focus will be on investing in future slates comprised of a diverse portfolio mix ranging from high budget global theatrical releases to lower budget movies with targeted audiences. We intend to maintain our focus on high and medium budget films. We also plan to augment our library of over 2, films, plus approximately additional films for which we hold digital rights only, with quality content for exploitation through our distribution channels and explore new bundling strategies to monetize existing content.
Capitalize on positive industry trends in the Indian market. Propelled by the economic expansion within India and the corresponding increase in consumer discretionary spending, the FICCI Report projects that the dynamic Indian media and entertainment industry will grow at a India is one of the largest film markets in the world. The growing size of the TV industry has led television satellite networks to provide an increasing number of channels, resulting in competition for quality feature films for home viewing in order to attract increased advertising and subscription revenues.
Broadband and mobile platforms present growing digital avenues to exploit content. According to FICCI Report , the number of internet users in India reached million in and is projected to reach million by Smartphone usage is projected to rapidly increase from 36 million active internet enabled smart phones in to million in We will take advantage of the opportunities presented by these trends within India to monetize our library and distribute new films through existing and emerging platforms, including by exploring new content options for expanding our digital strategy such as filming exclusive short form content for consumption through emerging channels such as mobile and internet streaming devices.
Further extend the distribution of our content outside of India to new audiences. We currently distribute our content to consumers in more than 50 countries, including markets where there is significant demand for subtitled or dubbed Indian-themed entertainment, such as Europe and Southeast Asia, as well as to markets where there is a significant concentration of South Asian expatriates, such as the Middle East, the United States and the United Kingdom.
We intend to promote and distribute our films in additional countries, and further expand in countries where we already distribute, when we believe that demand for Indian filmed entertainment exists or the potential for such demand exists. For example, we have entered into arrangements with local distributors in Taiwan, Japan, South Korea and China to distribute dubbed or subtitled Eros films through theatrical release, television broadcast or DVD release.
Additionally, we believe that the general population growth in India experienced over recent years will eventually lead to increasing migration of Indians to other regions, resulting in increased demand for our films internationally. Increase our distribution of content through digital platforms globally. We intend to continue to distribute our content on existing and emerging digital platforms, which includes primarily internet protocol television, or IPTV, video on demand, or VOD, and internet channels.
We also have an ad-supported YouTube portal site on Google that hosts an extensive collection of clips of our content and has generated 1. In August , we expanded our digital presence with the launch of our on-demand entertainment portal Eros Now, through which we leverage our film and music libraries by providing ad-supported and subscription-based streaming of film and music content via internet-enabled devices. We are currently generating no revenue from the HBO Asia collaboration and do not anticipate any revenues from this collaboration until fiscal We expect to provide approximately titles per year, including ten to twelve new release titles or first run films, and a combination of exclusive and non-exclusive library titles, to the two HBO channels to complement Hollywood film and television content from HBO Asia.
Both channels are advertising-free and available as standard and high definition channels. HBO Asia and Eros will both provide content in the first window after theatrical release to these two channels. We intend to pursue similar models utilizing our extensive film library to gain access to similar partners throughout the world.
We believe new offerings and emerging distribution channels such as DTH satellite, VOD, mobile and internet streaming services will also provide us with significant growth opportunities and potentially generate recurring subscription revenues. Expand our regional Indian content offerings. According to the FICCI Report , regional media production in India is expected to be a growth driver in the Indian film entertainment industry for several years into the future.
We will utilize our resources, international reputation and distribution network to continue expanding our non-Hindi content offerings to reach the substantial Indian population whose main language is not Hindi. While Hindi films retain a broad appeal across India, the diversity of languages within India allows us to treat regional language markets as distinct markets where particular regional language films have a strong following. In fiscal , we increased our Tamil global releases to three films, as compared to none in fiscal In fiscal , two of our six high budget films were Tamil films.
In addition to Tamil, we plan to expand our content for selected regional languages such as Marathi, Telegu and Punjabi. We intend to use our existing distribution network across India to distribute regional language films to specific territories. Where opportunities are available and where we have the rights, we also intend to exploit re-make rights to some of our popular Hindi movies into non-Hindi language content targeted towards these regional audiences.
Eros International Plc is a company limited by shares incorporated in the Isle of Man, company number V. We maintain a website at www. Information contained in our website is not a part of, and is not incorporated by reference into, this prospectus. The following diagram summarizes the corporate structure of our consolidated group of companies as of September 30, Unless otherwise noted, all information in this prospectus assumes or reflects:. The following table sets forth our summary historical consolidated financial data for the periods and at the dates indicated.
We have prepared the unaudited financial data on the same basis as the audited financial statements and in accordance with International Financial Reporting Standards for Interim Financial Reporting. We have included, in our opinion, all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial information set forth in those statements.
An investment in our A ordinary shares involves a high degree of risk. Our business, prospects, financial condition and results of operations could be materially and adversely affected by any of these risks. It is not possible for us to assess the impact of all factors on our business, prospects, financial condition and results of operations, or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. We depend on our relationships with theater operators and other industry participants to exploit our film content.
Any disputes with multiplex operators in India could have a material adverse effect on our ability or willingness to release our films as scheduled. We generate revenues from the exploitation of Indian film content in various distribution channels through agreements with commercial theater operators, in particular multiplex operators, and with retailers, television operators, telecommunications companies and others. Our failure to maintain these relationships, or to establish and capitalize on new relationships, could harm our business or prevent our business from growing, which could have a material adverse effect on our business, prospects, financial condition and results of operations.
We have had disputes with multiplex operators in India that required us to delay our film releases and disrupted our marketing schedule for future films. We now enter into agreements on a film-by-film and exhibitor-by-exhibitor basis instead of entering into long-term agreements. To date, our film-by-film agreements have been on commercial terms that are no less favorable than the terms of the prior settlement agreements; however, we cannot guarantee such terms can always be obtained.
Accordingly, without a long-term commitment from multiplex operators, we may be at risk of losing a substantial portion of our revenues derived from our theatrical business. We may also have similar future disruptions in our relationship with multiplex operators, the operators of single-screen theaters or other industry participants, which could have a material adverse effect on our business, prospects, financial condition and results of operations.
Further, the theater industry in India is rapidly growing and evolving and we cannot assure you that we will be able to establish relationships with new commercial theater operators. We may fail to source adequate film content on favorable terms or at all through acquisitions or co-productions, which could have a material and adverse impact on our business.
We generate revenues by exploiting Indian film content that we primarily co-produce or acquire from third parties, and then distribute through various channels. Our ability to successfully enter into co-productions and to acquire content depends on our ability to maintain existing relationships, and form new ones, with talent and other industry participants. The pool of quality talent in India is limited and as a result, there is significant competition to secure the services of certain actors, directors, composers and producers, among others. Competition can increase the cost of such talent, and hence the cost of film content.
These costs may continue to increase, making it more difficult for us to access content cost-effectively and reducing our ability to sustain our margins and maximize revenues from distribution and exploitation. If any such relationship is adversely affected, or we are unable to form new relationships or our access to quality Indian film content otherwise deteriorates, or if any party fails to perform under its agreements or arrangements with us, our business, prospects, financial condition and results of operations could be materially adversely effected.
Delays, cost overruns, cancellation or abandonment of the completion or release of films may have an adverse effect on our business. There are substantial financial risks relating to film production, completion and release. Actual film costs may exceed their budgets and factors such as labor disputes, unavailability of a star performer, equipment shortages, disputes with production teams or adverse weather conditions may cause cost overruns and delay or hamper film completion.
When a film we have contracted to acquire from a third party experiences delays or fails to be completed, we may not recover advance monies paid for the proposed acquisition. When we enter into co-productions, we are typically responsible for paying all production costs in accordance with an agreed upon budget and while we typically cap budgets in our contracts with our co-producer, given the importance of ongoing relationships in our industry, longer-term commercial considerations may in certain circumstances override strict contractual rights and we may feel obliged to fund cost over-runs where there is no contractual obligation requiring us to do so.
To date, we have completed only one sole production, and this is not our preferred choice for sourcing content. Production delays, failure to complete projects or cost overruns could result in us not recovering our costs and could have a material adverse effect on our business, prospects, financial condition and results of operations.
Our entry into premium television broadcasting with our HBO Asia collaboration may adversely affect our existing television licensing revenues. Our collaboration with HBO Asia requires us to provide them with new release films for the first television window after theatrical release of such films and also a number of library films. While our arrangement with HBO allows us to license our titles to other television networks after they have premiered on the HBO channels, we may not be able to maximize the revenue potential from these films and realize their full market value from other broadcasters once these films have premiered on the HBO channels.
In the short to medium run, as our HBO Asia collaboration is still negotiating with digital DTH and cable platforms and subscriber numbers are still building up, such opportunity cost may adversely affect our results of operations and cash flows. The popularity and commercial success of our films are subject to numerous factors, over which we may have limited or no control. The popularity and commercial success of our films depends on many factors including, but not limited to, the key talent involved, the timing of release, the promotion and marketing of the film, the quality and acceptance of other competing programs released into the marketplace at or near the same time, the availability of alternative forms of entertainment, general economic conditions, the genre and specific subject matter of the film, its critical acclaim and the breadth, timing and format of its initial release.
We cannot predict the impact of such factors on any film, and many are factors that are beyond our control. As a result of these factors and many others, our films may not be as successful as we anticipate, and as a result, our results of operations may suffer. The success of our business depends on our ability to consistently create and distribute filmed entertainment that meets the changing preferences of the broad consumer market both within India and internationally. Changing consumer tastes affect our ability to predict which films will be popular with audiences in India and internationally.
As we invest in a portfolio of films across a wide variety of genres, stars and directors, it is highly likely that at least some of the films in which we invest will not appeal to Indian or international audiences. Further, where we sell rights prior to release of a film, any failure to accurately predict the likely commercial success of a film may cause us to underestimate the value of such rights.
If we are unable to co-produce and acquire rights to films that appeal to Indian and international film audiences or to accurately judge audience acceptance of our film content, the costs of such films could exceed revenues generated and anticipated profits may not be realized. Our failure to realize anticipated profits could have a material adverse effect on our business, prospects, financial condition and results of operations.
Our ability to exploit our content is limited to the rights that we acquire from third parties or otherwise own. Upon expiration or termination of these arrangements, content may be unavailable to us on acceptable terms or at all, including with respect to technical matters such as encryption, territorial limitation and copy protection. In addition, if any of our competitors offer better terms, we will be required to spend more money or grant better terms, or both, to acquire or extend the rights we previously held.
If we are unable to renew the rights to our film library on commercially favorable terms and to continue exploiting the existing films in our library or other content, it could have a material adverse effect on our business, prospects, financial condition and results of operations. In addition, we typically only own certain rights for the exploitation of content, which limits our ability to exploit content in certain media formats.
In particular, we do not own the audio music rights to the majority of the films in our library and to certain new releases. To the extent we do not own the music or other media rights in respect of a particular film, we may only exploit content through those channels to which we do own rights, which could have an adverse effect on our ability to generate revenue from a film and recover our costs from acquiring or producing content. We depend on the Indian box office success of our Hindi and high budget Tamil films from which we derive a significant portion of our revenues. As such, poor box office receipts in India for our films, even for those films for which we obtain only international distribution rights, could have a significant adverse impact on our results of operations in both the year of release of the relevant films and in the future for revenues expected to be earned through other distribution channels.
In particular, we depend on the Indian box office success of our Hindi films and high budget Tamil films. We may not be paid the full amount of box office revenues to which we are entitled. We derive revenues from theatrical exhibition of our films by collecting a specified percentage of box office receipts from multiplex and single screen theater operators.
The Indian film industry continues to lack full exhibitor transparency. There is limited independent monitoring of such data in India or the Middle East, unlike the monitoring services provided by Rentrak in the United Kingdom and the United States. We therefore rely on theater operators and our sub-distributors to report relevant information to us in an accurate and timely manner. While some multiplex and single-screen operators have moved to a digital distribution model that provides greater clarity on the number of screenings given to our films, other multiplex operators and single-screen operators retain the traditional print model.
We expect that our films will continue to be exhibited primarily on screens that either do not have computerized tracking systems for box office receipts or screening information, or in relation to which we do not have access to audit compliance data. Because we do not have a reliable system to determine if our box office receipts are underreported, box office receipts and sub-distribution revenues may be inadvertently or purposefully misreported or delayed, which could prevent us from being compensated appropriately for exhibition of our films.
If we are not properly compensated, our business, prospects, financial condition and results of operations could be negatively impacted. A downturn in the Indian and international economies or instability in financial markets, including a decreased growth rate and increased Indian price inflation, could materially and adversely affect our results of operations and financial condition. Global economic conditions may negatively impact consumer spending. Prolonged negative trends in the global or local economies can adversely affect consumer spending and demand for our films and may shift consumer demand away from the entertainment we offer.
The GDP growth rate of India decelerated to 6. Implementation, Government of India. A decline in attendance at theaters may reduce the revenues we generate from this channel, from which a significant proportion of our revenues are derived. If the general economic downturn continues to affect the countries in which we distribute our films, discretionary consumer spending may be adversely affected, which would have an adverse impact on demand for our theater, television and digital distribution channels.
Economic instability and the continuing weak economy in India may negatively impact the Indian box office success of our Hindi and Tamil films, on which we depend for a significant portion of our revenues. Further, a sustained decline in economic conditions could result in closure or downsizing by, or otherwise adversely impact, industry participants on whom we rely for content sourcing and distribution.
Any decline in demand for our content could have a material adverse effect on our business, prospects, financial condition and results of operations. In addition, global financial uncertainty has negatively affected the Indian financial markets. Continued financial disruptions may limit our ability to obtain financing for our films. Any such event could have a material adverse effect on our business, prospects, financial condition and results of operations. India has recently experienced fluctuating wholesale price inflation compared to historical levels.
An increase in inflation in India could cause a rise in the price of wages, particularly for Indian film talent, or any other expenses that we incur. If this trend continues, we may be unable to accurately estimate or control our costs of production. Because it is unlikely we would be able to pass all of our increased costs on to our customers, this could have a material adverse effect on our business, prospects, financial condition and results of operations.
Fluctuation in the value of the Indian Rupee against foreign currencies could materially and adversely affect our results of operations, financial condition and ability to service our debt. While a significant portion of our revenues are denominated in Indian Rupees, certain contracts for our film content are or may be denominated in foreign currencies. Additionally, we report our financial results in U. We expect that the continued volatility in the value of the Indian Rupee against foreign currency will continue to have an impact on our business.
The Indian Rupee experienced an approximately In August , the Indian Rupee had dropped by as much as A continued slowdown in the growth of the Indian economy, coupled with this depreciation of the Indian Rupee and continued volatility in these areas, may adversely affect our business. Consequently, we may be required to use revenues generated in Indian Rupees to service our U. Any devaluation or depreciation in the value of the Indian Rupee, compared to the U.
Although we have not historically done so, we may, from time to time, seek to reduce the effect of exchange rate fluctuations on our operating results by purchasing derivative instruments such as foreign exchange forward contracts to cover our intercompany indebtedness or outstanding receivables. However, we may not be able to purchase contracts to insulate ourselves adequately from foreign currency exchange risks.
In addition, any such contracts may not perform effectively as a hedging mechanism. We face increasing competition with other films for movie screens, and our inability to obtain sufficient distribution of our films could have a material adverse effect on our business. A substantial majority of the theater screens in India are typically committed at any one time to a limited number of films, and we compete directly against other producers and distributors of Indian films in each of our distribution channels.
If the number of films released in the market as a whole increases it could create excess supply in the market, in particular at peak theater release times such as school and national holidays and during festivals, which would make it more difficult for our films to succeed. We face increasing competition from other forms of entertainment, which could have a material adverse effect on our business. We also compete with all other sources of entertainment and information delivery, including television, the internet and sporting events such as the Indian Premier League, for cricket.
Technological advancements such as VOD, mobile and internet streaming and downloading have increased the number of entertainment and information delivery choices available to consumers and have intensified the challenges posed by audience fragmentation. The increasing number of choices available to audiences could negatively impact consumer demand for our films, and there can be no assurance that occupancy rates at theaters or demand for our other distribution channels will not fall.
Competition within the Indian film industry is growing rapidly, and certain of our competitors are larger, have greater financial resources and are more diversified. Growth in the Indian film industry has attracted new Indian and foreign industry participants and competitors, including standalone operators, such as Reliance Entertainment, as well as others aligned with internationally diversified film companies, such as Sony Pictures, Viacom Inc. These larger competitors may have the ability to spend additional funds on production of new films, which may require us to increase our production budgets beyond what we originally anticipated in order to compete effectively.
In addition, these competitors may use their financial resources to gain increased access to movie screens and enter into exclusive content arrangements with key talent in the Indian film industry. Unlike some of these major competitors that are part of larger diversified corporate groups, we derive substantially all of our revenue from our film entertainment business. If our films fail to perform to our expectations we are likely to face a greater adverse impact than would a more diversified competitor.
In addition, other larger entertainment distribution companies may have larger budgets to exploit growing technological trends. If we are unable to compete with these companies effectively, our business prospects, results of operations and financial condition could suffer. With generally increasing budgets of Hindi and Tamil films, we may not have the resources to distribute the same level of films as competitors with greater financial strength. Piracy of our content, including digital and internet piracy, may adversely impact our revenues and business. Our business depends in part on the adequacy, enforceability and maintenance of intellectual property rights in the entertainment products and services we create.
Motion picture piracy is extensive in many parts of the world and is made easier by technological advances and the conversion of motion pictures into digital formats.
This trend facilitates the creation, transmission and sharing of high quality unauthorized copies of motion pictures in theatrical release on DVDs, CDs and Blu-ray discs, from pay-per-view through set top boxes and other devices and through unlicensed broadcasts on free television and the internet. Although DVD and CD sales represent a relatively small portion of Indian film and music industry revenues, the proliferation of unauthorized copies of these products results in lost revenue and significantly reduced pricing power, which could have a material adverse effect on our business, prospects, financial condition and results of operations.
In particular, unauthorized copying and piracy are prevalent in countries outside of the United States, Canada and Western Europe, including India, whose legal systems may make it difficult for us to enforce our intellectual property rights and in which consumer awareness of the individual and industry consequences of piracy is lower. With broadband connectivity improving and 3G internet penetration increasing in India, digital piracy of our content is an increasing risk.
In addition, the prevalence of third-party hosting sites and a large number of links to potentially pirated content make it difficult to effectively monitor and prevent digital piracy of our content. Existing copyright and trademark laws in India afford only limited practical protection and the lack of internet-specific legislation relating to trademark and copyright protection creates a further challenge for us to protect our content delivered through such media. Additionally, we may seek to implement elaborate and costly security and anti-piracy measures, which could result in significant expenses and revenue losses.
Even the highest levels of security and anti-piracy measures may fail to prevent piracy. We may be unable to adequately protect or continue to use our intellectual property. Failure to protect such intellectual property may negatively impact our business. We rely on a combination of copyrights, trademarks, service marks and similar intellectual property rights to protect our name and branded products. The success of our business, in part, depends on our continued ability to use this intellectual property in order to increase awareness of the Eros name.
We attempt to protect these intellectual property rights through available copyright and trademark laws. Despite these precautions, existing copyright and trademark laws afford only limited practical protection in certain countries, and the actions taken by us may be inadequate to prevent imitation by others of the Eros name and other Eros intellectual property. In addition, if the applicable laws in these countries are drafted or interpreted in ways that limit the extent or duration of our rights, or if existing laws are changed, our ability to generate revenue from our intellectual property may decrease, or the cost of obtaining and maintaining rights may increase.
Further, many existing laws governing property ownership, copyright and other. We also distribute our branded products in some countries in which there is no copyright or trademark protection. As a result, it may be possible for unauthorized third parties to copy and distribute our branded products or certain portions or applications of our branded products, which could have a material adverse effect on our business, prospects, results of operations and financial condition.
If we fail to register the appropriate copyrights, trademarks or our other efforts to protect relevant intellectual property prove to be inadequate, the value of the Eros name could be harmed, which could adversely affect our business and results of operations. We may be unable to continue to use the domain names that we use in our business, or prevent third parties from acquiring and using domain names that infringe on, are similar to or otherwise decrease the value of our brand or our trademarks or service marks. We have registered several domain names for websites that we use in our business, such as erosplc.
If we lose the ability to use a domain name, whether due to trademark claims, failure to renew the applicable registration or any other cause, we may be forced to market our products under a new domain name, which could cause us to lose users of our websites, or to incur significant expense in order to purchase rights to such a domain name. In addition, our competitors and others could attempt to capitalize on our brand recognition by using domain names similar to ours.
We may be unable to prevent third parties from acquiring and using domain names that infringe on, are similar to or otherwise decrease the value of our brand, trademarks or service marks. Litigation may be necessary to enforce our intellectual property rights or to determine the validity and scope of the proprietary rights of others or to defend against claims of infringement or invalidity. Regardless of the validity or the success of the assertion of any claims, we could incur significant costs and diversion of resources in enforcing our intellectual property rights or in defending against such claims, which could have a material adverse effect on our business and results of operations.
Our services and products could infringe upon the intellectual property rights of third parties. Other parties, including our competitors, may hold or obtain patents, trademarks, copyright protection or other proprietary rights with respect to their previously developed films, characters, stories, themes and concepts or other entertainment, technology and software or other intellectual property of which we are unaware. In addition, the creative talent that we hire or use in our productions may not own all or any of the intellectual property that they represent they do, which may instead be held by third parties.
Consequently, the film content that we produce and distribute or the software and technology we use may infringe the intellectual property rights of third parties, and we frequently have infringement claims asserted against us. Any claims or litigation, justified or not, could be time-consuming and costly, harm our reputation, require us to enter into royalty or licensing arrangements that may not be available on acceptable terms or at all or require us to undertake creative changes to our film content or source alternative content, software or technology.
Any of the foregoing could have a material adverse effect on our business, prospects, financial condition and results of operations. Our ability to remain competitive may be adversely affected by rapid technological changes and by an inability to access such technology. The Indian film entertainment industry continues to undergo significant technological developments, including the ongoing transition from film to digital media.
We may be unsuccessful in adopting new digital distribution methods or may lose market share to our competitors if the methods that we adopt are not as technologically sound, user-friendly, widely accessible or appealing to consumers as those adopted by our competitors. For example, our recently launched on-demand entertainment portal accessible via internet-enabled devices, Eros Now, may not be well-received by consumers. Further, advances in technologies or alternative methods of product delivery or storage, or changes in consumer behavior driven by these or other technologies, could have a negative effect on our home entertainment market in India.
If we fail to successfully exploit digital and other emerging technologies, it could have a material adverse effect on our business, prospects, financial condition and results of operations. We are currently migrating to an SAP ERP system, which could substantially disrupt our business, and our failure to successfully integrate our IT systems across our international operations could result in substantial costs and diversion of resources and management attention. We have completed this accounting migration in India, but the process is ongoing in the rest of the world and the implementation has been delayed.
This migration may lead to unforeseen complications and expenses, and our failure to efficiently migrate our IT systems could substantially disrupt our business. The SAP ERP system will be implemented globally in our different office locations and will need to accommodate our multilingual operations, resulting in further difficulties in such implementation.
Our failure to successfully integrate our IT systems across our international operations could result in substantial costs and diversion of resources and management attention, which could harm our business and competitive position. The music industry is highly competitive and many of our competitors in the music industry focus more exclusively on music distribution and have greater resources than we have. The music industry, including the market for music licensing and related services in the film and broadcast industry, is intensely competitive. Many companies focus exclusively on music distribution and have greater resources and a larger depth and breadth of library, distribution capabilities and current repertoire than we do.
We expect competition to persist and to intensify as the markets for Indian music continue to develop and as additional competitors enter the Indian music industry. To remain competitive, we may be forced to reduce our prices and increase costs. Our business and activities are regulated by the Competition Act. The Competition Act of India, , as amended, or the Competition Act, seeks to prevent practices that could have an appreciable adverse effect on competition in the relevant market in India. Under the Competition Act, any arrangement, understanding or action between enterprises, whether formal or informal, which causes or is likely to cause an appreciable adverse effect on competition is void and will be subject to substantial penalties.
Any agreement that directly or indirectly determines purchase or sale prices, limits or controls production, or creates market sharing by way of geographical area or number of customers in the market is presumed to have an appreciable adverse effect on competition. This amendment would empower the Government of India to ascribe different values for assets and turnover for a particular class of enterprises, in order to determine whether they breach the threshold limits currently prescribed under the Competition Act instead of the audited book value of such assets. This amendment is currently under consideration by the houses of the Indian Parliament.
The impact on our business of this proposed amendment and other regulations under the Competition Act is therefore unclear. If we or any member of our group, including Eros India, are further affected, directly or indirectly, by the application or interpretation of any provision of the Competition Act, or any enforcement proceedings initiated by, or claims made to the Competition Commission of India or any other similar authority, our business, results of operations and reputation may be materially and adversely affected.
Our financial condition and results of operations fluctuate from period to period due to film release schedules and other factors and may not be indicative of results for future periods. Our financial condition and results of operations for any period fluctuate due to film release schedules in that period, none of which we can predict with reasonable certainty. Theater attendance in India has traditionally been highest during school holidays, national holidays and during festivals, and we typically aim to release big-budget films at these times.
As a result, our quarterly results can vary from one year to the next, and the results of one quarter are not necessarily indicative of results for the next or any future quarter. Additionally, the distribution window for the theatrical release of films, and the window between the theatrical release and distribution in other channels, have each been compressing in recent years and may continue to change.
Further shortening of these periods could adversely impact our revenues if consumers opt to view a film on one distribution platform over another, resulting in the cannibalizing of revenues across distribution platforms. Additionally, because our revenue and operating results are seasonal in nature due to the impact of the timing of new releases, our revenue and operating results may fluctuate from period to period, and which could have a material adverse effect on our business, prospects, results of operations, financial condition and cash flows.
Our accounting practices and management judgments may accentuate fluctuations in our annual and quarterly operating results and may not be comparable to other film entertainment companies. Management determined to adjust the first-year amortization rate for high budget films because of the high contribution of theatrical revenue. Similar management judgment taking into account historic and expected performance is used to apply a stepped method of amortization on a quarterly basis within the first 12 months, within the overall parameters of the annual amortization.
In fiscal and fiscal years prior to , the balance of capitalized film content costs were amortized evenly over a maximum of four years rather than nine. Because management exercises its judgment regarding amortization amounts, our amortization practices may not be comparable to other film entertainment companies. In the case of film content that we acquire after its initial exploitation, commonly referred to as library, amortization is spread evenly over the lesser of ten years after our acquisition or our license period. At least annually, we review film and content rights for indications of impairment in accordance with IAS If we fail to achieve or maintain an effective system of internal control over financial reporting, our ability to accurately and timely report our financial results or prevent fraud may be adversely affected.
In preparing the consolidated financial statements included elsewhere in this prospectus, significant deficiencies and a material weakness in our internal control over financial reporting were identified. In fiscal , our auditors identified significant deficiencies in our financial statement review process regarding derivative instruments and reconciliation of bank charges, while in fiscal , our auditors identified a material weakness involving hedge accounting and significant deficiencies in the documentation of our management review of advances and amortization schedules.
We have worked to improve and remedy these deficiencies, including through the completed implementation of SAP ERP within India and the on-going implementation in the rest of the world. If we identify additional control deficiencies as a result of the assessment process in the future, we may be unable to conclude that we have effective internal controls over financial reporting, which are necessary for us to produce reliable financial reports and are important to help prevent fraud. As a result, our failure to achieve and maintain effective internal controls over financial reporting could result in the loss of investor confidence in the reliability of our financial statements, which in turn could harm our business and negatively impact the market price of our A ordinary shares.
Our revenue is subject to significant variation based on the timing of certain licenses and contracts we enter into that may account for a large portion of our revenue in the period in which it is completed, which could adversely affect our operating results. From time to time, we license film content rights to a group of films pursuant to a single license that constitutes a large portion of our revenue for the fiscal year in which the revenue from the license is recognized.
In fiscal and , Limited, an aggregator of television rights. The timing and size of similar licenses subjects our revenue to uncertainties and variability from period to period, which could adversely affect our operating results. We expect that we will continue to enter into licenses with customers that may represent a significant concentration of our revenues for the applicable period and we cannot guarantee that these revenues will recur.
We have entered into certain related party transactions and may continue to rely on our founders for certain key development and support activities. We have entered, and may continue to enter, into transactions with related parties. We also rely on the Founders Group, which consists of Beech Investments, Arjan Lulla, Kishore Lulla, Vijay Ahuja and Sunil Lulla and associates and enterprises controlled by certain of our directors and key management personnel for certain key development and support activities.
Further, because certain members of the Founders Group are controlling shareholders of or have significant influence on both us and our related parties, conflicts of interest may arise in relation to dealings between us and our related parties and may not be resolved in our favor.
We may encounter operational and other problems relating to the operations of our subsidiaries, including as a result of restrictions in our current shareholder agreements. We operate several of our businesses through subsidiaries. Our financial condition and results of operations significantly depend on the performance of our subsidiaries and the income we receive from them. Our business may be adversely affected if our ability to exercise effective control over our non-wholly owned subsidiaries is diminished in any way. Although we control these subsidiaries through direct or indirect ownership of a majority equity interest or the ability to appoint the majority of the directors on the boards of such companies, unanimous board approval is required for major decisions relating to certain of these subsidiaries.
To the extent there are disagreements between us and our various minority shareholders regarding the business and operations of our non-wholly owned subsidiaries, we may be unable to resolve them in a manner that will be satisfactory to us. Our minority shareholders may:. Any of these actions could have a material adverse effect on our business, prospects, financial condition and results of operations.
Additionally, we have entered into shareholder agreements with the minority shareholders of two of our non-wholly-owned subsidiaries, Big Screen Entertainment and Ayngaran, and may enter into similar agreements. These agreements contain various restrictions on our rights in relation to these entities, including restrictions in relation to the transfer of shares, rights of first refusal, put options, reserved board matters and non-solicitation of employees by us.
We may also face operational limitations due to restrictive covenants in such shareholders agreements. These restrictions in our current shareholder agreements, and any restrictions of a similar or more onerous nature in any new or amended agreements into which we may enter, may limit our control of the relevant subsidiary or our ability to achieve our business objectives, as well as limiting our ability to realize value from our equity interests, any of which could have a material adverse effect on our business, prospects, financial condition and results of operations.
Some of the parties to the shareholder agreements are companies that have duties to their own shareholders, and the interests of these shareholders with respect to the operation of Big Screen Entertainment and Ayngaran may not be aligned with your interests. As a result, although we own a majority of the ownership interest in each of Big Screen Entertainment and Ayngaran, taking actions that require approval of the minority shareholders or their representative directors , such as entering into related party transactions, selling material assets and entering into material contracts, may be more difficult to accomplish.
We depend on the services of senior management. We have, over time, built a strong team of experienced professionals on whom we depend to oversee the operations and growth of our businesses. We believe that our success substantially depends on the experience and expertise of, and the longstanding relationships with key talent and other industry participants built by, our senior management. Any loss of our senior management, any conflict of interest that may arise for such management or the inability to recruit further senior managers could impede our growth by impairing our day-to-day operations and hindering development of our business and our ability to develop, maintain and expand relationships, which would have a material adverse effect on our business, prospects, financial condition and results of operations.
In recent years, we have experienced additions to our senior management team, and our success depends in part on our ability to. Even if enforceable, these non-competition and non-solicitation provisions are for limited time periods. Some viewers or civil society organizations may find our film content objectionable.
Some viewers or civil society organizations in India or other countries may object to film content produced or distributed by us based on religious, political, ideological or any other positions held by such viewers. This applies in particular, to content that is graphic in nature, including violent or romantic scenes and films that are politically oriented or targeted at a segment of the film audience. Viewers or civil society organizations, including interest groups, political parties, religious or other organizations may assert legal claims, seek to ban the exhibition of our films, protest against us or our films or object in a variety of other ways.
Any of the foregoing could harm our reputation and could have a material adverse effect on our business, prospects, financial condition and results of operations. The film content that we produce and distribute could result in claims being asserted, prosecuted or threatened against us based on a variety of grounds, including defamation, offending religious sentiments, invasion of privacy, negligence, obscenity or facilitating illegal activities, any of which could have a material adverse effect on our business, prospects, financial condition or results of operations. Pursuant to the Indian Cinematograph Act, , or the Cinematograph Act, films must be certified for adult viewing or general viewing in India by the Central Board of Film Certification, or CBFC, which looks at factors such as the interest of sovereignty, integrity and security of the relevant country, friendly relations with foreign states, public order and morality.
There may be similar requirements in the United Kingdom, Canada and Australia, among other jurisdictions. We may be unable to obtain the desired certification for each of our films and we may have to modify the title, content, characters, storylines, themes or concepts of a given film in order to obtain any certification or a desired certification for broadcast release that will facilitate distribution and exploitation of the film.
Any modification or receipt of an undesirable certification could reduce the appeal of any affected film to our target audience and reduce our revenues from that film, which could have a material adverse effect on our business, prospects, financial condition and results of operations. Litigation and negative claims about us or the Indian film entertainment industry generally could have a material adverse impact on our reputation, our relationship with distributors and co-producers and our business operations.
We and certain of our directors and officers are subject to various legal proceedings in India. In addition, there have been certain public allegations made against the Indian film entertainment industry generally, as well as against certain of the entities and individuals currently active in the industry about purported links to organized crime and other negative associations. As our success in the Indian film industry partially depends on our ability to maintain our brand image and corporate reputation, in particular in relation to our dealings with creative talent, co-producers, distributors and exhibitors, any such proceedings or allegations, public or private, whether or not routine or justified, could tarnish our reputation and cause creative talent, co-producers, distributors and exhibitors not to work with us.
In addition, the nature of our business and our reliance on intellectual property and other proprietary rights subjects us to the risk of significant litigation. Litigation, or even the threat of litigation, can be expensive, lengthy and disruptive to normal business operations, and the results of litigation are inherently uncertain and may result in adverse rulings or decisions. We may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on our business, prospects, financial condition or results of operations.
Every time we have received such a letter we have undertaken what we believe to be a reasonably prudent review, such as extensive due diligence to investigate the allegations, and where necessary our board of directors has engaged third party professional firms to report to them directly and cleared the matter from a corporate governance point of view. Having conducted these investigations in each instance we found the allegations were without merit. Our performance in India is linked to the stability of its policies, including taxation policy, and the political situation.
The role of Indian central and state governments in the Indian economy has been and remains significant.