Following international trends, digital media is playing an increasingly important role in the Indian media industry. With the rapid convergence of media and technology, entertainment companies are digitizing their content and leveraging digital platforms such as mobile and broadband to exploit their content.

The widespread adoption of mobile devices such as phones and tablets and the proliferation of high-speed internet access have dramatically increased the importance of digital downloading capabilities for film, television and music. Within India, the number of individuals utilizing electronic devices with internet connectivity is rapidly expanding and is projected to continue. Mobile subscribers in India are projected to increase from over 500 million in 2009 to over 900 million by 2015 while the number of internet users is expected to increase from 81 million users in 2009 to 237 million users by 2015. Disposable income growth, coupled with increasingly affordable digital devices with internet connectivity, has created a large new market for digital on-demand and mobile value added services.

In addition to our theatrical and television distribution networks, we have a global network for the digital distribution of our content, which consists of full length films, music, music videos, clips and other video content. Through our digital distribution channel we distribute content primarily in IPTV, VOD (including SVOD and DTH) and online internet channels. Our film content is distributed in original language, subtitled into local languages or dubbed, in each case as driven by consumer or regional market preferences. With our large library of content and slate of new releases, we have sought to capitalize on changes in consumer demand through early adoption of new formats and services.

With a significant portion of the Indian and international population rapidly moving toward digital technology, we are increasing our focus on providing on demand services, although the platforms and strategies differ by region. Under current Indian law, the Indian cable providers will be required to transfer from analog to digital formats by 2015. Outside of India, there is a proliferation of cable, satellite and internet services that we supply. In addition, with the proliferation of internet users, we are increasing our online distribution presence as well. These platforms enable us to continue to monetize a film in our library long after its theatrical release period has ended. In addition, the speed, ease of availability and prices of digital film distribution diminish incentives for unauthorized copying and content piracy.

In North America, we have an agreement with International Networks, a subsidiary of Comcast, to provide a SVOD service called "Bollywood Hits On Demand." The service is now carried on Comcast, Cox Communications, Rogers Communication, Cablevison and Time Warner Cable. We provide all programming for this film and music channel, and we share revenues with the cable provider. We also provide content to other VOD service providers, including Pan Universe International and Efacet Enterprises Limited. We currently supply internet streaming ad-supported sites such as our Eros channel on YouTube with short form film and audio visual content, as well as on sites like Netflix in the United States and our own www.erosentertainment.com website. On YouTube, where we have exceeded one billion views to date since our launch in 2007, we sell banner and pre-roll advertisements, and share these advertising revenues with Google. Our YouTube channel now receives a large enough number of unique visitors per month that we are able to sell ads specifically for the channel, and are less reliant on revenues from advertisers who buy generic ad space on YouTube. We believe our digital and online platforms will be a key driver of future growth.