What happened

Shares of Eros International (NYSE:ESGC) were climbing higher on Friday after announcing a new partnership with Visa (NYSE:V) in India, strengthening its leadership position in the country. As of 1:00 p.m. EST, the stock was up 8%. But it had traded 18% higher at one point.

The Visa partnership is the only news specific to Eros explaining the stock's move. However, it's possible investors are sending the stock higher due to strong results from other media companies this week.

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Image source: Getty Images.

So what

Eros International offers a top streaming service in India called Eros Now. With its new partnership, Visa cardholders in India can subscribe to Eros Now for half the regular price. The platform had 26.2 million paying subscribers as of the third quarter of fiscal 2020. Considering India's population is over 1.3 billion, there's still plenty of room for growth in its home market.

The Visa partnership with its more attractive pricing could accelerate subscriber growth, which would be good for Eros International.

However, investors may simply be rewarding Eros International stock due to earnings reports from other media companies. Both ViacomCBS and Fox Corporation traded higher this week after beating Wall Street's earnings expectations. When multiple companies in the same industry report encouraging results, it can sometimes change investors' perspective, lifting all related stocks.

Now what

While it's not uncommon to see related tickers rise, it's not relevant for long-term investors. After all, each company's results will be distinct. That said, reviewing results from competitors can be helpful in understanding business and consumer trends. 

The meatier news for Eros International investors is the Visa partnership. Financial terms of the agreement weren't given. But this could potentially lower customer acquisition costs for Eros Now and drive subscriber growth. Both factors would boost profitability, which is very relevant when you're buying and holding for the long haul.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.