UTV Software Communications has launched UTV New Media, its fifth business division, which will invest Rs 120 crore in the digital media space.
Spend will be spread across business, entertainment and technology on the web
MUMBAI: UTV Software Communications has launched UTV New Media, its fifth business division, which will invest Rs 120 crore in the digital media space. Of this Rs 15 crore was spent on acquisition of a 76% stake in technology news publisher IT Nation made in January 2008.
The remaining investment will be spread across business, entertainment and technology in the internet domain.
UTV New Media will house two entities to begin with. The first entity is a portfolio of 10 portals including the websites of UTV Global Broadcasting’s channels and online publications acquired through IT Nation.
The second is an online music library of about 20,000 titles of the Bollywood and regional genres, which will be monetised through a site dedicated to online downloads, ringtones and value-added services.
Ronnie Screwvala, CEO, UTV Software Communications told DNA Money he expects UTV New Media to contribute about Rs 50 crore to the company’s overall revenues by the end of this fiscal. “That should be about 6% of our total revenues, but over the next three years, we hope to increase this share substantially,” he said.
Analysts and tech bloggers say UTV’s move to form a separate new media vertical shows how traditional media bigwigs are convinced of new media or online portals fuelling growth of their businesses.
Last fiscal, 9.9 Media acquired Jasubhai Digital Media (Digit, CTO Forum, SKOAR!), while Network18, which already has Tech2 and BizTech2, acquired Infomedia India (Chip, T3, AVMax).
UTV New Media’s catalogue music titles are available under its short code 59995. Screwvala said the intention is to create digital assets such as images, music, ring tones and videos for these catalogues. Also in place are relationships and arrangements with 65 mobile operators across the world to distribute the mobile content, he said.
c_arcopol@dnaindia.net
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