UTV buys stake in IT Nation

New Delhi: UTV has forayed into the digital Internet media space by acquiring a 76 per cent stake in IT Nation, an online technology company for Rs 15 crore.

Under its digital arm, the company plans to invest Rs 120 crore over the next two years in both organic and inorganic growth, said Mr T.N. Prabhu, CEO , UTV New Media.

The investment will be made in a portfolio of about 10 portals, including UTVi.com, the online business Web site of its new business channel. “According to figures, over 50 per cent of the population is less than 28 years of age. With the kind of disposable income and propensity of today’s youth to spend,digital music, movies or entertainment and gadgets are high growth areas that we have identified,” said Mr Prabhu.

The immediate plans are not to concentrate on e-commerce, “We will not force the consumers to transact on our site,” said Mr Prabhu. But it will offer differentiated content.

In the digital music space, with access to UTV’s own productions, the company will leverage its right to about 20,000 music titles. It has Singh is King, the Akshay Kumar starrer scheduled to be released in August. The library will also offer Punjabi, Tamil, Telegu movies, from which images, music, ringtones and videos will be available to consumers of more than 65 mobile operators across the world.

Outside of mobile transactions, Mr Prabhu is also counting on advertising revenues. Personal finance is a big domain. “There are 10 million online users accessing financial and banking services online every month,” he added.

IT Nation has six portals, including Techtree.com, which will be leveraged in the form of a gadget show on its business news channel. The company’s other portals address Chief Technology Officers through CXOtoday.com, channel sellers and resellers through Channeltimes.com, small and medium enterprises through Enterpriser.in.

The company plans to add other domains to the list 10 Web sites under UTV New Media currently. IT nation also organises nationwide technology events which will synergise with UTV’s business news channel.

“Youth has always been at the core of all UTV’s business — films, bouquet of channels, content production, and gaming. And today’s youth is looking beyond the two conventional screens — television and celluloid — and the two screens rapidly increasing in popularity — personal computer and mobile handset,” said the company.