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Insights Into UTV’s Gaming and Internet Strategy - We Spoke To Biz Heads Of Interactive & New Media
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UTV’s Q2 results indicated a a bullish outlook on both gaming and internet businesses.
As per the financial results of UTV over Rs. 250 crores has been invested by UTV in the gaming segment and it has acquired the likes of True Games an MMOG (Massively Multiplayer Online Games) to service the US and Turkey markets. Though the interactive segment reported a loss of Rs. 2.77 crores UTV made statements that it continues to bullish on the growth of this segment. Currently interactive contributes 14% of UTV’s total revenues.
The New Media segment i.e. UTV New Media Ventures on the other hand increased its equity stake in ITNation Media Private Ltd which it had acquired recently from 76.50% to 89.04%. The revenues of this segment are pegged at Rs. 6.26 crores which means that this segment has only contributed 4% of the companies revenue. This is again a segment that UTV pointed out as a segment of high growth expectation.
As promised we spoke to the CEO of UTV Interactive Mr.Preneet Malhotra and the CEO of UNMV (UTV New Media Ventures) Mr.TN Prabhu and questioned them on UTV’s strategy with respect to both Gaming and Internet to know more on their strategy going forward.
Q1. How important is gaming in the overall scheme of things for UTV? What are you recent investments in the same and what markets are you addressing?
Preneet Malhotra -Â Gaming is a relatively new but impt vertical within UTV. The vertical has grown inorganically through acquisitions over the last 18 months or so, starting with Ignition to address the Console segment, IndiaGames on the mobile segment and most recently Truegames on the Online segment. While India is our home market and will always be important, our products are globally relevant. While we will directly publish in markets like the U.S., other geographies will be covered through syndication or strategic partnerships.
Q2. What are the revenue models that you are pursuing in the gaming business?
Preneet Malhotra -Â On revenue models for Console and mobile the same as the rest of the industry. On Online games we have a subscription model in India through India games Games on Demand subscription offering; going forward this will be complemented by our self developed IPs which focus on the Free to play micro-transactions model, which we hold a strong belief in globally.
Q3. Can you elaborate on you web strategy with UTVi? What kind of investment has been made in the same? What is the revenue model for the same?
TN Prabhu - UTVI will concentrate on the following four aspects:
1. Dejargonising- the business and finance space.
2. Interactivity: Making the web more efficient in bringing the web mobile and TV sync together.
3. Newer audience: We will concentrate on bringing newer and younger audience to the site as we believe we can address a lot of this audience on the net
4. Main Street and not just dalal street. We would take up other aspects of life like travel/leisure/shopping etc to address the needs of the visiting audience in a unique and beneficial way.
Q4. ITNation and Techtree - Post acquisition what has been the strategy? What kind of investment will be made to scale this acquired entity?
TN Prabhu - There is no special revision that we have adopted in the core of what Techtree is supposed to do. It is the world’s No:2 most popular technology and computer media portal and we would concentrate on enhancing the experience further by better addressing the audience needs for a neutral review of products and services. By virtue of our association with UTVi the TV channel, we would also stretch this experience to a larger and newer audience too.
Q5. Over all how much % of your total revenue do you for foresee being contributed by interactive (gaming) and digital/media i.e. UTVI, ITNation etc? What is the growth % you expect to see in these business over next 3 years?
Both - For 2008, about 22% of our revenues are budgeted from the Interactive business. New media we anticipate revenue contribution starting next financial year. By 2010 we expect Interactive to contribute about 40% and New media to contribute about 4% to the total revenue.
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Hi
Can any website in India sustain purely based on advertisement business model?
Thanks,
Rajeev
http://www.brandsindiaonline.com
Well at the moment the market is tough.. But over lets say 3 years the answer is a big yes!