According to the company, the primarily due to its websites, revenues from New Media segment amounted to around Rs. 180 million for the year ended March 31, 2009 and with a loss of Rs. 45 million for the period. Of this revenue, Rs. 173.21 million was from India, while Rs. 7.05 million was from abroad.
According to its 2008-09 annual report released today by the company IT Nation has reported a turnover of Rs. 30.13 million, and a loss after tax of Rs. 56.55 million.
UTV New Media: Content Rights
UTV New Media has a library of almost 15,000 songs, including music rights for movies like Akshay Kumar starrer Singh is King, Jodha Akbar and Rajnikant starrer Tamil movie called Kuselan. They’ve also got digital rights for a Hindi movie called Cheenti Cheenti Bang Bang and Bad Luck Govind, and acquired an independent album from Sonu Nigam called Rafi Resurrected. Regional content includes three Kannada Movies, two Telugu movies and a movie from Haryana, as well as Mittail and Poi Solla Poram which is the Tamil remake of UTV’s Khosla ka Ghosla. The company also acquired acquired digital rights for a 10-12 Tamil language films and a Bengali catalogue. UTV New Media also manages all SMS and IVRS services for UTVi.
For the coming year, UTV intends to strengthen synergies with group businesses for smooth deployment of UTV content over web and mobile, for example, in case of Audio Cinema. The company also intends to launch UTV@play, which it claims “will be the biggest repository of the online legal music content.”
UTV had acquired IT Nation last year, and yesterday, the company announced layoffs. Sources have suggested that around 20 people have been asked to leave so far.
Speaking to MediaNama, Manish Agarwal, CEO of UTV New Media said that “It is a part of an annual review and a consolidation exercise across services. For each brand, teams were captive, and now we will have horizontal teams.”
“We were informed at 5pm yesterday, and asked to leave by 6pm,” one former employee told us on condition of anonymity. Agarwal declined to comment on the number of people that have been asked to leave, but said that no further layoffs are planned at the company.
“All the brands will be revamped,” and contrary to speculation, no IT Nation brand is going to be shut down, Agarwal said. As you can tell from the financial situation of both UTV New Media and IT Nation, the New Media segment has made significant losses for the company.