UTV Software Communications Ltd. has announced a joint venture with Malaysia-based Astro, focusing on the Youth segment. Investment in this venture is estimated at up to Rs. 200 crores.
Zarina Mehta, COO - Broadcasting, UTV, says, "As much as 23% of the viewer ship of cable and satellite television comes from the youth space which is currently very undeserved by existing broadcast offerings. The Hungama TV experience has been enormously enriching and has reinforced our belief that innovative content, marketing and distribution are the key factors in determining success in Broadcasting. Our extensive learnings on Hungama TV will help us address the changing needs of the exciting 17-25 year target group. The UTV team is currently immersed in understanding the need gaps in this segment and working on innovative ways to address them."
The new venture will operate across multiple platforms, including a television channel, gaming, mobile, licensing & merchandising, ground events and the Internet. The first television channel in Hindi is slated for launch in the second quarter of 2007, supported by a huge multimedia campaign and multi-city ground events. UTV is currently conducting extensive research on this target group as an input to its Programming and Marketing plans. The plans for the venture include the launch of multiple channels across languages in India and Southeast Asia. UTV had earlier entered into a business co-operation arrangement with Astro to set up kids channels in Malaysia and Indonesia, which launched on the Astro platform earlier this year.
Says Ralph Marshall, CEO of Astro, "Our association with UTV goes back a long way. We recently launched ASTRO CERIA our successful kids channels with them in Malaysia and Indonesia. The youth segment in India provides tremendous potential for creativity and expression and I believe UTV will make a natural partner for us given its proven track record in developing great content and marketing it successfully in a highly competitive environment."
UTV's latest foray into the Broadcasting space, Hungama TV, is an unparalleled success, with the channel reaching the undisputed No. 1 slot amongst all kids channels in less than two years from launch. This has been achieved in a market previously dominated by entrenched international competition. The primary ingredients for the success of Hungama TV have been the breakthrough original content produced by UTV, a prudent acquisition strategy, innovative marketing and aggressive distribution.
Disney acquisition of Hungama TV concluded and plans for future synergies unveiled
UTV and Disney recently concluded the acquisition of Hungama TV with the final approval from the FIPB, followed by the subsequent inflow of Rs. 140 crores (USD 31.125 million) from Disney to UTV within a week. Disney has also invested Rs. 67 crores (USD 14.5 million) towards a 14.9% stake in UTV. This heralds the start of synergies in areas across television content production, movie production and broadcasting, between UTV and Disney. The two organizations have identified areas of common involvement, including the launch of niche channels, movie co-productions and television content creation by UTV for Disney channels.
About UTV
Incorporated in 1990, UTV has today emerged as one of India's leading and most respected integrated media and entertainment companies. Listed on the Indian Stock Exchange, it has grown from a Television Production house, into an integrated media company with leadership position in Television, Motion Pictures, New Media that includes animation and Broadcasting - through its Kids Network - Hungama TV. UTV has established its presence with offices across Asia, UK and USA and a brand for Creative and Execution Excellence.
