Newzulu enters Indian media market with Mahatta deal

Published at Aug 31, 2015, in Technology

Newzulu (ASX:NWZ) has managed to enter one of the major emerging media markets in the world, announcing that it had signed a deal with Indian media player Mahatta Multimedia which could see it generating revenue within three months.

It told the ASX today that it had tied up the deal, together with a separate deal with Belgian news agency Belga.

The deal with Mahatta will see it access a market where news outlets are hungry for high-quality, validated, crowd-sourced images, videos, and live streams.

Mahatta provides creative media licenses for content through various online platforms. Crucially, it’s also the representative of image licensing behemoth Shutterstock in India.

India is also an emerging nation for mobile consumption of news.

Meanwhile, its content deal with Belga will see it tap into the main news media provider in Belgium. It produces 90 online articles, 19 audio bulletins, and 30 video articles daily which are picked up by news organisations in the country.

Crucially, both deals will include outreach work.

Newzulu will work with both Mahatta and Belga to get people to upload their images, videos, and live video feeds onto the Newzulu platform, meaning there will be active work underway to get more localised content.

It said that while there is a short trial period on each deal, Newzulu could be raking in revenue from the deals within three months.

It did not disclose how much the deals could be worth.

NewZulu in a nutshell

In short, Newzulu is a way for news publishers to connect with citizen journalists who are on the scene of unfolding news.

While in the past, citizen journalists had to take the video, contact a newsroom, and then wait for them to make an offer on the footage, the Newzulu system takes a lot of the gruntwork out of the equation.

Citizen journalists simply log onto the Newzulu platform, upload the footage and then wait for the cash to roll in.

Newzulu verifies the content to make sure it’s legitimate, and then pays the citizen journalist a fee for the content. Then a Newzulu partner such as Agence France Presse or Getty Images then onsells the footage to news organisations which have paid for access to the Newzulu library.

Recent deals

In recent months, NewZulu has been hard at work signing a raft of distribution deals in key markets around the world.

It has signed a trio of deals in Australia with media players focusing on its Live and Platform solutions, which could be worth $1.7 to $4.9 million should trial period convert to concrete agreements.

Newzulu has also been looking internationally as well for agency deals.

At the end of July NewZulu announced that it had signed major Russian news agency ITAR TASS as a distibutor for its News content, allowing news organisations in Russia to tap into the global user-generated content marketplace.

Newzulu has also signed a similar deal with Gtres Online which services Portugal and Spain, and a Platform and Live deal with Vietnamese media company Lasta Multimedia.

However, the granddaddy of them all could be the deal it signed with a “gobal news agency” in recent times.

It signed a deal with a news agency which reachesa cumulative audience of over 3 billion people.

The news agency in question has 3000 reporters around the world.

For now, the deal is in a trial phase with Live kits in the hands of 10 journalists for a four week trial. Should the news agency like what it sees, Newzulu estimates the deal could bring the company between $600,000 to $5.5 million per year.

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