Discovery Communications Signs Delivery Agent for Comprehensive E-Commerce Services
Silver Spring, Md. (March 16, 2009) – Discovery Communications (Nasdaq: DISCA, DISCB, DISCK), the world’s number one nonfiction media company, announced today a multi-year deal to outsource its entire interactive commerce business to Delivery Agent, Inc., the leader in shopping-enabled entertainment. The agreement represents a shift in Discovery’s Commerce strategy from an internal operation to a lower risk, royalty-based model.
“Transitioning to a royalty model provides opportunity for increased profitability while significantly reducing the financial risk of holding large product inventory,” said Kelly Day, Chief Operating Officer, Discovery Commerce. “Discovery’s brand strength and legacy of creating award-winning consumer products, paired with Delivery Agent’s track record of building winning commerce solutions for the entertainment industry, makes this an ideal go-forward strategy for achieving our growth goals for Commerce.”
In exchange for royalties, Delivery Agent will handle all of Discovery’s direct-to-consumer operations, including hosting and managing the DiscoveryStore.com website, customer service, merchandising, marketing, product development and fulfillment. Launched in 2001, DiscoveryStore.com draws an average of 12 million consumers each year and features products such as fan gear for Discovery’s popular series; award-winning children’s toys; and the best of Discovery’s nonfiction specials and series on DVD.
Delivery Agent also will launch shopping websites for TLC and Animal Planet later this year. TLCStore.com and AnimalPlanetStore.com will feature home video from its most popular programming and a wider variety of show-based items.
The launch of the royalty model represents a significant milestone in Discovery Communications’ strategic realignment of its Commerce business. To excel in a dramatically changing commerce environment, since 2007 the company has executed on a plan to reduce risk and costs, streamline operations and increase profitability for its Commerce division. Since that time the company has closed its 103 Discovery Channel Store retail locations in the U.S.; refocused efforts on online commerce; expanded its product lines sold through mass-market retailers; and outsourced its retail licensing business.
“Discovery Communications has a strong history of developing superior products that leverage the affinity and loyalty consumers have for its programs and brands,” said Mike Fitzsimmons, Delivery Agent’s CEO. “We look forward to taking Discovery’s Commerce business to a new level by applying our expertise in shopping-enabled entertainment.”
About Discovery Communications
Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world’s number one nonfiction media company reaching more than 1.5 billion cumulative subscribers in over 170 countries. Discovery empowers people to explore their world and satisfy their curiosity through 100-plus worldwide networks, led by Discovery Channel, TLC, Animal Planet, Science Channel, Planet Green, Investigation Discovery and HD Theater, as well as leading consumer and educational products and services, and a diversified portfolio of digital media services including HowStuffWorks.com. For more information, please visit www.discoverycommunications.com.
About Delivery Agent, Inc.
Delivery Agent, Inc. (www.deliveryagent.com), named #1 Privately Held Media Company by Inc. Magazine, and #3 on the Deloitte & Touche Silicon Valley Technology Fast 50, is the leader in shopping-enabled programming and content monetization for more than 125 entertainment properties from major media companies such as ABC, CBS, NBC Universal, Twentieth Century Fox, MTV Networks, Martha Stewart Living Omnimedia, Boston Celtics, UFC, and The Weinstein Company. Delivery Agent created the market for shopping-enabled programming by redefining how products related to entertainment are cataloged, merchandised and sold online. Since its inception in 2001, Delivery Agent has deployed its comprehensive technology platform, including e-commerce applications, video and mobile products, and interactive advertising solutions to create profitable connections among entertainment content, consumers and brands. To date, the company has developed a network of more than 90 distinct branded shopping sites for its partners and its own SeenON!™ (www.SeenON.com), the definitive online shopping destination for products seen on screen.
Press Contacts:
Discovery Commerce
Jennifer Marburg
Jennifer_Marburg@discovery.com
240.662.3225
Delivery Agent
Kim Marder
kmarder@deliveryagent.com
415.728.9602
