By: Tierney Plumb

In a move to further shift its online retail operations to a more effective model, Discovery Communications has inked a multi-year deal to outsource its whole interactive commerce business to Delivery Agent Inc.

The San Francisco-based technology applications company, which creates a digital shopping environment, has an entertainment clientele that includes MTV Networks, Martha Stewart Living and NBC Universal.

“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 of Discovery Commerce, in a statement.

The Silver Spring-based media giant (NASDAQ: DISCA, DISCB, DISCK) said its revenues reached $3.4 billion in 2008, a 10 percent increase from 2007.

In exchange for royalties, Delivery Agent will host and manage the Discoverystore.com Web site and handle all customer service, merchandising, marketing, product development and fulfillment.

Launched in 2001, Discovery Store’s site attract around 12 million consumers each year and sells fan gear related to its popular shows, children’s toys and Discovery’s nonfiction specials and series on DVD.

Delivery Agent will launch shopping Web sites for TLC and Animal Planet later this year, it said.

Since 2007 Discovery has streamlined operations and boosted profitability for its commerce division by closing its 103 Discovery Channel Store retail spots and focusing more on online commerce.

Read more: Discovery Communications to outsource online retail operations | Washington Business Journal