SILVER SPRING, Md., March 16 /PRNewswire-FirstCall/ -- 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!(TM)
(www.SeenON.com), the definitive online shopping destination for products seen
on screen.
SOURCE Discovery Communications
03/16/2009
/CONTACT: Jennifer Marburg of Discovery Commerce, +1-240-662-3225,
Jennifer_Marburg@discovery.com; or
Kim Marder of Delivery Agent,
+1-415-248-5701, kmarder@deliveryagent.com/
/Web Site: http://www.discoverycommunications.com /
(DISCA DISCB DISCK)