Discovery Communications said it will form an automotive media company through a consolidated joint venture with TEN: The Enthusiast Network.
The new joint venture, to be called TEN: A Discovery Communications Company, will bring together Discovery’s Velocity channel, and TEN’s entire automotive digital, direct-to-consumer, social and live event portfolio including brands Motor Trend, Hot Rod, Roadkill, Automobile, and more than 20 others. The news follows Discovery’s acquisition of Scripps.
Velocity is Discovery’s TV network for automotive fans in the US, which was launched in 2011, and is now available in 73 million homes. TEN’s Motor Trend OnDemand OTT service currently counts nearly 100,000 paying subscribers, while Motor Trend on YouTube has 5+ million subscribers and nearly 1.5 billion cumulative video views.
“Continuing with Discovery’s strategy to reach superfans on all platforms in popular and durable content categories, this joint venture brings together the most trusted media brands in the automotive industry to create a multiplatform business with the reach, talent, and consumer insights to nourish car enthusiasts on all devices,” said David Zaslav, president and CEO, Discovery Communications.
“By combining popular brands like Motor Trend, Hot Rod and Velocity, this venture will create a content engine that fuels not only our linear platform but also new direct-to-consumer, social and mobile opportunities with the goal of owning the car vertical across all platforms.”
“This venture is about giving advertisers the quintessential way to reach auto enthusiasts, prospective car buyers and an affluent male audience that buys a lot more than cars,” said Paul Guyardo, CCO for Discovery Communications.
“It’s also about giving consumers OTT access to world-class automotive content on every screen.”
Guyardo will serve as CEO, and Chairman of the new venture’s Board of Directors in addition to his current responsibilities. Leading the new venture will be Scott Dickey, President of TEN, and Bob Scanlon, who will be appointed President of Velocity and TEN Video Content. Both Dickey and Scanlon will report to Guyardo.
“Velocity is the fastest growing network on cable since launching in 2011 and is the #1 television destination for automotive super fans, with a stable of experts and personalities that represent the most respected names in the car world,” said Scanlon.
“By combining Velocity and TEN’s high-quality content, wide-reaching talented hosts and comprehensive production expertise, we are creating a powerhouse of short-, mid- and long-form content for the passionate and growing base of automotive super fans in the U.S. and around the world.”
“TEN’s automotive brands have become leaders in their categories by delivering a high quality, high engagement audience,” said Dickey.
“We’ve made significant investments in digital, mobile, experiential and SVOD/direct-to-consumer. Working closely with Discovery, we believe these investments, combined with the appeal of Velocity, will allow us to collectively expand leadership in the multibillion-dollar automotive market.”
In the future, TEN has an option to put its stake in the venture to Discovery at fair market value. Discovery will have an option to acquire 100% of the new venture.
