AP Photo/Manuel Balce Ceneta
On the heels of its recently-announced merger with Scripps Interactive Networks, Discovery Communications said Tuesday that it will form a new joint venture with The Enthusiast Network (TEN), an LA-based media company that owns over a dozen automotive-based outlets, like Automotive magazine and Truck Trend Network.
What it entails: The partnership will combine Discovery's Velocity channel, and TEN's entire automotive digital, social, video subscription and live event portfolio. The company will be called TEN: A Discovery Communications Company, and Discovery will have a majority controlling interest.
Why it matters: It's an opportunity for Discovery to further tap into the lucrative auto advertising market and the loyal audience of 150 million auto fans that can also be marketed to in other verticals, like consumer packaged goods or sports. A stake in TEN's subscription video on demand (SVOD) service Motor Trends OnDemand, also marks Discovery's first direct-to-consumer push in the U.S.
A win for auto and luxury advertisers: The new venture aims to become the largest media destination for auto enthusiasts in the U.S., which will give advertisers a vehicle for reaching affluent audiences across a multitude of platforms. Although TEN's print publications won't be included in the deal, advertisers can run ads across those outlets in a coordinated fashion for a 360-degree messaging opportunity.