Velocity Network meets Motor Trend OnDemand & more

Media giant Discovery Communications is growing larger thanks to a consolidated joint venture with TEN: The Enthusiast Network, the parent company to a wide range of print magazines and digital content like Motor Trend, Hot Rod, Automobile, and Motor Trend OnDemand subscription video service. The deal is said to benefit both “automotive superfans” and advertisers by consolidating these digital, social, and live events under one umbrella.

The joint venture, called TEN: A Discovery Communications Company, will see content shared between the Velocity cable network and The Enthusiast Network. This includes shows like Velocity’s Wheeler Dealers and Iron Resurrection and TEN’s Roadkill, Hot Rod Garage, Dirt Every Day, and Engine Masters from Motor Trend’s OnDemand service and YouTube channel. Neither side’s content is expected to change. Paul Guyardo, the chief commercial officer for Discovery Communications and CEO of the new venture, said, “This is about going after super fans across all platforms. We’re going to deliver a quality male audience at a much more efficient rate than sports, an audience that also buys much more than cars.” The joint venture deal should become official later in 2017 pending regulatory approval.

Continue reading for more information.

Why It Matters

I hope for nothing less for Discovery’s new TEN, which will be the largest automotive media outlet once formally approved

Joint ventures generally mean joint growth and expansion. I hope for nothing less for Discovery’s new TEN, which will be the largest automotive media outlet once formally approved. Speaking personally, I’m a subscriber and big fan of Motor Trend OnDemand and its original programming. Shows like Roadkill, Dirt Every Day, and Engine Masters are some of the most engaging and entertaining shows available online – not to mention, informative. Ever watched an episode of Engine Masters? As a cable-cutter, I can’t speak for Velocity’s programming, but the few clips I’ve watched seem very entertaining, though a bit on the “reality cheese” end of the spectrum.

It’s interesting that no cash changing hands in this deal. Discovery and TEN will simply co-benefit from the cooperation. However, it’s important to note Discovery has an option to buy out TEN in the future. TEN also has the option to sell its stake in the joint venture.

TEN isn’t Discovery’s only recent grab. Discovery Communications recently paid almost $12 billion for Scripps Networks Interactive, a publicly traded company which parents mainstream TV networks like HGTV, Food Network, DIY Network, Cooking Channel, and Travel Channel. The purchase does not touch Scripps Networks Interactive’s seller, E.W. Scripps Company and its newspaper subsidies. Needless to say, Discovery Communications is on an imperialistic rampage. No word on what other companies or media outlets Discovery has in its sights.

So, do you watch Velocity or Motor Trend’s programming? Are you a Motor Trend OnDemand subscriber? Let us know in the comments below.

Wheeler Dealers

Iron Resurrection

Roadkill

Hot Rod Garage

Dirt Every Day

Engine Masters

Hat tip to The Wall Street Journal for additional information.

Source: Discovery Communications

Press Release

Venture will combine: linear network Velocity, MotorTrend.com, Motor Trend YouTube channel, Motor Trend OnDemand OTT service and TEN’s complete portfolio of automotive digital, social, live events, and original content

Venture aims to nourish automotive superfans on all platforms, garner incremental share of multibillion-dollar automotive ad market and provide a quality male audience to general-market advertisers. It also marks Discovery’s first direct-to-consumer OTT push in the U.S.

  • Cumulative reach of more than 150 million auto superfans spanning 50+ brands across TV, digital, subscription video-on-demand, social, print and live event properties
  • Velocity, the #1 TV network for automotive fans in the U.S., available in 73 million homes
  • Nearly 100,000 paying subscribers to Motor Trend OnDemand OTT service
  • Motor Trend, the #1 automotive publisher on YouTube with 5+ million subscribers and nearly 1.5 billion cumulative video views
  • 2,000+ hours of content on the top automotive digital video subscription service and a library of nearly 7,000 hours of Velocity content
  • Nearly 1 billion monthly social video views

Silver Spring, Md. – Discovery Communications announced today that it has agreed to form a new consolidated joint venture with TEN: The Enthusiast Network. The venture will bring together Discovery’s Velocity channel, the number one automotive TV network, and TEN’s entire automotive digital, direct-to-consumer, social and live event portfolio including industry leading brands Motor Trend, Hot Rod, Roadkill, Automobile, and more than 20 others. The venture will create a top automotive media company in the U.S. and an unrivaled destination for automotive enthusiasts, auto buyers and advertisers looking to reach this high-quality audience on all screens and platforms. Discovery will take a majority controlling interest in the venture.

“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.”

Unparalleled 360-Degree Solution for Advertisers
Upon closing of the transaction, the venture, to be called TEN: A Discovery Communications Company, will offer advertisers a unified offering with a combined reach of more than 150 million automotive superfans, car buyers and a quality male audience. The new venture will also bring proven expertise in the branded content space, as well as sophisticated audience targeting capabilities.

While TEN’s print businesses will not be contributed to the new venture, a commercial agreement will allow for continued cross-promotion between the print portfolio and the new venture for a true multiplatform, 360-degree advertising offering.

“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, Chief Commercial Officer 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.

New U.S. Direct-to-Consumer Offering
With plans to add Velocity content to TEN’s Motor Trend OnDemand subscription video on demand (SVOD) service, the new joint venture will mark Discovery’s first direct-to-consumer push in the U.S. and a growth opportunity for the country’s top automotive video subscription service. Motor Trend OnDemand will feature thousands of hours of automotive video, including exclusive original series, such as Roadkill, Head2Head, Dirt Everyday and Ignition alongside motorsports and live auto event content. Motor Trend OnDemand also will offer new, original content featuring some of the best-known talent from series across TEN and Velocity, including WHEELER DEALERS, BITCHIN’ RIDES, BARRETT-JACKSON LIVE, FANTOMWORKS, SPEED IS THE NEW BLACK, IRON RESURRECTION, THE AUTO FIRM WITH ALEX VEGA, and GARAGE SQUAD, and will be available across millions of connected devices via IOS/Apple TV, Google Play, Roku, Xbox, Chromecast and Amazon platforms.

“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.

TEN is a portfolio company of GoldenTree Asset Management LP.

About TEN: A Discovery Communications Company
TEN: A Discovery Communications Company will bring together Discovery’s fast-growing Velocity network and TEN’s entire automotive digital, direct-to-consumer, social and live event portfolio including industry leading brands Motor Trend, Hot Rod, Roadkill, Automobile, and more than 20 others to form a top automotive media company in the U.S. Together, the company will reach more than 150 million cumulative fans and will encompass the #1 TV network for automotive superfans with Velocity; the #1 automotive YouTube Channel with Motor Trend; and the only auto-dedicated SVOD service with Motor Trend OnDemand.

About Discovery Communications
Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) satisfies curiosity and captivates superfans around the globe with a portfolio of premium nonfiction, lifestyle, sports and kids content brands including Discovery Channel, TLC, Investigation Discovery, Animal Planet, Science and Turbo/Velocity, as well as OWN: Oprah Winfrey Network in the U.S., Discovery Kids in Latin America, and Eurosport, the leading provider of locally relevant, premium sports and Home of the Olympic Games across Europe. Available in more than 220 countries and territories, Discovery’s programming reaches 3 billion cumulative viewers, who together consume 54 billion hours of Discovery content each year. Discovery’s offering extends beyond traditional TV to all screens, including TV Everywhere products such as the GO portfolio and Discovery Kids Play; over-the-top streaming services such as Eurosport Player; digital-first and social video from Group Nine Media; and virtual reality storytelling through Discovery VR. For more information, please visit www.discoverycommunications.com.

View the full press release Hide press release
Press release
What do you think?
Show Comments
Car Finder: