International media and entertainment company Discovery Communications has formed a joint venture with media group The Enthusiast Network (TEN), through which the former’s Velocity channel will be integrated into the latter’s extensive automotive portfolio.
It is hoped the joint venture will serve as a leading automotive media company in the United States and serve as a go-to destination for automotive enthusiasts across all platforms. Discovery will take a majority controlling interest in the venture.
The agreement brings together the automotive-focused Velocity network and TEN’s entire automotive digital, direct-to-consumer, social and live event portfolio, which includes brands such as Motor Trend, Hot Rod, Roadkill and Automobile.
Once the transaction is closed, the venture will be known as ‘TEN: A Discovery Communications Company’. Discovery’s chief commercial officer, Paul Guyardo, will serve as chief executive and chairman of the new venture’s board of directors.
The venture will be led by TEN president Scott Dickey, and Bob Scanlon, who will be appointed president of Velocity and TEN video content. Both Dickey and Scanlon will report to Guyardo.
Discovery said the partnership marked its first direct-to-consumer push in the US and a growth opportunity for Velocity.
Under the agreement, 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.
David Zaslav, president and chief executive of Discovery, said: “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.
“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.”
TEN holds an option to put its stake in the venture to Discovery at fair market value. Discovery will have an option to acquire 100 per cent of the venture.