Discovery Communications will outsource its interactive commerce business to Delivery Agent in a multi-year deal.
Discovery is shifting its commerce strategy from an international operation to a lower risk, royalty-based model.
Delivery Agent will handle Discovery’s direct-to-consumer operation, including DiscoveryStore.com, customer service, merchandising, marketing and product development in exchange for royalties. The company will also launch TLCStore.com and AnimalPlanetStore.com later this year.
“Transitioning to a royalty model provides opportunity for increased profitability while significantly reducing the financial risk of holding large product inventory,” Kelly Day, COO of Discovery Commerce, said in a statement. “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.”
(Editor: Baumann)