Indiantelevision.com Team

(19 May 2007 3:10 pm)

MUMBAI: US broadcaster Discovery will increase the presence of its consumer products in the retail marketplace through partnerships with large retailers to provide more exposure for Discovery- branded products.

It has, however, decided to close its stand-alone and mall-based stores.

As part of its new commerce plan, Discovery will focus on achieving an increased reach of its products through retail partnerships and the high- growth e-commerce platform.

The company plans to expand the presence of its products in the retail marketplace through cost-effective initiatives with large retailers, such as Animal Planet's relationship with Toys "R" Us.

In addition to strengthening its web-based e-commerce activities, Discovery will also explore new avenues for product sales via television (t- commerce) by capitalizing on the company's unparalleled network reach in the United States and around the world.

The closing of Discovery's 103 mall-based and stand-alone Discovery Channel Stores will occur by the end of third quarter 2007. Approximately 1,000 full-time and part-time employees, or 25 per cent of Discovery's global workforce, will be affected.

Discovery president and CEO David Zaslav says, "By eliminating our owned and operated brick-and-mortar storefronts, which are cost-intensive and complicated businesses, Discovery can focus its efforts on high-growth e-commerce and licensing operations.

"While retail is historically not the core competency of global media companies, there is strong consumer demand for Discovery's branded product lines. The company's e-commerce operations posted record growth and sales for 2006, and to realise the full value of our quality content, Discovery must also sell through large retailers who have more stores and provide more exposure to a greater number of consumers."

Discovery president of global businesses and operations Mark Hollinger says, "Discovery Channel's Planet Earth DVD has become the fastest and best- selling title in company history. Our retail stores are closing but we are still open for business and expect a robust holiday selling season through our successful e-commerce, licensing and catalog operations."