Media

Chernin & AT&T’s joint video venture buys craft-oriented video service Creativebug

Image Credit: via CreativeBug

Otter Media, the recently rebranded video-focused joint venture between AT&T and Chernin Group, has acquired Demand Media’s Creative Bug, the companies announced today. Financial terms of the deal were not disclosed.

Otter Media has access to about $500 million in funding between its two parent companies, which will be used to acquire, invest, and launch streaming video services. Basically, it wants to find the next Netflix — or rather, the next “Netflix of…” something.

Creative Bug is one such video site, with a large library of how-to videos for arts and crafts activities. Otter notes that the do-it-yourself craft industry generates billions of dollars every year in the U.S. alone, which could be part of why it’s so interested in scooping up a streaming service with instructional content.

The move adds to Otter Media’s portfolio of video sites, including its majority stake in anime streaming video service Crunchyroll.

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