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.