Demand Media Acquires Creativebug

Demand Media (NYSE: DMD) today announced the acquisition of Creativebug, the go-to source for high-quality, online video art and craft instruction.  Creativebug’s network of exceptional designers and library of educational videos complements the crafts-related content on Demand Media’s eHow web property.  The acquisition will accelerate Demand Media’s expansion into e-Learning.

“We’re seeing a ‘disruption and reinvention’ in the way that people are learning new skills. They are increasingly going online to learn both practical and creative skills, and we believe this convergence has huge potential,” said Joanne Bradford, Chief Marketing and Revenue Officer, Demand Media. “Instead of browsing at a bookstore or attending a class at the local community college, people are going online to learn from a world-renowned expert at a time that fits their schedule, accessing online videos from their smartphone, tablet or desktop.”

“Creativebug masterfully leveraged the e-learning and craft trend in the emerging ‘Create it Yourself’ movement to become a leader in this market,” added Dan Brian, Executive Vice President of Media. “We’ve seen interest in craft-related content on eHow grow more than 20% on average every year over the last three years. We’re sprinting to keep up with demand, adding 29% more video content over the same period.  Millions of people who visit eHow every month will be able to access Creativebug’s video workshops led by the top artists and designers in the world. We’re thrilled to add the passionate Creativebug team to the Demand Media family.”

“Creativebug represents a community of true believers.  From our employees to our customers and instructors, everyone at Creativebug has experienced firsthand the obsession and addiction of being an artist/designer/crafter,” said Jeanne Lewis, Founder and CEO of Creativebug.  “We take pride in doing everything thoughtfully, from filming high quality videos that illustrate the exquisite detail of hand-stitching to hand-delivering donations to our favorite local causes.  We decided to join Demand Media because they care deeply about content and communities, and we are glad that we can offer our instructors a broader platform to reach more people.”

Growing Market Opportunity

The worldwide e-learning market is estimated to be about $91 billion⁽¹⁾. In the US alone, the craft market has become a $30 billion dollar⁽²⁾ industry and more than 58% of all households have crafted at least once in 2011⁽²⁾. Demand Media has seen the consumer demand for e-learning and renewed interest in the contemporary crafts reflected in eHow’s metrics.  In 2012, eHow.com attracted almost 50 million visitors⁽³⁾ who viewed more than 100 million pages⁽³⁾ in the top craft categories of knitting, sewing, jewelry-making, wood-working and more.

⁽¹⁾IBIS Capital, Global e-Learning Investment Review January 2013
⁽²⁾Craft & Hobby Association, CHA Attitude & Usage Study Update, June 2011
⁽³⁾Internal company data

About Creativebug
Based in San Francisco, Creativebug is the go-to source for online video art and craft workshops featuring some of the most well-respected designers in the craft word. Users can pay per class or get a subscription for unlimited classes to learn the art of sewing, knitting, jewelry-making, printmaking and more.

About Demand Media
Demand Media, Inc. (NYSE: DMD) is a leading digital media and domain services company that informs and entertains one of the internet’s largest audiences, helps advertisers find innovative ways to engage with their customers and enables publishers, individuals and businesses to expand their online presence. Headquartered in Santa Monica, CA, Demand Media has offices in North America, South America and Europe. For more information about Demand Media, please visit www.demandmedia.com