GE’s (GE) NBC Universal made another niche Web investment. This one in DriverTV, a producer and distributor of 3-minute promotional videos for the automakers. NBC U is paying $6 million for a 35% stake in the site, which has $8 million annual revenue, according to the WSJ. The rationale: capture some of the auto advertising that’s shifting online.
DriverTV is owned by TV and ad production house Radical Media, which produces promo video for advertisers. The site has a content deal with News Corp.’s (NWS) MySpace, and is seeking similar distribution deals with other sites. Founded in 2005, the company has on-demand video distribution in 30 million homes through deals with Comcast (CMCSA), Time Warner Cable (TWC), Cox, Insight and The Hotel Network. Release