Los Angeles Business Journal

Demand Media Gets Creative

By Natalie Jarvey Tuesday, March 19, 2013
Easter eggs on eHow.com.

Easter eggs on eHow.com.

Demand Media on Tuesday announced it has acquired teaching web service Creativebug in a sign of the company’s new interest in paid-for content.

Creativebug produces videos that teach subscribers how to make craft projects—today’s top features involve rosy quilt design, crystal cuff bracelets and something called “dart manipulation.” The site follows a strict pay model: each video series costs about $10; monthly access is $16.99.

Creativebug’s video series model is similar to Lynda.com, an Ojai based site that produces video tutorials for tech. It raised $103 million in venture capital earlier this year.

While Demand Media has hosted hundreds of craft how-to’s on its eHow domain, they’ve almost always been free. Demand keeps costs down thanks to low-cost freelance articles and videos and makes money by selling ads. In 2012 the company took in $227 million from ad revenue.

Writing on the company’s blog, Dan Brian, Demand’s executive vice president of content, said traffic to craft articles on eHow has grown more than 20 percent each year for the past few years. In 2012 there were more than 50 million visitors checking out craft how-to’s.

“People still want to know ‘How to Fix a Leaky Faucet,’ but they also want to learn “How to Make Flying Paper Lanterns” for their toddler’s birthday party,” Brian writes. “The emerging ‘Create it Yourself’ combined with the lucrative market opportunity makes Creativebug a very attractive business in our eyes.”