Discovery Communications

Posted on October 16, 2016 by bmkozach

Bethany Kozachuk and Christina McDonagh

Discovery Communications’ logo

Discovery Communications
One Discovery Place
Silver Spring, MD 20910

Phone Number: (240) 662-2000
Website: http://www.discovery.com/

OVERVIEW

Poster for Iceberg Alley

Founded in 1982 by University of Alabama graduate John Hendricks, Discovery Communications has become one of the most influential companies in the global cable market. Discovery struggled at first, but deals with the cable operators such as Telecommunications Inc, Cox Cable Communications, and Newhouse Broadcasting group soon arose. By June of 1986, Discovery had seven million subscribers; spurring the company to commission its first original program, Iceberg Alley, in 1989. [11] [4]

Discovery Channel Logo

TLC Logo

Animal Planet Logo

Discovery Communications has become one of the leaders in global entertainment. The company consists of 33 channels worldwide, three full-service production studios, and in the US, 13 cable and satellite networks that compromise the industries most widely distributed portfolios in the US. This portfolio includes three major channels: Discovery Channel, TLC (formerly The Learning Channel) and Animal Planet. These three channels reach over 91 million households in the US and have kept Discovery Communications at the top of the industry. Discovery’s content can be divided into three genres: Kids, Sports, and Non- fiction.[6] [11]

Key Executives

President & CEO of Discovery Communications

The President and CEO of Discovery Communications is David Zaslav. Zaslav has led the company since 2007, and under his reign, Discovery has begun trading as a public company on the Nasdaq stock exchange. As a result, in 2014, the Discovery became a Fortune 500 company. [10]

Bruce Campbell, Chief Development Officer and General Counsel

Andrew Warren-Senior Executive VP and CFO

Jean-Briac Perrette President
Discovery Networks International

2016-2017 Program Roster

Shark Week Poster

For the 2016-2017 Programming Slate, Discovery announced that their lineup would consist of 22 returning shows, but also 20 new shows as well. Cooper’s Treasure Sacred Steel, The Wheel, and a Deadliest Catch spin-off, Deadliest Catch:Dungeon Cove, are four of the highly anticipated shows coming out this season. Discovery also announced that they would be launching a revolutionary anthology series called Discovery Impact. The series was aired at the 2016 Sundance Film Festival and will focus on the impact that mankind has had on the earth’s environment, as well as what individual people can do to solve the global environmental issues.[9] Fan favorites like Naked and Afraid, Gold Rush, and Bering Sea Gold are on the roster for this year as well. The week long event Shark Week has been kept on as well. Last year’s Shark Week had the highest ratings ever for the event. All of these programs have kept Discovery at the top of the pack, but there are still gaps that need to be filled in this programming giant’s empire. [1]

Financials

According to the third quarter reports, net income available to Discovery decreased 22% to $219 million from $279 million due to a $50 million after-tax impairment charge because of a Lionsgate investment and higher equity-based compensation. This was fractionally offset by a decrease in taxes, currency-related transaction gains, and higher contribution from equity investors income. Discovery’s earnings per share (EPS) decreased 16% to $0.36 because of lower DCI Net Income, but that was partially offset due to lower shares outstanding. Adjusted EPS decreased 15% to $0.40 compared to $0.47 of last years third quarter. Free cash flow dramatically increased 75% to $410 million due to lower cash taxes and the timing of working capital.[3] With all of this financial information, it seems as though Discovery has done well for itself in the third quarter, but there are some concerns within the company about distributing media more effectively and their ranking in the stock exchange.[7]

While Discovery is considered to be wildly successful, the company is not immune to hardships. Discovery posed an earnings surprise (down) of 16.39% and in the past three of four quarters has had an earnings surprise averaging 6.02%. These swings in earnings are due to the company’s struggle to produce advertising revenue. Also, problematically, a major source of its revenue comes from 10% of its customers.[15]

Chart of Stock Prices 2015-2016

Stocks at discovery have been sporadic over the years. While the company was doing well in 2015, once 2016 hit, Discovery seemed to take a sharp drop, according to the NASDAQ. Stock has been consistently declining over the past months, but there is still hope for Discovery. With the growth of online streaming and OTP (over the top), many customers are cutting their ties to cable and satellite. In order to keep viewers tuning in, Discovery Communications has begun efforts to get its content on as many screens as possible.[15]

Happening Now

560 Media Logo

In November, Discovery joined a group of over thirty producers and distributors that signed with 560 Media. 560 Media is a Global Collections Agency that offers clients intelligence-based revenue-management services.[8] The agency specializes in Television and Film rights that are beneficial to companies in a fragmented and intricate market. Discovery’s partnering with 560 Media will certainly give the evolving company the new edge that it desperately needs. [12] The Director of Global Music at Discovery thinks that,”…560 Media’s fresh and flexible approach to catalog representation will assist Discovery in this specialist area, allowing us to maximize remuneration in the international arena.” Management at Discovery is also working on shifting their focus toward secondary rights management for their high quality catalog. 560 Media will enable Discovery to keep tabs on their revenues and help Discovery gain earning power that is crucial in today’s market.[13]

While Discovery has been late to the online TV business, it certainly has been making

Discovery GO’s logo. The streaming app introduced on December 2nd 2015.

efforts to catch up with other companies like Disney. Last year, the company began allowing online streaming through the Discovery GO app to cable and satellite subscribers. Research found that the key demographic for the app was between 18 and 34, yet that hasn’t quite helped the network grow. [14] Discovery also announced that they will be starting a joint venture to hasten the growth of its Eurosport channel to an online-format as well as new collaborative efforts with Mediacom, Hulu, Sony Corporation, and CBS Corp. Discovery has also launched a joint deal to produce a new digital-only media holding company named Group9. Group9 will be a digital and social media video provider that will have an estimated 3.5 billion views per month. Discovery will own 39% of the entity and have the option to purchase the whole company outright.[2]

The Future?

Discovery has recently partnered with AT&T to expand their streaming services with DirecTV Now. Other networks and program providers like Disney, HBO, Turner, and NBC Universal have signed up to work with AT&T in their new DirecTV Now subscription video on demand (SVOD) program. There will be three streaming options provided. Two will charge a monthly rate, and the third, Freeview, will be ad-supported. There will be a wide variety of content on the streaming service that will vary depending upon which option the subscriber chooses.[16]

BIBLIOGRAPHY

[1]. @Cablefax. “Discovery Upfront.” Cablefax. N.p., 01 Apr. 2016. Web. 29 Nov. 2016.

[2]. “Can Discovery Communications Survive in a Streaming TV World?” NASDAQ.com. N.p., 18 Nov. 2016. Web. 29 Nov. 2016. http://www.fool.com/investing/2016/11/18/can-discovery-communications-survive-in-a-streamin.aspx

[3].”Christian Wheeler.” ReviewForTune. N.p., 18 Nov. 2016. Web. 29 Nov. 2016.

[4]. “Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc.” Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc. N.p., n.d. Web. 29 Nov. 2016.

[5]. “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 29 Nov. 2016.

[6]. “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 29 Nov. 2016.

[7]. “Discovery Third-Quarter Earnings, U.S. Ad Revenue Drop.” Surghar Daily. N.p., 03 Nov. 2016. Web. 29 Nov. 2016.

[8]. Editor. “Discovery Taps 560 Media for Rights Revenue Collection.” Rapid TV News. N.p., n.d. Web. 29 Nov. 2016. www.fiercecable.com/broadcasting/discovery-signs-deal-560-media-for-secondary-rights

[9].Hipes, Patrick. “Discovery Channel Greenlights Unibomber Scripted Series & ?Deadliest Catch Spinoff For 2016-2017; Sibling Nets Unveil New Slates Upfronts.” Deadline. N.p., 31 Mar. 2016. Web. 29 Nov. 2016. corporate.discovery.com/discovery-newsroom/discovery-channel-announces-2016-2017-upfront-programming-slate/

[10]. “CNBC Excerpts: David Zaslav, CEO of Discovery Communications, on CNBC’s Closing Bell Today.” CNBC. N.p., 19 Oct. 2016. Web. 29 Nov. 2016.

[11]. @IDAorg. “Two Decades of Discovery, and There’s Still More to Learn.” International Documentary Association. N.p., n.d. Web. 29 Nov. 2016. www.documentary.org/magazine/two-decades-discovery-and-theres-still-more-learn

[12]. Munson, Ben. “Discovery Signs Deal with 560 Media for Secondary Rights.” FierceCable. N.p., 18 Nov. 2016. Web. 10 Nov. 2016.

[13]. “NEWS.” 560 MEDIA. N.p., n.d. Web. 29 Nov. 2016. www.560media.com/news/

[14]. Rossolillo, Nicholas. “Can Discovery Communications Survive in a Streaming TV World?” The Motley Fool. N.p., 01 Jan. 1970. Web. 29 Nov. 2016.

[15]. Street, Active Wall. “Post Earnings Coverage as Discovery Communications Misses Earnings and Revenue Forecast.” Baystreet.ca. N.p., n.d. Web. 29 Nov. 2016. www.baystreet.ca/viewarticle.aspx?id=448707

[16]. https://corporate.discovery.com/wp-content/uploads/2016/11/163002_2016_Q3_AT-A-GLANCE_WEB.pdf

Discovery Communications, Inc.

Posted on September 30, 2015 by Alisa Sokolova

By Alisa Sokolova

[1] Discovery Communications’ log

Discovery Communications, Inc

One Discovery Place

Silver Spring, MD 20910

240-662-2000

http://corporate.discovery.com/

Background and History:

Discovery Communications, Inc (DCI) is an international mass media entertainment company. Based in Maryland, U.S., it manages 150 television networks and 33 worldwide channels (both satellite and cable) [2]. DCI operates in 220 countries, broadcasting in 45 different languages and reaching three billion viewers a week [3]. DCI both produces its оriginаl content, which is primarily non-fiction, and аcquires some programming from producers worldwide [4]. The company also produces and distributes educational products and school services, such as digital textbooks [5].

Discovery GO’s logo. The new streaming app introduced on December 2nd, 2015 [13].

DCI was initially established by John Hendricks in 1985 as a single Discovery Channel [6]. During the 1990’s the company developed additional networks, including Discovery Kids, Animal Planet and Discovery Travel [7]. In 1995, Discovery Communications launched its first website Discovery Channel [8]. Today, the company’s online streaming is estimated to get 400 million hits monthly [9]. Most of the shows are also available on Netflix, iTunes, YouTube, and Revisob3.com. [10] [11]. On December 2^nd 2015, DCI became part of TV Everywhere business model, by launching its new streaming app – Discovery GO. The app, mostly available to the pay TV subscribers only, allows viewers to access the content of DCI’s networks from any device [12].

Key Executives:

[14] David Zaslav – President and CEO of Discovery Communications

[15] Jean-Briac (JB) Perrette – President Discovery Network International

[16] Andrew Warren – Chief Financial Officer and Senior Vice President

International Expansion in Fall 2015:

DCI exemplifies the successful international company with over 300 million international subscribers [17]. With new head of Discovery Networks International Programming and Operations, Darcy Tomlin (appointed in October), this season has been especially contributive to DCI’s overseas growth [18].

DCI’s executives hosting the show gathered for the finale [59].

This fall DCI organized many promotional events abroad [19]. For example, DCI’s networks CEEMEA (Central & Eastern Europe, Middle East) hosted an exclusive event in Johannesburg on November 18th [20]. The company presented its major projects coming up in 2016 to it’s 200+ event attendees [21]. Among the introduced projects were Discovery Chanel’s “Sherpa,” Animal Planet’s “The Lion Queen” and TLC’s “Belief.” The event, hosted by DCI’s executives, was marked by the performances of Discovery stars, such as Andi Rive (“The Lion Queen”), Whitney Thore (“My Big Fat Fabulous Life”) and magician Troy (“Troy”) [22].

Eurosport’s logo [30]

DCI has been strengthening its presence not only in African, but also in European markets. This fall was the first season of DCI’s full ownership of Eurosport International – one of the largest European sport-entertainment networks, which was recently acquired by DCI from TF1 [23]. The purchase is especially important as Eurosport won the multi-platform rights for broadcasting the Olympic Games from 2018 to 2024 [24].

In September, DIC also signed a partnership agreement with Russian Media Group, forming Media Alliance and securing Discovery’s presence in the local market [25]. (So far there are 11 DCI channels available in the country [26].) Media Alliance will launch a development of a new regional free-to-air channel and distribute the Discovery and Eurosport pay TV portfolio. In the Russian market, Discovery Channel, TLC, and Animal Planet are the lеаders in nonfiction content, while Eurosport is the primary pay TV spоrt-related chаnnel [27].

International expansion allows DCI to maintain growth despite a recent decline in the US market [28]. Last year, international markets brought the company 55% of its overall revenues, while this number is projected to reach 65% by 2018 [29]. Therefore, more international deals and promotional events are expected in the future.

Fall 2015 Releases:

“Exorcism: Live!”

On October 30^th, DCI’s Destination America featured its Halloween-special “Exorcism: Live!”– a two-hour broadcast during which a team of so-called “paranormal professionals” tried to purify a supposedly “possessed” house in St. Louis [31]. The show is closely related to “The Exorcist” book by William Peter Blatty: “Exorcism: Live!” took place in the house where the exorcism was performed, in 1949, which inspired “The Exorcist” novel [32]. According to producer Jodi Tovay, the main event wasn’t about saving a possessed person, but rather about an attempt to cleanse evil from the house itself in a ritual Tovay referred as “a hybrid of an exorcism and a blessing” [33]. Audiences had a chance to actively participate in the event by following several live cameras put around the house online. Producers encouraged viewers to assist the exorcism team and report mysterious activity through Twitter, using the #exorcismlife hashtag [34]. Selected tweets appeared live on air [35]. As a result, “Exorcism: Live!” became the #1 non-football live event on cable in October [36]. For the target audience P25-54, the show gained a 0.59 for L+3 ratings compared to its competitors’ A&E’s 0.34 and National Geographic’s 0.19. The show was also the #1 most mentioned event on Twitter on October 30th, generating 29 thousand tweets [37].

Official trailer of “Exorcism: Live!” [38]

“Lost & Found.”

Lost & Found advertising on Facebook [57]

On November 11th, Discovery Family Channel featured a premier of its strongly anticipated “Lost & Found.” [39] In this reality show, produced by Leftfield Pictures, a team of “professional finders” helps people to find someone they have wanted to thank for a long time (for instance, middle school teachers, old friends, and lost relatives) [40]. “Lost & Found” is a fragment of Discovery Family Channel’s “Project Thank You,” which is a multiplatform campaign to bring people together to say thanks [41]. Throughout all of November, the channel is featuring gratitude-centered programming, vignettes and online campaigns [42].

Financials:

DCI is a рublic соmpаny, trading in NASDAQ stock market [43]. Its most recent stock price (as of November 27th) of $31.08 per share reflects the company’s positive tendency over the last three months [44]. During the third quarter this year, DCI’s revenues decreased 1% (from $1,573 million in the Q3 of 2014 to $1,557 million in Q3 of 2015) [45]. The decrease, however, is caused by currency effects, without which the company would gain 8% more revenue in comparison with last year [46]. The biggest sources of revenue were domestic advertising and distribution [47]. The revenues coming from both of these sources have increased by 5% in advertising (from $388 million in 2014 to $410 in 2015) and by 11% in distribution (from $318 million in 2014 to $357 million in 2015 )[48]. This September, Discovery hosted its first ever Investor Day in NYC, which attracted 300 attendees, including investors, financial analysts and industry journalists [49]. During the event, DCI’s CEO David Zaslav announced the plans for long-term international and domestic development and revealed that DCI wоuld rеаch thrее billiоn subsсribеrs by the end of 2015 [50].

Positive tendency of Discovery Communication’s
NASDAQ stock price [58]

Projections for Discovery Communications

Louie Psihoyos' quote about “Racing Extinction.”

The quote of the director of Racing Extinction Louie Psihoyos [50].

There are several trends in DCI’s future: international expansion, high involvement with the Olympic Games through Eurosport, increase of subscribers and most importantly a transition from entertainment to more documentary-oriented content [51]. Over the past years, there has been a lot of criticism of Discovery’s pseudo-scientific shows, such as “Shark Week” [52]. However, it’s soon to be changed. John Hoffman, appointed this year as a head of Discovery Channel, has promised to bring more factual and scientifically accurate programming [53]. In fact, the impact of this transition is already in the air. This fall season has already increased the expanding list of DCI’s documentaries by the newly-released shows such as “Marooned,” “Nuremberg: Nazi Judgment Day” and “Melting: Last Race to the Pole” [54]. Furthermore, on December 2^nd, Discovery is releasing its highly anticipated “Racing Extinction” [55] This documentary, directed by Academy Award winner Louie Psihoyos, portrays an ecosphere of endangered species and the activists’ efforts to save them [56]. Therefore, there is firm evidence that DCI will remain a major educational entertainment network appealing to large ranges of audiences all over the world.

Sources:

[1] Discovery Communications’ Logo. Retrieved 25 November, 2015. http://logok.org/discovery-channel-logo/

[2] Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications. Retrieved 28 November, 2015. http://www.referenceforbusiness.com/history2/74/Discovery-Communications-Inc.html

[3] Discovery Networks International. Retrieved 28, November 2015. https://www.linkedin.com/company/discovery-communications-international-division

[4] Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc. Retrieved 28, November 2015. http://www.referenceforbusiness.com/history2/74/Discovery-Communications-Inc.html

[5] Discovery Communications. Retrieved 28 November, 2015. http://research.omicsgroup.org/index.php/Discovery_Communications

[6] John Hendricks: How He Built The Discovery Channel From Scratch. Retrieved 28 November, 2015. http://www.forbes.com/sites/danschawbel/2013/12/29/john-hendricks-how-he-built-the-discovery-channel-from-scratch/

[7] Discovery Through Decades. Retrieved 28 November, 2015. http://30yearsofdiscovery.com

[8] Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc. Retrieved 28 November, 2015. http://www.referenceforbusiness.com/history2/74/Discovery-Communications-Inc.html

[9] DCI Annual Report 2014. Retrieved 28 November, 2015. https://corporate.discovery.com/wp-content/uploads/2015/07/disca2014_download.pdf

[10] Discovery Digital networks. Retrieved 28 November, 2015. http://discoverydn.com/about

[11] Search Results for Discovery Channel. Retrieved 28 November, 2015. http://dvd.netflix.com/Search?v1=discovery%20channel

[12] Discovery Communications Launches new TV Everywhere Platform. Retrieved 28 November, 2015. http://www.cynopsis.com/story/discovery-communications-launches-new-tv-everywhere-platform/

[13] Discovery Introduces App For TV Everywhere Streaming: Discovery Go.Retrieved 27 November 2015. http://deadline.com/2015/12/discovery-go-tv-everywhere-streaming-app-1201648066/

[14] Davis Zaslav. Retrieved 27 November 2015. https://corporate.discovery.com/our-company/leadership/

[15] Jean-Briac Perrette. Retrieved 27 November 2015. https://corporate.discovery.com/our-company/leadership/

[16] Andrew Warren. Retrieved 27 November 2015.https://corporate.discovery.com/our-company/leadership/

[17] DCI Annual Report 2014. Retrieved 28 November, 2015. https://corporate.discovery.com/wp-content/uploads/2015/07/disca2014_download.pdf

[18] Velocity’s Darcy Tomlin Segues To Discovery’s Intl Content Group In VP Role.Retrieved 28 November, 2015.http://deadline.com/2015/10/darcy-tomlin-named-discovery-networks-intl-vp-programming-operations-1201581144/

[19] Discovery newsroom. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/

[20] Discovery Networks CEEMEA Hosts 2016 Upfront Presentation in Johannesburg. Retrieved 28 November, 2015. https://corporate.discovery.com/tag/first-heartbeat/

[21] Discovery Networks CEEMEA Hosts 2016 Upfront Presentation in Johannesburg. Retrieved 28 November, 2015. https://corporate.discovery.com/tag/first-heartbeat/

[22] Discovery Networks CEEMEA Hosts 2016 Upfront Presentation in Johannesburg. Retrieved 28 November, 2015. https://corporate.discovery.com/tag/first-heartbeat/

[23] Discovery Communications agrees To Take Full Control of Eurosport. Retrieved 28 November, 2015.https://corporate.discovery.com/discovery-newsroom/discovery-communications-agrees-to-take-full-control-of-eurosport/

[24] IOC awards all TV and multiplatform broadcast rights in Europe to Discovery and Eurosport for 2018-2024 Olympic Games. Retrieved 28 November, 2015. http://www.olympic.org/news/ioc-awards-all-tv-and-multiplatform-broadcast-rights-in-europe-to-discovery-and-eurosport-for-2018-2024-olympic-games/246462

[25] Discovery to Stay in Russia with National Media Group Deal. Retrieved 28 November, 2015. http://variety.com/2015/tv/global/discovery-to-stay-in-russia-with-national-media-group-deal-1201579590/

[26] Russian Government Approves Discovery’s Joint Venture With National Media Group. Retrieved 28 November, 2015. http://www.hollywoodreporter.com/news/russian-government-approves-discoverys-joint-829832

[27] Discovery to Stay in Russia with National Media Group Deal. Retrieved 28 November, 2015. http://variety.com/2015/tv/global/discovery-to-stay-in-russia-with-national-media-group-deal-1201579590/

[28] Discovery finds rapid growth in international expansion. Retrieved 28 November, 2015.https://technology.ihs.com/551573/discovery-finds-rapid-growth-in-international-expansion

[29] Discovery finds rapid growth in international expansion. Retrieved 28 November, 2015.https://technology.ihs.com/551573/discovery-finds-rapid-growth-in-international-expansion

[30] Eurosport. Retrieved 28 November, 2015. http://www.eurosport.com

[31] TV Review: ‘Exorcism: Live! Retrieved 28 November, 2015. http://variety.com/2015/tv/reviews/exorcism-live-review-destination-america-the-exorcist-house-1201629070/

[32] Halloween Scares Up Televised Live ‘Exorcism.‘Retrieved 28 November, 2015. http://news.discovery.com/history/religion/halloween-scares-up-televised-live-exorcism-151028.htm

[33] Exorcism: Live! Creator on Cleansing House That Inspired The Exorcist: ‘It Is Not a Hoax.’ Retrieved 28 November, 2015. http://www.people.com/article/exorcism-live-sneak-peek-interview

[34] History or Exorcism House. Retrieved 28 November, 2015.http://www.destinationamerica.com/tv-shows/exorcism-live-countdown/exorcism-live-the-history/

[35] Discovery newsroom. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/

[36] Exorcism: Live! Possesses Top Ratings Spot for Live Cable Event in October. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/exorcism-live-possesses-top-ratings-spot-for-live-cable-event-in-october/

[37] Exorcism: Live! Possesses Top Ratings Spot for Live Cable Event in October. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/exorcism-live-possesses-top-ratings-spot-for-live-cable-event-in-october/

[38] Don’t Miss Exorcism: LIVE! Retrieved 28 November, 2015 https://www.youtube.com/watch?v=L1UKWPkkwHo

[39] Project Thank You. Retrieved 28 November, 2015 http://www.multichannel.com/prfeed/november-discovery-family-channel-s-project-thank-you-encourages-and-empowers-viewers-have-attitude-gratitude/393778

[40] Discovery Family Channel Reunites Grateful Owners With Meaningful Mementos In Heartwarming New Series, Lost And Found. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/discovery-family-channel-reunites-grateful-owners-with-meaningful-mementos-in-heartwarming-new-series-lost-and-found-wt/

[41] Discovery Family Channel And VolunteerMatch Empower Families To Give Back In Their Local Communities. Retrieved 28 November, 2015. http://www.prnewswire.com/news-releases/discovery-family-channel-and-volunteermatch-empower-families-to-give-back-in-their-local-communities-300158796.html

[42] This November, Discovery Family Channel’s Project Thank You Encourages and Empowers Viewers to Have an Attitude of Gratitude. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/this-november-discovery-family-channels-project-thank-you-encourages-and-empowers-viewers-to-have-an-attitude-of-gratitude/

[43] Discovery Communications Inc. Series A. Retrieved 28 November, 2015 http://quotes.wsj.com/DISCA/company-people

[44] Discovery Communications, Inc. Stock Quote & Summary Data. Retrieved 28 November, 2015. http://www.nasdaq.com/symbol/disca

[45] Discovery Investors relations, Quarterly Reports. Retrieved 28 November, 2015. http://phx.corporate-ir.net/phoenix.zhtml?c=222412&p=irol-reportsOther

[46] Discovery Investors relations, Quarterly Reports. Retrieved 28 November, 2015. http://phx.corporate-ir.net/phoenix.zhtml?c=222412&p=irol-reportsOther

[47] Discovery Investors relations, Quarterly Reports. Retrieved 28 November, 2015. http://phx.corporate-ir.net/phoenix.zhtml?c=222412&p=irol-reportsOther

[48] Discovery Investors relations, Quarterly Reports. Retrieved 28 November, 2015. http://phx.corporate-ir.net/phoenix.zhtml?c=222412&p=irol-reportsOther

[49] Discovery Communications Details Plans For Long-Term Growth at Investor Day. Retrieved 28 November, 2015. http://ir.corporate.discovery.com/mobile.view?c=222412&v=203&d=1&id=2091481

[50] Discovery Communications Details Plans For Long-Term Growth at Investor Day. Retrieved 28 November, 2015. http://ir.corporate.discovery.com/mobile.view?c=222412&v=203&d=1&id=2091481

[51] Brand Value: TV Content Providers Have Their Say. Retrieved 28 November, 2015. http://www.broadbandtvnews.com/2015/11/26/brand-value-tv-content-providers-have-their-say/

[52] Fraud, Deception And Lies: How Discovery’s Shark Week Became The Greatest Show On Earth. Retrieved 28 November, 2015. http://blogs.discovermagazine.com/science-sushi/2014/07/18/fraud-deception-lies-discoverys-shark-week-became-greatest-show-earth/#.Vl9604RX-UV

[53] Discovery Channel Is Finally Breaking Up With Bad Science. Retrieved 28 November, 2015. http://www.motherjones.com/media/2015/11/racing-extinction-climate-change-discovery-john-hoffman

[54] Discovery newsroom. Retrieved 28 November, 2015. https://corporate.discovery.com/discovery-newsroom/

[55] Racing Extinction. Retrieved 28 November, 2015. http://racingextinction.com

[56] Discovery Channel Is Finally Breaking Up With Bad Science. Retrieved 28 November, 2015. http://www.motherjones.com/media/2015/11/racing-extinction-climate-change-discovery-john-hoffman

[57] Family Channel Facebook page. Retrieved 28 November, 2015.https://www.facebook.com/DiscFamily/photos/a.155347071181050.33326.119249468124144/898567963525620/?type=3&theater

[58] Discovery Communications, Inc. Stock Quote & Summary Data. Retrieved 28 November, 2015. http://www.nasdaq.com/symbol/disca

[59] Discovery Networks CEEMEA Hosts 2016 Upfront Presentation in Johannesburg. Retrieved 28 November, 2015. https://corporate.discovery.com/tag/ceemea/

Discovery Communications

Aside

by Indica Young

Discovery Communications Logo [1]

One Discovery Place

Silver Spring, MD 20910

Tel: 240-662-2000

http://corporate.discovery.com

-John Hendricks, Founder of Discovery Communications [3]

“To satisfy curiosity and make a difference in people’s lives by providing the highest quality content, services and products that entertain, engage, and enlighten.”[2]

–John Hendricks,1982

Discovery Communications is the #1 pay-TV programmer and is the worlds #1 nonfiction media company. With 2.8 billion subscribers, 189 international HD markets, and 54 network entertainment brands, Discovery Communications is successful at satisfying curiosity and entertaining viewers [4]. The company began as a single channel in 1985 as The Discovery Channel [5].Now they are a global mass media that operates popular networks such as The Learning Channel, Animal Planet, Discovery Education, and American Heroes Channel [6]. Discovery Communications is a publicly traded company that produces their own original content as well as acquiring content. Discovery Communications is subsidiary of Time Warner and they operate out of Silver Springs, Maryland [7]. Discovery Communications is publicly traded on NASDAQ stock exchange, but privately held Advance Publications is Discovery’s largest shareholder, with a 31% stake [8].

Discovery Communications Headquarters, Silver Spring, MD [9]

TEAM DISCOVERY [2]

David M. Zaslav, President, Chief Executive Officer, [10]

David C. Leavy, Chief Communications Officer, Senior Executive Vice President, [11]

Andrew Warren, Senior Executive VP and Chief Financial Officer, [13]

TOP COMPETITORS [12]

A&E Television Networks, LLC

NBCUniversal Media, LLC

Viacom, Inc

FINANCIALS

On November 4th, 2014 the Third Quarter 2014 Financial Highlights were announced. While Discovery Channel has had a fairly stable U.S. market, the domestic network revenue has been declining and David Zaslav has been focused on expanding the international segment of Discovery Communications [14]. Overall, the company has seen a 14% year on year growth in the 3rd quarter. This growth is stemming from the International segment of Discovery, as the International Networks has seen a 32% increase, while U.S. Networks has actually seen a 1% decrease. This growth in international reach is widely due to the increase in distribution and advertising revenues that Discovery has been focused on [15]. Discovery is also widening their reach by focusing on investment for their content to be displayed and interacted with on many types of screen [14].

Discovery Communications Third Quarter 2014 Segment Results [15]

Discovery Channel

2014 was marked by success due to its work in unscripted series. The Discovery Channel has seen viewership growth this year. Compared to October of last year, The Discovery Channel has seen double digit viewership, driving from strong returning series such as the 5th returning season of Gold Rush (Gold Rush kickoff was the nights second highest rated program on Friday Night [16]) as well as Alaska The Great Frontier and Misfit Garage. These unscripted series are also helping to drive ratings as Discovery has held 5 of the top 10 unscripted series for persons aged 25-54 [17].

The Learning Channel

The Learning Channel Logo, [18]

The Learning Channel (TLC) is a global brand owned by Discovery Communications that initially focused on educational and learning content, but now produces nonfiction lifestyle programming. Popular shows like Here Comes Honey Boo Boo (canceled this fall due to scandal [19]), Breaking Amish, and Cake Boss are what make is a popular nonfiction network, as well as being a top 10 cable network in key female demos [20].

Animal Planet

Animal Planet Logo, [22]

Animal Planet is an entertainment network and brand owned by Discovery Communications that focuses on life in the animal kingdom [21]. In the second quarter ratings for 2014, Animal Planet remains a top 20 network for males aged 25-54. These ratings were driven by the successful season of River Monsters [23].

Discovery Education

Discovery Education uses their high quality content and focus on education programming to develop a passionate educator community. Discovery Education is expanding their innovative multimedia education products and services as well as serving grades K-12 in more than half of the schools in the U.S. [24]

American Heroes Channel

American Heroes Channel Logo [26]

American Heroes Channel (AHC) is a network owned by Discovery Communications that carries programs related to military history and warfare. As a network, AHC provides glimpses into major stories and events that helped shape the American future [25]. Shows like Gunslingers, Apocalypse WWII ,and Hardcore Heroes drive the ratings on AHC [27].

JOINT VENTURES

OWN: Oprah Winfrey Network

Oprah Winfrey, OWN Network, [28]

OWN, a multi-platform joint venture between Discovery Communications and Oprah Winfrey with real life and emotional programming [28]. OWN brought in Tyler Perry to work on scripted series for the network in 2012, and the Perry soap “The Haves and the Have Nots” averaged 3.6 million viewers, an 18% jump from the previous week according to Nielson [29].

The Hub Network becomes Discovery Family Channel

The Hub Network Logo, [30]

The Hub Network was a joint venture announced in 2009 led by Hasbro, a toy manufacturer and media company, and was a re-launch of Discovery Kids [30]. On October 13th, 2014, The Hub Network announced that the network is to become Discovery Family Channel. This new joint venture continuing with Discovery Channel and Hasbro is promising because of the success of The Hub Network as a children’s cable network [31].

All3Media

All3Media is a leading creator of content that provides digital content for both television and film [32]. On May 8, 2014 Discovery Communications and Liberty Global announced they were acquiring All3Media, offering strategic support but allowing All3Media to preserve their creative independence [33].

WHAT THEY’RE UP TO

Shark Week

Shark Week, Discovery Channel, [34]

Shark Week is a 27 year old annual summer tradition of Discovery Communications that has not only been the longest running cable TV programming event ever, but also one of the highest rated [35]. In August of 2014 Discovery Communications announced this summer was the highest rated Shark Week in history, and is essential for viewers in the 25-54 year range [36].

Survival Live

“Naked and Afraid” Survival Live, [37]

Survival Life is Discovery Communications new live event programming series, a never done before reality event. Discovery is stranding eight people in the wilderness for 42 days, and their success on their show depends on their skill to survive [37]. Viewers will be able to track their progress on Discovery Communications web platform, 24/7. Survival Live is produced by Adjacent Productions for Discovery Communications [38].

Motor Mondays

Fast N’ Loud, Motor Mondays, [39]

In April of 2013 Discovery Communications announced that Discovery Channel will now include a full night of vehicle programming on Mondays. Including shows like Fast N’ Loud and Street Outlaws, Discovery Channel Mondays will now be the biggest destination for all motor-programming [40].

Everest Live Jump Canceled

Everest Live Jump, Discovery Communications, [41]

The Everest Live Jump, a Discovery Communications live event which was supposed to air Joby Ogwny’s attempt to wingsuit jump off the summit of Mount Everest [42]. An avalanche disaster in April of 2014 killed 13 and left 3 missing. The stunt was canceled, however Discovery Communications was at the base camp at the time of the tragedy was able to record as the disaster struck. The Everest Avalanche Tragedy is one of the single deadliest days in Everest’s history [43].

[1] “Discovery Communications Corporate,” Discovery Communications, RT: 11/27/2014

[2] “Discovery Communications Leadership,” Discovery Communications, RT: 11/27/2014

[3] “Driven by Curiosity,” Global Business Coalition for Education, RT: 11/27/2014

[4] “At a Glance,” Discovery Communications, RT: 11/27/2014

[5] “The Discovery Channel; Science, Nature, Adventure and Animals That Bite,” The Washington Post, RT: 11/27/2014

[6] “Our Mission,” Discovery Communications, RT: 11/27/2014

[7] “Time Warner Cable and Discovery Communications Reach Long-Term Distribution Agreement,” Discovery Communications, RT: 11/27/2014

[8] “Advance Publications Waving Around $500 M,” Crain’s New York, RT: 11/27/2014

[9] “Discovery Communications Headquarters,” Stewart Bros. Photography, RT: 11/27/2014

[10] “David M. Zaslav,” Discovery Communications, RT: 11/27/2014

[11] “David Leavy,” Discovery Communications, RT: 11/27/2014

[12] “Discovery Communications Inc. Company Information,” Hoovers, RT: 11/27/2014

[13] “Andrew Warren,” Discovery Communications, RT: 11/27/2014

[14] “Discovery Communications, Best Global Brands,” Interbrand, RT: 11/27/2014

[15] “Discovery Communications Reports Third Quarter 2014 Results,” Discovery Communications, RT: 11/27/2014

[16] “Gold Rush 5th Season Debut Hits Ratings Motherload For Discovery,” Deadline, RT: 11/27/2014

[17] “Discovery Channel Grabs Double Digit Viewership and Ratings Gains in October,” TV By the Numbers, RT: 11/27/2014

[18] “The Learning Channel,” TLC, RT: 11/27/2014

[19] “Here Comes Honey Boo Boo Cancelled after Report Links Mama June Shannon to Alleged Sex Offender,” US Weekly, RT: 11/27/2014

[20] “TLC,” Discovery Communications, RT: 11/27/2014

[21] “Animal Planet,” Discovery Communications, RT 11/27/2014

[22] “Animal Planet,” Animal Planet, RT: 11/27/2014

[23] “Animal Planet,” Discovery Press Web, RT: 11/27/2014

[24] “Discovery Education,” Discovery Communications, RT: 11/27/2014

[25] “American Heroes Channel,” Discovery Communications, RT: 11/27/2014

[26] “American Heroes Channel,” AHC, RT: 11/27/2014

[27] “Three New Original Series Propel American Heroes Channel to Best August Ever in Prime Delivery Among P2+ and HH,” The Futon Critic, RT: 11/27/2014

[28] “OWN: Oprah Winfrey Network,” Discovery Communications, RT 11/27/2014

[29] “Have and Have Nots Sets OWN Ratings Record with It’s Finale,” Variety, RT: 11/27/2014

[30] “The Hub Network,” Discovery Press Web, RT: 11/27/2014

[31] “The Hub Network to Become Discovery Family Channel on October 13,” Discovery Communications, RT: 11/27/2014

[32] “About Us,” All3Media, RT: 11/27/2014

[33] “Discovery Communications and Liberty Global to acquire All3Media,” Discovery Communications, RT: 11/27/2014

[34] “Its Shark Week,” Discovery Magazine Blogs, RT: 11/27/2014

[35] “The History of Shark Week: How the Discovery Channel both Elevated and Degraded Sharks,” The Week, RT: 11/27/2014

[36] “Discovery Channel Earns Its Highest-Rated Shark Week Ever in its 27 Year History,” Discovery Communications, RT: 11/27/2014

[37] “Discovery to Strand Contestants in Wilderness for Reality Show (Exclusive),” The Hollywood Reporter, RT: 11/27/2014

[38] “Real-Time Series ‘Survival Live’ to Premiere in Late 2014 on Discovery Channel,” TV By the Numbers, RT 11/27/2014

[39] “Fast N’ Loud,” Discovery Channel Store, RT: 11/27/2014

[40] “Discovery Channel Announces ‘Motor Mondays’,” TV By the Numbers, RT: 11/27/2014

[41] “Discovery Cancels Everest Live Jump after Tragedy,” USA Today, RT: 11/27/2014

[42] “Discovery Channel to Air Live Jump Off Mount Everest,” The Hollywood Reporter, RT: 11/27/2014

[43] “Mount Everest Avalanche Forces Discovery Channel to cancel ‘Everest Live Jump’,” NY Daily News, RT: 11/27/2014

Discovery Communications

Posted on October 5, 2014 by bngermai

by Brendan Germain

Discovery Logo [1]

One Discovery Place Silver Spring, MD 20910 — 240.662.2000

“Discovery is dedicated to satisfying curiosity, engaging and entertaining viewers with high-quality content on worldwide television networks…” [2]

COMPANY PROFILE

As the number one pay-TV programmer and non-fiction media company, Discovery Communications paves the way for cross platform content appealing to 2.7 billion subscribers across 150 cable networks in over 220 countries. Discovery’s commitment to innovation and segmenting audiences has earned it its place as a leader in targeted media programming headed by Discovery Channel, operating also the Animal Planet, Hub Network and a joint venture with the OWN network among others. The company’s online and media services work in conjunction with its cable programming and have made Discovery a true multi-media, synergistic company.

KEY EXECUTIVES

David Zaslav- President and CEO [4]

Andrew Warren-Senior Executive VP and CFO [5]

Marjorie Kaplan- Group President Discovery Channel [6]

HISTORY

John Hendricks, a West Virginia bred, University of Alabama grad, founded the Cable Educational Network in Maryland back in 1982. Discovery Communications would soon grow from the launch of the Discovery Channel in1985. By 1988 the cable programmer had amassed over 32 million subscribers and by 1991, after acquiring The Learning

Discovery Logo-1988 [9]

Channel (TLC) and launching Discovery in Europe, the company changed its name to Discovery Communications. Over the next 10 years, the company would see considerable international growth in Asian, African and Middle Eastern markets and soon launched a $10 million news site distributing original news content on its Discovery homepage [7]. In 2004 Hendricks stepped down as CEO passing it off to current position holder David Zaslav and this past May, Hendricks retired as Chairman, leaving the company he had built over the past 35 years with a drive towards the environment, education and technological advances. [8]

FINANCES

This past quarter, coming in early November, saw a 14% increase for Discovery Communications (DISCA) on the NASDAQ year-over-year (YOY), with revenue at $1.57 billion [10].

DISCA’s Yearly Stock Price as of December 1, 2014 CLICK TO VIEW CURRENT CHART [12]

The publicly traded conglomerate has been on a rise in stock price, ending around $34 dollars recently with around 148 million shares outstanding. Since 2010, DISCA has been on a mass buyback movement to repurchase in excess of 25% of its stocks to consolidate its outstanding shares, giving the company more control over its numerous domestic and international platforms [11]. The company is segmented into three areas of revenue–Domestic, International, and Education, the first two being programming and education being products and services. Revenue for the domestic programming has seen minimal drops of 1% YOY as advertising budgets for the company have raised 3%, while the international segment as seen rises as high as 34% in revenue, in direct relation with Discovery’s acquisition of Eurosport [13]. Discovery is projected to reach a total revenue between $6.3 billion and $6.35 billion for this 2014 fiscal year.

ACQUISITION OF EUROSPORT

Staking its claim as the #1 Pay-TV programmer for educational, niche content across its over 200 networks domestically and internationally, Discovery has taken a turn towards broadcast and sports media sphere with its spring

Eurosport Logo [15]

acquisition of Eurosport. Eurosport, the premier sports media group in Europe, is valued at $1.2 billion and reaches over 133 million homes. TF1, the French media conglomerate had previously owned 80% of the company before Discovery pushed to expedite the deal which had been set for 2015, though TF1 will holds its stake in the sports media group until the end of the year. [14].

[Click here to view Eurosport’s promo stinger]

Discovery acquired 51% of the company, with TF1 being the only other owner holding the remaining 49%. DISCA is looking to capitalize on the fragmented nature of the sports broadcast industry over in Europe, a step in a different direction from their pay-TV and cable roots, in hopes of building up Eurosport to the status of Europe’s version of ESPN [16].

"Eurosport is a perfect strategic fit for growing market share, strengthening relationships with advertisers and affiliates, and bringing ‘must have’ content to passionate viewers across the globe...” [17] 
      -Discovery CEO David Zaslav-

There are talks already about the possibility of Discovery buying out TF1, giving DISCA full ownership of Eurosport, in turn adding six new pay-TV brands to Discovery’s arsenal.

DISCOVERY CHANNEL

The network that started it all, Discovery Channel (formerly The Discovery Channel), excels at non-fiction programming reaching over 100 million homes in the U.S. and over three times that amount internationally. Launched in 1985, Discovery Channel produces science, nature, adventure and history geared television, among other genres, and has revved up its live-streamed programming over the past few years [18]. In June 2013, Discovery aired a live program special with adventure enthusiast Nik Wallenda traversing the Grand Canyon on a tightrope [19]. The record breaking broadcast event amassed over 13 million viewers, Discovery’s highest-rated live event, with an additional 1.3 million trending Tweets about the stunt, awarding DISCA an Interactive Emmy for Multi-platform storytelling. Discovery Channel followed Wallenda again earlier this month in his tightrope walk between two Chicago skyscrapers at a 15-degree angle, aptly titled SKYSCRAPER LIVE WITH NIK WALLENDA.

Play to view highlights of Nik Wallenda's SKYSCRAPER LIVE walk [21]

Though not drawing the magnitude of coverage as his Grand Canyon walk, this live event in addition to others showcase Discovery’s risky intent to air content to attract an audience, stunts so daring that someone could die [20]. Understanding this, Wallenda carried a $20 million public liability insurance claim, should anything catastrophic have happened. The tightrope walk was a success and coming this May, Discovery Channel intends to air live footage of expert climber Joby Ogwyn’s Mount

SURVIVAL LIVE Logo [24]

Everest jump in a winged suit, titled EVEREST JUMP LIVE, hooking up eight cameras to his suit to get full 360 degree coverage [22]. In addition, the network is continuing on its multi-platform successes with a new, interactive program called SURVIVAL LIVE, a 42-day survivalist event pitting 8 strangers against each other in the remote wilderness [23].The cross-platform media gives viewers the ability to track survivalists biometric, medical statistics during the 24 hour live-streamed event as well as the option to donate needed supplies or help online. Moving to attract a growing, interactive audience, Discovery is prompting new growth in cross-media programming and their push for high adrenaline, live-streamed events sets them apart from other cable networks.

DISCOVERY FAMILY CHANNEL

Since being renamed this past October, Discovery Family, formerly The Hub Network, DISCA’s children geared daytime programming network, has broadened its program offerings in a strengthened partnership between Discovery Communications and Hasbro,

Hasbro, Inc. Logo [25]

Inc. The Hasbro Studios have published upfronts intending to move into primetime television timeslots [26]. With Discovery owning 60% in this joint venture, Discovery Family is projected to have over 70 million U.S. homes tuning in to programs and the two look to move into nightly family targeted programming. The two corporations will both capitalize on producing branded content, marketable to advertisers, and accessible for both children and families [27].

UP AND COMING

Discovery has recently paired up with Sony Entertainment Network to bring channels from DISCA to Play Station Vue, Sony’s cloud-based, internet television service [28]. Sony’s subsidary, Sony Network Entertainment International (SNEI), will offer the subscription based service to current users of a PS3 or PS4 come early 2015, totally over 35 million users. The deal will bring Discovery’s 13 U.S. networks to users, in addition to next-gen services like Discovery Digitial Networks [29].

Theorized PlayStation Vue Screen [30]

This is new territory for Discovery, a cloud streaming service, and whether or not users will be willing to pay for the subscription fees is up for debate. Prices per month have yet to be set, though the service brings DISCA’s historically cable programming to an internet based provider follows the path Discovery Communications is walking in becoming a more cross-media driven media group and high-level television programmer.

SOURCES

[1]Discovery Logo corporate.discovery.com RT: 11/18/14

[2] Corporate Mission corporate.discovery.com RT: 11/18/14

[3] Company Profile Information biz.yahoo.com RT:11/18/14

[4] David Zaslav Image corporate.discovery.com RT: 11/18/14

[5] Andrew Warren Image corporate.discovery.com RT: 11/18/14

[6] Marjorie Kaplan Image corporate.discovery.com RT: 11/18/14

[7] Discovery History referenceforbusiness.com RT: 11/18/14

[8] Hendricks Leaves Discovery variety.com RT: 11/18/14

[9] Discovery Logo 1988 logos.wikia.com RT: 11/24/14

[10] DISCA Annual Finances finance.yahoo.com RT: 11/24/14

[11] DISCA Quarterly Report corporate.discovery.com RT: 11/24/14

[12] DISCA Yearly Stock Chart finance.yahoo.com RT: 11/27/14

[13] Discovery Segments/Projections zacks.com RT: 12/1/14

[14] Discovery Acquires Eurosport nytimes.com RT: 11/28/14

[15] Eurosport Logo eurosport.com RT: 11/28/14

[16] Discovery Moves to Broadcast corporate.discovery.com RT: 11/28/14

[17] David Zaslav Quote corporate.discovery.com RT: 11/29/14

[18] Discovery Channel Profile corporate.discovery.com RT:11/29/14

[19] Discovery Live Streams press.discovery.com RT: 11/29/14

[20] Risk of Live Events nytimes.com RT: 11/29/14

[21] SKYSCRAPER LIVE Highlights Footage youtube.com RT: 11/29/14

[22] Everest Jump Live deadline.com RT: 11/29/14

[23] SURVIVAL LIVE press.discovery.com RT: 11/29/14

[24] SURVIVAL LIVE Logo adage.com RT: 11/29/14

[25] Hasbro, Inc Logo hasbro.com RT: 11/30/14

[26] Hasbro, Inc Partnership investor.hasbro.com RT: 11/30/14

[27] Discovery Family Deal corporate.discovery.com RT: 11/30/14

[28] PlayStation Vue Contract polygon.com RT: 12/1/14

[29] Discovery/Vue Offerings corporate.discovery.com RT:12/1/14

[30] PlayStation Vue Screen polygon.com RT: 12/1/14

Continue reading →

Discovery Communications

Posted on March 15, 2014 by Parker Davis

By Parker Davis

Discovery Communications Logo- image courtesy of givingtuesday.org

Overview [1] [2]

TLC Logo- image courtesy of businessinsider.com

John Hendricks originally founded Discovery Communications under the name Appalachian Community Service Network in 1982. The first station launched was The Learning Channel, an educational station for youths and adults alike. When the company changed its name to Discovery Communications in 1985, other education based channels were established such as the Discovery Channel and the first 24/7 HD basic cable channel, Discovery HD, currently known as Velocity [1]. Today, Discovery Communications is the world’s #1 subscription based television network, reaching over 2 billion subscribers in 220 countries. They own over 200 television stations including: the Science Channel, Animal Planet, and OWN. Outside of television, Discovery Communications is also a large publisher of educational books and operates online media channels such as Revision3 and howstuffworks.com [2].

Executives [3]

John S. Hendricks- image courtesy of corporate.discovery.com

John S. Hendricks: Founder and Chairman Discovery Communications

David M. Zaslav- image courtesy of corporate.discovery.com

David M. Zaslav: President and CEO Discovery Communications

Jean Briac Perette- image courtesy of corporate.discovery.com

Jean Briac (JB) Perette: President Discovery Networks International

Financials [4] [5] [6] [7] [8]

Discovery Communications is publicly traded under three stock series: DISCA, DISCB, and DISCK. Each ticker symbol translates to series A, B, and C stock. The newer issuances indicate a new corporate milestone, thus returning a higher company valuation number, resulting in a higher IPO for the new distribution of shares. DISCA contains the most shareholders. Within the previous three months, DISCA prices ranged from $76.80 to $85.97. Currently, it is recovering from its lowest point in the period, occurring April 15, 2014, and slowly increased 1.7% to $77.83 on April 18 [4].

Comparison of DISCA, DISCB, DISCK over a three month period- courtesy bloomberg.com

Comparison of DISCA, DISCB, DISCK- image courtesy of bloomberg.com

In the Annual Financial Statement for 2013, total revenue equated to $5.54 billion. A 19% increase over 2012, which generated $4.49 billion, a mere 8% increase over 2011 [5]. This growth is credited in their recent “acquisition of the majority stake in Eurosport International will drive international to contributing more than 50 percent of total company revenue” [6]. Discovery Communications possesses only 1% of total market share, competing alongside other media conglomerates such as: A&E, NBCUniversal, and Viacom [7] [8].

Retirement and the Curiosity Project [9] [10] [11] [12] [13] [14]

John S. Hendricks- image courtesy of curiosityretreats.com

Discovery founder and chairman, John Hendricks, officially announced his retirement in March. He will formally resign during the annual shareholder’s meeting on May 16; however, he has not released who will take his place as chairman. Although, sources speculate that current CEO, David Zaslav, may be a potential candidate for the position [9]. In his retirement letter to the board of directors, Hendricks explained that he will “spend the next few years traveling the planet and discovering the questions and mysteries that intrigue us all.” He will also use the opportunity to expand his new business, Curiosity Project LLC, announced February 10 of this year [10].

The mission of Curiosity Retreats is to create a unique forum where the lifelong curious can gather to explore in-depth the great questions of today. [11]

Curiosity Video Overview (Vimeo)

One currently operational aspect of the project is retreats for inspirational and open- minded thinkers alike. The retreats are five nights long at the Gateway Canyons resort in Colorado, including a panel of 8 different experts in the field of: science, technology, civilization, and human spirit [12]. The purpose of the retreat is to enlighten already intellectual minds and expand their imagination by collaborating and with others.

Gateway Canyons- image courtesy of multivu.com

The new aspect of Hendricks’ venture is video on demand. His plan is to compile recordings of the experts from the retreats and publish their talks online for an annual fee of $19.99. However, this venture may prove impractical because there are already free services similar to his found in university publications and intellectual websites, such as TED [13].

Hendricks founded Discovery in 1982 and stepped down as CEO in 2004 and began his role as chairman on the board of directors. He was with the company for 32 years [14].

Eurosport [15] [16] [17]

Eurosport Logo- image courtesy of 3.bp.blogspot.com

Discovery Communications is expanding its international affiliations by moving into the televised sports market. On January 21, Discovery purchased controlling share (51%) in Eurosport for $1.2 billion [15]. Since April 2013, Discovery owned 20% stake in the station. The extension was made in a monetary agreement with TF1, a French television network and previous majority owner of Eurosport. The purpose of Discovery’s equity increase is to compete with British Sky Broadcasting and BT, a UK cable provider, for exclusive Premier League television rights [16]. Discovery chose to expand its control over sporting networks so it can combine its international sports rights with its US based stations to avoid competing head on with domestic sporting networks. The new international acquisitions expand Discovery’s network portfolio, thus inflating revenue and control over the total media market [17].

DogTV [18] [19] [20]

DogTV Logo- image courtesy of dogtv.com

Discovery Communications has recently purchased an unspecified percentage of DogTV: a 2 year old network that targets the dog owner demographic and airs content specifically for pet entertainment. The station is distributed through DirecTV and has a subscription fee of $5 for television viewing and $10 for online streaming [17]. Current programming on the network includes 3-6 minute clips focused on a dog’s relaxation, stimulation, and exposure. Discovery Communications has developed a strategic partnership with DogTV, jointly creating similar programming for Animal Planet while spreading the reach of the network to other countries. This tactic by Discovery can be seen as a gamble to invest in television for dogs, however, over 43.3 million US households own at least one dog, collectively spending over $55.8 billion annually on pet products, and over half of which claim their dogs show interest in what occurs on television [18]. The channel is designed to relieve the stress and anxiety of stay at home pets [19].

DogTV in The News (YouTube)

New Form [21] [22] [23]

Left to Right: Ron Howard, Brian Grazer, David Zaslav- image courtesy variety.com

Discovery has co-founded and launched a new digital media site, New Form, alongside producers Ron Howard and Brian Grazer [21]. The purpose of the studio is to infiltrate the scripted media market, whereas Discovery contains mainly non-fiction and reality based content. In the startup, the firm appointed Kathleen Grace, former Head of Creative Development for YouTube Space LA, as the Chief Creative Officer for New Form [22]. The videos created will be used in conjunction with current Discovery Digital Networks rather than creating a new site from the ground up. The venture was also announced the same week as Discovery’s upfront presentations to entice advertisers about the concept. Today, media advertisers divide their capital between television and online mediums, serving as a potentially dramatic advertisement revenue increase for Discovery. Zaslav is making the push for Discovery to move into the Internet realm to make their channels easily accessible on all platforms for anyone to use [23].

Interview with David Zaslav and Ron Howard on New Form (Bloomberg)

Works Cited:

[1] Discovery Communications Founder John Hendricks to Retire as Chairman of Company’s Board. Discovery Communications. March 20, 2014. RT: April 13, 2014.

[2] Overview & Mission. Discovery Communications. RT: April 13, 2014.

[3] Leadership. Discovery Communications. RT: April 13, 2014.

[4] Google Finance Data. Google. RT: April 15, 2014.

[5] 2013 Annual Report. Discovery Communications. RT: April 15, 2014.

[6] Discovery CEO touts International Growth, Outlook. The Hollywood Reporter. Georg Szalai. April 3, 2014. RT: April 15, 2014.

[7] Introduction to the Entertainment & Media Industry. Plunkett Research, Ltd. RT: April 15, 2014. Used to calculate total market share.

[8] Top Competitors for Discovery Communications, Inc.. Hoovers. RT: April 15, 2014

[9] Discovery Communications Chairman John Hendricks stepping down. Los Angeles Times. Joe Flint. March, 20 2014. RT: April 17, 2014.

[10] John Hendricks Retirement Letter. John S. Hendricks. March 20, 2014. RT: April 17, 2014.

[11] Curiosity Mission Statement. Curiosity Retreats. RT: April 17, 2014.

[12] Curiosity About Page. Curiosity Retreats. RT: April 17, 2014.

[13] Discovery chairman John Hendricks to step down to pursue lifelong learning academy. Washington Post. Dan Beyers. March 23, 2014. RT: April 17, 2014.

[14] Cable Pioneer John Hendricks to Retire From Discovery Communications. Variety. Cynthia Littleton. March 20, 2014. RT: April 17, 2014.

[15] Discovery Takes Controlling Stake in Eurosport. New York Times. David Gelles. January 21, 2014. RT: April 17, 2014.

[16] Eurosport owner Discovery considering Premier League TV rights bid. The Guardian. Mark Sweney. January 24, 2014. RT: April 17, 2014

[17] Discovery to Take Control of Eurosport International. The Hollywood Reporter. Georg Szalai. January 21, 2014. RT: April 17, 2014

[18] Discovery Acquires Stake in DogTV, a Network Aimed at Canine Viewers. Variety. Todd Spangler. April 8, 2014. RT:April 18, 2014.

[19] Discovery Wants Your Dog To Watch More TV. Bloomberg Businessweek. Kyle Stock. April 8, 2014. RT: April 18, 2014.

[20] Discovery Buys Stake In A TV Channel For Dogs. Huffington Post. Bill Bradley. April 11, 2014. RT: April 18, 2014.

[21] Discovery teams with Howard, Grazer for online shows. USA Today. Roger Yu. April 3, 2014. RT: April 18, 2014.

[22] Brian Grazer, Ron Howard Launch ‘New Form’ Digital Studio With Discovery. The Hollywood Reporter. Natalie Jarvey. April 2, 2014. RT: April 18, 2014.

[23] Howard, Grazer to team with Discovery on Web shows. New York Post. Claire Atkinson. April 2, 2014. RT: April 18, 2014.

Discovery Communications

Posted on November 20, 2013 by Sebastian Dawson

By Sebastian Dawson

Discovery Communications – MediaWiki

courtesy FanPop.com

1 Discovery Place

Silver Spring, MD 20910

240.662.2000

Corporate.discovery.com

Fact Sheet

courtesy Corporate.Discovery.com

Highlights:

Cumulative Global Subscribers: 2.2 billion
Countries and Territories: 224
Languages: 45
Network Entertainment Brands: 50

Key Executives

courtesy Corporate.Discovery.com

John S. Hendricks

Founder of Discovery Communication

The driving force behind dramatic growth at Discovery Communications, Hendricks expanded the Discovery Channel from its core property to its current status as a global content provider. (2)

Courtesy Corporate.Discovery.com

David Zaslav

President and CEO

Prior to Discovery, Zaslav enjoyed a distinguished career at NBC Universal. He now sets strategy and oversees operation of Discovery Communications around the world. (3)

Courtesy Corporate.Discovery.com

Mark Hollinger

President and CEO

As President of Discovery Networks International, it is Hollinger’s job to deploy strategic development and daily operations in over 200 countries. Hollinger joined Discovery in 1991 as Vice President and Deputy General Council. (4)

Courtesy Commons.Wikimedia.org

Brief History

Discovery Communications, Inc. is the world’s premier nonfiction media company. It began as a single channel in 1985, but that single channel has evolved into a global media headquarters. Today, the company offers more than 100 programs in over 200 countries (6). DCI’s 28 network entertainment brands include:

Networks

Discovery Channel

Dedicated to nonfiction, informative content. Deadliest Catch, Mythbusters, and Planet Earth all appear on this channel (7).

Courtesy IMDB.com

Animal Planet

The only multi-platform entertainment brand that immerses viewers in the full range of the animal kingdom. AP has programming like Whale Wars, River Monsters, and Pit Bulls and Parolees (9).

Courtesy Animal Planet

The Military Channel

The Military tells real-world stories of heroism and history. Popular programming includes Future Weapons, and Science of the Elite Soldier (10).

Courtesy DesiRulez.net

The Learning Channel

TLC is a global brand that celebrates life’s special moments. TLC is a top 10 cable network in the United States female demographic, and features programming like Cake Boss, Sister Wives, and Extreme Couponing (8).

Courtesy TLC.com

Velocity

Velocity is a newer, high-octane cable network aimed at men. With more than 400 hours of premiere viewing time, shows like Inside West Coast Customs, Chasing Classic Cars, and How It’s Made: Dream Cars made their debut on Velocity (11).

Courtesy Discovery Programs

Financials

Discovery owes it to its investors to make smart and economically sound decisions throughout the year. Discovery has been successful in doing this, especially this quarter. Zaslav attributed the success to the “breadth and depth of our brands and the myriad of opportunities across our global distribution platform,” (12).

Courtesy Corporate.Discovery.com

Third Quarter 2013 Highlights:

Revenues increased 28% to $1.375 million, as compared to third quarter last year (12).
Net Income increased 24% to $255 million, as compared to $205 million for the third quarter of last year (12).

Exclusive

Shark Week!

Shark Week is an enormously popular special on the Discovery Channel every summer. This weeklong of programming dedicated to the killer of the seas is the longest running cable television event in history. Its popularity can be partially attributed to its ability to harness the power of social media (14). More than one and a quarter million* people follow Shark Week on Facebook and Twitter.

Courtesy Discovery Programs

Bear Grylls

Edward “Bear” Grylls is a UK survival expert who spent time in the special forces. His series Man vs. Wild on the Discovery Channel has been nominated for multiple awards, including an Emmy. This season, Bear returns to the DC in “Bear Grylls: Escape from Hell.” Each episode, Bear will put himself in dire situations, based on real acts of survival in history. Of the show, he said “I am super excited to be working with Discovery again – the channel where the… journey began,” (15).

Courtesy Discovery Programs

In the News

Interbrand’s “Best Global Brands” Report

Interbrand is the world’s leading brand consultancy. They have awarded the Discovery Channel their #70 spot (of 100). Their reasoning includes a record-breaking 2012 season, strong first-quarter results, and high levels of viewer engagement (17).

“Discovery Launches Fierce New Digital Network”

The Animalist is a compilation of fifteen original digital series exploring the connection between humans and their furry (some not so furry) friends. The show debuted online with nearly seven million monthly streams. In conjunction with additional distribution partners, the content can be accessed from mobile, YouTube, and even the Xbox gaming console (13).

Courtesy Animal.Discovery.com

Discovery Channel Rocks the Vote

For the twentieth year in a row, the Discovery Channel ranked #1 among total adults in its importance to the enjoyment of cable, as well as winning in both perceived value, and favorite basic cable channel. In a new study, the DC ranked #1 as a favorite channel and #1 in importance, among adults who would switch providers were their provider to stop supplying the Discovery Channel (13) (22).

Courtesy Images.BusinessWeek.com

Upcoming

The Challenger Disaster

Discovery Channel makes a foray into the unknown with this series chronicling the story of Dr. Feynman, a physicist who investigated the Challenger Disaster. The show debuted Saturday, November 16th to a large audience. Critics applaud for its fact-based approach, as well as for actor William Hurt who plays Dr. Feynman (16).

Courtesy Discovery Programs

Christmas

Discovery Unwrapped is one week of specialized holiday programming running from Dec. 8-15. The Channel plans to use its own programming to teach viewers the meaning of Christmas from two very different groups. Redneck Moonshiners will offer their opinion on Moonshiner’s Christmas Special, while the more reserved Amish lifestyle will present A Very Amish Christmas. The shows Naked and Afraid, Call of the Wildman, and Gold Rush will also have Christmas specials on Discovery Unwrapped (13).

Halloween

Discovery Channel aims to capitalize on every public event that it can, and this spooky season is no exception. On October 26, Hub Network held its first “Halloween Bash.” Hosted by Kenan Thompson, this two-hour, nationwide costume competition was judged by a panel of celebrity presenters, including Martha Stewart. All-new series Spooksville aired immediately following the “Bash,” (13).

Courtesy OurWeekly.com

Discovery Education

Discovery Education is a division of Discovery Communications aimed at delivering high-quality content that engages students beyond the classroom. Their services include Discovery Education Streaming Plus, where students can have lectures, speeches, information, etc. streamed directly to their computer. In addition to providing streaming services, Discovery Digital Textbook Replacement is working to give students an alternative to high-impact, expensive textbooks. Discovery also contributes to higher education programs (18).

Courtesy Discovery Education

Impact

Discovery has always been interested in a clean, pristine Earth. This is what they showcase in their programming. So it’s only natural that they use their popular programming to inspire change in communities (19).

The Planet Earth series captured rare and endangered species in their natural habitat. The DC partnered with the Nature Conservancy during its production, and aired PSAs during commercial breaks, to help preserve the stunning habitats featured in the program (19).

Shark Week often features PSAs regarding shark conservation and endangerment. Last year, during Shark Week, the DC partnered with organizations Oceana, and the Pew Charitable Trust to help spread those messages (19).

Courtesy Discovery Impact

Further

http://www.youtube.com/user/DiscoveryComms

Works Cited

Discovery Communications

Posted on October 31, 2013 by Alyson Piekarsky

By Aly Piekarsky

Discovery Communications Logo [1]

Discovery Communications World Headquarters

One Discovery Place
Silver Spring, MD 20910
Tel: 240.662.2000

http://corporate.discovery.com

Key Executives [2]

David M. Zaslav, President and CEO, Discovery Communications

David M. Zaslav [3]

Andrew Warren, Senior Executive Vice President, Chief Financial Officer

Andrew Warren [4]

David C. Leavy, Chief Communications Officer, Seniors Executive Vice President, Corporate Marketing & Affairs

David C. Leavy [5]

Mark Hollinger, President and CEO, Discovery Networks International

Mark Hollinger [6]

Company Overview [7]

Discovery Communications’ Mission Statement [8]

Discovery communications is the world’s #1 nonfiction media company that began as a single channel-the Discovery Channel-and evolved into a global mass media entertainment company that has over 190 worldwide television networks. Discovery currently operates 14 U.S. cable and satellite TV networks, including the Discovery Channel, TLC, Animal Planet, and the Military Channel. It also operates 3 joint venture networks in the U.S. including the Oprah Winfrey Network, The Hub, and 3net, the first 24-hour 3D network.

Top Competitors [9]

A&E Television Networks, LLC

NBCUniversal Media, LLC

Viacom Inc.

Financial Information

Discovery Communications celebrated a record-breaking 2012 and a very strong first quarter of 2013, with its best January to date and an overall 20% increase in US viewership. [10] Viewership among the key 25-54 demographic increased 10% in primetime. In 2012, the company’s revenue increased 8% to $4.487 billion, mainly due to a 5% growth at U.S. networks and 13% growth at International Networks. [11] From the first quarter to the second quarter of 2013, revenues increased 30% from $1,156 million to $1,467 million. [12] Stock prices for Discovery Communications, Inc. (DISCA) ranged from $84.06-$84.99 on Tuesday, November 12, 2013. In the past 52 weeks, stock prices have ranged from $54.89-$89.58. [13]

Facts and Figures: “Subscriber numbers as of September 30, 2013, according to The Nielsen Company in the US.” [14]

Discovery Channel

2012 at the Discovery Channel was marked by immense success, due in part to the return of hit series such as Gold Rush and Moonshiners and the emergence of breakout hits such as Fast N’ Loud, Jungle Gold, and Amish Mafia. Amish Mafia was an incredible success for the Discovery Channel as the highest-rated premiere in the channel’s history. Due to the success of its programming, viewership increased 14% from 2011 and 20% in January of 2013. [11]

In 2014, the Discovery Channel will venture to Kodiak Island in Alaska for a series in which viewers will encounter the obstacles that three multi-generational families face living on the deadly island. [15]

TLC

Theresa Caputo from TLC’s Hit Series “Long Island Medium” [16]

In 2013, 30 series returned to TLC, including Here Comes Honey Boo Boo, Long Island Medium, Sister Wives, and Breaking Amish, TLC’s highest-rated new series to date. As Discovery’s female flagship brand, TLC prides itself on being the most widely distributed female-targeted lifestyle and entertainment brand in pay-TV. The channel reaches nearly 300 million households in over 150 markets. [11]

Investigation Discovery (ID)

Investigation Discovery Logo [18]

Investigation Discovery features 24/7 “news” shows that depict true murder cases in the template of re-enactments. [17] 2012 was Investigation Discovery’s best year to date, as it delivered 45 consecutive months of year-over-year primetime gains among its key demographic (the longest streak among any cable network supported by advertisers.) [11] On Tuesday, November 12, 2013, ID launched its newest series A Crime to Remember, which highlights stories of real-life murder cases of the ‘50s and ‘60s. [19] Investigation Discovery also launched a new series titled Elder Skelter on November 6, 2013, which tells the horrifying stories of senior citizens who committed cold and calculated murders. [20]

Animal Planet

Animal Planet also celebrated 2012 as its best year-to-date, with a 17% increase in viewership from 2011. Programs such as River Monsters, Finding Bigfoot, Call of the Wildman, and Tanked paved the way for Animal Planets’ success. The future is looking bright for Animal Planet, as it is expected to continue its audience growth in the coming years. [11] On November 9, 2013, Animal Planet debuted its new series Meet The Sloths, which takes viewers behind the scenes of the lives of sloths. To promote the show, Animal Planet L!VE will feature a 24/7 Sloth Cam, broadcasting live from Zoo Atlanta. [21]

Animal Planet Logo [22]

Animalist [14]

In October of 2013, Discovery launched Animalist, a new digital video network featuring short-form series, which explore the connection between humans and animals. The Animalist programming lineup includes new shows like Discovery Sharks and Animals With Low Self Esteem. Advertisers and partners are able to reach viewers through the new digital network across mobile, YouTube, Xbox, and online at Animalist.com.

Continued Momentum at Joint Ventures [11]

Discovery Channel’s U.S. joint venture networks, The Hub, OWN: Oprah Winfrey Network, and 3net, continue to grow and build viewership. The Hub, once available in only 56 million households at launch, is now available in 72 million. It is now the fastest-growing kids’ cable network in 2012, as it experienced 14% gains in the fourth quarter of 2012 among kids 2 to 11 in day and primetime. In November of 2013, The Hub launched a series of children’s webisodes called Spookesville Freak Files and an online game Streets of Spookesville. [23]

Oprah Winfrey Network experienced a 36% audience growth in 2012 and continues to grow in popularity. In the second quarter of 2013, OWN Network began to generate a profit and will begin to pay back Discovery Communications for its investment in the network. [24]

3net, Discovery Communications’ joint venture 3D channel with Sony and IMAX gained additional distribution in 2012 and continues to expand its content library.

Recent Company News

Espresso Education [25]

On November 7, 2012, Discovery Communications announced its acquisition of Espresso

Espresso Education [26]

Education, the leading provider of digital education content for primary school in the United Kingdom. The business will be overseen by the education division of Discovery. This marks Discovery’s first purchase of an international education company.

Acquisition of SBS Nordic Operations of ProSiebenSat.1 Group

On April 9, 2012, Discovery Communications announced the acquisition of the SBS Nordic operations of ProSiebenSat.1 Group. This purchase adds an additional 12 television networks, along with several radio stations and digital brands to Discovery’s portfolio. Together, these properties in Norway, Sweden, Denmark, and Finland form SBS Discovery Media, a combined regional business. [27]

Discovery, Time Warner Cable Renew Carriage Deal

On November 18, 2013, Discovery Communications and Time Warner Cable announced

Time Warner Cable Logo [29]

the early renewal of their carriage deal, which permits Bright House Networks to continue offering Discovery’s networks. The deal also includes TV everywhere rights, which allows Time Warner Cable subscribers to view the Discovery programming online, including on tablets and smartphones. The financials of the agreement were not released. This is the first time Discovery has agreed to make its shows available online to pay-TV subscribers. [28]

Sources:

[1] http://www.brandsoftheworld.com/logo/discovery-channel-4

[2] http://corporate.discovery.com/leadership/

[3] http://corporate.discovery.com/leadership/david-zaslav/

[4] http://corporate.discovery.com/leadership/andrew-warren/

[5] http://corporate.discovery.com/leadership/david-leavy/

[6] http://corporate.discovery.com/leadership/mark-hollinger/

[7] http://corporate.discovery.com/our-company/overview/

[8] http://corporate.discovery.com/our-company/overview/

[9] http://www.hoovers.com/company-information/cs/company-profile.Discovery_Communications_Inc.ac0da8acf4dc6039.html

[10] http://interbrand.com/en/best-global-brands/2013/Discovery

[11] http://ir.corporate.discovery.com/phoenix.zhtml?c=222412&p=irol-reportsAnnual

[12] http://ir.corporate.discovery.com/phoenix.zhtml?c=222412&p=irol-reportsOther

[13] http://finance.yahoo.com/q?s=DISCA

[14] http://ir.corporate.discovery.com/phoenix.zhtml?c=222412&p=irol-newsletter

[15] http://tvbythenumbers.zap2it.com/2013/11/01/new-series-kodiak-to-premiere-on-the-discovery-channel-in-2014/212978/

[16] http://www.insideedition.com/investigative/5331-the-long-island-medium-can-she-really-communicate-with-the-dead

[17] http://www.cityweekly.net/utah/article-5-18280-investigation-discovery-dead-sexy.html

[18] http://nlmg.net/discovery-id/

[19] http://www.broadwayworld.com/bwwtv/article/Investigation-Discovery-to-Premiere-New-Series-A-CRIME-TO-REMEMBER-1112-20131111

[20] http://www.broadwayworld.com/bwwtv/article/Investigation-Discovery-to-Premiere-New-Series-ELDER-SKELTER-Today-20131105

[21] http://variety.com/2013/tv/news/animal-planet-dives-into-pop-cultures-sloth-fixation-1200774935/

[22] http://joesterloriagroup.com/blog/wp-content/uploads/2013/06/Animal_Planet.png

[23] http://www.4-traders.com/DISCOVERY-COMMUNICATIONS-9015/news/Discovery-Communications-Inc–Hubworldcom-Launches-Spookesville-Freak-Files-Webisodes-and-Stre-17456025/

[24] http://nypost.com/2013/07/30/oprah-winfreys-own-network-turns-a-profit-in-q2-six-months-ahead-of-schedule/

[25] http://www.sacbee.com/2013/11/07/5889741/discovery-communications-announces.html

[26] http://espressoeducation.wordpress.com

[27] http://corporate.discovery.com/discovery-news/discovery-communications-completes-acquisition-sbs/

[28] http://online.wsj.com/news/articles/SB10001424052702303985504579206111735425786

[29] http://www.polygon.com/2013/1/19/3893532/time-warner-cable-banning-select-gun-ads

Discovery Communications

Posted on April 1, 2013 by Jasmine White

by Jasmine White

The World’s #1 Nonfiction Media Company [2]

One Discovery Place
Silver Spring, MD 20910
Tel: 240.662.2000/ http://corporate.discovery.com/

Overview

Discovery Communications[1] entered the media sphere as a single channel, The Discovery Channel. After acquiring its rival, The Learning Channel in 1991, it would go on to enter a series of acquisitions that have earned the corporation notoriety as the world’s number one media company. Discovery is currently a publicly owned company and trades on the NASDAQ stock market. It currently reaches more than 1.8 billion subscribers in 218 countries and territories. Moreover, Discovery is proud to be a leading provider of educational products and services to schools and owns a diverse portfolio of digital media services.

[1]

Leadership [3]

Photo of John S. Hendricks John S. Hendricks is the founder of Discovery and serves as Executive Chairman. Hendricks wanted to provide viewers with quality documentaries that would allow them to explore their world. He has been the recipient of numerous awards, such as the Primetime Emmy Award, the Governors Award and the Lifetime Achievement Award.

Photo of Robert R. Beck Robert R. Beck has been Discovery’s Financial Consultant since 2001 and is a member of the compensation committee.

Photo of J. David Wargo J. David Wargo is the Director of Discovery, chairman of the Nominating Committee and a member of the Audit Committee.

Photo of Steven A. Miron Steven A. Miron is the Director of Discovery Communications and a member of the Nominating Committee.

Finances [4]

February 14, Discovery lost 33 percent of its net income in the fourth-quarter, dropping its income to $224 million, or 61 cents per share. Analysts were expecting 76 cents per share.

The company attributed the decline to a rise in taxes, equity-based compensation and costs due to its acquisitions. Total revenue rose 8 percent to $1.2 billion, in line with analysts’ expectations. Discovery forecast 2013 revenue of $5.58 billion to $5.70 billion. Analysts are expecting $5.43 billion.

Executives are relying on key partnerships and programming like Oprah Winfrey’s OWN network. They say that the high-profile and expensive joint venture is on track. Despite the success of OWN and ventures like it, Discovery generally makes 33 percent less money on advertising than rivals.

Oprah’s Interview with Lance Armstrong

Discovery continues to make innovative deals to supplement its income. December 14, the corporation officially closed the deal with ProSieben[5]. ProSieben has a total enterprise value of $1.7 billion. Discovery now has 12 companies in Norway, Sweden, Denmark and Finland, strengthening its connection in the Nordic markets. The transaction also included 19 radio stations, including the #1 radio portfolio in Sweden.

December was an eventful month for Discovery; the corporation announced a strategic alliance with TF1/Eurosport (Eurosport International and Eurosport France) [6], acquiring a 20 percent minority interest. Eurosport reaches 130 million subscribers in 59 countries across Europe. The alliance also garnered Discovery stock in France (TV Breizh, Histoire, Ushuaia TV and Stylia).

Product

[7]

Discovery Channel

Discovery Channel, launched June 17, 1985 is one of the most widely distributed cable networks in the United States. It is dedicated to creating innovative and quality nonfiction content. The genres include science, history, adventure and the like. Popular series include Deadliest Catch, MythBusters and Frozen Planet. The targeted audience is 25-54, particularly men and reaches 100 million U.S. households; 314 million international subscribers.

Myth Busters ‘Walking on Water

[8]

TLC

TLC(The Learning Channel) offers globally recognized programming that focuses on unique storytelling. Acquired by Discovery in May of 1991, it has succeeded in becoming the top 10 cable network for women. In 2001, TLC had 28 unique television series, averaging one million viewers per episode. Some of the most popular shows include, Sister Wives, Toddlers & Tiaras, 19 Kids, What Not To Wear and Here Comes Honey Boo Boo. Currently, 99 million U.S. households and 201 million international homes subscribe to TLC.

[9]

[10]

Animal Planet

Animal Planet, launched October 1, 1996, is the only channel to fully immerse viewers in the Animal Kingdom. Viewership has been up 18% since January 2012, bringing in 97 million U.S. and 275 million international subscribers. The target audience reached are adults 25-54. Viewers enjoy television shows like Whale Wars, River Monsters, Fatal Attractions, Finding Bigfoot, Pit Bulls and Parolees and Dogs 101.

[10]

Discovery Famila

Discovery Famila, launched August 2007, garners 4 million U.S subscribers. It introduces educational and entertaining, family-oriented programming to kids and families in the Spanish language. Daytime programming is geared toward preschoolers’ by offering fun and educational Spanish-language content that will preserve their native language. Evenings offer family-friendly series and specials and aspirational lifestyle content for women and families, including programs on cooking, dining, travel, design, beauty, health and parenting.

Newsroom

January 08, 2013 [10]

Successful Holiday Programming Events and Slate of Network Movie Premieres Drive Strong New Year Start for The Hub TV Network

The Hub Network, owned by Discovery, had a solid jumpstart on the New Year. The network introduced a steady flow of holiday marathons, followed by original Hub TV Network original programming. It delivered significant year-over-year audience growth reaching all key target demographics including Kids 2-11 (+63%), Kids 6-11 (+56%), Women 18-49 (+69%), Adults 18-49 (+50%), Persons 2+ (+67%) and Households (+52%).

January 14, 2013 [11]

Discovery Communications Acquires Switchover Media

Discovery acquired 100 percent of Switchover Media, an Italian media company that owns four free-to-air television channels and one pay-TV television channel in Italy. This new deal has made Discovery the third largest broadcaster in Italy in terms of collective audience share. Italy is the leading market for Discovery and key to its growth over the last two years. The acquisition of Switchover Media adds further breadth and scale and also diversifies Discovery’s portfolio to include scripted crime and children’s programming.

March 28, 2013 [12]

Revision3 Launches Robust App for Xbox 360

Revision3, A Discovery Digital Video network, announced the launch of its app for the Xbox 360® video game. Xbox LIVE Gold members in the U.S., Canada and Australia can install the new Revision3 app from the Xbox LIVE® marketplace*. Fans of Revision3 content can now watch their favorite shows. There are thousands of unique shows, including Rev3Games, Film Riot and more. Revision3 allows subscribers to view the content on their television, tablet, game station, phone, or a traditional laptop.

Sources

7. Discovery Channel Logo