John Downer | Principles & Practices

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