{"id":20212,"date":"2014-10-05T19:11:46","date_gmt":"2014-10-05T23:11:46","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=20212"},"modified":"2014-12-01T18:48:33","modified_gmt":"2014-12-01T23:48:33","slug":"discovery-communications-6","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2014\/10\/05\/discovery-communications-6\/","title":{"rendered":"Discovery Communications"},"content":{"rendered":"
by Brendan Germain<\/pre>\n
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Discovery Logo [1]<\/a><\/p><\/div>One Discovery Place\u00a0<\/span>Silver Spring, MD 20910 —<\/span>\u00a0240.662.2000<\/span><\/address>\n
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“Discovery is dedicated to satisfying curiosity, engaging and entertaining viewers with high-quality content on worldwide television networks…” [2]<\/a>\u00a0<\/span><\/h4>\n
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COMPANY PROFILE<\/strong><\/h1>\n
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.<\/p>\n
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KEY EXECUTIVES<\/h1>\n
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David Zaslav- President and CEO [4]<\/a><\/p><\/div>
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Andrew Warren-Senior Executive VP and CFO [5]<\/a><\/p><\/div>
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Marjorie Kaplan- Group President Discovery Channel [6]<\/a><\/p><\/div><\/p>\n
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HISTORY<\/h1>\n
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<\/p>\n
\"Discovery<\/a>
Discovery Logo-1988 [9]<\/a><\/p><\/div>\n
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\u00a0[7]<\/a>. 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.\u00a0[8]\u00a0<\/a><\/p>\n
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FINANCES<\/h1>\n
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]<\/a>.<\/p>\n
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DISCA’s Yearly Stock Price as of December 1, 2014 \u00a0CLICK TO VIEW CURRENT CHART\u00a0[12]<\/a><\/p><\/div>\n
The publicly traded conglomerate has been on a rise in stock price, ending around $34\u00a0dollars 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]<\/a>. 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]<\/a>. Discovery is projected to reach a total revenue between $6.3 billion and $6.35 billion for this 2014 fiscal year.<\/p>\n
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\u00a0ACQUISITION OF EUROSPORT<\/h1>\n
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 \u00a0sports media sphere with its spring<\/p>\n
\"Eurosport<\/a>
Eurosport Logo [15]<\/a><\/p><\/div>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.\u00a0[14]<\/a>.<\/p>\n
[Click here<\/a> to view Eurosport’s promo stinger]<\/p>\n
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]<\/a>.<\/p>\n
\"Eurosport is a perfect strategic fit for growing market share, strengthening relationships with advertisers and affiliates, and bringing \u2018must have\u2019 content to passionate viewers across the globe...\u201d [17]<\/a> \r\n      -Discovery CEO David Zaslav-<\/pre>\n
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.<\/p>\n
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\u00a0DISCOVERY CHANNEL<\/h1>\n
The network\u00a0that 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\u00a0science, nature, adventure and history geared television, among other genres, and has revved up its live-streamed programming over the past few years [18]<\/a>.\u00a0In June 2013, Discovery aired a live program special with adventure enthusiast Nik Wallenda traversing the Grand Canyon on a tightrope [19]<\/a>. 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.<\/p>\n