Discovery calls the discovery+ launch “successful”. The new direct-to-consumer streaming service surpassed 11 million subscribers since the January 4, 2021 launch. Furthermore, Discovery says they are pacing to hit 12 million subs by end of this month.
David Zaslav, President and Chief Executive Officer of Discovery, made the comments this morning in the Q4 2020 financial results.
A discovery+ subscription includes access to more than 55,000 episodes of 2,500+ current and classic shows from Discovery brands such as HGTV, Food Network, TLC, ID, Animal Planet and Discovery Channel. There is also exclusive original programming not available elsewhere.
Discovery highlighted distribution partnerships for discovery+. Partners include Verizon in the United States, Sky in the United Kingdom and Vodafone in various European markets.
Advertising Results
Total revenues of $2.9 billion were flat compared for the quarter year over year. U.S. ad revenues were flat. Discovery says higher pricing and the “continued monetization of content offerings on our next generation platforms were offset by secular declines in the pay-TV ecosystem and lower ratings.”
U.S. advertising declined 5% for full year 2020. This was due to softer demand from the COVID-19 pandemic, secular declines in the pay-TV ecosystem, lower ratings and a decline in inventory. This was all at least partially offset by increases in pricing and the continued monetization of content offerings on their next generation platforms.
The flat ad results point to the importance of their direct-to-consumer streaming efforts.
