Discovery CEO: SVOD Market Turning into ‘Street Fight’

On the heels of WarnerMedia putting a name (HBO Max) to its pending subscription streaming video service, Disney launching branded service as well as expanding Hulu globally, Discovery CEO David Zaslav says “chasing the same ball” (i.e. scripted digital content) with the world’s biggest media companies is not the company’s focus.

Speaking July 10 with CNBC from the Allen & Co. confab in Sun Valley, Idaho, Zaslav contends the bustling SVOD market is turning into a “street fight” — a scenario he believes Discovery has successfully side-stepped.

“[About] 50% to 60% of the content that people consume is not scripted series or scripted movies,” Zaslav said. “For us, it’s home [HGTV], food [Food Network], Discovery, Oprah, crime [ID], Chip and Joanna Gains [‘Fixer Upper’]. We own most of the golf [programming] in the world, most of the cycling. We have almost all [non-scripted] quality content. And we own it everywhere in the world.”

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With Netflix and Hulu expanding non-scripted programming, including documentaries and food-themed reality TV, Zaslav says Discovery’s market hold on food, home and crime-themed shows is not in threat.

“We’re pretty secure in our space,” he said. “People aren’t buying Netflix to watch a home [improvement] show. We think we have something very differentiated and people come to us for it. They come to us for it on all platforms in all languages.”

Yet, much of HGTV, Food Network, ID and Oprah content is consumed through traditional pay-TV channels — distribution under threat by over-the-top video.

Zaslav agrees the traditional linear TV business is in secular decline. But he said Discovery generated about $3 billion in free cash flow in its most-recent fiscal year.

The executive said Discovery dominates the female non-scripted market in the United States, with OTT video businesses targeting golf (outside the U.S.), cycling and natural history.

“We have a low to mid-single digit growth company, having nothing to do with all of the global IP that we own,” he said. “We think it’s sustainable that we can grow low to mid-single for the next several years.”

Zaslav contends streaming movies and TV shows has become commoditized with Showtime Now, HBO Now, Amazon Prime Video, Netflix, Apple TV all offering similar content.

“That’s why we did Scripps [Networks] acquisition, because we think people that love food are always going to come to food, people that love home are always going to come to home. So, we think that this is an ecosystem that will work together,” Zaslav said.

With Disney buying Fox, Comcast acquiring Sky and AT&T buying Time Warner, Zaslav dismissed suggestions Discovery would have merge with another major media company to remain competitive.

“We’re the largest independent media company,” he said. “We think some of the assets we have that we’re the largest international media company. We’re in 200 countries.

“But in the long run if we’re wrong, then we have the biggest assortment of IP in affinity groups that people love and we’re in every language around the world. We think that we’re going to win either way. We’ll be more valuable.”

Discovery Launching ‘HGTV’ Brand in Germany

Discovery Communications, beginning June 6, is launching its popular HGTV home improvement network in Germany — the first international bow for the brand since it was acquired in 2018 (along with Food Network and Travel Channel) from Scripps Networks for $12 billion.

The No. 3 pay-TV network in the United States comes to Germany featuring more than 500 hours of programming, including legacy series, “Flip or Flop,” “Fixer Upper,” “House Hunters,” “My Lottery Dream Home” and “Good Bones,” among others.

The network will be offered on linear ad-supported TV, despite the fact Discovery partnered with ProSiebenSat.1 last summer to build a subscription streaming video service featuring live TV, local and Hollywood movies and TV shows, and sports.

“We are incredibly excited to be announcing the launch of HGTV in Germany and start using our scale and expertise across [Europe, Middle East and Africa] to expand HGTV and other key real-life entertainment brands into new territories and reach millions of new people,” Kasia Kieli, president & managing director, Discovery EMEA, said in a statement.

For Susanna Aigner-Drews, SVP & GM Germany/Austria/Switzerland at Discovery, HGTV represents one of the last ad-supported broadcast TV network on German television.

Susanne Aigner-Drews

“In a highly fragmented TV market, there are not many niches to prove,” Aigner-Drews told SZ.de.

While house flipping is rare, home ownership in Germany sits at about 51%, compared to about 65% in the U.S. HGTV in Germany will initially focus on its American/Canadian shows, with German-centric programming to follow.

“TLC [The Learning Channel] has [finally] arrived in Germany after five years,” Aigner-Drews said. “We will have the [necessary] patience with Home & Garden TV.”

Sling TV: Subscribers Most Rented, Watched ‘The Incredibles,’ ‘Jurassic World,’ Among Other 2018 Highlights

Sling TV, Dish Network’s pioneering online TV platform, says its 2.4 million subscribers still love to rent and watch catalog movies.

The service says subs rented Disney/Pixar’s The Incredibles the most in 2018, followed by Black Panther, Sony Pictures Home Entertainment’s Jumanji: Welcome to the Jungle, Marvel’s Avengers: Infinity War and Thor: Ragnarok (Disney).

Most-streamed movies on Sling included catalog titles (in order): Universal Pictures Home Entertainment’s Jurassic World, Step Brothers(Sony), Deadpool (Fox), Star Wars: The Force Awakens (Disney), and The Day After Tomorrow (Fox).

Most-watched TV series included HGTV’s “Fixer Upper,” featuring Chip and Joanna Gaines, “The Big Bang Theory” (CBS), “Family Guy” (Fox), “House Hunters” (HGTV) and Food Network’s “Diners, Drive-Ins and Dives.”

The rankings are based on viewing trends of subscribers to the $25 monthly Sling Orange and/or Sling Blue options and Extras (transactional VOD) between Jan. 1 and Nov. 27.