Discovery of ad revenue, increase in streaming subscribers – The Hollywood Reporter
Discovery, led by CEO David Zaslav, said on Tuesday that it has now reached 18 million paying streaming subscribers worldwide to its direct-to-consumer services, including Discovery +, after ending June with 17 million.
At the end of April, he had reported 15 million paying users.
In its third earnings report since launching Discovery + at the start of the year, the company also announced an improvement in advertising revenue on Tuesday, including a 12% gain in the second quarter in the United States and a jump of 88 % of its international activities, or 70% excluding currency effects.
The advertising gain in the US was “primarily due to higher prices, continued monetization of content offerings on our next-gen platforms, and higher inventory, partially offset by lower ratings and, to a lesser extent, extent, secular declines in the pay-TV ecosystem, ”the company said.
Discovery stated that it “successfully completed an advertising campaign in the United States in 2021-2022, generating the largest initial revenue in the company’s history, including more than doubling Discovery Premiere revenue, our multi-network, multi-platform advertising package, and Discovery Engage, our advanced advertising solution. And Zaslav on Tuesday praised the initial advertising rates that were “well ahead of (his) peer group.”
Distribution revenue in the United States increased 12% in the second quarter, “primarily due to the launch of Discovery + in January 2021 and higher contractual affiliate prices, partially offset by a decrease in the number of linear subscribers and certain non-recurring items recognized during the quarter of the previous year. “
Also in Tuesday’s results update, Zaslav commented on the Tokyo Olympics, to which Discovery has the rights in Europe. “Our first Summer Olympics have so far been a success, supporting healthy viewing and subscriptions on our linear and streaming platforms, and underscoring the importance of our commitment and investment in renowned intellectual property. “, did he declare.
The Discovery + streaming service launched in the US on January 4 with a monthly price of $ 4.99 with ads and $ 6.99 without ads. It has also been deployed in international markets.
When it comes to the Olympics, Discovery touted a “record engagement,” claiming that “more than 275 million viewers have watched the Games so far. Over 100 million from those who have looked through Discoverytelevision and digital coverage, and 175 more million more have watched the games through Discoverysub-license agreements with free-to-air broadcasters partners throughout Europe.
Discovery continued: “The opening week of the Olympic Games saw a record number of visits Discoverydigital platforms of Europe to enjoy every must-see moment of Tokyo 2020. Viewers’ desire to personalize their experience, choosing to watch one of their national heroes or favorite sports, saw new digital subscriptions in the first week of the Games achieve double the total acquired around the Olympic Games. PyeongChang 2018 Winter Games. ”
He added: “Almost three-quarters of a billion minutes of streaming Olympic content have been consumed on Discovery+ and Eurosport subscription services in the first week, almost 18 times more than at the same stage of PyeongChang 2018. ”
And Discovery said: “A large share of linear television audiences, demonstrating widespread interest in these Games, has been observed in the Nordic markets where Discovery presents the Games on its networks in clear. Shares as high as 78 percent in Norway (handball, Spain vs. Norway); 67 percent in Sweden (football, Sweden vs Australia); and 60 percent in Sweden (swimming) were recorded.
During Tuesday’s call for results, Zaslav hailed “fantastic traction” during the Olympics so far, calling it a “very pleasant surprise” amid a difficult situation due to the coronavirus pandemic. He also described the Summer Games as a “super funnel” event for company brands. He added that the company was “very excited” about the upcoming Beijing Olympics, where he said the company sees a chance to retain its subscribers given it will be held in February and in Paris.
Overall, Zaslav called the performance of the Olympics “almost flawless”.
Also during the call, Zaslav praised Discovery + ‘s “strong” traction of subscribers and its average revenue per healthy user. And he said other key international service launches will be launched later this year in markets such as Brazil and the Philippines.
Discovery’s total second-quarter revenue increased 21% to $ 3.06 billion, including nearly $ 400 million in next-gen revenue, as the company rebounded from a major pandemic of coronavirus that occurred a year ago. Quarterly profit increased from $ 271 million to $ 672 million.