Discovery Passes 11M Streaming Subscribers, Topping Estimates, However This fall Income Stalls On Pay-TV Fade – .
Discovery announced that it has passed 11 million direct-to-consumer streaming subscribers and will hit 12 million by the end of February, a gain of about 7 million subscribers since December.
The parent company of the cable networks HGTV, TLC, Food Network and Discovery Channel launched the streaming service Discovery + on January 4th in the USA and is rolling it out worldwide. Executives haven’t given a specific target number of subscribers, but described the service as a valid addition to Netflix, which has more than 200 million paying customers worldwide. Verizon signed up as a key reseller and bundled a year without Discovery + with lots of customer plans.
The streaming numbers came as the company reported unchanged fourth-quarter revenue of just under $ 2.9 billion and diluted earnings of 76 cents per share. Revenue numbers exceeded Wall Street analysts’ forecasts, while earnings exceeded expectations.
The consensus forecast forecast by analysts for streaming was 10.5 million subscribers.
A 5% increase in domestic sales revenues offset a decline in international sales and advertising revenues.
The advertising was flat, and the company said higher prices and content monetization on new platforms like streaming were offset by “mundane declines in the pay-TV ecosystem and lower ratings”.
Discovery’s shares recently hit an all-time high of over $ 50. They rose 2% in pre-market trading.
“Our unmatched global size and ability to serve consumers everywhere with truly differentiated offerings across platforms, as well as our robust cash flows, even amid the substantial investments in our next generation initiatives and the ongoing COVID-19 pandemic, bring us in the position to be sustainable Long-term growth and long-term increase in shareholder value, ”said CEO David Zaslav in the company’s earnings release.