A Quarterly Publication of Discovery Communications

A Quarterly Publication of Discovery Communications
Volume 7, Number 2, July 2014
04
SHARK WEEK RETURNS AUG 10 - 16
03
05
09
DNI Breaks Records with Biggest
Quarter in History
Fifth Annual Impact Day Most
Global to Date
Introducing Discovery Life Channel
{ A MESSAGE FROM }
David
Zaslav
and digital rights. Over the past seven
years, we have more than tripled our
overall content investment and expanded
viewership across our U.S. networks
by 53%, now reaching over 11% of the
cable audience. The growth is even more
dramatic internationally, where our overall
viewership has increased over 200%,
including our best quarter ever this past
quarter. By any measure in the media
business, the critical question we must
ask is: Are people spending time with your
content? The answer for Discovery is a
resounding: ‘Yes.’
Discovery’s unique ability to nourish
and grow audiences across the globe
with must-have content continues to set
the company apart, and has led to yet
another successful quarter. And while I
am pleased with these results and our
overall operating performance, I am even
more excited, looking forward, about our
short- and long-term growth profile and
continued financial momentum. It is a
great time to be in the content business,
as more consumers are accessing more
content on more platforms in more
countries than ever before.
Discovery is poised to exploit this evolution
by following the same four operating
principles we have employed since I joined
the company seven years ago.
First, we continue to invest in content
to solidify our nonfiction programming
leadership by developing must-have
programming, with compelling characters
and storytelling, while owning the global
2
(
Second, leverage our unparalleled global
“beachfront real estate” distribution
platform. Discovery has 2.7 billion
cumulative subscribers in more than 220
countries and territories. We thoughtfully
invest in new brands that identify “white
space” in the market, and that have strong
potential to deliver significant audiences
and drive value for our ad and distribution
partners and, ultimately, our shareholders.
Prime examples include Investigation
Discovery, OWN: Oprah Winfrey Network,
Velocity and American Heroes Channel,
and in January, we will roll out our latest
brand, Discovery Life.
Next, is the continued growth of our
international business and unrivaled global
portfolio. Discovery trail-blazed into the
international business 25 years ago, and
today that worldwide portfolio is our key
differentiator. Nothing illustrates this fact
better than a key inflection point we just
passed: The company now generates more
than half our revenue outside the U.S. This
milestone was achieved during the second
)
“By any measure in the media
business, the critical question we
must ask is: Are people spending
time with your content? The
answer for Discovery is a
resounding: ‘Yes.’ ”
quarter as a result of the organic growth
of our international business, coupled with
the closing of our controlling interest in
Eurosport (see page 3 for details).
Lastly, we build scale in key markets to
take advantage of our first mover status in
many regions to strengthen our portfolio
and offerings. We are excited about the
opportunities we have with Eurosport to
combine the power of their brands and
audience reach with Discovery’s network
portfolio, local infrastructure and countryspecific expertise. We view sports as a
key form of factual entertainment and
must-have content that complements our
existing nonfiction portfolio.
As we close out a strong first half of 2014,
I remain excited about Discovery’s ability
to deliver strong organic financial results
for the rest of the year, while investing to
further exploit the opportunities across
our domestic and international platforms.
And looking further ahead, Discovery is
uniquely positioned to deliver sustained
growth and build long-term shareholder
value given the brands we have built and
the upside our global footprint provides.
David Zaslav is President and Chief Executive
Officer of Discovery Communications and
serves on the company’s Board of Directors.
Eurosport Serves Up Early Ratings Wins After Transaction Closes
On May 30, Discovery Communications completed its acquisition of a controlling interest in Eurosport International, Europe’s leading
sports entertainment provider. Discovery increased its interest in Eurosport to 51% from 20% as part of a larger strategic partnership
with TF1 Group that began in December 2012.
The acquisition will create new value for Discovery shareholders for the following reasons:
Sports. Discovery's next factual genre. Long a global leader in
nonfiction programming, sports is a natural step in Discovery’s
evolution to bring its passionate, global audiences the most
compelling, must-have nonfiction content on earth. Together, we
provide our audiences the best nonfiction content.
Early Discovery-Eurosport Programming Wins
French Open Final
Best-Ever Day for Discovery Max in Spain
Over 4.1 million viewers watching in Europe
Second-highest ratings for a tennis
match on Eurosport
Live World Speedway
In mid-June, Quest aired the Live World Speedway,
reaching 200k viewers and averaging 126K
viewers — 123% higher than the slot average.
Better together. Eurosport gains access to Discovery’s global reach,
in-country sales teams, strong global brands, seasoned management
team and new content opportunities on Discovery’s suite of networks.
Discovery gains Eurosport’s must-have sports content, live production
capabilities and pan-regional sales teams. Simply put, we are better
together in offering viewers, advertisers and distributors more
compelling programming and a better value proposition.
Deepening our global scale while growing sales and value. Discovery
has seen strong advertising and subscriber growth across Europe,
and now with Eurosport’s five pan-regional European brands, we are
deepening our presence across the region. With early wins sharing
content across the Eurosport-Discovery platforms (see box at left), we
will look to strengthen the flagship Eurosport channel while improving
the local sports available on Eurosport 2.
Discovery Networks International Breaks Records with Biggest Quarter in History
Second quarter continued a pattern of record viewing levels for DNI. Marking its highest-ever international reach and average
audience size, DNI saw an enormous 621M viewers around the world this quarter (up 3 percent) and an impressive 2.9M average
audience (up 9 percent).
It was a standout quarter for several key DNI brands with strong performance from both new and returning series. Discovery Kids
saw 33 percent growth overall, fueled by huge growth in key markets including Brazil and India, while Animal Planet, Investigation
Discovery and Home and Health also saw double digit growth. DNI also saw the highest-ever digital audience for its sites and huge
social numbers in 2Q attracting 11M visitors (up 45 percent) and 38M fans (up 250 percent).
A Quarterly Publication of Discovery Communications | JULY 2014
3
Annual Rite of Summer: Shark Week Returns
{ COVER STORY }
Discovery
Channel
SHARK WEEK, television’s longest running
must-see summer event, returns to Discovery
Channel on Sunday, August 10, and the
iconic franchise promises to be bigger and
better than ever.
Building upon last year’s 11 shark-filled specials,
this year’s event features a whopping
13 SHARK WEEK shows as well as a live
talk show each night; yielding the most
premiere hours ever featured in the
event’s 27-year history.
New premieres range from GREAT WHITE
MATRIX, exploring the deadly shark-infested
waters of Australia, to LAIR OF THE MEGA
SHARK, following famed shark experts on
an expedition to New Zealand in search
of a 20-foot Great White. Late-night talk
show SHARK AFTER DARK will once
again capture the young adult audience
as returning host Josh Wolf leads viewers
through an hour-long celebration of all
things shark.
The SHARK WEEK excitement doesn’t
stop there. All of Discovery’s top U.S.
distributors also are participating in
promotion around this year’s event with
advanced screenings, sneak peeks,
sweepstakes, social promotions and a
robust video on-demand slate. Discovery
Education also will bring the science of
sharks to students around the world with
the launch of SHARKS, an innovative
content collection available year-round
through Discovery Education Streaming.
LAST YEAR'S
SHARK WEEK
WINS BIG
Following SHARK WEEK 2013’s buzz-worthy
performance, with 2.6 million tweets
and SHARK WEEK trending on Facebook
and Twitter, fin-atics will have even more
opportunities to participate socially this
year. SharkWeek.com is the hub for all the
action, including photos, engaging videos
and additional multiplatform features.
The ever-popular Shark Cam also will
feature more than 10 cams with incredible
footage from Great White hot spots off the
coasts of Cape Cod, South Africa and
Australia, as well as photos, videos and
other interactive elements. SHARK WEEK
will be active across Facebook (Shark
Week), Twitter (@SharkWeek), Instagram
(SharkWeek) and the newly launched
SharkWeekTV on Snapchat.
SHARK WEEK WORLD TOUR
The Discovery Channel
marketing team and their 2013
Snuffy the Seal SHARK WEEK
campaign was named winner of Best
Advertising Campaign for a Single
Program at the Cable Faxies.
Lara Richardson, SVP of Marketing for
Discovery Channel, was also honored
as Marketer of the Year.
4
Discovery Channel will once again use the
week to draw attention to the importance
of ocean and marine life conservation.
Partnering with Ghost Fishing, a non-profit
organization that collects, motivates and
initiates “ghost fishing” projects that remove
marine debris around the globe, as well
as One World Ocean and Oceana, SHARK
WEEK will ensure that viewers are giving
thought to sharks and their environment.
Simulcasting in Canada for the first time
(with local after show)
SHARK NIGHT premiering Aug. 21 in Mexico
Shark Month launching in France in
August, in Colombia and Brazil in
September, and in Southeast Asia
in November
Discovery's Annual Impact Day Was Biggest and
Most Global to Date
Each year, Discovery’s Impact Day sends employees out into the communities
where they live and work for a day of hands-on, community giveback. This year,
nearly 4,000 Discovery employees stepped away from their desks and into
their communities for the company’s fifth annual “Discover Your Impact Day.”
The global volunteer initiative was bigger and more global than ever, spanning
nearly 35 countries, 50 offices and more than 200 projects worldwide.
Furthering the company’s commitment to make a positive change in people’s
lives both on and off the screen, Discovery employees spent the day taking
part in a wide variety of projects, from feeding the homeless and revitalizing
local schools, to cleaning up community parks and waterways. Network talent
also lent a hand for the day. Buddy Valastro, the CAKE BOSS, and his bakery
boys joined David Zaslav at Riverside Park in New York City, while Discovery
Channel’s Billy Kidd worked with employees of the London office.
Government officials showed their support through social media, tweeting
and retweeting about Discovery’s efforts. Chicago Mayor Rahm Emanuel
also showed his support by officially declaring June 20, 2014, “Discover Your
Impact Day” in Chicago.
The event was a clear representation of the collective power of the company’s
passionate, global workforce, and an excellent reminder that Discovery
Communications is driven by both its mission and people.
Destination America Celebrates Its Second Annual RED, WHITE AND YOU Fourth of July Event
Destination America organized a spectacular party again this year for the two winning towns of its second annual RED, WHITE AND
YOU contest – Prescott, Ariz., and Hamtramck, Mich. – bringing a lineup of fun including rides, fireworks and musical performances to
both towns. In Hamtramck, Grammy-winning band The Wallflowers also put on a live show before a fireworks presentation.
The RED, WHITE AND YOU contest was held in partnership with USA WEEKEND, jointly awarding two deserving communities with
a one-of-a-kind Fourth of July celebration. Five runner-up towns were also awarded a dazzling Independence Day celebration and
$4,000 toward their local parks and recreation department, courtesy of Destination America and several of Discovery’s affiliate
partners. RED, WHITE AND YOU’s first official sponsors were Ball Park® Brand and Nexium24HR. Comcast also partnered with
Destination America in bringing RED, WHITE AND YOU to Hamtramck.
A Quarterly Publication of Discovery Communications | JULY 2014
5
WATCH WITH THE WORLD:
RATINGSHIGHLIGHTS
BIG SPLASH FOR SERIES PREMIERE,
THE POOL MASTER
Animal Planet’s hit new series THE POOL
MASTER pulled in strong numbers during
its initial premiere among all major demos,
including 1M P2+ viewers, 704K HH, 421K P2554, 408K P18-49, 224K M25-54, 204K M18-49 and 203K W1849. The series opener helped Animal Planet rank fourth among
all ad-supported cable networks in the timeslot among M25-54
and M18-49. The series, which features the stunning creations of
natural swimming pool designer and sculptor Anthony ArcherWills, will return in spring 2015.
ON PACE FOR BEST YEAR EVER
DEADLIEST CATCH CONTINUES TO DOMINATE
RATINGS IN 10TH SEASON
DEADLIEST CATCH’s 10th season kicked
off with the highest-rated premiere in three
seasons. The all-new season premiered to a
2.31 P25-54 rating with an average of 3.82
million total viewers. The season premiere of the DEADLIEST
CATCH pre-show, THE BAIT, also saw strong ratings. In April, May
and June 2014, premieres of DEADLIEST CATCH ranked number
one in all of ad-supported cable among men 25-54 delivery.
TLC'S THE LITTLE COUPLE SHARES MILESTONE
OCCASIONS WITH VIEWERS
Viewers tuned in by the millions to share
the joy of Bill Klein and Jen Arnold's
heartwarming renewal of vows on THE
LITTLE COUPLE and an exciting engagement on 19 KIDS AND
COUNTING. The season 8 finale of 19 KIDS AND COUNTING
broke ratings records and was number one among all adsupported cable with all key women demos, P2+ and HH. The
proposal episode was the highest-rated episode ever among
HH (2.4), W25-54 (2.3) and P25-54 (1.5), averaging 3M P2+
viewers. Rounding out the highest season ever among HH,
P2+ and all key women and adult demos, the season finale
of THE LITTLE COUPLE made TLC the number-one cable
network on the night with W25-54/18-49.
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With strong double-digit increases, Investigation
Discovery concluded the second quarter on pace
for its best year ever. Garnering its best second
quarter ever in prime, averaging more than
783k P2+ for the quarter and 806k P2+ for the
month of June, ID ranks number four in Total Day and number
13 in prime for W25-54 delivery among all ad-supported cable
networks. The network continues to be #1 in length of tune in all
of television. With the conclusion of 2Q, ID has now experienced
22 consecutive quarters of year-over-year delivery growth for
P2+ in prime.
A SKYROCKETING YEAR TO DATE
Destination America has had an amazing
2014 thus far, ranking among cable’s topfive, fastest-growing networks in Total Day
and Prime among key demos with P2+, P/
M25-54 and HH. With hit series MOUNTAIN MONSTERS,
HILLBILLY BLOOD and BBQ PITMASTERS, the network earned
its best quarter ever in Prime and Total Day in all key demos.
Destination America has experienced 11 consecutive quarters of
year-over-year delivery gains in Prime among P25-54.
11 CONSECUTIVE QUARTERS OF GROWTH
On the heels of surpassing 4 million “Likes” on
Facebook, the network that dares to “question
everything” has delivered its highest-rated second
quarter ever for P2+ and P18-49 delivery in prime.
This marks Science Channel’s 11th consecutive quarter
of P2+ year-over-year Prime growth and its best second quarter ever
among key demos P25-54 as well as M25-54 and M18-49.
RATINGS VICTORY IN 2Q
DOUBLE-DIGIT GROWTH IN PRIMETIME
Velocity continued full throttle for ratings gains
in 2Q in all persons ratings (P25-54/18-49/1834). Success happened around the clock, with
five of seven nights showing steady or improved ratings growth
for P25-54, and all non-prime Day Parts growing both P25-54
and M25-54 ratings. Programs driving success were premieres of
WHEELER DEALERS, DALLAS CAR SHARKS, OVERHAULIN’ and
WHAT’S IN THE BARN.
OWN: Oprah Winfrey Network delivered
double-digit growth in primetime for 2Q 2014,
up 11 percent in total viewers vs. one year
ago. For the quarter, OWN was the number-one cable network
on Tuesday and Wednesday nights for African-American women
and the number-two network in all of television on Saturday
nights for African-American women. Several of the network’s
original series contributed to this growth, including THE HAVES
AND THE HAVE NOTS, which ranked as the number-one original
cable series on television for African-American women.
NEW BRAND: BIG DELIVERY GAINS
American Heroes Channel, which debuted on
March 3, 2014, wrapped up the second quarter
of 2014 by celebrating its fifth consecutive
quarter of prime delivery gains among
key demos, including P2+, HH and P25-54, boosted by the
premiere of the AHC FILMS documentary film CHOSIN as well
as continuing premieres of the network debut series AGAINST
THE ODDS. June also marked 16 consecutive months of yearover-year Total Day delivery gains among P2+ and HH, and eight
consecutive months of year-over-year Prime delivery gains
among P2+ and HH.
STRONGEST QUARTER IN NETWORK HISTORY
DISCOVERY LATIN AMERICA ANNOUNCES BEST
QUARTER EVER
Discovery Networks Latin America/U.S.
Hispanic had its highest-rated quarter
ever, up 18 percent from the previous year with huge ratings
successes for Discovery Channel, Discovery Home & Health,
Discovery Kids and Investigation Discovery. Highlights included
6 percent YOY pan-regional ratings increases for Discovery
Channel, 43 percent multi-country prime ratings growth for
Discovery Home & Health, 40 percent YOY increases among
persons 25-54 for Investigation Discovery and 83 percent
growth for Discovery Familia.
The Hub Network had its best quarter ever
with Girls 2-11 in Total Day. Additionally, for 12
consecutive quarters, the Hub Network has
been the top children’s network in co-viewing
percentage share. Thirty four percent of the Hub Network’s
Kids 2-11 watched with an Adult 18-49, ahead of Disney Channel,
Nickelodeon, Cartoon Network, Disney XD, Nicktoons, Disney
Junior, Nick Jr., Sprout and TeenNick.
P indicates persons
M indicates men
W indicates women
HH indicates households and numbers indicate ages
A Quarterly Publication of Discovery Communications | JULY 2014
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TUNE IN:
PROGRAMMINGHIGHLIGHTS
AIRPLANE REPO SWOOPS IN FOR SEASON 2
Discovery Channel’s AIRPLANE REPO is back and soaring to
new heights on Friday, August 22, for its second-season premiere.
This season, the daredevil pilots must up the ante as their
quests to repossess the assets of some of the wealthiest in the
nation become more dangerous and complex than ever.
A NEW BATCH OF CELEBRITIES SUMMERING AT TLC
A handful of famous faces will come to TLC for the first time
this summer and allow viewers to see into their personal lives. In
July, actress Leah Remini starred in her new reality series LEAH
REMINI: IT’S ALL RELATIVE alongside her vibrant family and
friends. Also in July, WHO DO YOU THINK YOU ARE? returned
to dive into the personal family histories of a brand new list of
celebrity contributors including Valerie Bertinelli, Jesse Tyler
Ferguson, Lauren Graham, Kelsey Grammer, Rachel McAdams
and Cynthia Nixon.
ANARCHY IN THE ARCTIC
The inhabitants of Canada’s Great Slave Lake live entirely
according to their own standards, though their frozen utopia
isn’t always what it’s cracked up to be. Airing Sunday nights at
10 PM ET/PT, Animal Planet’s ICE LAKE REBELS questions the
tradeoff: Is a lawless, liberated life worth the never-ending
cycle of hard work, danger and uncertainty? Or do the risks
outweigh the rewards?
ID EXAMINES THE O.J. SIMPSON TRIAL
20 YEARS LATER
June 2014 marked the 20-year anniversary of the two murders
for which O.J. Simpson stood trial, sparking a year-long media
frenzy leading up to the trial and its controversial verdict. This
summer, Investigation Discovery partnered with The Paley Center
for Media in Los Angeles to host OJ: TRIAL OF THE CENTURY,
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an evening featuring a screening of ID’s original documentary
film of the same name. Key players from the O.J. Simpson trial
including O.J.’s first criminal defense lawyer and television
personality Larry King were present to talk about their experiences
and how the saga impacted their lives and careers.
DESTINATION AMERICA BRINGS HOME BUYERS
MOUNTAIN-TOP VIEWS
Continuing the momentum the network has seen over the last
few months, Destination America celebrates life atop America’s
highest peaks this fall. Sending potential homeowners on a rocky
road trip to tour three properties, the all-new series BUYING
THE ROCKIES features home seekers looking to leave their
lowland lodging behind and move on up to a mountain-top log
cabin of their dreams.
SCIENCE CHANNEL’S THE UNEXPLAINED FILES
RETURNS
Science Channel’s most-watched series of 2013, THE UNEXPLAINED
FILES, returned in July for a second season of examining strange,
mind-boggling phenomena that science cannot – or will not –
explain. In season two, 12 all-new episodes launch viewers into
another gripping exploration of the unknown by investigating more
of the inexplicable, global paranormal activities that have mystified
scientists and captured the human imagination for centuries.
GARAGE SQUAD TAKES CARS FROM DIY TO DONE
ON VELOCITY
Hosts Lauren Bohlander and Bruno Massel are helping people
nationwide finish that “toy” that’s been sitting in the garage,
collecting dust and just waiting for a little love, in the all-new
series GARAGE SQUAD. Premiering on August 1 at 9PM ET/PT,
The GARAGE SQUAD team will search America for worthy
backyard automotive restorers and help them take those
cars from DIY to done.
AHC VENTURES INTO THE WILD WEST
American Heroes Channel’s (AHC) thrilling new six-part historical
docudrama series GUNSLINGERS, which began in July, reveals the
infamous tales of survival and courage from the Wild West. Each episode
unravels the true story behind one iconic character and his legendary
The Hub Network received six Daytime Emmy® Awards,
including “Outstanding Children’s Series” for R.L. STINE’S
THE HAUNTING HOUR: THE SERIES for the second year
in a row. This brings the Hub Network’s total Daytime
Emmy® Award wins to 18 after just 3-1/2 years on air.
tale that has since become ingrained in American history and culture.
Exposing little-known facts about America’s first villains and heroes,
the six-part series features the stories of Wyatt Earp, Billy the Kid, Jesse
James, Wild Bill Hickok, John Wesley Hardin and Tom Horn.
DISCOVERY U.S. HISPANIC NETWORKS
ANNOUNCES 2014-15 UPFRONT SLATE
On May 13, David Zaslav kicked off the Discovery U.S. Hispanic
Networks’ Upfront event in New York, where Discovery en
Español and Discovery Familia executives unveiled their 2014-15
programming slate. Under the theme “Feel Closer,” the Upfront
emphasized the Ad Sales team’s strong commitment to its
partners and the Hispanic community. The show was opened
by the magic of EL MAGO POP’S Antonio Diaz and included
the participation of key talent such as Dave Salmoni of ISLAS
MORTALES CON DAVE SALMONI (Mystery of the Lost Islands),
Antonio Brunet of CROMO CLANDESTINO (Chrome Underground),
brothers Raúl and Rolando Mendez of TEXAS TROCAS, and the
CAKE BOSS himself, Buddy Valastro.
Eileen O’Neill, Group President of
Discovery, Science and Velocity
networks, was honored as the recipient of
this year’s Rockie Award for Excellence in
Business and Entertainment at the Banff
World Media Festival.
DISCOVERY COMMUNICATIONS REVEALS THE
NEXT GREAT NON-FICTION NETWORK:
DISCOVERY LIFE CHANNEL
Discovery Communications announced at the Television Critics
Association earlier this month that it will rename Discovery Fit &
Health to Discovery Life Channel, debuting on January 15, 2015.
Profiling ordinary people in extraordinary situations, Discovery
Life presents an unfiltered look at real relationships – from
patient and doctor to husband and wife or parent and child –
while documenting people as they face hardships, take risks and
ultimately, persevere. Discovery Life Channel will fuse the most
successful current programming from Discovery Fit & Health’s
library of health, medical and factual programming with new
series that explore life’s unexpected challenges. Currently in 47
million homes, Discovery Life will target an audience of 25- to
54-year olds with an emphasis on women. It will remain under
the purview of Henry Schleiff, Group President of Investigation
Discovery, Destination America, American Heroes Channel and
now Discovery Life Channel. Jane Latman will continue to serve
as General Manager. “Broadening to Discovery Life Channel
gives us a chance to make bigger, bolder programming choices
while always, central to our brand mission, revealing life at its
most critical turning points,” said Schleiff.
A Quarterly Publication of Discovery Communications | JULY 2014
9
Rick Holzman Named General Manager, Executive Vice President of
Animal Planet
Rick Holzman has been promoted to General Manager and Executive Vice President of Animal Planet. In
this role, Holzman oversees strategy and all day-to-day operations for the network that’s coming off its
2013 most-watched year ever. Holzman has been with Animal Planet since November 2007, during which
time he has been instrumental in the network’s rebrand and breakthrough growth, guiding Animal Planet’s
programming by overseeing the network’s commissioning, acquisitions, co-productions and scheduling
strategy. The best-performing series in network history – including RIVER MONSTERS, TREEHOUSE
MASTERS, WHALE WARS, FINDING BIGFOOT and CALL OF THE WILDMAN – have all come to fruition during
his tenure, as did MONSTER WEEK, the week-long programming event that propelled Animal Planet to rank among the top-five, adsupported cable networks. Previously, Holzman served as Executive Vice President of Programming and Scheduling for Animal Planet
and Science Channel.
Yitz Shmulewitz Named Executive Vice President, Chief Operating Officer
of Eurosport
Yitz Shmulewitz has been promoted to Executive Vice President and Chief Operating Officer of
Eurosport. An 11-year Discovery veteran and formerly COO & CFO for Discovery Networks Western
Europe, Yitz will oversee the integration and day-to-day operations of Eurosport providing financial
management and helping to set the strategic direction for the business. In addition to developing new
commercial initiatives for Eurosport’s networks globally, Yitz also will lead the efforts to identify local
and pan-regional growth initiatives.
Discovery, Liberty Global to Acquire Leading Production Company All3Media Discovery Communications and Liberty Global announced an agreement in May to form a 50:50 joint venture to acquire All3Media,
a leading international producer and distributor of award-winning TV programming.
All3Media, the largest independent production group in the U.K., with headquarters in London, has a strong presence in the U.S.,
Germany, the Netherlands and New Zealand, and has 26 creative centers in the world’s largest TV producing markets. All3Media has
a diversified catalogue of more than 8,000 hours of content across numerous genres, with strong production capabilities in drama,
comedy, factual and factual entertainment programming. For the fiscal year ended in August 2013, All3Media recorded revenues of
approximately £505 million.
Discovery Communications and Liberty Global will preserve All3Media’s creative independence and focus on serving its global broadcasting
partners. The All3Media group will continue to operate under its own name with its own executive management team, and its existing
creative operating model as a standalone, independently managed entity.
For Discovery Communications, the partnership is yet another way to work with the best storytellers in the business. For nearly 30 years,
Discovery has been devoted to the mission of creating compelling content for our global audiences. This venture allows Discovery to
work closely with Liberty Global, a valued partner and the largest international cable company, in managing a financially strong, innovative
and creatively prolific production company. Discovery is very excited to support All3Media’s talented management team as they continue
their steady growth around the world.
Discovery Furthers STEM Commitment with New US2020 Partnership
In May, as a part of the fourth-annual White House Science Fair, Discovery Communications announced
a new partnership with US2020, a nonprofit set out to match 1 million science, technology, engineering
and mathematics (STEM) mentors with students by the year 2020. MYTHBUSTERS’ and Science Channel’s
HEAD RUSH host Kari Byron attended the fair as a celebrity guest. Discovery Education also took
students on a virtual field trip to the White House Science Fair as a part of the “Of the People: Live
from the White House” webinar series with 1,500 sites and 44,000 students tuning in for some
science inspiration. In support of the US2020 partnership, Discovery will produce and air a public
service announcement featuring Kari Byron encouraging individuals to join the movement and serve
as STEM mentors in their communities.
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Discovery Studios Produces First Ever Fully Spanish Language Production for Discovery
En Español, TEXAS TROCAS
Discovery Studios, a full-service production studio within Discovery Communications
that creates, develops and produces high-quality, innovative original series, specials and
short-form content, will debut TEXAS TROCAS on Discovery en Español this fall. The
series marks the first fully Spanish language program produced specifically for the
network, and a completely bi-lingual production staff was brought on to successfully develop
the authentic docu-soap.
TEXAS TROCAS follows Los Méndez, a Mexican-American family, that began their
trucking business 40 years ago with one big rig and a dream. Heavy on personality,
heart and soul, they call themselves Texas Chrome.
Discovery Education Launches New Digital Leader Corps Program Empowering Educators
to Drive Their District's Digital Transition
In April, Discovery Education launched the Digital Leader Corps, a new professional development
service that supports school systems as they develop teacher-leaders to serve as change agents
powering their district’s digital transition. Under the DLC’s shared leadership model, Discovery Education collaborates with school district partners to develop comprehensive professional learning plans that scale to any size learning
initiative, build a culture of continuous improvement, and ultimately, create lasting, systemic change.
Several districts across the U.S., are currently working with Discovery Education to implement the DLC mode and have successfully instituted shared leadership models in their schools, allowing district leaders to focus on other aspects of the digital transition to impact
student achievement more quickly and efficiently.
›
DID YOU KNOW?
Cupcakes aren’t just popular in the
United States. Chief Baking Officer of
Magnolia Bakery and current judge on
NEXT GREAT BAKER Bobbie Lloyd
knows a little something about that. The
world-renowned bakery has locations in
Los Angeles, Dubai, Beirut, Kuwait City
and even Doha.
Animal Planet’s WHALE WARS: BLOOD
AND WATER interactive episode won both
a Webby Award and Webby People’s
Voice Award.
Discovery Channel was the first network
to use Facebook’s newly released API to
visualize fan sentiment on air.
ID’s global success is criminal.
•
SBS Discovery Media recently
launched ID as the first crime-focused
TV channel in Denmark.
•
In April, Discovery Networks
CEEMEA launched ID Xtra, a new
network dedicated to mystery and
suspense and aimed at a female
audience. The network will launch
with 75 operators across 15 markets
within its first three months.
•
Since its launch, ID’s channel share in
Poland has increased 338% to make
it number one in the mystery and
suspense genre.
Animal Planet’s first-ever presence at
the CMA Music Festival in Nashville
was a huge success. Thousands of loyal
viewers waited in line for hours to meet
the cast from CALL OF THE WILDMAN
and entered to win a VIP experience at a
Florida Georgia Line concert this summer.
The hit band will appear in an episode of
TREEHOUSE MASTERS in August.
President of Domestic Distribution Eric
Phillips was named Affiliate Sales Person
of the Year by Cablefax in June.
A Quarterly Publication of Discovery Communications | JULY 2014
11
As Reported July 31, 2014
{ BY THE NUMBERS }
www.Discover yMusicSource.com
BY THE NUMBERS
2.7 billion
U.S. NETWORKS
INTERNATIONAL NETWORKS
876 million cumulative subscribers
in the United States
1.9 billion cumulative subscribers[1][2]
in more than 220 countries and territories
Subscribers
Subscribers
[1]
cumulative subscribers[1][2]
194
international HD markets
53
network entertainment brands
110+
original online web series
600
hours of original online video
Discovery Channel........................................... 97M
Discovery Channel............................................ 348M
TLC...................................................................... 96M
Animal Planet.................................................... 304M
Animal Planet................................................... 95M
TLC........................................................................262M
Investigation Discovery................................... 85M
Eurosport .............................................................128M
OWN: Oprah Winfrey Network....................... 82M
Switchover Media............................................... 104M
Science Channel................................................76M
Discovery Kids......................................................83M
Hub Network..................................................... 70M
DMAX...................................................................... 79M
American Heroes Channel.............................. 61M
Investigation Discovery...................................... 79M
Velocity............................................................... 58M
Discovery Science................................................ 78M
Destination America....................................... 57M
Eurosport 2...........................................................68M
Discovery Fit & Health.................................... 46M
Discovery Home & Health..................................65M
3net.....................................................................40M
Discovery Turbo...................................................59M
Discovery en Español[3]......................................7M
Fatafeat..................................................................55M
Discovery Familia[3].............................................6M
SBS Nordics........................................................... 29M
EDUCATION
Discovery Real Time............................................ 25M
Innovative, multimedia educational products
and services serving more than half of U.S.
K-12 schools
•Discovery Education streaming PLUS
Discovery World....................................................18M
Quest....................................................................... 26M
• Discovery Education Digital Techbook Series
•Discovery Education Professional Development
•Discovery Education Assessment
•Discovery Educator Network
More than 3.5 million teachers and 35 million
students use Discovery Education’s leading
broadband content
Over 80 million pieces of content delivered
per year
Discovery Max........................................................18M
Shed......................................................................... 12M
Discovery History................................................... 11M
Discovery HD Showcase....................................... 11M
Eurosport Asia Pac...............................................10M
Eurosportnews....................................................... 9M
Discovery HD World............................................... 8M
Discovery HD Theater........................................... 6M
Discovery Civilization............................................ 5M
Discovery Travel & Living..................................... 4M
Discovery Historia.................................................. 2M
About Discovery Communications:
Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world’s #1 pay-TV programmer reaching 2.7 billion cumulative subscribers in more than 220 countries
and territories. Discovery is dedicated to satisfying curiosity, engaging and entertaining viewers with high-quality content on worldwide television networks, led
by Discovery Channel, TLC, Animal Planet, Investigation Discovery and Science, as well as U.S. joint venture network OWN: Oprah Winfrey Network. Discovery
also controls Eurosport International, a premier sports entertainment group, including six pay-TV network brands across Europe and Asia. Discovery also is a leading
provider of educational products and services to schools, including an award-winning series of K-12 digital textbooks, through Discovery Education, and a digital leader
with a diversified online portfolio, including Discovery Digital Networks. For more information, please visit www.discoverycommunications.com.
[1] Subscriber numbers as of June 30, 2014, according to The Nielsen Company in the U.S. and internal data review and external sources outside of the U.S. [2] Subscriber numbers include unbranded programming blocks in China, which are
generally provided without charge to third-party channels and represented approximately 280 million cumulative subscribers as of June 30, 2014. [3] U.S. Hispanic networks are distributed to U.S. subscribers, but are operated by and included
as part of Discovery International Networks for financial reporting and management purposes.
One Discovery Place, Silver Spring, MD 20910-3354 • www.discoverycommunications.com • 240.662.2000