Discovery Communications Inc. (NASDAQ:DISCA) might be struggling in terms of subscriptions back at home but doing extremely well in Europe according to CEO, David Zaslav. During an interview on CNBC, Zaslav said the company had signed a number of deals that should see the addition of more content as one of the measures of attracting more viewers going forward.
“We had a very good story to distributors that more people are spending more time with our channels and we spent a lot more money on content. We were able to get a better than double-digit increases, which will be very important to us,” said Mr. Zaslav.
Discovery Communications Inc. (NASDAQ:DISCA) is reportedly generating significant growth outside the U.S especially in Europe in terms of subscribers and viewership, unlike in the U.S where growth remains flat. The CEO expects growth going forward to come from pricing or by trying to outperform the market by offering exciting channels. Discovery Communications Inc. (NASDAQ:DISCA) is offering a direct to consumer services in Europe awaiting to see if the company will follow Dish and offer similar service in the U.S.
Discovery Communications Inc. (NASDAQ:DISCA) is benefiting a great deal from its sports channel Euro sport in Europe that is believed to be bigger than ESPN in over 130 million homes. The CEO reiterated that the company was not looking into bringing the same service in the U.S
“Outside the U.S, it is a little bit more progressive in Northern Europe in Norway Denmark, Sweden, and Finland we have large broadcast and cable assets and in those markets we are going directly to consumers. […] Here I don’t think it is going to have a significant impact,” said Mr. Zaslav.
Zaslav also reiterated that Discovery Communications Inc. (NASDAQ:DISCA) was gaining traction especially with women between the ages of 25 and 50 with the Oprah’s network. The CEO reiterated that the company was closing in on 90 million homes with Oprah’s network having allowed them to get good subscriptions fees from all distributors.
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