Last week, Discovery announced that’s its anticipated direct-to-consumer streaming service, Discovery+, would launch in the U.S. on Jan. 4, 2021 priced at $4.99 per month with ads and $6.99 per month without ads.
In addition, Discovery+ is launching in partnership with Verizon, and the wireless carrier is offering promotions that include various free viewership offers of Discovery+ to Verizon subscribers.
RELATED: Discovery+ launches Jan. 4 in the U.S. for $4.99/month
Speaking today at a UBS investor conference, Discovery CEO David Zaslov said, “We now have a product that could reach three billion smartphone owners around the world.”
He gives some credit for the partnership to the foresight of Liberty Media Chairman John Malone, who is the largest stockholder of Discovery. Apparently about five years ago, Malone asked Zaslov: If people could watch IP on any device, how would Discovery’s content fare?
“It was a moment where John could see the future,” said Zaslov. “Today there’s over three billion smartphones.”
The idea of global content on any device, at any time, in any place also caused Discovery to plan the long-game in other areas. “That’s why we went into the sports business in Europe, why we bought the Olympics,” said Zaslov. “That’s why we started producing significant local content in-country. The driving force was: what IP is there?”
International opportunities for Discovery
Zaslov was particularly excited by international opportunities for Discovery+ because he said pay-TV in the United States was “highly penetrated” but “it’s not like that in other markets.”
“It is imperative Discovery+ become a global product,” he said. “Netflix is the only scale player. Disney is coming and going global. But we’re the only other fully global IP company. Outside the U.S. we have carved out local entertainment in-language, local sports and non-fiction in-language. When we put all three together, we see real differentiation with Netflix.”
He said, “From the beginning we always said philosophically: we have to own our content globally. We are on a mission for huge scale to direct-to-consumer. “Right now, you can mostly see our content on a TV. We want it on any device, anywhere, in any language, at any time. That’s what we’re going to do on Jan. 4.”
Special niche
Discovery fills a special niche with its focus on content that is useful to consumers on a daily basis such as TLC, HGTV and the Food Network. It refers to this content as “real-life entertainment.”
Zaslov said others such as Netflix, HBO and Amazon Prime create very expensive scripted content, and they have to compete in a pool of about seven players for approximately 50% of the total market. Whereas Discovery has carved a special niche for the other 50% of the market.
“Our view was ‘let’s stay in our lane,’” he said. “It’s a lot cheaper, we’re unique. It’s clearer. We feel like scripted has had its moment and this is our time.”
The company will launch Discovery+ on January 4 with 50 original series. Content includes the BBC show Perfect Planet narrated by Sir David Attenborough; as well as the TV series 90-day Fiance. Zaslov said Discovery plans to expand the 90-day concept, which could include 90-day home and 90-day community spinoffs. Zaslov called the concept a “tent-pole brand.”