Discovery said it has passed 11 million direct-to-consumer streaming subscribers and will reach 12 million by the end of February, a gain of about 7 million subscribers since December.<\/p>\n
The parent of cable networks HGTV, TLC, Food Network and the Discovery Channel launched streaming service Discovery+ on January 4 in the U.S. and is rolling it out globally. Executives have not provided a specific target number of subscribers but have described the service as a valid complement to Netflix, which has surpassed 200 million paying customers around the world. Verizon has signed on as a key distribution partner, bundling one year free of Discovery+ with many customer plans.<\/p>\n
The streaming numbers came as the company reported flat revenue for the fourth quarter of just shy of $2.9 billion and diluted earnings of 76 cents a share. The revenue number exceeded Wall Street analysts’ forecasts, while the earnings undershot expectations.<\/p>\n
The consensus forecast by analysts for streaming was 10.5 million subscribers.<\/p>\n
A 5% rise in domestic distribution revenue offset a dip in international distribution and ad revenue.<\/p>\n
Advertising was flat, with the company saying that higher pricing and monetization of content on new platforms like streaming were offset by “secular declines in the pay-TV ecosystem and lower ratings.”<\/p>\n
Shares in Discovery have recently set an all-time high above $50. They were up 2% in pre-market trading.<\/p>\n
“Our unmatched global scale and ability to serve consumers everywhere with a truly differentiated offering across platforms, as well as our robust cash flows, even amidst the significant investments in our next generation initiatives and the ongoing COVID-19 pandemic, position us to achieve sustainable long-term growth and drive long-term shareholder value,” CEO David Zaslav said in the company’s earnings release.<\/p>\n