Discovery Hits Record High, 16% Bump

In the July-September period, Discovery Communications posted its highest increases in quarterly U.S. ad sales since the company went public in September 2008. Sales increases of 16% and $43 million -- versus the same period a year ago -- were both records.

In the July-September quarter, Discovery pulled in $304 million in U.S. ad sales for the 16% bump. The company cited higher scatter pricing, better sales in direct-response advertising and higher ratings as propellers.

COO Peter Liguori said "weakness" among the broadcast networks in targeting women has allowed networks TLC and ID to "help fill that void." Among cable competitors, Lifetime is one female-targeted network that is leaving an "available audience" for TLC, ID and Animal Planet.

In the current fourth quarter, domestic ad revenue is expected to be up at a similar rate as July-September: in the mid-teen percentages, the company said.

Beyond advertising and the U.S., Discovery posted a searing 98% profit increase for global operations on $926 million in revenues. The U.S. makes up 64% of total company revenue.

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Discovery CEO David Zaslav said on an earnings call Tuesday that the company is "very pleased with the initial results" for kids and family network the Hub, launched in early October, though there is still a way to reach potential.

Zaslav said it is difficult to predict 2011, but Discovery's upfront market last summer makes it "optimistic" that revenues will continue to grow. One potential driver: the January launch of the Oprah Winfrey Network (OWN) in 78 million homes.

Zaslav said the company aims for OWN to garner higher affiliate fees and add reach of 15 million homes.

1 comment about "Discovery Hits Record High, 16% Bump".
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  1. James Smith from J. R. Smith Group, November 3, 2010 at 8:48 a.m.

    I'm curious, given the programming of Discovery, AP, TLC, and so on..."Has Discovery given up on the upscale male or is the upscale male watching more of what they are currently programming?" With high unemployment rates and the macro-economic picture, its pretty obvious there are more males available to view, particularly during daytime.

    Another notion crosses our minds. Is it a return to the Least-Objectionable-Programming (LOP) theory, where male viewers can't find what they want, so they opt for the "least objectional" product?

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