Discovery Records Flat Q4 Revenues, Discovery+ Hits 11M Global Subs

Discovery witnessed a return to ad revenue stability in the last three months of 2020 after a pandemic-disrupted year. It also recorded strong recent growth for for its streaming service, discovery+.

The TV network group’s Q4 earnings results produced flat U.S. advertising revenue results ($1.05 billion) and a 5% decline for the 2020 year as a whole ($4.0 billion). International advertising was down 1% for the period to $554 million, sinking 12% for the year to $1.6 billion.

In addition to the pandemic affecting advertising, Discovery says there were “secular declines in the pay-TV ecosystem, lower ratings and a decline in inventory.” This was partially offset by price increases “and the continued monetization of content offerings on our next generation platforms.”

Heavy promotion -- especially in the U.S. -- for discovery+ has resulted in more than doubling of its subscribers to 11 million worldwide -- which will rise to 12 million at the end of this month, according to the company. Virtually all of its initial subscriber business is in the U.S.

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Launching in early January, discovery+, the company’s nonfiction streaming service, started with 5.2 million subscribers. Discovery’s stock price was up 8% to $54.84 in early Monday morning trading.

U.S. distribution fees for the period were up 5% to $709 million in the most recent year and 4% overall for 2020 to $2.9 billion.

International distribution was down 4% to $510 million for the quarter and off 4% for the year to $2 billion.

Total revenues were flat in the fourth quarter to $2.9 billion -- and down 4% for the year at $10.7 billion. Net income was down 38% to $318 million.

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