Discovery said that its new streaming service, Discovery +, has dodged more than 11 million subscribers since its launch last month, even as cord-cutting and flat advertising revenue impacted its business in the fourth quarter is.
Chief executive David Zaslav said on Monday that Discovery – which owns the OWN network of HGTV, Food Network and TLC as well as Animal Planet and Oprah Winfrey – led to “the successful launch of Discovery +” with a promising start in 2021 ” is.
Zslav said that the service, costing $ 4.99 per month with advertising and $ 6.99 without ads, is set to hit 12 million customers by the end of February.
In its first report since Discovery + launched, the company also reported that it posted flat revenue for the fourth quarter, grossing $ 2.89 billion and earning earnings per share of 76 cents. Both earnings and revenue figures topped Wall Street analysts’ forecasts of EPS of 72 cents on sales of $ 2.83 billion.
Discovery shares rose more than 7 percent to $ 54.45 in early Monday trading.
The company, which is home to the hit reality show “90 de Fiancé,” blamed sluggish ad sales for the stall in total revenue, adding: “Advertising high pricing and continued monetization of content offerings on its next generation” I was flat. ” The platform was offset by a pay-TV ecosystem and a secular decline in low ratings. ”
Nonetheless, despite continuing headwinds related to the epidemic affecting the company’s financial results last year, the CEO of Discovery was bullish about the coming year.
“We have the ability to serve consumers everywhere with a truly differentiated offering across our unmatched global scale and platforms … We are positioned to achieve sustainable long-term growth and long-term shareholder value,” Zaslav said.