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Discovery (DISCA) Sets Foot in the Online Streaming Market

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Discovery’s (DISCA - Free Report) recently launched non-fiction streaming service, discovery+, will be available in the United States on Amazon (AMZN - Free Report) Fire Tv, Roku (ROKU - Free Report) and other platforms, from Jan 4, per a Reuters report.

Further, on Dec 2, the company announced its distribution agreement with Verizon (VZ - Free Report) for the distribution of discovery+. The service will be made available to customers through select 12-month plans of discovery+ on Verizon.  Notably, on the first day of the launch, discovery+ will be offered to 50 million Verizon customers.

The video-streaming service will also be available to Vodafone TV and mobile customers in 12 European markets. Also, the company has started the rollout of its service in the United Kingdom, Ireland, and India, and intends to launch it in more than 25 countries in 2021.

Additionally, discovery+ will be offered for $4.99 per month with advertisements, and the ad-free version will be available for $6.99 per month.

Discovery, Inc. Price, Consensus and EPS Surprise Discovery, Inc. Price, Consensus and EPS Surprise

Discovery, Inc. price-consensus-eps-surprise-chart | Discovery, Inc. Quote

 

Strong Content Portfolio to Drive Prospects

The new streaming service will offer more than 55,000 episodes and above 2,500 current and classic shows from the company’s existing portfolio of networks, including HGTV, Food Network, TLC, ID, OWN, Travel Channel, Discovery Channel and Animal Planet.

Further, the company partnered with A&E, The HISTORY Channel and Lifetime to provide additional non-fiction content to its customers in collaboration with Discovery’s own portfolio. The service will include more than 1500 episodes of content from A&E network’s well-known franchises.

Moreover, the content portfolio will showcase a collection of science, nature and environmental programming, along with exclusive streaming access to BBC’s largest natural history offerings.

Furthermore, discovery+ will offer more than 50 original titles and above 150 hours of exclusive content at the time of its launch. Moreover, in the first year of its launch, the service’s exclusive series is set to feature more than 1000 hours of original content.

The company also teamed up with leading environmental organizations globally, such as The Explorers Club, Natural Resources Defense Council, The Nature Conservancy, Oceana and World Wildlife Fund, to aid the expansion of its content portfolio.

Intensifying Competition to Pose A Threat

Discovery’s shares have declined 5.9% over the past year compared with the Zacks Broadcast Radio and Television industry’s growth of 33.6%.

This Zacks Rank #4 (Sell) company with its new online streaming service, discovery+, has ventured into a highly competitive streaming market which is dominated by top players such as Netflix, Prime Video, Disney+, Hulu, ESPN+ and YouTube.

Notably, at the end of third-quarter 2020, Netflix’s had 195.15 million paid subscribers globally, reflecting growth of 23.3% from the year-ago quarter. Netflix’s continuous investments in the development of regional content on its platform and low-priced mobile plans in the Asia Pacific region fuel user growth in the international markets.

Moreover, Disney revealed that as of Dec 2 its portfolio of video-streaming services hosted more than 137 million paid subscribers including 86.8 million Disney+ subscribers, 11.5 million ESPN+ subscribers and 38.8 million Hulu subscribers. The company rides on a strong content portfolio and growing customer acceptance of its streaming services globally.

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