Discovery network has been enjoying a glorious run over the years by providing infotainment for its loyal viewers. Now, with the entire world shifting to a digital platform, the cult network too has changed its focus to streaming services and revealed its plans to conquer the market.
For the unversed, Discovery launched its streaming service in the UK and Ireland last month. Now it is all set to explore the market of the US from January 4th. The network is eyeing to fetch a target of reaching at least 70 million homes. Speaking of the world, it has a goal of reaching 400 million households.
Speaking of Discovery Plus, CFO Gunnar Wiedenfels said, “All of a sudden, with this product, we’re able to address a much, much larger global community here.” He spoke while addressing investors. The service will be available for a monthly price of $4.99 with ads and $6.99 without ads in the US. “I’m very confident that, with our Discovery Plus product, we’re going to be able to achieve at least that same ARPU number — if not more — and that can be achieved even in the near term,” Gunnar said while mentioning that average per pay-TV household revenue of the network is $7 per month.
Discovery’s CEO David Zaslav said, “This is our future. This is the most important product since I’ve gotten here (he joined in 2007). We’ll see, but people love our channels… We’ve never been stronger to the cable bundle. It’s completely differentiated from great services like Disney [Plus], great services like Netflix, we’re a great companion to them. We fill out the entertainment pie… with all of our brands and characters.” The network had launched its service in India in early 2020 and now, all set to expand it in 25 new markets in the next year.
The network promises of making $800 million’s revenue at the end of this year and $200-$300 million profit by 2021.