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Discovery Streaming Service Set For Debut Today, Banks On Olympics Broadcast For Subscriber Growth

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Discovery Streaming Service Set For Debut Today, Banks On Olympics Broadcast For Subscriber Growth

Mass media company Discovery Communications Inc (NASDAQ: DISCA) is on track to take on Over-the-top (OTT) streaming platforms when it goes live on Monday, reports the New York Times. Discovery’s subscription video on demand (SVOD) services would cost $5 per month with online commercials and $7 per month without the ads.

What Happened: According to a Financial Times publication, Discovery’s online streaming services will launch in the U.S. and multiple European nations like Italy and Netherlands beginning Monday. 

With the release, Discovery will compete directly with other streaming platforms like Netflix Inc (NASDAQ: NFLX), Apple Inc’s (NASDAQ: AAPL) Apple TV+, or Amazon Inc’s (NASDAQ: AMZN) Prime Video. Discovery’s SVOD will cover various programs from nature shows to cooking shows along with beaming channels like Animal Planet, TLC, and the flagship Discovery Channel.

Why Does It Matter: For its success, Discovery Plus is relying on its €1.3 billion deal to broadcast the Tokyo Olympics until 2024 across Europe. The FT post said that broadcasting live sporting events could position Discovery to lead other SVOD platforms. The billion-dollar deal was struck between the mass media company and Discovery’s sports network — Eurosport.

Frank Godard, an analyst with Enders Analysis, is skeptical about Discovery’s approach since sporting events are generally spread out over a long period of two or more years.

FT quoted him, saying, “The Olympics may be an opportunity to raise the profile of Discovery Plus, but they will need distribution deals with major pay-TV operators and telcos for sustained subscriber growth.”

Price Action: DISCA stock closed 0.94% higher at $30.09 on Thursday.

Image Courtesy: Wikimedia

 

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