Discovery+ is “off and running” to a “fantastic start” seven weeks into its Jan. 4 launch (see 2012020049), said Discovery CEO David Zaslav on a Q4 call Monday, typifying superlatives from top executives about the early fate of the fledgling streaming service. It's on track to reach 12 million direct-to-consumer paid subscribers globally by the end of the week “across our entire portfolio,” a net increase of 7 million since December, he said. “The vast majority of this increase is attributable to discovery+.” Its rollout “has been nearly flawless,” he said. The service launched on all major smart TV platforms and devices, he said. “Stay tuned for further delivery partnerships, such as partnerships with cable operators and other connected TV platforms.” The company is partnering with Verizon on the U.S. discovery+ launch, Sky in the U.K. and Ireland, and Vodafone in some European markets. All “key operating metrics” about discovery+ are “pointing in the right direction,” he said. Strong subscriber “retention” is evident, he said. The company is encouraged by “good numbers about people once they know about” discovery+, he said. Management rebuffed analysts’ requests for discovery+ forecasts. “We’re still not in a position to give long-term or short-term subscriber guidance,” said Chief Financial Officer Gunnar Wiedenfels. “We’re super-happy with what we’re seeing, top to bottom, ahead of expectations. We have a lot of distribution still coming down the pike. We’re really just getting started internationally, so that’s on the positive side. I don’t think there’s a lot of value of us discussing scenarios here.” The stock closed 8.9% higher Monday at $55.29.
Oral argument in the consolidated challenge to the FCC's 2019 cable local franchise authority order (see 1909120028) will be April 15 at 1:30 p.m. before the 6th U.S. Circuit Court of Appeals, said a docket 19-4161 scheduling notice Thursday (in Pacer).
MVPDs will shift from developing their own third-party digital media adapters to developing apps that can run on third-party DMAs such as Apple TV 4K or Android-based alternatives, Colliers' Steven Frankel wrote investors Tuesday. This could remove development delays that have hampered Universal Electronics Inc. over the past few years, said the analyst. UEI's Q4 call is Thursday at 4:30 p.m. EST.
Cable One, a minority owner in Hargray Communications, will buy the rest in a deal valuing the telecom company at $2.2 billion, as it looks to expand its presence in the Southeast, the buyer said Monday. The deal is expected to close in Q2. Cable One said this will give it access to Hargray's fiber expansion capabilities.
Broadband rate regulation isn't a pressing cable threat, although odds are the FCC will reclassify cable operators as common carriers, S&P told investors Tuesday. It noted the lengthy process of drafting an order, the likely appeal and the ability of a future FCC administration to again reverse things. The debt ratings firm said (login required) the FCC likely also will focus more on increasing broadband accessibility and affordability through consumer subsidies, while price regulation could discourage network investments. Longer term, as cable penetration rates increase, operators could come under heavier regulatory scrutiny and face more possibility of rate regulation, it said.
Fifty-five percent of U.S. pay-TV households say availability of live sports is important in their decision to keep the service, said Parks Associates Tuesday. The churn rate for pay-TV services is trending “significantly lower than the rate for [over-the-top] OTT services,” said analyst Steve Nason. Over the past year, churn rates for OTT and virtual MVPD services declined as consumers turned to streaming video services for entertainment.
NCTA and its members urged adopting 3.45-3.55 GHz rules consistent with those in the citizens broadband radio service band, in a call with FCC Wireless Bureau and Office of Engineering and Technology staff. “NCTA noted the successful outcome of the 3.5 GHz CBRS auction, and the role that the service rules for that band played in attracting a diversity of auction participants … and encouraging the widespread deployment of the spectrum,” said Tuesday's posting in docket 19-348. Charter Communications, Comcast, Cox and CableLabs participated.
System operators that took part in one or more of the FCC's 2011-15 annual cable TV price surveys have 10 days to object to disclosure of the data in a Freedom of Information Act request, the Media Bureau said in a public notice Monday.
Starz added 800,000 streaming subscribers in fiscal Q3 ended Dec. 31, finishing the quarter with 28 million global customers, said Lionsgate CEO Jon Feltheimer on a Thursday investor call. “We're well on our way to our goal of 50 million to 60 million global subscribers by 2025, the vast majority of which will be high-value streaming subs,” he said. “Amazingly, in spite of the challenges” from COVID-19, Lionsgate is shooting 19 scripted television series and another 20 unscripted shows globally, and five feature films “have returned to production,” he said. Lionsgate’s fiscal Q4 ending is perhaps the first time “where all the players are kind of on the field right now,” except for Paramount+, said Starz CEO Jeff Hirsch when asked about streaming competition. The “big broad-based streaming services,” including Netflix, Disney+ and Hulu, “are trying to service everybody in the home,” he said. “That's where the real competition is going to be, and you're going to see people competing on ad spend, people competing on price and people competing on bundling.”
Entertainment Studios Networks and the National Association of African American-Owned Media settled their 5-year-old complaint charging Charter Communications with racial animus in opting not to carry ESN content. The plaintiffs filed a notice of voluntary dismissal Wednesday (in Pacer, docket 16-cv-00609) in U.S. District Court in Los Angeles. ESN settled similar litigation last year with Comcast (see 2006110011).