Discovery must be in play after AT&T’s recent takeover of Time Warner with its Warner Bros, HBO and Turner programming assets.
The newly combined Discovery Scripps venture is valued at more than $34 Bn.
That is a stratospheric achievement for a company that forged its initial connection with viewers via off-the-shelf acquisitions like Australian lizard-specialist Harry Butler.
Discovery is now a global programming force, with deep interests in Sports and General Entertainment.
However, Discovery lacks scale compared with its giant competitors in the age of online video.
Source: Y-Charts
For Sale?
The signals coming from Discovery send a “For Sale” message.
- Costs are under the heaviest scrutiny, led by the biggest category – programming.
- According to producers and agents, the green-lighting process is slow and with added levels of approval.
- A “Coach Class Only” rule inhibits execs from investing in the relationships that develop the signature Factual programs that breathe life into the Discovery brand.
- Who is going to squeeze into the back of the plane every few weeks for a long-hauler that’s intended to keep the premium pipeline refreshed?
- These and other strict cost disciplines bolster the cash flow that boosts Discovery’s already-fantastic gross margins and hence valuation.
Who will buy Discovery?
I don’t know.
- Discovery’s suite of channels is distributed worldwide.
- Its programming library and rights, access to talent, brands (and much, much more) — these are all qualities that will attract a buyer and take the company into the revolutionary era of Online Video.
- I won’t forget that Harry Butler is in its DNA.
Sunny Side Case Studies
I’m heading off today to Stockholm and then to La Rochelle for Sunny side of the Doc.
- Read my Case Study on NATIVE AMERICA, a $3-4 million PBS series that will be featured at Sunny Side.
- Providence Pictures’ Gary Glassman discusses his 17-year development history in a very interesting podcast.
Next: The Anti-Case Study
- Coming later this week for Sunny Side: a new “Anti-Case Study” on THE CLEANERS.
- Its an investigative feature doc from Berlin-based Gebrueder Beetz.
- THE CLEANERS beat the odds and won a prized slot at Sundance this year.
- However, the producers are struggling to dig out from a big deficit.
- Listen to the podcast with Christian Beetz.
A Tragic Loss
- Astrid Steinmeyer: Remembering a Wonderful Friend and Colleague by Germaine Deagan Sweet.
- Astrid will be sorely missed at Sunny Side.
My Upcoming Markets & Conferences
SUNNY SIDE OF THE DOC La Rochelle, France. June 25-28 Panel: “The Future of Pubcasters: Adapt or Die”
NEWF: Nature, Environment & Wildlife Filmmakers Congress
Durban, South Africa. July 16-18. Director Noel Kok has organized a great program that combines conservation and wildlife film-making. Make it your reason to come to South Africa. More to come….
Podcasts
- Veteran producer Michael Hoff (Hoff Productions) on trends in developing and pitching programs to U.S. networks.
- StoryCentric guru Ed Hersh on the Obama / Netflix deal.
- Providence Pictures’ Gary Glassman on developing a $3-4 Mn PBS primetime series.
- Next: THE CLEANERS is an anti-Case Study on how a ‘successful’ Sundance finalist can still be stuck in deficit.
Going home after a hard day’s work at Sunny Side