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This statistic highlights Discovery Inc’s Revenue Breakdown Worldwide, split across US Networks and International Networks, reported on a quarterly basis from Q1 2016 onwards.
The following table highlights Discovery Inc’s Revenue by Business Vertical for Q4 2020, Q3 2021 & Q4 2021:
|Vertical||Q4 2020||Q3 2021||Q4 2021||Contribution in Q4 2021|
(All figures are in millions, except percentages)
This segment comprises revenue generated from advertising and distribution and other revenues from the national television networks. Discovery owns 16 television networks such as Discovery Channel, Animal Planet, TLC, HGTV, Food Network, Travel Channel, and Investigation Discovery. In 2021, the company even provided TV Everywhere (TVE) streaming products, that are available to pay-TV subscribers with live and on-demand access to award-winning shows. Furthermore, Discovery also provides certain networks, subscription-based over-the-top services provided by AT&T Watch, Hulu + Live, DirectTV Stream, SlingTV, fuboTV, and YouTube TV.
Advertising revenue: This revenue is based on the price received for available advertising spots, generated across multiple platforms. It depends on various factors like:
Distribution revenue: This revenue includes the affiliate fees charged to distributors of Discovery’s television networks’ first-run content, which includes cable, DTH satellite, and telecommunication service providers.
During 2021, there were increases in U.S. digital platform consumption, showing more potential revenue inflow for the company from this vertical. On a QoQ basis, there was an increase of 9% in the revenue generated from this category. Even on a YoY basis, there was an increase of 13.9% in the revenue generated. Of the total revenue of $7,992 million in 2021, 55% came from advertising, 43% from distribution, and 2% from other revenues.
This segment primarily consists of pan-regional and national television networks that are delivered across multiple distribution platforms. Discovery owns operational centers in London, Amsterdam, Paris, New Delhi, Warsaw, and Miami through which they generate revenue from operations in virtually every pay-TV market in the world. However, the penetration and growth rates of television services vary across countries and territories depending on numerous factors including the dominance of different television platforms in local markets.
International Networks are based on a localization strategy by offering content from U.S. Networks. However, this service comprises the largest expense to the company. Some of the company’s global brands include Discovery Channel, Animal Planet, HGTV, Food Network, TLC, ID, Science, and MotorTrend. It also owns some channels exclusive to this segment such as Eurosport and Discovery Kids. International Networks also includes FTA and broadcast networks in Europe.
Similar to U.S. Networks, most of the revenue for International Networks is generated by fees charged to operators distributing company’s linear networks. The other source of revenue relates to advertisements sold on television networks and across distribution platforms. During 2021, advertising, distribution, and other revenues attributed to 45%, 47%, and 9%, respectively, of total revenue generated from this segment. On a QoQ basis, the total revenue generated from this segment declined by 10.1%. However, on a YoY basis, there was an increase of 5.3% in the revenue generated.
About the Company
Discovery Inc. is a global media company that provides content across multiple distribution platforms, such as pay-TV, FTA and broadcast television, authenticated GO applications, and many more. The company has approximately 3.5 billion cumulative subscribers and viewers worldwide who are provided with original and purchased content and live events. Their content includes a wide variety of genres in over 50 languages and is broadcasted in more than 220 countries.
In 2021, the company launched their aggregated DTC (direct-to-consumer) product, discovery+, in the U.S. across various streaming platforms and entered into a partnership with Verizon. Since then, discovery+ has expanded internationally, including the UK, Canada, India, Italy, Brazil, and the Philippines. This service is available to customers with ads or on an ad-free tier, providing Discovery with dual revenue streams.
Discovery has even made many strategic acquisitions such as the merger of WarnerMedia by entering into an agreement with AT&T Inc. to make the platform into a standalone, global entertainment hub. There were some dissolutions too such as the 50/50 joint venture with BBC Studios in June 2019 and dispositions such as Great American Country network to Hicks Equity Partners with a gain of $76 million.
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