{"id":237714,"date":"2021-04-28T20:59:12","date_gmt":"2021-04-28T17:59:12","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/discoverys-q1-squeezed-by-streaming-costs-lower-ad-sales\/"},"modified":"2021-04-28T20:59:12","modified_gmt":"2021-04-28T17:59:12","slug":"discoverys-q1-squeezed-by-streaming-costs-lower-ad-sales","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/discoverys-q1-squeezed-by-streaming-costs-lower-ad-sales\/","title":{"rendered":"#Discovery’s Q1 squeezed by streaming costs, lower ad sales"},"content":{"rendered":"

“#Discovery’s Q1 squeezed by streaming costs, lower ad sales<\/strong>”<\/p>\n

\n

Discovery, the owner of Food Network, HGTV and TLC, reported first quarter results that fell short of Wall Street\u2019s projections due to higher-than-expected costs related to the launch of its streaming service Discovery+ and declining advertising sales.<\/p>\n

Shares of Discovery slumped over 7 percent on the news<\/a> on Wednesday. It recently traded down 5.9 percent to $36.65 a share.<\/p>\n

The New York-based firm said quarterly net income tumbled 63 percent to $140 million, or 21 cents a share, missing analysts\u2019 expectations of 65 cents a share.<\/p>\n

Revenue rose 4 percent to $2.79 billion even as ad sales fell 4 percent in the quarter.<\/p>\n

Discovery boss David Zaslav said the ad sales dip was \u201cprimarily due to lower overall ratings\u201d and lower ad inventory \u2014 not systematic declines in pay TV or cord cutting.<\/p>\n

Lower ad inventory was due in part to the company\u2019s own promotions for its new Discovery+ service occupying ad space on its networks, the company said. The streaming service launched on January 4 at a price of $5 a month with ads and $7 for an ad-free version.<\/p>\n

The CEO shrugged off the decline and emphasized the importance of the streaming service, which is stocked with various network shows like Oprah Winfrey\u2019s \u201cSuper Soul,\u201d TLC\u2019s \u201c90 Day Fianc\u00e9\u201d and Chip and Joanna Gaines\u2019 home remodeling series<\/a>, \u201cFixer Upper.\u201d<\/p>\n

\n
\"Oprah
Oprah Winfrey talks with Broadway great Lin-Manuel Miranda during a taping of her \u201cSuper Soul\u201d series, which streams on Discovery.<\/figcaption>
Kevin Mazur\/Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

\u201cThe global rollout of Discovery Plus is off to a fantastic start by any measure,\u201d Zaslav said. \u201cKey metrics, including subscriber additions, customer engagement and retention, are exceeding our expectations and demonstrating sustained momentum into the second quarter.\u201d<\/p>\n

Zaslav said the service ended the first quarter in March with more than 13 million subscribers, up from 11 million subscribers in February.<\/p>\n

The CEO said there are many growth opportunities ahead for Discovery+, including new markets like Italy, Germany and Brazil, adding that he sees \u201ca healthy inflection in our revenue trajectory\u201d thanks to the growth of the streaming service.\n <\/p><\/div>\n

If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n

\n

For forums sites go to Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

\n

If you want to read more News articles, you can visit our News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Discovery’s Q1 squeezed by streaming costs, lower ad sales” Discovery, the owner of Food Network, HGTV and TLC, reported first quarter results that fell short of Wall Street\u2019s projections due to higher-than-expected costs related to the launch of its streaming service Discovery+ and declining advertising sales. Shares of Discovery slumped over 7 percent on the…<\/p>\n","protected":false},"author":1,"featured_media":237715,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/04\/streaming-costs-squeeze-discovery.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[103724,70237,87539,76511,87540,1372],"class_list":["post-237714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-28-21","tag-corporate-earnings","tag-david-zaslav","tag-discovery","tag-discovery-communications","tag-streaming"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/237714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=237714"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/237714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/237715"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=237714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=237714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=237714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}