More Discovery+ ‘Partnerships’ Loom, Including With Cable, Says CEO

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.