Discovery plays it cool on Channel 4 link as it tops 18 million subscribers

Discovery boss David Zaslav

US factual giant Discovery has added three million direct-to-consumer subscribers since Q1 this year, amid reports it is exploring a takeover of UK broadcaster Channel 4.

The company’s latest results reveal it had 17 million paid users for services including Discovery+ at the end of Q2 and 18 million as of yesterday, up from 15 million subscribers in Q1.

Its international linear portfolio also delivered its second highest ever Q2 viewing figures, behind only the same period last year.

Overall, Discovery recorded total revenues of US$3.06bn, an increase of 21% on Q2 last year. It launched SVoD service Discovery+ globally in January.

The company’s profits and subscriber numbers can partly be attributed to its acquisition of the European TV rights to the Tokyo 2020 Olympic Games.

The boost comes soon after the confirmation that Discovery and AT&T-owned WarnerMedia are merging to create a standalone company that combines their channel brands, studios and streaming services.

In a statement, Discovery president and CEO David Zaslav said he was pleased with the momentum of the “transformational” WarnerMedia transaction.

In further M&A news, it has been rumoured that Discovery is eyeing up Channel 4, after the UK commercially funded pubcaster announced a formal consultation into its privatisation last month.

Zaslav wouldn’t comment on the C4 link during yesterday’s Q2 earnings call, saying Discovery was focused on seeing through the deal with WarnerMedia.

UK commercial broadcaster ITV and Comcast-owned Sky are also rumoured to be in informal talks to buy C4, which is being considered for a sale by the UK government.

Zaslav’s full statement on Discovery’s Q2 results was as follows: “Discovery delivered very strong results this quarter as we executed well amid a recovering global advertising market.

“Advertising revenue increased in every region of the globe and accelerated throughout the quarter, particularly in our International segment as revenue increased 70%. Indeed, many key markets such as the UK, Italy, Germany, as well as a number of Latin American and Asia-Pacific markets, all demonstrated a marked resurgence and finished ahead of 2019.

“We continued to steadily execute in our emerging next generation businesses, with 17 million paying direct-to-consumer subscribers at the end of the quarter, and 18 million as of today. This contributed to 130% revenue growth in the second quarter.

“Our first Summer Olympic Games have thus far been a success, supporting healthy viewing and subscriptions across both our linear and streaming platforms, and underscores the importance of our commitment and investment in marquee IP. We continue to fire on all cylinders, and I am very pleased with our momentum as we work to complete our transformational WarnerMedia transaction.”