Hello, everybody. My name is Sebastian Maniscalco. I'm so excited to be joining the Discovery family. The only family bigger and more eclectic than my family. Discovery has ninety day fiance.
Now my cousin, Marissa, she had about 90 fiances. So very similar. Discovery brings some of the best chefs in the world right to your home. We already had one of those in my home. She was a four foot two grandmother who ran a lasagna factory in our basement.
Discovery's got a group of lunatics rowing to Antarctica in a canoe. Okay. We don't have that, but my crazy cousin Larry got a DUI and had to
take a bite to get his
tips frosted. What I'm saying is I know about families. And the Maniscalco family, just like the Discovery family, has 55,000 entertaining characters. And now, just like my family, they made too much food, and they're all under one roof, so to speak. And now someone that I got a lot in common with, he's big in media.
I'm big in comedy. He's got an accent. I got an accent. And you don't wanna see either of us. I'm naked and afraid.
I'm sorry. It's not even in the script. I had to say that. Now to tell you more, my close personal friend who I never met, not even on Zoom, David Zaslov.
Thank you so much, Sebastian. Great guy, great friend, and maybe the funniest guy in America. And he's just joined the Discovery family. We couldn't be more excited to have him and all the surprises that he has in store for us and for you. This is a very special day for us, a historic day for our company.
We've been hard at work imagining the possibilities for our global brands, our beloved talent and our universal genres and all of our wonderful content to be in one fully aggregated direct to consumer product. Today, I could not be prouder to introduce the most distinct, clear and unique streaming service in the world. It is with great joy that I present Discovery plus Okay. It's official. I have my Discovery plus vest on.
We're gonna have some real fun today, and we're gonna take you through Discovery plus. Soon, the world will see the results of our efforts over the last two years to bring this product to market with a global launch that harnesses the marketing power of our networks, platforms, and the reach we have across the entire world. Starting today, all of our touch points can push people to Discovery plus, whether it's through franchise extensions, community building around our stars and genres, behind the scenes content, and so much more. Let's take a sneak peek at some of our launch creative.
Close my eyes and I can see the world is waiting up for me. Imagine a whole new world with everything you love and more. This can be fun. Let's do it. Your favorite personalities, the shows you love, and the most emotional moments.
This is what HGTV to history, the shows you turn to first, the people you can't wait to see, ad free. They'll love it. Plus new original content you won't find anywhere else. Whatever you're into, it's streaming on Discovery plus.
The The power of our personalities is one of our biggest strategic advantages. And I'm thrilled that all of our global personalities will help bring Discovery Plus to life and promote Discovery Plus to their fans. Here's a piece of our broad campaign that will be used globally to reinforce that strength. Take a look.
What is Discovery Plus?
I am Discovery Plus.
I am going
to
And And
place.
I am Discovery Plus.
Stream what you love. Let's do this. Are
you all ready?
Discovery Plus. Stream what you love. Love it.
Because of our unique audiences, we could tailor marketing efforts to reach the super fans who love our networks with specific targeted marketing campaigns on our top verticals. This next spot will run on HGTV, DIY, and other platforms around the world for home and design enthusiasts. It's a great example. Take a look.
Open the door to Discovery plus.
A brand new streaming experience.
Unlike any other.
People are gonna freak. Streaming thousands of your favorite HGTV real estate, rental, and design shows.
It's easy. Plus exclusive originals and much more.
I can't wait. All the feels? What? All the reveals.
Wow. Wow. All in one place. And location, location, location.
Discovery Plus. Yay. Woo hoo.
Stream what you love. Discovery Plus. Streaming January 4.
Discovery Plus will launch with more assets and more advantages than any new service. We have always believed that great IP that we own globally in every language, great brands, great talent, and a wealth of entertainment and sport content around the world sets us apart. We will provide a service with more brands from HGTV to Lifetime, Food to A and E, Discovery to History, TLC, ID, and digital brands like The Dodo and Now This, even the Olympics in Europe and the Oprah Winfrey Network, and the world's definitive collection of natural history, science, and environmental programming, including the BBC and Planet Earth. And outside The United States, all this is uniquely complemented by our leading portfolio of local entertainment content and brands and in language content. We enter the market with more global distribution partners.
And today, I couldn't be more excited to announce a landmark partnership agreement with Verizon, which will offer Discovery Plus to its tens of millions of US subscribers. I've been talking and strategizing with Hans Vesperg and Ronan Dunn, and our leadership teams have been working together for many months. We all couldn't be more excited about this innovative and aggressive partnership. Verizon offers an unrivaled commitment, huge footprint, and a market leading track record in driving subscribers through their expansive consumer relationships. Our creative teams are working closely together, and Discovery Plus will be marketed across Verizon stores, digital and social media platforms, and through promotional campaigns across TV, driving toward our joint launch, Verizon and Discovery Plus, on 01/04/2021.
On the content side, for the last two years, we have been quietly and aggressively producing and acquiring a vast amount of content just for Discovery Plus in every language. We've been hard at work with our favorite producers and new producers, award winning storytellers, and our vast cast of authentic personalities, including many new ones, to create original and exclusive stories for Discovery Plus. These include sir David Attenborough, Chip and Joanna Gaines, Will Packer and Kevin Hart, and, yes, my friend, Sebastian Matyscalco, just to name a few. And we will launch with over 50 exclusive original series, more than any SVOD service at launch. Because of this and more, I believe that Discovery Plus will be a compelling and powerful offering that's attractive to everyone in the family all over the world and will be a huge global success.
And we couldn't be more excited about our Discovery Plus launch on January 4. The global SVOD market will never be the same.
It's not just this one moment, but it's a series of moments.
I don't care how hard the days are.
off. This isn't just what we do. It's who we are.
I'm ringing the heat tonight.
I want my brain tickle. That is how we roll. The absurdity is what I love about it. Boys against the queen. Will die.
Because that's life. Let's do this.
You can remain seated or you can stand up.
Are you ready?
We got some stuff to get into.
My friends are gonna love this.
Heaven
It's such an adrenaline rush,
and I'm addicted to it.
Love makes you do crazy things. That is the story worth sharing.
Today, we will share with you all the ways that we believe Discovery Plus is completely differentiated from all the other streaming services. We will take you through a set of strategic advantages unique to Discovery, what we call the Discovery Magic and Difference. And it's why we believe these strategic advantages position Discovery Plus for strong consumer interest, sustained global growth, and long term success. First, Discovery Plus will be the only streaming service dedicated to quality unscripted content driven by real life characters, loved brands, and exceptional storytelling. And today, we're happy to announce that Discovery Plus will include top franchise shows and personalities from A and E, History, and Lifetime, making Discovery Plus even stronger.
We see compelling white space to offer consumers everywhere a broad and unique unscripted streaming product. We believe the service will be a perfect complement to every household streaming portfolio, and it'll be additive to the market everywhere in the world. Second, Discovery Plus is the category leader across valuable, enduring, and global verticals. We hold the crown jewels of content in key genres like lifestyle, home, food, true crime, adventure, relationships, natural history, science, the environment, and more. And we have the most trusted personalities who consumers love, follow, and listen to all over the world.
That is the key point of differentiation. When people choose what to watch, they can watch sports, movies, scripted series, or our kind of content. People love to spend time with characters that they love, brands that they love. And unlike scripted and movies, our content is a great companion where people tend to watch us all day while they're eating lunch or while they're working with their kids on homework or when they just want to enjoy great television on the couch. Third, Discovery plus will be a global platform, and it will greatly benefit from the scale Discovery has internationally.
Our difference is the powerful running start that comes from over thirty five years of investing in strong global brands reinforced with sticky in language and local content, creating deep and established distribution relationships, building an advanced global technology infrastructure, and developing sophisticated audience and sales knowledge in every market in the world. We plan to use our massive global footprint and know how to bring Discovery Plus to more than 25 countries over the next year and ultimately to every consumer in the world. Fourth, our content has broad and passionate appeal among all ages and demos, men, women, and families. Everywhere in the world, people love spending time with us. The Discovery brand portfolio is already a key companion in the home.
Nearly two hundred and fifty million hours of Discovery content is watched on TV every day, our portfolio is number one for average time spent across all TV entertainment in The United States. We also know that cord nevers and cord cutters really want Discovery content. Independent research shows that our networks draw the most interest among non cable subscribers. There is no question people love and want our content. Fifth, Discovery Plus offers a compelling value proposition to consumers.
We will launch with the largest content library of any service to start, and Discovery Plus will have one of the most expansive original slates of any streaming service with original content premiering fifty two weeks a year. Our unique value proposition starts with the biggest and most powerful collection of real life content in one place. We will launch with over 55,000 episodes and give consumers the definitive collection of brands, shows, and talent they love. This is the first time we will make our entire library available to global consumers. Additionally, we will be opening up our storytelling with projects from some of the top producers in the world with the goal of building out an expansive and robust slate of original content in the genres where we have clear market leadership that are exclusive to Discovery plus.
We believe this content offering is complete and compelling and will be attractive for the millions of people around the world who are not pay TV subscribers currently or who are also attracted to our global slate, a commercial free environment, and the ability to consume our entire library on any device, anywhere, anytime. Earlier, I mentioned our fantastic Verizon partnership in The United States. In addition, we have secured major distribution agreements with some of the largest European distributors, including Telecom Italia in Italy and Sky in The UK. Two weeks ago, we launched Discovery Plus on Sky Q. And Sky called this morning to say that sign ups for the Discovery Plus app are already exceeding Sky's and our expectations.
We do look forward to announcing more distribution deals in the weeks and months ahead. Additionally, we're thrilled to announce that Discovery Plus will become the streaming home of the Olympics in Europe and the only place to watch every minute, every medal, and every hero live and on demand, providing exclusive premium content to the Discovery plus platform. And this is really just the beginning. Discovery plus is coming to all of your favorite web, mobile, streaming, console, and smart devices as we work for full distribution. More announcements will follow in the coming weeks.
And on the commercial side, we see opportunities to build out a multiple revenue stream offering. In The US, we will offer consumers two ways to enjoy Discovery Plus. One, an AdLite subscription for $4.99 a month and an ad free option for $6.99 a month. Our programming offers the broadest and safest marketing space on digital video products today. And we are proud to announce that launching with Discovery plus will be a slate of blue chip advertising partners, including Lowe's, Pepsi, Toyota, Boston Beer, and Kraft.
And there's more to come. To power all of these terrific partners, you will hear today from our top creative leadership about some of the exciting new content being developed exclusively for Discovery Plus to join our own impressive library. Discovery Plus will also have the deepest and most definitive collection of science, nature, and environmental programming in the world. Exclusive global streaming access to the BBC's natural history content and iconic Discovery series, including Planet Earth, Blue Planet, and Serengeti. This alone makes it the must have for every family in the world.
I could not be more excited to announce that Discovery Plus will launch with exclusive content from Chip and Joanna Gaines. On Discovery Plus, you'll get the first chance to watch Magnolia Table with Joanna Gaines, her new cooking show, and it's fantastic. And the newest iteration of Fixer Upper, their much anticipated follow-up to the show that made America fall in love for the first time with Chip and Joanna. Chip and Joe are the most authentic and trusted voices on television today, and I couldn't be more thrilled that they're extending their Magnolia partnership to Discovery Plus. To talk about this exciting news and what else they're working on for Discovery Plus, I wanna welcome my friends, Chip and Joe.
Hey, guys. Great to see David. So we're we're we're here to talk about Discovery Plus. We're so excited that you're gonna be part of it, that your content is gonna be part of it, and all the exciting things that you're working on with your production company and with Magnolia. Why don't we start with you, Jo?
What's been the most enjoyable part about this food show that you've been working on?
This has been such a project. A couple weeks ago, we started really shooting and getting in a rhythm. And the first day I showed up on set, I realized the thing I cherish the most is the time around the table with my family and with friends. This is why I'm doing this. And if I can help people along the way in their own journey, give them recipes, this is why I'm doing this.
So from that second on, I kind of felt like something clicked and now it's literally my favorite thing to do. I keep telling the producers, why can't we do this every day?
And I've seen I've seen the show. I've seen some of the episodes and you're so authentic, and you bring so much to it. And we all started together or you started together with Fixer Upper. And for a long time, you weren't sure you what you were gonna do with Fixer Upper. Was it gonna stay away, or was it gonna come back?
So take us through a little bit about the thinking because we're all so excited about
the fact that it's coming back. Absolutely. Great question. I mean, that first season of Fixer Upper, really, really caught caught, its audience. And and then the second season grew from there, and the third season grew from there.
But so when we finally decided in about season five, hey, you know, this is gonna be our last season. This is gonna be it for our journey and our experience with Fixer Upper, It was obviously bittersweet because to your point, it was really the vehicle that had introduced us to the world, and we were so thankful for that. But after we gave that about a twelve month period, and Joe and I kept coming back to Fixer Upper, and we thought, and this kinda happened again on the fly, I was I was, doing a little promotional, piece for the network, and I said exactly this. I said, Fixer Upper you know us from Fixer Upper, and that's where we've been, but the network is where we're headed. One of the
things that's so exciting about all the content you're gonna be doing for Discovery plus is that you're curating all of it.
Absolutely. I mean, bottom line, we are as excited about our partnership, David, and it and it really does have a lot to do with you and and and that incredible company that you run at Discovery.
We hope it's gonna be a hell of a brew. Joanna, just your thought.
Yeah. We've just loved hearing your vision behind Discovery Plus and the way you're gonna take all the content and how broad it's gonna be able to be viewed and the fact that we get to be a part of that to preview some of our favorite shows over here on Discovery plus. I think it just makes everything that we're doing feel even more impactful that it's gonna be on this really amazing broad platform. And so thank you for the way you're leading this, and we're excited to be a part.
Oh, thank you guys so much. I'll see you in Waco, hopefully soon.
Bye. Good to see you, David.
In addition to all the great content from Chip and Joe, you'll also hear today about some of our exclusive content in the categories where we think Discovery Plus is particularly well positioned to attract consumer interest from a streaming audience. Yes. We are entering a streaming market with a number of established players and new entrants, but they're playing in a different space. Almost all of them are led by the same consumer proposition, scripted movies and scripted series. We are different.
We are convinced that Discovery Plus will stand out. And one of the key reasons is our partnerships with some of our industry's most dynamic producers, creators, and stars. Like our next guests, Will Packer and Kevin Hart, who will bring an exclusive original series titled Route 66 to Discovery Plus. It's gonna be a lot of fun, and Will is one of the great long term partners to Discovery. So, Will, you did Girls Trip.
Now you're gonna do Route 66. It's really Boys Trip.
Yep. I had a lot of fun with Girls Trip. Now guys trip. That's how I'm looking at this. This is my guys trip version led by Kevin Hart.
Everybody would wanna be in that car. Right? It's gonna be fun because, of course, Kevin brings that lightness, that that reverence, that fun, that great energy. But it's gonna have a lot of heart too, Dave, because, you know, this is a country that has been through something, and the way you heal is by laughter.
For me, I think Will just hit the nail on the head, man. You know, the fun is the easy part. The personality, the reasons to laugh, that's the that's the easy side. I think the heart and the humanity that was just mentioned that can be attached to this thing is what's gonna be so special. Because I can't say enough, you're getting a point of view into the real world of today.
I don't I don't think there's a better idea that I've been a part of that can be more impactful than what this is now.
And I
think we're gonna have a a real POV. But then I also wanna go into my community, and I wanna I wanna touch I wanna touch the ground. I want the world to see what my people are going through as well and what they've experienced and how now they're overcoming such dark times, what they would love. I I would love the mix of those main streets up with some Martin Luther King boulevards. I want you to get both perspective.
One of the things that people are gonna tune in to the show to see is what is it like to talk to people who are in different facets, pockets, demographics of this country. Right? And they all come together and talk and have a conversation about what it's like during this time. DZ, the other thing that I wanna make clear is when was the last time Kevin drove down Route 66? He hasn't.
I'm just
gonna tell you. He's been all over his private jets. He asked me, could we do a private jet? And I said the show would not be the same. I had to talk him in to get in the car.
But we're gonna put Kevin Hart in a car driving down the freeway. He hadn't done that in, like, twenty five years. I just wanna let that be known.
What what kind of car are you are we gonna are we gonna put him in? Well, is he gonna get to decide the car, or do you decide the car?
No. No. No. I'm gonna decide the car. I can't let him decide the car.
Trust me. I I don't want anything crazy. Surprise him. DZ, let me let me deal with I got it. This is what happens behind the scenes.
We'll figure it out. I got So, Will, just maybe your thought about Discovery Plus. The thing I like about Discovery Plus is that it's got such a wide range of offerings that my family can watch in the home. Right? Talk about co viewing, which is something we don't do enough of anymore.
You have got offerings across this thing that my whole family can enjoy because it's exciting for me as a content producer to be able to have so many different mediums that I can put my content in. And and when you talk about exclusive unscripted content, nobody does it better, period. Nobody's doing exclusive unscripted content better, and now it's gonna be all in one place. I can't wait to tap into that global audience as a producer and also as a consumer.
Alright. Well, we can't wait to see the car, and we can't wait to head down Route 66 with you, Kevin. We're super excited. Thanks so much for coming today, and, we'll see you on Discovery Plus.
Hey, man. Thank you. I'm I'm excited about the opportunity. Congratulations on all you're doing. And, look, this is the start of a beautiful relationship, man.
The bad news is that you're stuck with me now.
Okay. Great. Thank you so much, guys. Congratulations, brother. Okay.
Bye, Will. Good job. Best. Take care. Thank you.
And now we have JB Perrette joining us from London in theCUBE.
Thanks, David. It's really exciting to say hello to everyone from London. I hope you're staying safe and doing well wherever you are streaming us from around the world. This really cool location is what we affectionately call theCUBE, our innovative virtual and augmented reality studio where we host many of our live sporting events. David's right.
One of the most important strategic advantages Discovery has is that we are fully global while also being local. And we own and control all our rights on all platforms, so no costly buyouts or restrictions. Over thirty plus years around the world, we've developed an industry leading team, unparalleled infrastructure, high quality brands and content and one of the biggest global consumer reaches in media. Discovery pioneered what it means to be a truly global media company. People across the planet love our channels, programming and personalities.
Our footprint extends to over 200 countries and territories. We're distributed in more than 50 languages, and we reach more than 800,000,000 global viewers every month. With 80% awareness, Discovery is at the very top, right alongside Disney, as one of the world's most recognizable and admired media brands. Discovery drives inspiration, aspiration, and loyalty like few other brands. In the old days, when we, used to travel, immigration officers would ask me where I worked.
I'd tell them, and without fail, they all responded with, I love Discovery. From Berlin to Bombay, Rio to Rome, Dublin to Dubai, and all points in between, the reaction was the same. As part of our development work to launch Discovery plus we conducted a large survey across 25 countries. Some of the most important feedback we heard loud and clear is that having a passion in life gives most people a sense of purpose, makes folks more resilient and ultimately happier. This insight plays right into our sweet spot, what consumers want and love about us.
Nearly 85% of people surveyed have a passion for one or more of our key portfolio genres, from home to food to turbo or adventure. And especially in these challenging times, people are gravitating to content that is comforting, centered around the areas they love most and that gives them and their families joy. That's in part why our international audiences are at all time record highs in 2020. We've also learned over the last three decades that in order to scale and not just skim, it requires going deep with local faces and local stories. That is a key pillar of the Discovery difference.
You may be more familiar with the powerful U. S.-led brand portfolio and content we have, but outside The U. S, we add to the mix a supercharged set of popular local brands, strong original content, established sales and distribution network and more overall reach and consumer affinity. That global and local secret sauce will help power the launch of Discovery plus in more than 25 markets over the next year. And with the growing adoption of streaming, local content is finding audiences across borders more than ever before.
So we will be in pole position to introduce global audiences to new favorites from across the world. Foodies will get a taste of everything from pasta makers to baklava bakers. Adventurers can accompany Himalayan trekkers or search for gold in the Australian Outback. True crime fans can be tantalized with stories from the home of Nordic noir. And everyone can say yes to the dress from Chile to China.
No streaming service will bring the full world of real life entertainment to you like Discovery plus Over time, in Europe, Discovery plus will also include Eurosport, our world class portfolio of sports content. From Grand Slam tennis, Grand Tour cycling, premium football or soccer for some, basketball and motorsport. Our sports content will make the Discovery plus offering even more compelling. And of course, as David mentioned, the biggest global event, the Olympics. Discovery plus will become the streaming home of the Olympic Games.
Beginning in a number of European markets next summer for the Tokyo Games and in even more markets just six months later for Beijing 2022 and then across the whole continent when the Games return to Europe for Paris 2024. Prior to Discovery plus rolling out in the market, every minute of the Olympic Games will, of course, remain available on Eurosport Player. We're thrilled to combine the power of sports, which in many ways is the ultimate real life entertainment, with the breadth of our Discovery plus portfolio. We've seen this combination of sports and entertainment work well over the last twelve months in our Nordic markets, and we're excited to roll it out across more countries. Let's take a look at the Discovery plus difference around the world.
For more than thirty years, we've brought Discovery to the world. Today is a new dawn as Discovery plus brings the world to you.
Because Discovery plus powers the passions that give us all a sense of purpose, joy, and belonging wherever we live.
I've been waiting for so long.
This is the Discovery plus difference. Stories, characters, and formats from The US connect with passion groups all over the world.
Yes. Yes. Yes. Get ready for it. Discovery
plus uniquely introduces the best local content from our core genres and passions
to global audiences. This time is lovely. Yeah.
Because the pursuit of pay dirt is as gripping in Alaska as it is in Australia. We're gonna be rich. True crime stories grip armchair detectives anywhere, and the thrill of an open throttle is as potent in Poland as it is in Pennsylvania. Get ready. Love is in all our hearts.
Sasha is
the love of my life.
And curiosity in all our minds. This place is nuts.
And there is no greater passion than our universal love of sports, like the Olympic Games, for which world's to best real life entertainment. That is it. Stream what you love and what the world loves only on Discovery plus Now
to talk more specifically about our go to market approach for Discovery plus As we build out our global subscriber and advertiser base, there are four key elements I want to address. First, on consumer packages. In The U. S, Discovery plus will be available with light ads or with no ads. Internationally, our experience in the last thirty years has taught us that to maximize scale and economics, it's best not to take a one size fits all approach.
So in markets outside The U. S, the Discovery plus consumer packages will vary by market. Only an ad free subscription in some, both ad lite and ad free subscription options in others and in a few markets, particularly where we have free to air networks, a small ad supported free tier. As you may know, we have existing streaming service called dplay in a few markets, largely in Europe. We will harmonize the Discovery plus brand across those markets by early twenty twenty one, and we will also gradually transition those services to a more fully synchronized product look and feel and feature set as The U.
S. Second, pricing. As David mentioned, The U. S. Service will be available for $4.99 with light ads and 6.99 with no ads.
We expect average consumer prices to Discovery plus to be in that range, and we'll adapt to local market dynamics as we launch in Latin America and Asia. Markets with a sports offering will have additional pricing and packaging options. Third, distribution. This has always been a key differentiator for Discovery, and we believe our deep relationships with key mobile, pay TV and broadband distributors will help us scale Discovery plus efficiently. I'm particularly pleased that just in the last six months, we've laid the foundation for Discovery plus international rollout by successfully expanding our partnerships with some of our biggest and most important international distributors in many key growth markets.
As David emphasized, and you'll hear from Gunnar a little later, we have methodically secured strong long term value for our core TV portfolio while also partnering on our direct to consumer future. Striking this balance between preserving and extending economics of our traditional business and growing our next generation business. A great example of this is with our long standing partner, Sky, in The U. K. Sky will continue to carry our powerful portfolio of networks while becoming our international launch partner for Discovery plus It seems particularly fitting that Discovery plus is making its international debut with Sky.
Just over thirty years ago, Sky was also the first international pay TV distributor for the Discovery Channel, which kicked off an era of incredible growth for both companies. And fourth, marketing. In choosing Discovery plus as the brand for our streaming service, we are excited to harness and further build on one of the most admired brands in the world, expanding on our original mission and igniting and satisfying curiosity across the entirety of our passion portfolio, from food, home, relationships, true crime, animals, automotive and, of course, our trusted legacy of adventure and survival, natural history, science and space. As David said, we will embark on the largest marketing campaign in the history of the company, leveraging all our own platforms and assets across the globe. To recap, we have a strong differentiated proposition, unparalleled global brand awareness and affinity, over 800,000,000 monthly viewers and fans, the unique and powerful combination of U.
S.-led stories that have universal appeal and great local characters and content as well as sports across Europe and partnerships with leading distributors to help us scale. That is the powerful fuel that makes us incredibly excited and confident about the potential for Discovery plus around the world. Now I'd like to send it over to Karen Lever, our President of Digital Products and Marketing in The U. S, to tell you about some of the key features of this great new product.
Thanks, JB. I am so thrilled to be introducing Discovery plus today. At Discovery, we have always been hyper focused on the consumer. And now with Discovery plus we're taking that commitment to a whole new level. We're bringing that deep and unique relationship that viewers have with our brands, stories and personalities and enhancing that connection even further.
Discovery plus will make it easy to browse all of our networks along with the largest offering of real life entertainment anywhere. Any path you take, you'll find the perfect show to watch in just seconds. As you start your experience, the For You section will always feature shows that are most relevant to you. That's because the more you watch and engage with Discovery plus the more personalized your experience will become. It's here you'll find topics curated by all of our experts.
Now Discovery has always owned passion genres, and our navigation is designed to reflect that. We've made it easy to quickly browse the top genres that you care about the most. As you choose a genre and scroll, you can quickly see the abundance of choices that Discovery plus has to offer, like new Discovery plus originals like Mysterious Planet or Planet Earth from BBC's Natural History Collection and longtime fan favorites like Deadliest Catch. We've also created a simple and easy way to explore all of our beloved brands with customized hubs. Just tap on any brand logo, and you'll land on a curated brand hub that features the best series, shows and episodes.
Our browse experience is one of the most powerful features of Discovery plus You can jump into any of our brands and quickly find what you love to watch. It allows you to go super deep into all of our content and instantly filter by new, trending, timely and relevant topics. Now an excellent user experience isn't all that Discovery plus offers. It also offers an unparalleled data driven advertising experience. We're able to offer advertisers unrivaled measurement, targeting, and transparency.
And with a lower ad load, we'll be able to serve more personalized ads that are not only endemic to the programming that they appear in, but that are more relevant to our subscribers. And thanks to our proprietary OneGraph technology, we can connect Discovery plus advertisers with our extremely coveted and valuable audiences across all platforms, dramatically increasing both scale and reach. As David mentioned earlier, we're thrilled to announce our inaugural ad partners this morning and look forward to welcoming more partners in the coming months. Next, we'll hear from our lifestyle, brand and content team on all of our innovative, exciting and new programming coming to you on Discovery plus But first, let's give a look at how nobody does real life content like Discovery.
We chefs and real estate and home renovation experts to relatable doctors and true crime detectives, the leading lifestyle talent choose to make Discovery their home. While some may try to imitate, there is only one HGTV, only one Food Network, only one TLC, and only one ID. We have the standout brands that lead head and shoulders above the others in these genres. And starting early next year, we're giving fans more of what they love in Lifestyle on Discovery plus How audiences watch in the world of streaming has changed, but what they watch hasn't. Here's what we know.
Every month, over half of all women TV viewers watch Discovery's network, more than any other pay TV portfolio. We have the top four non news networks on cable and the number one network for women in prime. What we also know is that in a world of increasing and sometimes overwhelming choices, brands matter more than ever. We have the go to brands for women and we can stretch these brands and delight fans like never before on Discovery plus As David said, we'll do that by nourishing them with series they already love, expanded content, and all new exclusive originals. More on our amazing originals coming up.
For decades, we have been super serving fans, and they have formed a special bond with our talent. During the pandemic, that connection only got stronger. We have been the comfort food as people are home, cooking three meals a day, tackling that languishing DIY project, or just escaping with our love and relationship and true crime series. Now nothing says comfort food more than two of the biggest stars and most renowned culinary personalities in Food Network history, Bobby Flay and Giada de Laurentiis. Fans love their longtime friendship as much as their incredible cuisines.
We're extremely proud to call Bobby and Giada part of the family and now part of Discovery plus Please welcome Bobby and Giada.
Hi, Kathleen.
It's so great to see you guys. And we are so incredibly excited about your new Discovery plus original Bobby and Giada in Italy. It's one of the most beautiful shows we have ever seen. I know it was a huge labor of love. Bobby, how did this come to be?
Well, it sort of happened naturally. I mean, Giada and I have been friends for a long time besides being colleagues on on the Food Network. And, I have a immense love and passion for Italy, and Giada is a native Roman. And so it just seemed like it was time to go explore Italy together. If you go to a place you really wanna learn, you grab a local.
So luckily, I had access to Giada.
And, Giada, who was in charge on this trip? Were you leading Bobby, or was he leading you? This is your home turf.
That's a really great question, Kathleen. No. I'm just kidding. I mean, I think it was 5050. You know?
The part that that Bobby left out is that he spent six weeks there prior to shooting this. I think, you know, I showed him the things that I love, and he showed me the things that he loves. And I think it's a really nice blend of two different perspectives.
And, Bobby, this is new for you. You've fallen in love with Italy. What what was your most favorite thing to do on this trip that viewers are gonna be surprised by?
Giada and I really wanted to focus in on couple of different versions of Italy. One of them was Rome, the sort of urban version of Italy. And in Rome, Giada and I did a lot of eating. Like, we went to different restaurants. We went to different shops that Giada led us to and then some of the places that I had sort of discovered and wanted to discover it.
And then when we got to Tuscany, we put our aprons on. We cooked there. And being able to cook, you know, in the kitchen with Giada with all the incredible ingredients from Tuscany, those were some of my favorite moments.
How does it feel to be now part of this next journey as we all launch into Discovery plus and to see the food genre change?
You know, I think it has changed so much from when I started, which is a long time ago. But I also think that food is something that connects us, the way music connects a lot of people. And I think with Discovery plus it's only gonna get better because it opens it up to a whole new audience that just don't prescribe to cable. And so getting an app like Discovering, being able to see all of these great programs they haven't been able to have access to is going to be phenomenal. And the ability for all of us on Food Network to maybe explore new things and do different types of shows that maybe all relate back to food, but maybe we weren't able to do before on Food Network.
So I'm super excited.
Yes. This new show that you've both done for Discovery plus is not the kind of thing that people would typically see on Food Network. So Bobby, what does that make you think about the future and all the new things that we're that we're gonna be able to do with the food genre?
I'm really excited about Discovery Plus. Bobby and Giada in Italy was a passion project for both of us, and we've only been to Tuscany and Rome.
what that means? There's a lot more Italy to discover.
Why stop at Italy? We're a global company. You could just take this show all over the world. Pack your bags.
I I like that too, but come on. But but I'm I'm gonna I'm gonna stick with Italy for now. Lot lot to discover.
Well, we are so excited about Bobby and Giada in Italy. It's such a beautiful show. It's just the most gorgeous thing I've ever seen, and we're so excited that it's gonna be one of our special launches on Discovery plus Thank you so much for being here, and we'll see you in Italy.
Alright. Yes. Perfect.
Thanks, Kathleen.
Discovery is the best in the business at creating buzzy real life shows that fans love, and there's no better evidence than the runaway success of the biggest, noisiest, unscripted franchise in all of television, TLC's ninety Day Fiance. It's the number one series in all of TV for women, and ninety Day helped TLC rocket to number one in cable among all women demos. Across platforms, ninety Day devotees have consumed a staggering sixty seven billion minutes of the franchise year to date. And this is not just a US story. This is the mother of all unscripted series globally with ninety Day and its spin offs captivating audiences in nearly 170 countries and in 40 languages.
Viewers can't get enough. And as David announced, we're giving them the ninety day universe on Discovery plus At launch, Discovery plus will be the home of an all new ninety day fiance series along with multiple other new and returning titles from the franchise. That passionate fandom surrounding all things ninety day is why we know it will be hugely popular at Discovery plus With Discovery plus we want female audiences, all audiences, to stream what they love, and they love our brands and talent. Discovery brings the winning recipe, the deepest library of fan favorites and spin offs, and all new originals as only the leader in lifestyle programming can, all in one spot.
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Hi, everyone. And the business. Are the our future of natural history programming. We It's blue chip content for the whole family and an essential part of your streaming portfolio at a time when there has never been more interest in our planet. We excel at bringing these stories to life.
And of course, it helps to have brilliant and iconic partners. And that's what we have in Sir David Attenborough. He has dedicated his life to highlighting the beauty, awe, wonder, and ultimately the fragility of our planet. We're currently working on two new series with Sir David. The Mating Game, produced in partnership with the BBC and the team who brought you Planet Earth, is an epic exploration of the lust for life and rules of attraction in the animal kingdom.
And he's here today to tell us about his latest BBC landmark series, which will be available on Discovery plus at launch, A Perfect Planet.
Hello. My name is David Attenborough, and I'm very pleased to have this opportunity to tell you about my newest landmark series called A Perfect Planet. The earth, our home, is one in a billion. It's the only planet, as far as we know, where there is life. That is only possible because of a unique balance of natural forces, volcanoes, sunlight, weather, and the ocean currents, which create the perfect conditions for life.
But it's a fragile balance, and now it's threatened as never before. But there's time to act. My hope is that we can inform, fascinate, and inspire action when a perfect planet streams to a global audience on Discovery Plus next year. Thank you.
While our nature programming speaks to the whole family and our lifestyle content that Kathleen talked about is a huge hit with women, We also create series that showcase adventure, exploration, and curiosity better than anyone else, which attracts a strong and loyal male audience. Today, we'll talk with Discovery's ultimate everyman, Mike Rowe. He's equally comfortable on a deck of a crab boat, cleaning a sewer, or on the stage of the Baltimore Opera, all places he's worked, by the way. His range and versatility and gift for storytelling is exactly why we're working with him on a new series for Discovery plus This new platform provides fertile ground to dig even deeper with our biggest stars like Mike, offering more creative freedom to take on big ideas and new formats that can augment our broad fan base. In our new original series, Six Degrees with Mike Rowe, he searches for answers to prove that everything in our crazy and uncertain world is connected.
It is my honor to welcome Mike Rowe. Mike, hi. Thank you so much for being here today.
Great to see you again.
So Mike, we are so excited to have you here today, but have you and your new show, six Degrees with Mike Rowe on Discovery plus, an exclusive original. Why don't you tell us a little bit about the show?
At base, Six Degrees is a show about history for people who normally wouldn't watch a history show. It is an interdisciplinary look at how any two objects, no matter how seemingly disparate, can be connected by time and space and the events of history. We look, for instance, at how a horseshoe can help you find your soulmate, at how a sheep can help you do your taxes, at how a garbage man gave us a photo taken by the Hubble Space Telescope of the big bang moments after it occurred. It's kinda like the old parlor game, six degrees with Kevin Bacon, except Kevin Bacon's not in the show. I am.
And we're using all the tools at our disposal to travel through time and put together something interesting, including what it takes to make a show like this today for Discovery.
Well, have to say some of those, connections seem like a bit of a stretch, but you skillfully do make all the connections of the with through the six degrees, and it's a really fun yarn to watch all of these episodes. And what do you think about when you hear about everything that Discovery has to offer across our entire portfolio all in one streaming platform?
Well, look, think it's ambitious, and I'm not surprised that you're doing it. It simply means I can watch the best documentaries in the world whenever I feel like it, or I can watch myself in reruns of dirty jobs whenever I feel like it. I mean, it's new and it's exciting, but but honestly, for me, I know that it's still the same basic challenge, this idea of of satisfying curiosity. Whether you're doing it on cable or whether you're doing it on a service like this, that's still the thing that's for sale. I understand that.
That's why I'm still excited to be working with you guys, and I I think your fans are gonna absolutely, absolutely love it.
Well, thank you, Mike. And it means the world that you're here with us today. And it also means the world that you're bringing us your newest show to be a part of Discovery plus launch.
Well, the future is upon us, Nancy, and I couldn't be happier to be here with you as well. It's going to be great.
Thanks, Mike. Now from a true original to Discovery plus original series, allow me to introduce our Group Senior Vice President of Content and Commercial Strategy for Discovery plus Lisa Holm.
Hi, everyone. Discovery is the global leader in real life entertainment. We commissioned more unscripted programming than anyone else, twice as many hours as the next closest competitor. And that leadership will continue on Discovery plus as we plan to premiere several dozen originals in the first quarter alone. We are thrilled to work with world class chef Carla Hall on a new series that traces the origins of food through time and place.
Carla will invite you on a journey to discover the ways different cultures have influenced what you eat. Her unique sense of humor and easy charm will really elevate this show. Additionally, Food Network star Duff Goldman is partnering with the Jim Henson Company to create a baking series populated with puppets and unbelievable recipes. This will be a must watch for any family that loves to cook. We're also welcoming some big new names to the Discovery Cooking family.
Ludacris is both a legendary rapper and a successful restaurateur, but his skills in the kitchen do not match his skills in the studio. We'll watch as he gets schooled in cooking. And we are working with superstar comedian Sebastian Maniscalco on a series that will examine the social etiquette of eating, hosting, and attending meals. It is equal parts comedy series and sociology experiment. You know what?
Sebastian can explain it even better than I can.
These days, there's a lot of streaming services, but there's only one that guarantees that you don't have to look at another superhero, Discovery Plus. Discovery Plus doesn't have any guys with tights with magic powers. There's no shows about lawyers or werewolves or trolls on a quest. Discovery plus knows that real life is way more fun than fantasy. The thing that helps you escape your life is watching somebody else's life.
When I watch real life entertainment, my situation seems a lot better. Sure. Haven't been able to go to the store in seven months, but at least I don't have a civil war ghost slamming doors all night. Not only that, but you also get my new show, what's eating Sebastian Maniscalco. It's a food show, a travel show, a family drama.
So it's perfect for Discovery plus where everything comes together in one place.
In the relationship category, we have TV's biggest unscripted hit with ninety Day Fiance. We are really excited to bring that franchise to Discovery plus A new series called ninety Day Journey puts the power in the hands of the viewer in a way that can only be done on a streaming platform. Viewers will have the control to watch their fan favorite ninety Day couples start to finish. For the first time, fans can watch just their favorite couples' journeys. And if you're new to ninety day, this gives you the perfect entry point into the ninety day universe.
And as Kathleen mentioned, we'll have other new ninety day franchises coming to be We're the next generation of
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a paleontologist, but did play one on TV. Unique to Discovery plus we will also mix and match genres that our fans love. A great example of this is Pushing the Line, which follows freestyle slackliners who walk above a 900 foot gorge on a two inch wide piece of rope. It has beauty. They provide a rarely seen view on some of the world's most stunning scenery.
It has competition and it has drama as we peek into the romantic entanglements back at base camp, My kind of show. As David mentioned, Discovery Plus is the best home for real world entertainment, featuring top shows from A and E history and Lifetime, including Pawn Stars, Ice Road Truckers, American Pickers, The First 48, Dance Moms, and many more. Another Discovery strength is our leadership in true crime, one of the most popular streaming genres. The beloved detective Joe Kenda from ID Network will bring a brand new series to Discovery plus called American Detective. These original projects and many others will live alongside our growing library of prestige documentaries on Discovery plus We are excited to have a platform to work with established and emerging filmmakers on impactful stories, including the new documentary, P.
S. Burn This Letter, Please. It uses secret unearthed letters to paint a portrait of New York's underground drag scene from the 1950s. And we are in production on a series I can't wait to share with you all, Queen of Meth, a truly unbelievable true crime story of how comedian and actor Tom Arnold's sister, Laurie, controlled the country's meth boom from a rundown cabin in Iowa. The docuseries that will have everyone talking.
All of this is just the beginning. We'll have much more news to share on Discovery plus in the months ahead. Here's an exclusive look at some of the great Discovery plus content on the horizon.
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It's exciting. Let's watch.
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us one thing, Words tell us another.
It's basically me in a magical kitchen laboratory baking with a bunch of puppets.
I'm not gonna lie to you. I don't know what the hell I'm doing.
Good afternoon, and thank you again for taking the time to be here with us today. Before I provide some financial details and take you through the opportunity ahead of us, I'd like to briefly offer a couple of highlights. As you know, we closed the Scripps transaction about two point five years ago, and the integration and execution has brought increased scale as well as market share growth globally, the culmination of which has better positioned us to address the direct to consumer pivot we continue to execute upon. Financially, we generated $3,000,000,000 of free cash flow in both 2019 and on a trailing twelve month basis this year through the end of Q3, reflective of our unique and efficient operating model and providing us with a supportive financial framework to invest for further growth. We have gone from strength to strength, stronger operationally, financially and competitively as we lean into our biggest direct to consumer pivot yet with the launch of our global Discovery plus service.
We believe the product represents incredible value for our consumers. An unprecedented amount of high quality franchise programming supported by a deep library alongside a great roster of exclusives that will add even greater depth to our iconic personalities and resonant content verticals. And we believe it will appeal to not only the growing broadband only universe, which we currently do not reach, but also to many current subscribers to our linear channels that desire an even deeper level of engagement with these beloved brands and personalities or simply an ad free viewing experience. We have approached the direct to consumer model in a variety of ways over the last five years or so with vertical and niche lifestyle and sports products as well as regional aggregated content offerings. No doubt we have learned a lot.
We have built a global scalable technology stack to better serve our customers and better informed ourselves on how to most effectively interact with and serve our fans, helping to sharpen our approach to content windowing, performance marketing and churn reduction. Our portfolio of next generation products currently serves roughly 5,000,000 paying subscribers, more than double the number at this point last year. This growth provides us with solid footing and good momentum as we turn our attention to this global initiative. In The U. S, from a high level perspective, we believe the serviceable addressable market for our product is at least 70,000,000 homes.
This takes into account several filters such as propensity to consume a meaningful amount of content every day, subscribe to SVOD and interest in our content verticals, genres and brands. Given trends in the industry, we would expect this market size to grow even larger over time. We have long believed that a lead partner is important to help drive scale and engagement, and I couldn't be more thrilled to be partnering with Verizon. We intend to leverage their national reach and substantial wireless base. Qualifying wireless subscribers will receive a Discovery plus subscription included with their plan, helping us to reduce the execution risk associated with a launch of this magnitude.
We are also acutely aware of the importance of our linear distribution, and we will nourish both platforms. Despite the obvious secular headwinds, we have never been more confident in our position on traditional linear platforms as our core business is stronger than ever with respect to both advertising as well as distribution. On the advertising side, our strong endemic brands and uninterrupted slate of fresh content at a time when competitors have turned to repeats has positioned us solidly behind increasingly stronger advertiser demand for our verticals. We have enjoyed outstanding growth in CPMs and share of wallet over these past few years. Scatter premiums of 30% on top of already strong upfront pricing have allowed us to continue to outpace the industry.
And with news potentially coming off an unusual boom, we are increasingly encouraged with our prospects for strong delivery and share growth. We feel as well positioned as ever. On the distribution side, our recent renewals have reinforced our confidence in the outstanding value our portfolio of brands brings to our affiliate partners, driving roughly 20% of ad supported cable viewership and more than that in the female demographic. Our family of networks is undoubtedly a core element of the traditional bundle together with news and sports. Our channels represent superb value to our partners as the share of viewing we generate is well above the relative share of our affiliates' programming costs.
And on the local avails alone, we believe a healthy portion of the affiliate fee paid to us is recouped. Indeed, we believe we are a very strong partner. As such, we will continue to support and strengthen our position in the linear channels, ever mindful of the value we bring to our partners and they to us. While an aggregated SVOD service is new to us in The US, the story is quite different in many international regions as a majority of our roughly 5,000,000 global subscribers are captured in our international segment. And as JB noted, we value our distribution partners, having recently renewed hybrid deals with companies such as Sky and others for both traditional linear carriage and OTT distribution, providing us with a balanced approach to addressing this evolving ecosystem.
Our international Discovery plus approach will initially focus on key European markets, the four Nordic markets, The UK, Ireland, Italy and The Netherlands, and include a total of 25 markets in the first wave. Across international, we have applied the same filters as I described earlier for The U. S, and we estimate the serviceable addressable market to be over 400,000,000 households. While our modeling was largely focused on households, we see major customer acquisition opportunities in mobile with partners such as Verizon and Telecom Italia, particularly internationally. There, Discovery plus can tap into the vast majority of consumers who don't subscribe to broader, more expensive pay TV packages, creating a large new customer segment for us.
Turning now to some financial building blocks. Most importantly, while this effort will require funding to support the launch and subsequent subscriber growth, we expect D2C will enhance our revenue growth as we are confident that the subscribers we will gain are largely incremental to our top line trajectory. Additionally, we believe that our direct to consumer offerings should generate higher revenue than our traditional linear business on a per subscriber basis over time. As we know, direct to consumer operating models are inherently lower margin than linear. That being said, we believe that our content model and our global reach over which we'll be able to amortize content spend will be very beneficial to the number of subs required to break even relative to our peers, the same competitive advantage that has driven our superior financial profile in the traditional media ecosystem for years.
We ultimately project Discovery plus to achieve margins of roughly 20% long term and at scale, which we may hit earlier in The US and other mature international markets and later in less mature markets internationally. With respect to expenses, the three key buckets of OpEx have been and will continue to be content, technology and marketing. The first two largely fixed and marketing primarily variable. On the content side, as you heard from Lisa, we will invest in a healthy pipeline of additional programming that will be exclusive to the platform or that is windowed in some markets prior to linear. And we will fully mine our deep library across the service.
We are committed to applying our efficient model of global and cross platform content exploitation as we expand into the D2C part of our ecosystem. Our total content spend, the lifeblood of our company, will increase accordingly, leveraged across both platforms. Regarding technology spend, as you know, we have already been investing in our platform for the past couple of years, and we will continue to allocate resources as required toward things like new features or geographical expansion. As expected, technology spend relative to revenue should ultimately decline post launch as we begin to scale. Marketing spend is the big variable that will drive much of the AOIBDA investment or start up losses for the next couple of years.
The fixed portion of marketing spend will be more significant during the early promotion of the initial launch and should step down over time. Specifically, in conjunction with a Verizon partnership in The U. S, as you would expect, we anticipate aggressively investing in subscriber acquisitions to optimize the unique opportunity presented by the partnership early on. On the other hand, our subscriber acquisition spend through performance marketing is variable and is expected to ramp up relative to success, and we will spend against increasingly measurable customer lifetime value. Turning to financials.
Today, we expect our next generation initiatives to drive over $800,000,000 of revenue this year, up mid teens over 2019 despite the challenging environment. And we expect AOIBDA losses from investment initiatives to be in the $500,000,000 range. We won't get into much detail in 2021 just yet. However, a few guideposts to consider. Some of the planned investments from 2020 was shifted into 2021 due to COVID, as did the associated revenue.
We expect OIBDA losses for our investment initiatives to peak in 2021 at a level a couple $100,000,000 above 2020, though as always, this will largely depend on the cadence and success of Discovery plus subscriber growth and accompanying variable subscriber acquisition spend. We will provide more detail on these financial metrics during our investor call at 01:30. Finally, we intend to update The Street on our traction with global paying subscribers and next generation revenue on a regular basis starting next year, though we are not intending to change our reporting segment structure. With that, I'd like to close by reiterating how excited we are to be bringing Discovery plus to our fans around the globe. We have clear advantages with respect to our category leadership and content genres, and I am confident that our differentiation from a content as well as a financial perspective will be key factors driving our ultimate success.
Thank you again for joining us. The link to the Q and A session with David, JB and me is available on both the Discovery Corporate and Investor Relations websites. And now to help us bring it all home, one of our favorite guys, Guy Fieri.
So they saved the hype man for last. Except, really, this isn't any hype. This is real. You've just heard all about Discovery Plus. It's incredible.
Right? I mean, totally out of bounds. Discovery Plus is the real deal. In fact, I'm so stoked about it. I'm gonna rename one of my shows, to Triple D Plus.
You heard it here first. You gotta love it. Discovery plus is so awesome, and I don't know why they didn't give it more pluses. I mean, it should be called, like, Discovery plus plus plus plus to the tenth power plus. I mean, how many pluses is that?
A lot. It's all about flavors and the best ingredients, tasting new originals, and all your faves piled high. It's gonna really bring the heat. Nothing like it in the marketplace, folks. No other streaming service can even come close to the amount of amazing, ass kicking, bingeable real life programming.
Whatever people are into, Discovery Plus has it. People can't get enough of it, and they can't get it anywhere else. That's why as other media companies may be slowing, Discovery is growing. It's been two years since we all stood together on one stage to introduce the future of Discovery, and we are all here together again, even virtually. We're a pretty awesome group.
Right? And we are all going to our new home. Thanks for watching, and we're all incredibly excited to bring you Discovery plus.