Discovery sees room for growth in the OTT space

Discovery CEO David Zaslav said the company could create OTT offers with its brand portfolio, as standalone service or in partnership with other players, to serve consumers who are not focused on sports or film and series platforms.
According to the executive, the offerings for prices around USD 10 – USD 15 are Netflix, HBO, Amazon and Starz, which are movies and scripted services.
In a conference with analysts, Zaslav said they could put together Discovery’s entire portfolio and offer it globally, either independently or in partnership with broadcasters and other players. In this sense he said: “What other company could offer a multitude of 18 brands, 10 of them that people know everywhere in the world, and offer it for less than any of those channels and have content whether you’re in Brazil, Mexico, Italy, Poland, the U.S., Canada.”
The executive said that there are two video services -Amazon and Netflix- with 100 million subscribers, while Disney will try to reach that mark. However, Zaslav believes that “the next one to get to 100 million subscribers is not going to be another scripted and movie player, because there’s just too many of them”.
In the conference, Zaslav said that “the tolerance of consumer subsidizing all that sports content is waning and weighing on the U.S. sub growth. The good news is the market is now beginning to respond to consumer’s demand for non-sports real skinny bundles. Many pay TV and mobile companies have announced that they’re going to do non-sports skinny or entertainment heavy bundles, and new virtual providers have started to provide these offerings to try and meet consumer demand”.