Discovery Communications, Inc. company profile, information, business overview, history, background on Discovery Communications, Inc. (2023)

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Discovery Communications, Inc. is the world's leading real-world media and entertainment company creating the highest quality content and services to help people explore their world and satisfy their curiosity.

Historia de Discovery Communications, Inc.

Discovery Communications, Inc. (DCI) is a leading player in the global cable television market. The company operates 33 channels around the world, including the Discovery Channel, Animal Planet, The Learning Channel, Discovery Health, and the Travel Channel. Discovery Communications also sells videos, CD-ROMs, magazines, and books; operates websites; and operates 165 retail stores. The private company is owned by a group consisting of Liberty Media Corporation (formerly a unit of Tele-Communications, Inc.), Advance/Newhouse Communications, Cox Cable Communications, Inc., and company founder and CEO John Hendricks.

beginning

Known as Discovery Communications, Inc., the company dates back to 1982 when a University of Alabama history graduate named John Hendricks founded Cable Educational Network, Inc. in Maryland. The purpose of the new company was to help present news programs and documentaries on television. Hendricks, originally from West Virginia, previously founded a consulting company that provided marketing assistance to educational video producers. After raising $5 million in 1985, Hendrick's small business launched a new cable television network called the Discovery Channel. Originally airing a variety of licensed documentaries but no original programming, Discovery was only available in 156,000 homes.

Revenues from the new station were low and within six months, Hendricks owed the British Broadcasting Corporation (BBC) $1 million, but had only $5,000 in the bank. He was desperately looking for new investors. Despite being turned down by major entertainment companies he approached, a group of cable operators led by Tele-Communications, Inc. (TCI), Cox Cable Communications, Inc. and Newhouse Broadcasting Corp were able to get him flyers on the network and they retained 1.4 percent of the shares for themselves. TCI (whose interest was later transferred to Liberty Media) owned 49 percent, while Newhouse (later known as Advance/Newhouse) and Cox each had a quarter. The company was now able to pay off its creditors, and new investors also increased Discovery's viewer base by adding the channel to their systems.

On its first anniversary in June 1986, Discovery had seven million subscribers. Over the next few years, the company expanded its programming offerings with events such as the February 1987 broadcast of 66 hours of live Russian television, giving the company increased media interest. Discovery also expanded its hours from 12 noon to 6 p.m. during the year.

By 1988, Discovery's growing subscriber base had reached 32 million. The following year the company offered its first overseas cable service, with approximately 200,000 subscribers in the UK and Scandinavia receiving Discovery Channel Europe. Additionally, 1989 was the year that Discovery commissioned its first original show, having previously relied solely on material from outside sources, including the BBC. A new program, "Assignment Discovery," was a one-hour daily program designed for classroom use. In 1990, Discovery expanded its overseas operations to Israel and began selling video through the newly created Discovery Interactive Library entity. The company, which employed just 19 people when the channel first aired, now had more than 250 employees.

1991 Acquisition of The Learning Channel

In June 1991, the company acquired The Learning Channel (TLC) for $30 million. TLC had 15.2 million subscribers at the time of the acquisition, but was in financial difficulty. A new programming schedule for TLC was announced in October, replacing the offering of business and professional information, self-help and hobby shows with 18 hours of educational and entertainment programming aimed at an older adult audience. The following spring a six-hour block of children's programming was added. In October 1991, the company was also renamed Discovery Communications, Inc. (DCI).

The future of cable was expected to include up to 500 channels, and John Hendricks began to think about how to deal with so many options. Announced in late 1992, Your Choice TV, Inc. was a new subsidiary that offered a prototype wired remote control device that could organize the hundreds of options into 11 subject categories for ease of use. Over the next few years, Your Choice's efforts also focused on creating a timeshift service, through which unused channels aired pay-per-view reruns of selected shows for individual viewers. Tests were run on eight cable systems with some success, but the concept ran into major logistical hurdles, most notably the problem of reaching agreements with the many content providers.

In the fall of 1993, DCI released its first CD-ROM, In the Company of Whales, based on the hugely popular documentary of the same name, which was shown on the Discovery Channel. Discovery was now producing more original shows than ever before, even though the company did not have its own production company, instead contracting out outside companies for all of its shows. Popular offerings around this time included specials commemorating the 50th anniversary of the D-Day invasion of Normandy and the 25th anniversary of Richard Nixon's retirement. The network was available in 62 million homes, or 98 percent of American homes with cable television, by 1994. The learning channel had also doubled its own subscriber base to 30 million homes.

In 1994, the Federal Communications Commission relaxed its regulations on cable stations, allowing them to add more channels and charge more for their services. DCI responded by announcing that it would launch four new channels in 1995, including channels on nature, science, history, and a mix of DIY and cooking. However, the bar for new cable channels was high, and a successful launch could require an investment of $200 million or more in cable system fees to attract enough subscribers to make the service profitable.

Expansion into retail in the mid-1990s

In 1995, DCI spent $10 million to buy the chain of 11 learning and educational products stores in Texas and the southeastern United States, coincidentally named Discovery Store Inc. DCI had already begun selling its own licensed items through stores like PetsMart and The Nature Company, and the deal was seen as a good fit to expand into marketing. Plans were soon made to add more locations to the chain. DCI also increased its advertising with the slogan "Explore your world." In 1995 it was estimated at 20 million dollars annually. In some cases, DCI used very specific campaigns, such as one for a special submarine promoted through US military publications. When the show aired, it received Discovery Channel's highest prime time ratings.

The company's brand strategy worked well, according to a 1995 Total Research Corp. study, which ranked Discovery second to the National Geographic Society in consumer perception of brand quality. The company finished ahead of big names like AT&T, IBM, and USA.Wall Street Journalincluded. DCI also launched a website in 1995 that committed $10 million to the project. The result was an award-winning mix of original articles, video and sound clips, and more. Previously, DCI had begun publishing a magazine that also complemented its programming.

In the mid-1990s, DCI became increasingly focused on overseas expansion. In 1994, the company launched spin-off channels in Asia, Latin America, and the Middle East, followed in 1995 by others in Canada, India, and Australia/New Zealand. Others were later added in Italy, Africa, Brazil, Germany, Japan, and Turkey. Ultimately, the channels would be available in 150 countries. Dubbing the company's documentary and news programming into foreign languages ​​used to be much less expensive and less complicated than creating foreign versions of dramatic material, and much of the theme was universal, equally appealing to viewers from around the world. It was also around this time that DCI announced its move into feature film production, forming a new subsidiary that was expected to release one or two titles a year, including some shot in the wide-format Imax process.

In February 1996, DCI announced a joint venture with one of its investors, Tele-Communications, Inc. The new venture, ETC with TCI, would bring seven hours of commercial-free cable programming directly to schools, including some Discovery materials and learning channels. Former US Congressman Tony Coelho has been named Chairman and CEO. The new company, which initially targeted some 700 major schools across the country, planned to charge $265 per student for the service. The fee would also cover the installation of the necessary hardware and software, as well as training on how to use them.

Shortly thereafter, DCI expanded its retail presence with the $40 million acquisition of The Nature Company, which has 110 stores in 34 states. Over time, the stores would change their name to Discovery Channel Stores. The move was in line with what other big media companies like Disney and Warner Brothers were trying to do: run chain stores that served to reinforce the brand's identity while increasing public awareness of the name. A new 25,000-square-foot flagship superstore for the Washington, D.C. area was soon announced near DCI's headquarters in Bethesda, Maryland. Typical chain stores were smaller, in the 3,000 to 5,000 square foot range.

In October 1996, DCI took two more important steps. One of these was a new partnership with the British Broadcasting Corporation to produce a BBC-branded cable channel in the United States. BBC America would show the prestigious performing and dramatic arts programs for which the British company was known, with DCI handling the logistics and also providing some of the content. DCI expected to spend more than $500 million over five years on the deal, which would potentially include other cable channels and the programming needed to develop them. DCI was also awarded "First Look" options for new BBC programmes, putting the company ahead of competitors such as Arts & Entertainment and Public Broadcasting Networks.

Animal Planet founded in the mid-1990s

At the same time, the company launched Animal Planet, a new cable channel focusing on domestic and wild animals, 20 per cent owned by the BBC. After its launch, the station's audience grew rapidly and its appeal transcended age and ethnic lines. Part of the growth was also due to the fees DCI paid to cable companies for including Animal Planet in their offering. DCI simultaneously announced the creation of four digital broadcast channels, available only to a limited number of viewers. The Discovery Home & Leisure, Discovery Kids, Discovery Science, and Discovery Civilization channels would become more widely known as digital broadcasting became a popular medium. Meanwhile, the new channels, produced on smaller budgets than the company's originals, served as useful trial balloons to test the feasibility of new concepts.

In September 1997, Discovery announced that it would buy 70 percent of Travel Channel from Paxson Communications for $20 million. The Travel Channel had 20.8 million subscribers and featured a mix of travel tips and vacation profiles. Discovery soon began providing programming and logistics support for the channel. Subsequently, in February 1999, DCI acquired the remaining 30 percent of the business.

The company's flagship store opened in February 1998, six months behind schedule and $10 million over budget. The now 30,000-square-foot store contained a television studio, an 82-seat theater, a T-Rex skeleton, and the nose of a World War II-era B-25 bomber for customers to climb on. Items for sale ranged from the entire line of DCI videos to games, telescopes, fossils, and even an Ice Age bear skeleton, priced at $75,000.

In early 1998, DCI also attempted to buy the low-rated Court TV cable channel from its owners, a consortium led by Time Warner. However, the $350 million deal was scrapped by Time Warner shareholder and vice president Ted Turner over concerns that DCI could turn Court TV into a concept that would compete with one of its own channels. In December, DCI completed another acquisition attempt, buying CBS's Eye on People channel after originally planning to buy only 50 percent. Eye on People (later changed to Discovery People) had just 11 million subscribers and was losing money for its parent company. DCI planned to continue airing the station's mix of news and celebrity profiles, which included some content provided by CBS. During the year, DCI also added two channels to its digital broadcast offering, Discovery Wings and the Discovery Health Channel. A digital channel in Spanish was also offered at this time.

Entry into the healthcare sector at the end of the 90s

At the end of the year, DCI formed a new subsidiary, Discovery Health Media, Inc., a multimedia company that would transform the company into a leader in health and medical information. More than $300 million was set aside for the startup, which would include a health news and information website. The summer digital channel that followed, Discovery Health, was upgraded to regular cable status as part of the initiative.

In the late 1990s, DCI also planned to move its operations from Bethesda to Silver Spring, Maryland, by 2003. The company would occupy three buildings, two of which would be new construction. Several other high-profile organizations soon followed suit, preparing to move to the once dilapidated Silver Spring. One of these was the American Film Institute, which would open a facility there and host a documentary film festival in association with DCI.

In November 1999, the company closed its theme entertainment unit due to cost concerns. The shutdown would mean the end of Discovery Channel Pictures, which had made Imax movies, among other things.the kingdom of the elephants of africa,and the television sports event "Eco Challenge". At the same time, DCI invested in Petstore.com, an online pet supply and information site that will be used to cross-promote Animal Planet. DCI then transitioned its operations online and merged its web businesses into a new subsidiary, Discovery.com, Inc., which was reportedly about to become investors. DCI CEO John Hendricks also announced that he will help launch a new women's soccer league that will feature eight teams newly formed in 2001.

In the summer of 2000, Discovery.com's IPO plans were put on hold and $500 million in new funding was sought from private investors. The move followed a decline in investor confidence in the Internet's potential as a profitable entity. In November, the company laid off 40 percent of Discovery.com employees as the company seemed increasingly difficult to make profitable. DCI's website was redesigned to focus on mainstream television content, with a reduction in news articles and other original content. Later in the year, DCI also scaled back its plans for the Silver Spring facility and canceled construction on one of the new buildings. The company had also quietly dropped its Eye on People and Your Choice television projects at the time.

In early 2001, the National Geographic Society, with support from Fox Cable Networks, issued a potential challenge to DCI's dominance of the cable documentation market. DCI's Hendricks dismissed the startup as too small and too late, noting that it would cost at least $250 million to garner a comparable subscriber base to reach Discovery on its home turf. A recent consumer survey by Equitrend ranked Discovery as the number one most trusted brand, eclipsing National Geographic's position at the top spot. National Geographic launched with 10 million subscribers and plans to reach 28 million in the next few years, a number that is still well below Discovery Channel's 81.2 million, The Learning Channel's 77.3 million or 66 .9 million from Animal Planet. Meanwhile, Discovery specialscreating al mamutyhiking with dinosaursset back-to-back records for cable documentaries with 10.1 million and 10.7 million viewers, respectively.

On the verge of 20 years of existence, Discovery Communications, Inc. had built a formidable multimedia empire that continued to grow. The company's respected brand, which is firmly established in cable television, helped fuel its moves into digital cable, cyberspace and retail. While not yet profitable, these operations have positioned DCI well for future developments in the rapidly changing world of 21st century media.

Main offices:Discovery Networks USA; Discovery Networks International; Discovery-Unternehmen weltweit; Discovery of the means of health.

Main Competitors:AOL Time Warner, Inc.; Walt Disney Company; the Society for Public Service Broadcasting; Viacom, Inc.; A&E television station; Fox Entertainment Group, Inc.; National Geographic Society.

Chronology

• Key dates:
• 1982:John Hendricks gründet Cable Educational Network, Inc.
• 1985:Discovery Channel launches cable television with 156,000 subscribers.
• 1986:Cable network operators buy shares in the company; Subscribers exceed seven million.
• 1989:Discovery Channel Europe is launched.
• 1990:A series of home videos is introduced.
• 1991:The learning channel is purchased; The company name is changed to Discovery Communications.
• 1993:The company begins to market CD-ROMs based on his television shows.
• 1994:International expansion extends to Asia, Africa, Latin America and the Middle East.
• 1995:A $10 million website is launched with original news content and more.
• 1996:Two retail chains, Discovery Stores and Nature Company, are purchased.
• 1997:The company buys 70 percent of Travel Channel and then acquires the rest.
• 1998:Animal Planet will launch in a deal with the BBC; The Eye on People channel is purchased.
• 1999:Discovery Health Channel launches as part of the new Health Media division.
• 2000:Internet operations will be integrated into Discovery.com; The people channel is closed.

more details

• private company
• Incorporated:1982 como Cable Educational Network, Inc.
• Employee:3.500
• Reduction:$1.73 billion (2000)
• NAIK:51321 cable networks; 45112 hobby, toy and game stores; 511210 software publishers; 51212 Film and video distribution; 511130 Book publishers

more reference

Breznick, Alan, "Discovery Prepares a New Health Network",wire world, December 21, 1998, p. 1. Chandrasekaran, Rajiv, "A High-Value Web Service Awaiting Return,"Washington Post, 4 November 1996, p. F19. Dawtrey, Adam, „BBC, Discovery in Fact Pact“,Diversity,23. Marzo 1998, p. 38. Farhi, Paul, „Big Game Hunting: Geographic Takes on Discovery in the Nonfiction-TV Market“,Washington Post,December 14, 1998, p. Q13.———, "For the shows you don't want to miss... Discovery Communications is exploring a personalized service on the TV of your choice",Washington Post,19. June 1995, p. F8.Fry, Andy, „Discovery at 15: When Beeb lends a hand“Diversity,June 5, 2000, p. 36. Gately, Gary, "Putting the Discovery Channel on the Map,"baltimore-sonne,September 29, 1995, p. 1C.Grove, Christopher, "Hendricks Leads Global Discovery Mission",Diversity,20. noviembre de 2000, pág. 33. Grove, Christopher y Stephanie Argy, "Discovery at 15: Fight for Online Shelf Space, Specialty Focus High on Broadband Priorities"Diversity,June 5, 2000, page 36. Guider, Elizabeth, "Spotlight – Mipcom '97 John Hendricks",Diversity,September 22, 1997, p. M29.Johnson, Carrie and John Irwin, "Discovery.com is laying off 40% of its employees: company focuses on TV operations",Washington Post,11/14/2000, p. E1.Kaplan, Peter, "John Hendricks: Cable Pioneer Discovers the Value of Substance Over Style",washington Times,December 23, 1996, p. 2.———, “New TV giant BBC, Discovery plans to co-create a cable channel”,washington Times,September 28, 1996, p. C11.Lee, Melissa, "Discovery Communications Looks to New Lands, Interactive Media"Washington Post,September 5, 1994, p. F9.Marriott, Anne, "A Store to Explore: Channels of Discovery in the World of Retail,"washington Times,February 26, 1998, p. B7.Moss, Linda, "Not so fast, Mel"cable world,April 9, 2001, p. 6. Noguchi, Yuki, “Discovery.com Drops IPO Plan; unit finances the expansion privately,"Washington Post,July 22, 2000, p. E1.Robichaux, Mark, "Discovery Communications Jumps Into Domestic Retail Jungle"Wall Street Journal,May 16, 1995, p. B9.Sently, Gus G., "500 Million Subscriber Explosion: Cable Programmer Discovery Communications Moves to Silver Spring to Accommodate Growth,"baltimore-sonne,February 25, 2001, p. 1D.Swibel, Matthew, "The curtain falls on the Discovery Unit",washington Business Journal,November 19, 1999, p. 1.Twomey, Steve, "The roots of the network can make the city prosper"Washington Post,February 14, 2000, page A1.