Morningstar Rating

Stock Research and Analysis

by Neil Macker, CFA

Bulls Say

Discovery owns the rights to the majority of programming broadcast on its channels, creating a large library that can generate additional revenue streams.
Discovery’s three primary networks have wide distribution in the U.S. and worldwide, with each channel reaching over 94 million U.S. cable households and over 300 million international households.
Discovery is positioned to benefit from increased pay TV penetration globally due to its investments over two decades ago. Read more 

Bears Say

If advertisers continue to shift money away from television, profitability at Discovery will fall rapidly due to the high operating leverage of the business model.
International expansion exposes the company to multiple country-specific risks and regulatory regimes that may be more opaque than the U.S.
Cable networks depend on the continued growth of affiliate fees. Increased cord-cutting by consumers and lower ratings could threaten the growth of these fees. Read more 

Management

We rate Discovery's stewardship of shareholder capital as Standard. David Zaslav, president and CEO, joined the firm in 2007 from his post as president of NBC Universal Cable. Over his tenure, Zaslav established a reputation for cost-cutting and international   Read more 

Profile

Discovery is the one of the largest global media providers with over 2 billion cumulative subscribers in over 220 countries. Its three main networks (Discovery, TLC, and   Read more 

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