Discovery owns the rights to over 100,000 hours of programming and footage in its video library, so it can tap this content for additional revenue streams.
The 50/50 joint venture with OWN could give a boost to cash flow if the network is able to generate compelling programming in addition to Oprah's successful brand.
Discovery is well positioned to benefit from the growth of pay TV around the world, especially as television advertising on cable channels expands over the next decade. Read more
An economic slowdown or recession could hit Discovery harder than some of its peers that are less reliant on advertising, which represents about 50% of Discovery's revenue.
International expansion can be challenging as Discovery grows into economies with infrastructures that are in various stages of development.
A decent amount of optimism is priced into the shares given the recent run of strong TV ad growth across the board, so a pullback in ad spending could punish the shares more than some of its peers. Read more
We think Discovery's stewardship of shareholder capital is standard. David Zaslav became president and CEO in 2007. He was hired away from his post as president of NBC Universal Cable by his longtime mentor, Discovery chairman and founder John Hendricks. Read more
Discovery Communications' flagship network includes subjects like science, exploration, natural history, technology, history, health, and wellness. Discovery's other main Read more
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