Business Analysis of Discovery Communications

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Discovery Communications

DISCOVERY COMMUNICATIONS

Business Overview

Discovery Communications, Inc. operates as a media company worldwide. The company operates through U.S. Networks, International Networks, and Education and Other segments. It owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, Velocity, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Oprah Winfrey Network, Eurosport, DMAX, and Discovery Kids brands, as well as other regional television networks. The company's content spans genres, including survival, exploration, sports, lifestyle, general entertainment, heroes, adventure, crime and investigation, health, and kids. It also develops and sells curriculum-based education products and services, such as an online suite of curriculum-based video on demand (VOD) tools, professional development services, and digital textbooks, as well as student assessments; and publishes hard copy curriculum-based content for K-12 schools. In addition, the company operates production studios that develop content for television service providers, as well as Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, Websites, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, Web-native networks, on-line streaming, mobile devices, VOD, and broadband channels. As of December 31, 2016, the company operated approximately 400 distribution feeds in 40 languages internationally. Discovery Communications, Inc. is headquartered in Silver Spring, Maryland.

Discovery Communications

Discovery Communications


R&P Rank: 420
Sector: Media & Entertainment
Industry:Broadcasting, Cable, and Filmed Entertainment
H.Q Location:Maryland
Website: www.discoverycommunications.com
Company Address:
1 DISCOVERY PLACE, SILVER SPRING MD 20910
Ph:240-662-2000

Business Analysis of Discovery Communications

The Media & Entertainment Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Discovery Communications compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Discovery Communications to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Discovery Communications with an interactive chart.

  1. Revenue Growth: Discovery Communications reported a revenue growth of 1.6% year-on-year during 2016. Broadcasting, Cable, and Filmed Entertainment Industry grew at 4.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Discovery Communications spent 37.4% of its total revenues on COGS. Broadcasting, Cable, and Filmed Entertainment industry average (COGS share of revenue) in the same period was 28.0%
  3. R&D share of Revenues: Discovery Communications R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Discovery Communications spent 26.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Broadcasting, Cable, and Filmed Entertainment industry average SG&A spending in the same period was 43.3%
  5. Inventory share of Revenues: Discovery Communications Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Discovery Communications invested 3.7% of its total revenues on Accounts Payable (A/P) Broadcasting, Cable, and Filmed Entertainment industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Discovery Communications invested 23.0% of its total revenues on Accounts Receivable (A/R). Broadcasting, Cable, and Filmed Entertainment industry average Accounts Receivable investment in the same period was 17.3%
  8. PP&E share of Revenues: As a percentage of revenue, Discovery Communications invested 7.4% of its total revenues on Property, Plants, and Equipments (PP&E). Broadcasting, Cable, and Filmed Entertainment industry average PPE investment in the same period was 29.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Discovery Communications invested 183.9% of its total revenues on Intangibles. Broadcasting, Cable, and Filmed Entertainment industry average Intangibles investment in the same period was 113.0%
  10. Net Margins: Discovery Communications Net Margins in the year 2016 were 18.4%. Broadcasting, Cable, and Filmed Entertainment industry average Net Margins in the same period were 11.6%

Sector and Industry Association of Discovery Communications

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Discovery Communications is associated with Media & Entertainment Sector and Broadcasting, Cable, and Filmed Entertainment Industry.

Media & Entertainment sector is comprised of the following industries: Broadcasting, Cable, and Filmed Entertainment; Media Agency Services; Publishing. The definitions for each of the industries is as follows:

  • Broadcasting, Cable, and Filmed Entertainment industry includes companies that provide radio and television programming. It also includes companies that provide music and filmed entertainment.
  • Media Agency Services industry includes companies that provide advertising, public relations and marketing services. It also includes billboard providers and telemarketers.
  • Publishing industry includes newspapers, magazine, and book publishers.

Industry Ranking of Discovery Communications

With $6.5 billion revenues, Discovery Communications ranked number 9 of all the companies in the US Broadcasting, Cable, and Filmed Entertainment industry. There were a total of 38 public companies in the US Broadcasting, Cable, and Filmed Entertainment industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Broadcasting, Cable, and Filmed Entertainment industry by revenues during 2016 were:

  1. Comcast ($80.4 billion)
  2. Walt Disney ($55.6 billion)
  3. Time Warner ($29.3 billion)
  4. Twenty-First Century Fox ($27.3 billion)
  5. CBS ($13.2 billion)
  6. Viacom ($12.5 billion)
  7. Liberty Interactive ($10.6 billion)
  8. News Corp ($8.3 billion)
  9. Discovery Communications ($6.5 billion)
  10. Liberty Media ($5.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Discovery Communicationsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of discovery-communications

Viacom (VIAB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Viacom Inc. with $12 billion revenues in the year 2016 was the number 6 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of Viacom and identify growth and cost optimization opportunities of Viacom

Liberty Interactive (QVCA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Liberty Interactive Corp with $11 billion revenues in the year 2016 was the number 7 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of Liberty Interactive and identify growth and cost optimization opportunities of Liberty Interactive

News Corp (NWSA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

News Corp with $8 billion revenues in the year 2016 was the number 8 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of News Corp and identify growth and cost optimization opportunities of News Corp

Liberty Media (FWONA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Liberty Media Corp with $5 billion revenues in the year 2016 was the number 10 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of Liberty Media and identify growth and cost optimization opportunities of Liberty Media

Sirius XM Satellite Radio (SIRI) Business Analysis – Analyze Historical Performance,...

Sirius Xm Holdings Inc. with $5 billion revenues in the year 2016 was the number 11 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of Sirius XM Satellite Radio and identify growth and cost optimization opportunities of Sirius XM Satellite Radio

Scripps Networks Interactive (SNI) Business Analysis – Analyze Historical Performance, Strategic...

Scripps Networks Interactive, Inc. with $3 billion revenues in the year 2016 was the number 12 Broadcasting, Cable, and Filmed Entertainment company. Read this report to know the top competitors of Scripps Networks Interactive and identify growth and cost optimization opportunities of Scripps Networks Interactive

Revenues Analysis

Discovery Communications (DISCA) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Discovery Communications, Inc. (DISCA) from 2012 to 2016. Discovery Communications generated a total of $6.5 billion revenues during 2016. Discovery Communications reported a revenue growth of 1.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Discovery Communications (DISCA) Revenues And Revenue Growth From 2006 To 2016

This report provides the last eleven years revenues and revenue growth of Discovery Communications, Inc. (DISCA) from 2006 to 2016. Discovery Communications generated a total of $6.5 billion revenues during 2016. Discovery Communications reported a revenue growth of 1.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Discovery Communications (DISCA) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Discovery Communications, Inc. (DISCA) revenue growth with Broadcasting, Cable, and Filmed Entertainment industry growth during the last five years from 2012 to 2016. Discovery Communications reported a revenue growth of 1.6% year-over-year during 2016. The Broadcasting, Cable, and Filmed Entertainment industry growth was 4.6% year-over-year during 2016. Discovery Communications growth was slower than the industry during 2016.