After Stunning Merger News, Discovery Tells Marketers It's on Par With Broadcasters

After kicking off upfronts week with its stunning WarnerMedia merger announcement, Discovery made some more waves a day later, presenting its first upfronts presentation during the annual May event for marketers and making the case that it can stand "shoulder to shoulder" with its broadcast peers. And while the company had filmed its virtual presentation prior to yesterday's industry-changing news, CEO David Zaslav knew the enormous deal couldn’t be ignored. In a segment added at the beginning of the event, Zaslav noted that “yesterday was a truly momentous, historic day, uniting WarnerMedia’s legendary brands, franchises and storytelling with Discovery's beloved brands under one banner.” He continued, “We would not have reached this point without you, our partners, in every sense of the word. And now we get to write our next chapter together.” Throughout its presentation, Discovery’s main message was clear: Its offerings are on the same scale of the broadcast networks and other media companies presenting during upfronts week. “We're very excited to be at broadcast week for the first time ever,” said Jon Steinlauf, chief U.S. ad sales officer. “From our broadcast level ratings, to our greatest accomplishment Discovery+, we have surpassed our cable competitors, and today, we stand shoulder to shoulder with the broadcast networks.” The many pluses of Discovery+ This marks the first time Discovery was able to highlight its recently launched streamer Discovery+ in an upfront, and the service took front and center in the presentation. Steinlauf said Discovery+ “complements, not cannibalizes” the linear channels, adding that the company is now reaching 24 million digital-only viewers across its portfolio, in part thanks to Discovery+. Discovery Counts 15 Million Total Streaming Subscribers as Discovery+ Rollout Continues The streaming service is on track to premiere more than 1,000 hours of original content by the end of the year and has launched more than 100 originals in the last four months. The company now has 15 million total streaming subscribers as Discovery+ continues its rollout. “Discovery is built to engage across all platforms. That's especially true with Discovery+—we launched in January with the vision of being the definitive streaming service for unscripted content. And we are already delivering on that promise,” said Lisa Holme, head of content and commercial strategy. “In four short months, we've already surpassed our subscriber expectations, and even more importantly, our viewers are spending a ton of time with the platform.” “Discovery+ allows us to open our aperture with new content and new audiences. It allows us to do more, further our reach, deepen our connection with our fans and partner with advertisers in new and innovative ways,” said Zaslav. Similar to Fox’s upfront presentation yesterday, Discovery emphasized the benefit of having an ad-supported environment. Discovery has 62 of the 100 highest-rated programs among the women 25-54 demo and three of the top networks: HGTV, TLC and Food Network. “No one can bring you influential women at scale like we can, especially at a time when the largest streaming services are ad-free,” said Steinlauf. The ad sales chief said that the Discovery brands reach 62% of all LGBTQ+ adults, and the company is committed to inclusion in front of and behind the camera. That’s part of the reason the Discovery ad sales team is introducing equity and inclusion solutions, which he described as “a new collection of resources that help our clients reach and engage with diverse audiences in thoughtful and purpose-driven ways.” Jim Keller, evp, digital ad sales and advanced advertising, announced a partnership with TV ad-measurement company iSpot.tv to help deliver advertisers information about the effectiveness of their advertising across its linear and streaming footprint. “Along with incremental reach, we can also deliver attribution on key KPIs like brand favorability, which soars when your ad campaign is viewed on multiple platforms, and purchase intent, which doubles,” said Keller. Magnolia Network begins to bloom With a plethora of brands to highlight, Chip and Joanna Gaines’ upcoming Magnolia Network was an emphasis for the content company. This week's Adweek’s cover story dove into the couple’s efforts to build their own network, and now marketers have gotten a glimpse as well. The network will launch digitally on July 15 with more than 150 hours of originals available on Discovery+, alongside a stand-alone Magnolia app. The linear network debuts in January 2022, when Magnolia officially takes over DIY Network. Upcoming originals include series like Fixer Upper: Welcome Home and Magnolia Table with Joanna Gaines, alongside series on Discovery+ like Extraordinary Stories behind Everyday Things, RE(Motel), The Cabin Chronicles and Where We Call Home. JB Perrette, president and CEO of Discovery International, described Magnolia Network as “emblematic” of the company's multi-platform approach at Discovery. “Magnolia is paving an exciting new path for what we do best," said Perrette, "surround and nourish fans on every screen and distribution platform with more content and engagement than ever before." Perrette said Discovery Go, the company’s suite of ad-supported TV Everywhere apps that require authentication from cable subscribers, has “grown tremendously” and is now a top streaming provider delivering an audience made up of 69% adults 18-49. To capitalize on that younger audience, Discovery is bringing content from each of the 15 brands to each individual Go app by the third quarter. “This means each Go app will now become a gateway to the Discovery universe,” said Perrette. Programming highlights During the presentation, Discovery touted many of the new and returning shows coming to each of its networks. Here are some of the highlights: The company is ready to send a regular person into space. Who Wants to Be an Astronaut?, coming in 2022, will give people the chance to travel from Earth to live on the International Space Station. Over on HGTV, the brand is leaning into the success of pandemic series Celebrity IOU, bringing back the show for a new season, as well as the new series Celebrity IOU: Joyride, coming July 26. Kathleen Finch, chief lifestyle brands officer, knows fans love competition shows, and said Discovery is making “lots more” of them, including the first family edition of Rock the Block and new series Battle on the Beach on HGTV. On Food Network the competition continues with sibling rivalry series Battle of the Brothers and new series Grill of Victory that brings America’s best backyard grillers to the table. Popular YouTube stars the Try Guys arrive on Discovery+ with No Recipe Road Trip With the Try Guys, and Robert Irvine will host The Globe as four chefs compete across three rounds of culinary challenges. The streamer landed Jon Stewart for the upcoming documentary No Responders Left Behind, which follows Stewart, 9/11 responder and activist John Feal and FDNY hero Ray Pfeifer fighting U.S. Congress to ensure terminally ill first responders get the health care they deserve. Martha Stewart is back in the new eight-episode series Martha Gets Down and Dirty, premiering July 1 on Discovery+. Stewart will be filming from her farm in Bedford, N.Y., to get it ready for spring and summer. Also on Discovery+, TLC’s popular 90 Day franchise expands once again with 90 Day: Caribbean Love, debuting July 18.