Silver Spring, Maryland-based global mass media and
Discovery Communications, Inc.
), has sealed a deal to supply its program to Wasu's new digital
subscription channel, Qui Suo. Wasu is a media and cable
television company in China. However, the financial details of
the deal were not revealed.
Discover Communications' deal with Wasu seems to be the ideal
platform for the former's business expansion in China as the
latter has nearly 20 million cable subscribers in China and also
dominates the country's video streaming market. Notably,
according to iResearch, 450 million people watch online videos in
China and the figure is expected to increase to 700 million by
We believe that Discovery Communications' decision to enhance
operations in China will improve the company's revenues going
forward. In the recently concluded quarter, Discovery
Communications reported mixed financial results where the bottom
surpassed the Zacks Consensus Estimate while the top line missed
Discovery Communications achieved viewership growth for the
fifth successive year. In the last five years, the company
launched seven new channels in the U.S. Strong viewership ratings
of several Discovery channels helped the company generate healthy
Recently, Discovery Communications abandoned its plan to
Scripps Networks Interactive, Inc.
). In Nov 2013, VARIETY reported that Discovery is considering a
bid to acquire Scripps Networks. However, the discussion between
the companies did not cross the preliminary stage as the family
that controls Scripps Networks showed reluctance to the sale. The
Scripps family owns a 43% stake in the company.
Other Stocks to Consider
Discover Communications currently has a Zacks Rank #3 (Hold).
Other better-ranked stocks in the television broadcasting
industry which are worth considering include
Entravision Communications Corporation
Phoenix New Media Limited
). Both the stocks carry a Zacks Rank #2 (Buy).
DISCOVERY COM-A (DISCA): Free Stock Analysis
ENTRAVISION COM (EVC): Free Stock Analysis
PHOENIX NEW MED (FENG): Free Stock Analysis
SCRIPPS NETWRKS (SNI): Free Stock Analysis
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