Article Details
  • Published Online:
    September  2024
  • Product Name:
    The IUP Journal of Business Strategy
  • Product Type:
    Article
  • Product Code:
    IJBS020924
  • Author Name:
    Barnali Chakroborty and Jitesh Nair
  • Availability:
    YES
  • Subject/Domain:
    Management
  • Download Format:
    PDF
  • Pages:
    22
Volume 21, Issue 3 & 4, September & October 2024
Discovery Inc.: Shifting from Linear to Platform Business Through Direct-to-Consumer Strategy
Abstract

The case provides insights into how Discovery Inc. (Discovery), a global leader in real life entertainment, changed itself from a cable TV company to an OTT content provider with a platform business. While Discovery already has a number of popular linear TV channels, it entered the OTT (Over the Top) space in 2020 with Discovery+, so as to manage and sustain the linear business. Discovery+ was launched as a direct-to-consumer streaming service featuring television series, movies and original programming. Within its first year, discovery+ was available in 25 countries, including India, the UK and Ireland, and the US, among others. In an effort to better prepare itself for the fast-changing consumer behavior, Discovery put emphasis on its e-commerce strategy, especially, the direct-to consumer (D2C) model. Discovery’s emphasis on D2C strategy made a positive impact on the company’s performance. Next, the case explores Discovery’s e-commerce strategy in detail. Since the early 2010s, Discovery had started increasing its focus on D2C offerings. The case also details Discovery’s D2C strategy for digital/OTT platforms. Discovery offered international D2C propositions for OTT space in three categories—sports, lifestyle and factual. The case then focuses on Discovery+ launch in different countries. The case also analyzes in detail how Discovery’s merger with WarnerMedia would create a global D2C streaming platform. The case concludes with a discussion on Discovery’s financial performance and future challenges, including the success of the mega-merger

Introduction

In January 2021, Discovery, Inc. (Discovery) an American multinational mass media factual television conglomerate based in New York City, launched the Discovery+, a direct-toconsumer streaming service featuring television series, movies, and original programming in the US.