<<

A Quarterly Publication of Discovery Communications

Volume 6, Number 4, February 2014

03 04 08 JB Perrette Tapped to Lead PUPPY BOWL X Delivers Discovery International Launches March 3 Big Bark for { A MESSAGE FROM }

Strong fi nancial results, an expanding averages eight networks in over 220 content portfolio that is boosting market countries. Because that portfolio has been share around the globe and further so carefully balanced, we averaged double- investments in strategic growth made digit audience gains in nearly every part 2013 another very successful year for of the globe with our total international Discovery. Overall, our revenue grew advertising revenue up 23%. 23%, and Adjusted OIBDA was up 16% over 2012. This outstanding performance In addition, we are already off to a strong demonstrates how well our uniquely start in 2014 even though the year is high quality content resonates with a young. In January, worldwide audience. It’s an expanding generated the most watched month in audience that wants to learn something its history, while TLC, ID, Destination new, satisfy its boundless curiosity America and Velocity recorded about the universe and keep discovering. remarkably strong growth. We also Last year’s results also highlight the announced our newest brand, American sturdiness of our business model and Heroes Channel, and agreed to acquire the opportunities generated by our majority control of , broadening unmatched global footprint. and strengthening our international programming offering and reach. Domestically, our audience grew for the fi fth consecutive year, with viewership across our portfolio up 4%. Domestic advertising grew, too, increasing a healthy “…there has never been 8% over last year. This growth refl ects the a better time to be in the unrivaled ability of Discovery’s creative global content business.” teams to stay in sync with audience tastes, and is a clear indicator of our success in ( ) reinforcing existing brands while continuing to grow new ones. Discovery Channel, As we move further into 2014, there has Animal Planet and ID had their most never been a better time to be in the watched years ever in their key demos and global content business. Around the world, OWN grew 25% while delivering positive people are watching more TV over more cash fl ow and equity earnings. Emerging platforms than ever before. Discovery is brands and Velocity superbly positioned to take advantage of also continued to grow. the opportunities that are emerging every day, through compelling programming Thanks to increased distribution and strong and strategic growth that deliver solid content, viewership grew 22% across our fi nancial results while building long-term extensive international portfolio, which value for shareholders.

David Zaslav is President and Chief Executive Offi cer of Discovery Communications and serves on the company’s Board of Directors. JB Perrette Tapped to Head DNI In January, Discovery announced that JB Perrette will become the next President of Discovery Networks International.

Perrette joined Discovery in 2011 as Chief Digital Offi cer. Under his leadership, the company has become a leading provider of high-quality nonfi ction media across all screens. Perrette’s credits include: the successful acquisitions of Revision3 and DeFranco Creative, strategic investments in Lumosity and Learnist, the launches of digital/online networks Animalist and TestTube and the implementation of innovative live online experiences such as SKYWIRE LIVE and Animal Planet L!VE.

Having spent half his career outside the U.S., and with a unique mix of distribution, digital strategy and business development experience, Perrette will oversee all aspects of the company’s growing international operations. In 2013, Discovery completed the acquisition and integration of SBS Nordics; acquired a stake in Eurosport, the largest pan-European sports platform; launched TLC in the UK; and grew international ratings by 25 percent – all solidifying the company’s position as the #1 Pay-TV programmer in the world.

Perrette succeeds 23-year Discovery veteran Mark Hollinger, who announced his resignation last September.

Discovery Debuts First-of-Its-Kind Learning Marketplace On January 14, Discovery unveiled Curiosity.com, a consumer-centered online marketplace that aggregates and organizes the best learning-based content from across the web. This new learning tool expands upon Discovery’s commitment to education and affords online users the opportunity to explore their passions and discover new interests through an expanding collection of digital content from dozens of trusted partners, including Big Think, Coursera, Craftsy, Khan Academy, Udacity and Udemy.

Whether you are looking to develop new skills, brush up on existing interests or simply learn something new, Curiosity.com connects knowledge-seekers with high-quality knowledge sources. Users can browse categories including Art & Design, Business, Languages and Technology and receive personalized content recommendations. Visitors also can browse trending content or use the Surprise Me feature to allow the system to randomly choose content for them.

Curiosity.com is the company’s latest investment in the education space, adding to current learning-focused assets that include Discovery Education, Lumosity and Learnist. Life-long learners can feed their curiosity at Curiosity.com, which is optimized for mobile and tablet users.

Discovery Communications Named to the 2014 FORTUNE 100 Best Companies to Work For List Discovery Communications has been named to the 2014 FORTUNE 100 Best Companies to Work For® list. Recognized for its commitment to creating a healthy and balanced workplace and a culture of innovation, inclusion and continuous learning, Discovery is one of only two media companies in the Top 100.

Discovery’s global workforce has access to a best-in-class suite of benefi ts and rewards including on-site child care at its headquarters; Discovery Wellness Centers in Miami, New York, Silver Spring and Sterling; and an employee stock purchase program. Employees stay informed and engaged through myriad offerings including quarterly town halls hosted by senior leadership and special events featuring on-air talent. Additionally, the company sponsors “Discover Your Impact Day,” an annual day of global volunteerism each June when all worldwide employees can give back to the communities where they live and work.

Great Place to Work®, creator of the list, evaluates each company using its unique methodology based on fi ve dimensions: credibility, respect, fairness, pride and camaraderie.

A Quarterly Publication of Discovery Communications | FEBRUARY 2014 3 { COVER STORY } Discovery Communications to Rename Military Channel: American Heroes Channel American Programming will feature the iconic people and pivotal moments of our time Heroes Channel On Monday, March 3, the Military Destination American and American Channel will become American Heroes Channel. “The American Heroes Channel in 62 million homes. Heroes Channel will be the next great American Heroes Channel expands on platform for Discovery to engage the Military Channel’s niche appeal, and entertain an information-hungry while providing viewers with additional audience with exciting programming insight into history, contemporary that viewers have come to know and world events and biographical stories. love from Discovery Communications.” At the intersection between military and history programming, American On debut night, American Heroes Heroes Channel will feature major Channel is excited to present the events that shaped our world, visionary network original series, AGAINST THE leaders and unexpected heroes who ODDS. Narrated by actor Rob Lowe, made a difference and the great this six-part series introduces real- defenders of our freedom on life bands of brothers who exhibited and off the battlefi eld. unparalleled bravery, solidarity and endurance on the battlefi eld and came The only network out on top in fi ghts against seemingly dedicated to the insurmountable odds. Reliving battles timeless stories in from WWII, Korea, Vietnam and Iraq, which a challenge these are true stories of the harsh appears – be it realities of war, as told by the veterans a situation or who survived to share their experiences. a villain – and a hero rises, American Heroes Channel’s fi rst year American Heroes will include 17 new series and specials, Channel explores with three additional originals launching compelling in the fi rst week. Debut night also will and uplifting feature the special RAW WAR: THE true stories of LOST FILM OF DAK TO. This original the bold men network documentary presents gripping and women who personal stories through fi lm and have distinguished photographs from combat cameramen themselves by their during the Vietnam War who risked actions as well as events that – and sometimes lost – their lives to transcend time and place. capture some of the bloodiest battles of our time. Additional launch week “With the continuing trend of series include CIA: DECLASSIFIED, character-driven content, the which travels back to the Cold War new name provides Discovery to reveal inside stories of America’s with a tremendous opportunity most top-secret missions, and CODES to showcase more narrative-style & CONSPIRACIES, a series that unveils storytelling that is currently missing the startling truth and hidden history from the television landscape,” behind the world’s most iconic, said Henry Schleiff, Group clandestine institutions, top-secret President, , locations and mysterious symbols. Discovery Channel and TLC Rank as Most Attractive Factual Entertainment and Lifestyle Brands in India Discovery Channel and TLC were named the Most Attractive Factual and Lifestyle entertainment brands in India, based on results from India's Most Attractive Brands Report 2013.

The report, conducted by the Trust Research Advisory, is based on consumer research from 16 cities across India, through a matrix of 36 traits. In a market as highly competitive and fragmented as in India, brand attractiveness is one critical differentiator used to measure and highlight the most exceptional brands.

Over the years, Discovery has emerged as an important player in Indian television, establishing itself as a high-performing and popular content provider amidst competitors in the country. The recognition for the two networks underscores the diversity and wide appeal of Discovery’s portfolio of seven networks in the country.

Social Media: A Key Ingredient to Success of “

On December 30, TLC celebrated the worldwide premieres of CAKE BOSS and BAKERY BOSS with CAKE BOSS KICKOFF LIVE.

The live social media integration event paired the popularity of TLC’s beloved baker, , with the power of Twitter, encouraging fans to Tweet along with the show using #CakeBossKickoff. Throughout the premiere event, Buddy checked in from the Cake Boss Café in New York City to read fans’ Tweets and give out prizes live on-air. Fans also had a chance to see their Tweets featured live on the shows.

The live Tweet event was a sweet success, garnering more than 334,000 Twitter mentions, drove three U.S. Trending Topics and propelled CAKE BOSS to the #1 spot on SocialGuide’s rankings across all TV programs (excluding sports) for the night. The event also ranked as CAKE BOSS’ most social night ever and the second most social night ever for TLC.

A Quarterly Publication of Discovery Communications | FEBRUARY 2014 5 WATCH WITH THE WORLD: RATINGSHIGHLIGHTS

BEST YEAR EVER AMONG MEN 25-54 In 2013, Animal Planet exceeded its record- breaking 2012 performance by achieving its most-watched year ever in both primetime and total day across major demos. Animal Planet currently ranks #16 among all ad-supported cable networks with men 25-54. The network had 10 programs that delivered or surpassed one million total viewers in 2013, including MERMAIDS: THE NEW EVIDENCE, PUPPY BOWL IX, RIVER MONSTERS, TREEHOUSE MASTERS, CALL OF THE WILDMAN, GATOR BOYS, FINDING BIGFOOT, WILD WEST ALASKA, PIT BULLS & PAROLEES and TANKED.

HIGHEST VIEWERSHIP IN 12 YEARS Discovery Channel ended the year with 11 series averaging over two million total viewers each and 36 series averaging over one million total viewers, up from 31 series in 2012. GOLD RUSH grabbed the DOUBLE-DIGIT YEAR-OVER-YEAR GROWTH top spot for the year as the channel’s #1 series. NAKED AND OWN: Network fi nished 2013 AFRAID, DEADLIEST CATCH, AMISH MAFIA, GOLD RUSH – on top achieving its second consecutive year SOUTH AMERICA and FAST ’ LOUD rounded out the top six. of double-digit growth across key demos. The SKYWIRE LIVE captivated 13 million total viewers and smashed network delivered increases of 16% in women 25-54, 21% in total television, live, social media and digital ratings records, making viewers and 76% in African American women 25-54 in primetime it cable’s #1 live event in 2013. The live telecast also generated versus 2012. OWN also ranked as the #5 primetime cable network 1.3 million Tweets and had a special ranking as the #1 most in 2013 among all African American women. social show across broadcast and cable in the U.S. In similar fashion, the wildly popular summer television event SHARK OWN’s popular Saturday night lineup boasts the night’s top six WEEK drew its largest audience in its 26th year, snapping up original series with African American women 25-54: WELCOME 50 million viewers and garnering 2.6 million Tweets for the TO SWEETIE PIE’S, IYANLA: FIX MY LIFE, , SIX week – breaking all previous social records. LITTLE MCGHEES, and .

Scripted series helped the network kickoff 2014 in a big way. STRONG PERFORMANCE FOR THE YEAR The February 4 episode of OWN’s hit Tyler Perry drama THE TLC wrapped 2013 as a top 10 cable network HAVES AND THE HAVE NOTS delivered a record-breaking 3.4 among key demos, with a total of 32 shows million viewers, its most-watched telecast in series history. The that delivered at least a million viewers. episode ranked as the #1 show on cable, #2 in all of television The network had seven series deliver two million viewers or and helped propelled the network to #1 among women 25-54 on more — a new record for TLC. Most notable were the growing Tuesday night. The episode was the second highest telecast in successes of fan-favorites: THE LITTLE COUPLE and 19 KIDS OWN history and the show marked its third consecutive week of AND COUNTING. THE LITTLE COUPLE recently delivered its growth among women 25-54. highest rated season ever among households, persons 2+ and among key demos with women and adults, while fi nished its highest rated season ever among households and best persons 2+ delivery in its six-year history. captured its most-watched episode in series history, as 3.2 million viewers tuned in to celebrate the commitment ceremony of June and Sugar Bear. BEST YEAR AND BEST QUARTER EVER and Colombia. It also achieved an outstanding performance The fourth quarter of 2013, ID marked its 20th during fourth quarter in Argentina, increasing primetime consecutive quarter of year-over-year growth ratings by 77% and by 50% year-over-year during total day in primetime delivery among persons 2+ and among women 18-49, ranking as the leading lifestyle channel households, and in total day delivery among during both total day and primetime in Argentina. women 25-54. ID earned the #4 rank for total day In addition, both TLC and ID had impressive growth stories: TLC delivery of women 25-54 in ad-supported cable for the quarter. grew 67% year-over-year among its core target of adults 25-49 The network also continued its streak for longest length of tune during primetime, while Investigation Discovery was up 22% in all of television, capturing the #1 spot in both total day and year-over-year among adults 25-54 across Latin America. primetime among English speaking networks. ID launched 2014 with a bang, premiering 14 new and returning original series that averaged more than one million viewers each.

SPEEDING ACROSS THE FINISH LINE Velocity crossed the fi nish line in 2013 with impressive ratings gains in primetime among men 25-54 for the month of December. The network climbed 16 slots in cable rankings in 2013, more than any other cable network. Freshman series including DALLAS CAR SHARKS and GRAVEYARD CARZ, as well as popular returning series CHASING CLASSIC CARS, OVERHAULIN’ and WHEELER DEALERS helped Velocity achieve a stellar performance for 2013. December 2013 marked 19 straight months of year-over-year delivery growth in primetime for the network among persons/ men 25-54 and persons/men 18-49.

BREAKING RECORDS ACROSS LATIN AMERICA The fl agship Discovery Channel dominated Latin America’s 2013 factual space for the twelfth consecutive year, ranking as the #1 factual network and one of the Top 5 Pay-TV networks across the entire region among its target persons 25-54 demographic.

Discovery Kids also posted giant gains, growing an impressive 12% year-over-year since the premiere of its new original series DOKI and the launch of its updated graphics package last April. ranks as the leading preschool network pan- regionally among kids 4-11 and the #1 Pay-TV network among women 25-49. In addition, it is the #1 Pay-TV channel among Brazilian households for the fi fth year in a row.

Discovery Home and Health fi nished 2013 as the #1 lifestyle network among women 18-49 and ranked among the Top 10 Pay-TV networks pan-regionally during primetime. The network was also the #1 lifestyle network in key markets: Brazil, Mexico

A Quarterly Publication of Discovery Communications | FEBRUARY 2014 7 TUNE IN: PROGRAMMINGHIGHLIGHTS

PUPPY BOWL X: A BARKING SUCCESS! news that would change the course of their future: Jen was diag- On Sunday, February 2, the most anticipated, eagerly awaited and nosed with cancer. The season follows her courageous battle against cutest sporting event on television returned when 66 adorable, the disease, Zoey’s life back in Houston and how the family is coping adoptable pups took the field for PUPPY BOWL X. Celebrating the and adjusting to the life-altering news. tenth anniversary of the main event, Animal Planet upped the ante SHINING LIGHT ON INJUSTICE with all new features and guest stars, including First Lady of the , Michelle Obama, and First Dogs, Bo and Sunny. With This February, Investigation Discovery is honored to present the all that firepower, PUPPY BOWL X was a blowout scoring a whop- fourth installment of the critically acclaimed INJUSTICE FILES ping 13.5 million unique persons 2+ viewers throughout the 12-hour series, hosted by investigative filmmaker Keith Beauchamp. In this marathon – its largest audience ever! year’s film, Beauchamp explores the ugly and hidden phenom- enon known as “sundown towns” – communities where African While the dogs duked it out on the field, a parade of penguin cheer- Americans are not allowed to live, much less set foot in after dark. leaders waddled the sidelines and cheered on every fido first down INJUSTICE FILES: SUNDOWN TOWNS travels to three of these

and the audiences’ favorite puppy players. Not to be outdone by their former towns to visit communities where blacks were harassed, canine counterparts, kittens also took center stage on this super threatened and even killed simply because of the color of their skin, day. Animalist digital network’s own Lil BUB was on hand to provide and Beauchamp explores whether these exclusionary practices still commentary throughout the game, and some of her feline friends exist today. got a bit feisty at the “Xtraordinary” KITTY HALFTIME SHOW, which featured a rousing rendition of Bruno Mars’ “Locked Out of Heaven” ICE COLD GOLD RETURNS WITH TREASURE IN SIGHT performed by world-famous, Internet sensation Keyboard Cat. The first season of Animal Planet’s ICE COLD GOLD gave but a glimpse of Greenland’s raw power and prize potentials, but the Ameri- New this year, viewers played along at home when they drafted can miners are back and the threats and rewards are multiplied. In their own team and competed for dominance in the network’s the ruby-packed second season, the world's largest ruby in the Arctic Fantasy Puppy League. And, off the field, Animal Planet in collabora- may be within reach, and Sixty Degree Resources returns to the most tion with the ASPCA® (The American Society for the Prevention of remote mining location on the planet with their eyes on the prize. The Cruelty to Animals®), brought the PUPPY BOWL EXPERIENCE live window to the mining season is tight and the team bares all in this to New York City at Discovery Times Square! For the whole week life-threatening, heart-pounding journey where the odds are stacked leading up to the big game, fans joined the celebration and played against them and death is a very real possibility. The adventure begins tail-gate games, toured the Puppy Bowl Hall of Fame, met adoptable Thursday, March 6, at 10PM. pups and much more. WORLDWIDE SEARCH FOR RIVER MONSTERS CONTINUES BIG CHANGES FOR TLC’S LITTLE COUPLE RIVER MONSTERS, Animal Planet’s best performing series for five While last season covered Bill and Jen’s new life back at home as new record-breaking seasons returns this April for a monstrous sixth parents, the upcoming Spring 2014 episodes will be both heartwarm- season following biologist and extreme angler, Jeremy Wade, on his ing and heartbreaking. With Zoey’s adoption approved, the whole journey to unravel freshwater fish tales of giant killers. This season, family prepares for their trip to India, but what they didn’t expect was Wade continues his search for harrowing stories of bloodthirsty fish

8 in South America, a continent where he has nabbed some of his more PURSUIT OF THE ULTIMATE HOTROD legendary catches. Wade goes into the “heart of darkness,” to loca- Season after season, car collector extraordinaire Wayne Carini tions so remote and so forgotten, few have ever seen them. A fearless has scoured the country for the rarest cars that pack a historical explorer, he aims to hook the finned culprits that are thought to at- punch. On February 18 at 10PM, Velocity celebrates the 100th tack humans and reveal how much truth lies in the myth. episode of CHASING CLASSIC CARS with an ode to Wayne as he attempts to track one of his most elusive cars to date. He’s on the ALL-NEW SEASON ON THE HUB NETWORK trail of a rare 1934 Lincoln Convertible – one of only ten made – On February 1, the Hub Network premiered the star-studded original and he’ll have to barter with a group of nostalgic owners to get it. movie STAN LEE'S MIGHTY 7, with legendary comic book genius Stan Lee in his first starring role, plus an impressive cast, including Sean BEWARE OF CUPID’S ARROW Astin, Jim Belushi, Teri Hatcher and Christian Slater to name a few. Beginning February 7, ID will “celebrate” Valentine’s Day in its own Also, this spring the hit series SPOOKSVILLE returns with all-new unique style with the first-ever FORGET YOU WEEK, anchored by day-

original episodes, helping round out the network’s Emmy® Award- time talk personality Wendy Williams, who also hosts the original spe- winning R.L. STINE’S THE HAUNTING HOUR: THE SERIES. cial 50 WAYS TO LEAVE YOUR LOVER (Friday, February 14 at 9PM). Love hurts on ID’s anti-Valentine’s Day special, as we reveal breakup IS ANYONE OUT THERE? tactics taken by real people spurned by lousy lovers. But before From infinite Earths to alien life forms, we are fascinated with feeling the sting of Cupid’s acid-laced arrows, FORGET YOU WEEK what lies beyond our galaxy and how it will affect us in the future. primes viewers for the darkly funny special with an on-air watch & win Beginning March 2, join for a weeklong look at the sweepstakes, as well as digital extensions including a “Relationship age-old question: Are we alone in the universe? Personality Quiz” and a March Madness-style “Break-up Bracket.”

From CLOSE ENCOUNTERS to NASA’S UNEXPLAINED FILES and ALL-STAR BLITZ THROUGH THE WORMHOLE, Science Channel brings a week of DEION'S FAMILY PLAYBOOK is the hilarious and compelling real-life series and specials that go to the outer limits bringing cutting-edge story of Deion Sanders, the only pro athlete to ever play in both a information and incredible stories of chance alien encounters. So, you Super Bowl and a World Series. Deion, best known as “Prime Time,” decide… “Are We Alone?” is a single father raising five kids of his own, while also helping to raise four other children who live with him. Additionally, Deion is LOOKOUT BELOW! co-founder and football coach of Prime Prep Academy, a charter Coming in March is Destination America’s newest series, TIMBER school that aims to make a lasting impact on the lives of children in KINGS, which follows the best log builders on the planet as they underserved areas. With so much on his plate both at school and at hand-craft stunning homes for the rich and famous. However, home, Deion strives to keep everything under control. Help is on the every day is a challenge whether compromising with temperamen- way every other week when his Hollywood-producer girlfriend Tracey tal clients, fighting the elements or managing work yard egos, the Edmonds, who has two sons of her own, comes to visit. The game stakes are high. starts Saturday, March 1 on OWN.

A Quarterly Publication of Discovery Communications | FEBRUARY 2014 9 Discovery Inks Successful Renewal with Time Warner Cable

In an industry where public-facing distribution disputes are increasingly frequent, Discovery has once again reached a successful affi liate agreement without service interruption. The deal, signed with Time Warner Cable well before the January deadline, allows for the continued delivery of Discovery’s networks to Time Warner Cable subscribers across the country and is DOMESTIC DISTRIBUTION the fi rst to include TV Everywhere rights. The multi-platform agreement ensures the continued carriage of Discovery’s channels and VOD content from them, including Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science, OWN: , Hub Network, American Heroes Channel, Discovery Fit & Health, Discovery en Español, , Velocity and Destination America. The deal not only adds to the legacy of success for Discovery’s award-winning distribution team, but also highlights the strength of the portfolio’s must-have content.

Discovery Consumer Products Found Gold On Cyber Monday

On Cyber Monday, Discovery Consumer Products launched the new Gold Rush Panning Kit based on the hit Discovery Channel series. The product, in partnership with Pay Dirt Gold Company, is designed to provide the thrill of gold mining in the comfy terrain of your own home. Each kit includes a professional gold pan, a snuffer bottle for retrieving gold from the dirt, a classic vile to store the gold, a certifi cate of authenticity and a one pound bag of dirt guaranteed to contain real gold.

Since the product’s launch on DiscoveryStore. com, more than 500 units have been sold. The Gold Rush Panning Kit generated the second highest Cyber Monday sales on DiscoveryStore. com and was the best selling product for Gold Rush in 2013 overall. In the fi rst part of 2014, Discovery Consumer Products and Pay Dirt Gold Company will debut the Gold Rush Panning Kit at retail stores across the country.

10 Discovery Acquires Espresso Education As part of Discovery Education’s overall expansion strategy, the company recently acquired U.K. market leader Espresso Group Limited, a top provider of primary school digital educa- tion content. The purchase highlights Discovery Education’s commitment to supporting edu- cators in the U.S. and around the world as they transition from static textbooks to dynamic digital learning environments.

More than one million teachers serving 35 million students use Discovery Education’s high-quality digital resources, profes- sional development and networking opportunities to create authentic learning environments that engage today’s learners and accelerate academic achievement.

In the 16 years since its founding, Espresso Education has become a leader in e-learning, transforming the way students learn through a blend of visual media and interactive resources. Espresso Education currently serves nearly 50% of primary schools across the United Kingdom with its Espresso Primary services.

Texas Adopts Science Techbook Following a rigorous evalua- A complete digital solution built from the ground up, Discovery tion, the Texas State Board Education Science Techbook features compelling video; digi- of Education approved, tal simulations and explorations; virtual and hands-on labs; an through its state adoption interactive glossary with animations, audio and video; and core process, the use of the Discovery Education Science Techbook interactive text with text-to-speech, leveled reading and note- series as a core instructional resource for elementary, middle taking and highlighting capabilities. Recognizing that districts and high school science courses. All K-12 Discovery Education with Spanish-speaking populations require additional specialized Science Techbook courses were adopted by the state, with 100% resources, Science Techbook supports learners through features coverage of the Texas Essential Knowledge and Skills (TEKS) and such as hundreds of Spanish language video segments, a multi- English Language Profi ciency standards. School districts across modal interactive glossary with defi nitions in Spanish and a Span- Texas now have the option to implement the Discovery Education ish reading path with text-to-voice capability. Science Techbook, a fully interactive digital solution that replaces traditional textbooks and can be used on any device. DID YOU KNOW? In January, Discovery On November 7, Discovery Communications announced ›Animal› Planet’s TREEHOUSE employees participated in plans to acquire a controlling MASTERS delivered a sky-high the company’s fourth interest in TF1 Group’s Eurosport performance for its season 2 annual Discovery Impact: International, the leading pan- debut drawing in 1.6 million Creating Change, a 12-hour European sports broadcasting viewers and garnering its marathon to create platform, reaching more than 133 best-ever performance among marketing, communications million homes across 54 countries persons 25-54, persons 18-49, and social media materials for in 20 languages. men 18-49, women 25-54 and nonprofi t companies. women 18-49. Earlier in the year, 11-year-old The fi nale of BAKE OFF ITALIA Peyton Robertson was crowned Discovery Digital Networks was the most watched show winner of the 2013 Discovery provided in-depth live coverage ever on Real Time as 2.8 million Education 3M Young Scientist from the show fl oor of the 2014 cumulative viewers tuned in to Challenge for his innovative Consumer Electronics Show watch Madalina from Perugia sandbag design, aiming to better through 15 shows and more than crowned the fi rst-ever winner of protect fl ood zones against salt- 120 pieces of content. this major new Italian series. water damage.

A Quarterly Publication of Discovery Communications | FEBRUARY 2014 11 FACTS & FIGURES

Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the world's #1 nonfi ction media company reaching 2.5 billion cumulative subscribers in over 224 countries and territories. Discovery is dedicated to satisfying curiosity through more than 190 worldwide television networks, led by Discovery Channel, TLC, Animal Planet, Science and Investigation Discovery, as well as U.S. joint venture networks OWN: Oprah Winfrey Network and the Hub Network. Across the Nordic region, Discovery owns and operates SBS Discovery Media, a top-three portfolio of television brands that feature leading nonfi ction content, as well as locally produced entertainment programs, sports and the best scripted series and movies from major studios. Discovery also is a leading provider of educational products and services to schools, including an award-winning series of K-12 digital textbooks, and a digital leader with a diversifi ed online portfolio, including Discovery Digital Networks. For more information, please visit www.discoverycommunications.com.

GLOBAL REACH International Networks As of As of Cumulative Global Subscribers ...... 2.5 billion Feb 2014 Feb 2013 Countries & Territories ...... 224 Discovery Channel ...... 340 ...... 328 Worldwide Networks ...... 197 Animal Planet ...... 298 ...... 285 Languages ...... 45 TLC ...... 248 ...... 221 Network Entertainment Brands...... 50 Switchover Media ...... 105 ...... 104 Discovery Science ...... 81 ...... 79 VIEWING SUBSCRIBERS (IN MILLIONS) DMAX ...... 78 ...... 78 Discovery Kids ...... 76 ...... 65 US Networks As of As of Investigation Discovery ...... 74 ...... 65 Feb 2014 Feb 2013 Discovery Home & Health ...... 64 ...... 58 Discovery Channel ...... 98 ...... 99 ...... 55 ...... 55 TLC ...... 97 ...... 99 ...... 52 ...... 42 Animal Planet ...... 96 ...... 97 Quest ...... 26 ...... 38 Investigation Discovery ...... 85 ...... 81 ...... 25 ...... 24 OWN: Oprah Winfrey Network ...... 83 ...... 83 SBS Nordics ...... 25 ...... n/a Science ...... 76 ...... 77 Discovery World ...... 18 ...... 17 The Hub Network ...... 71 ...... 72 Discovery Max ...... 17 ...... 16 Military Channel (AHC) ...... 62 ...... 62 Shed ...... 12 ...... 12 Destination America ...... 59 ...... 60 ...... 12 ...... 11 Velocity ...... 57 ...... 46 Discovery HD Showcase ...... 9 ...... 7 Discovery Fit & Health ...... 48 ...... 49 Discovery HD Theater ...... 6 ...... 6 ...... 40 ...... 40 Discovery HD World ...... 6 ...... 4 Discovery en Español ...... 5 ...... 5 Discovery Civilization ...... 5 ...... 5 Discovery Familia ...... 4 ...... 4 Discovery Travel & ...... 4 ...... 4 ...... 2 ...... 2 DIGITAL MEDIA HIGHLIGHTS • 110+ original online web series • 600 hours of original online videos • 65M+ monthly unique visitors

Subscriber numbers as of January 30, 2014, according to The Nielsen Company in the US and internal data review and external sources outside of the US. Subscriber numbers include unbranded programming blocks in China, which are generally provided without charge to third-party channels and represented approximately 280 million cumulative subscribers as of January 30, 2014. US Hispanic networks are distributed to US subscrib- ers, but are operated by and included as part of Discovery International Networks for fi nancial reporting and management purposes. Internet traffi c data as of January 30, 2014, according to ComScore, Inc.

WORLD HEADQUARTERS DISCOVERY NETWORKS DISCOVERY NETWORKS DISCOVERY NETWORKS DISCOVERY NETWORKS One Discovery Place ASIA-PACIFIC WESTERN EUROPE CEEMEA LATIN AMERICA/US Silver Spring, MD 20910 21 Media Circle Chiswick Park Building 2 59 Zlota Street HISPANIC TEL: 240.662.2000 #08-01 566 Chiswick High Road Zlote Tarasy. Lumen Building 6505 Blue Lagoon Drive Singapore 138562 London - W4 5YB, England 00-120 , Suite 190 TEL: 65.6510.7500 TEL: 44.208.811.3000 TEL: 011.48.22.365.11.00 Miami, FL 33126 TEL: 786.273.4700

discoverycommunications.com