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These Are the Moments of Pure Discovery

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These Are the Moments of Pure Discovery 2014 ANNUAL REPORT DISCOVERY COMMUNICATIONS THESE ARE THE MOMENTS OF PURE DISCOVERY 2014 ANNUAL REPORT THE MOMENTS YOU REMEMBER DISCOVERY COMMUNICATIONS WE TOOK A RISK 2014 ANNUAL REPORT TO CREATE TV NO ONE HAD EVER TRIED BEFORE DISCOVERY COMMUNICATIONS WE BELIEVED AND YOU WATCHED 2014 ANNUAL REPORT AND FOR 30 YEARS YOU’VE BEEN RIGHT THERE, AT THE EDGE OF YOUR SEAT DISCOVERY COMMUNICATIONS THAT’S THE WONDER OF DISCOVERY 2014 ANNUAL REPORT YOU WILL NEVER KNOW WHAT HAPPENS NEXT DISCOVERY COMMUNICATIONS DEAR SHAREHOLDERS, As Discovery Communications celebrates its 30th anniversary in 2015, the company remains well positioned to continue growing market share, launch new channels, and extend our reach and brands into new markets and on new platforms around the world. We remain committed to our long-standing strategy of investing in content, formats and intellectual property that attract global audiences, fortify our brands and fuels 364 feeds in 220 markets across the world. * Country count includes countries and territories. 2014 ANNUAL REPORT • 2.6 billion cumulative subscribers in more than 220 countries* • Discovery’s top-10 global shows reached 2.2 billion viewers worldwide DISCOVERY COMMUNICATIONS THE WORLD’S NETWORK FOR 30 YEARS U.S. & CANADA ID is the #1 network for length of tune Discovery Kids is the #1 LATIN AMERICA pay-TV network in Brazil for six years in a row 2.6 Billion Cumulative Subscribers 225 Countries 45 Languages U.S. & CANADA LATIN AMERICA NORTHERN EUROPE 850 Million cumulative subscribers 334 Million cumulative subscribers 276 Million cumulative subscribers 2 Countries 49 Countries 17 Countries Country counts include countries and territories. 2014 ANNUAL REPORT #1 PAY-TV PROGRAMMER IN THE WORLD Discovery Channel is the #1 CEEMEA factual network in Russia NORTHERN EUROPE & SOUTHERN Eurosport is the #1 EUROPE sports platform Discovery Channel is the #1 ASIA-PACIFIC international channel in Asia-Pacifi c + Regional Headquarters O Offi ce Locations SOUTHERN EUROPE CEEMEA ASIA-PACIFIC 232 Million cumulative subscribers 504 Million cumulative subscribers 390 Million cumulative subscribers 9 Countries 109 Countries 37 Countries DISCOVERY COMMUNICATIONS FAST N’ LOUD THE WORLD’S MOST WIDELY DISTRIBUTED PAY-TV NETWORK Dedicated to creating the highest-quality non-fi ction content that informs and entertains our viewers about the world in all its wonder, diversity and amazement. GOLD RUSH • 367 million international subscribers • 97 million U.S. subscribers DEADLIEST CATCH • Ratings rose 32% in BRAZIL and 23% in India in the fourth quarter • Five of the TOP-10 series* in cable in U.S., ALASKAN BUSH PEOPLE including GOLD RUSH and FAST N’ LOUD Subscriber numbers include unbranded programming blocks in China, which are generally provided without charge to third-party channels. * Unscripted series for men 25-54. 2014 ANNUAL REPORT SURPRISINGLY HUMAN The world’s only entertainment brand that immerses viewers in the full range of life in the animal kingdom. • 313 million international subscribers • 94 million U.S. subscribers • 15% INTERNATIONAL AUDIENCE GROWTH in the fourth quarter • Third consecutive year as a TOP-20 NETWORK among U.S. men in primetime RIVER MONSTERS TREEHOUSE MASTERS PIT BULLS & PAROLEES PUPPY BOWL X Subscriber numbers include unbranded programming blocks in China, which are generally provided without charge to third-party channels. DISCOVERY COMMUNICATIONS THE WORLD’S #1 PAY-TV BRAND FOR WOMEN SAY YES TO THE DRESS Everyone needs a little TLC • 307 million international subscribers • 95 million 19 KIDS & COUNTING U.S. subscribers • DOUBLE-DIGIT ratings increases in Brazil and TRIPLE-DIGIT growth in Australia in the fourth quarter THE LITTLE COUPLE • TOP-10 U.S. CABLE NETWORK with women in primetime LITTLE PEOPLE, BIG WORLD Subscriber numbers include unbranded programming blocks in China, which are generally provided without charge to third-party channels. 2014 ANNUAL REPORT ON THE CASE WITH PAULA ZAHN DEADLINE: CRIME WITH TAMRON HALL HOMICIDE HUNTER: LT. JOE KENDA SURVIVING EVIL WITH CHARISMA CARPENTER ONE OF THE FASTEST- GROWING NETWORKS IN THE WORLD Investigation Discovery is the world’s leading mystery and suspense network on television. • 104 million international subscribers • 86 million U.S. subscribers • ID’s average international AUDIENCE ROSE 24% in the fourth quarter • BEST YEAR EVER in the U.S. in primetime delivery in all key demographics; a top-5 network for women 25-54 DISCOVERY COMMUNICATIONS REVVING UP WORLDWIDE RATINGS OVERHAULIN’ An upscale men’s cable network that focuses on thrilling automotive content for its viewers. • Velocity has 61 million U.S. subscribers AMERICARNA • Turbo has 60 million international subscribers • Nearly doubled subscribers in 2014 in Latin America CHASING CLASSIC CARS • 25% primetime delivery growth in 2014 in U.S. for persons 25-54 BITCHIN’ RIDES 2014 ANNUAL REPORT QUESTION EVERYTHING HOW THE UNIVERSE WORKS Home for the thought provocateur, the individual unafraid to ask the questions of “How?” and “Why not?” • 82 million international subscribers HOW IT’S MADE • 76 million U.S. subscribers • Rapid growth internationally with 26 MILLION SUBSCRIBERS in India LANDING ON A COMET • 2014 was the MOST-WATCHED YEAR EVER for total viewers in the U.S. in primetime DISCOVERY COMMUNICATIONS THIRD CONSECUTIVE YEAR OF DOUBLE-DIGIT PRIMETIME IYANLA: FIX MY LIFE GROWTH IN TOTAL VIEWERS The fi rst and only network named for, and inspired by, a single iconic leader. • 82 million U.S. subscribers THE HAVES AND THE HAVE NOTS • THE HAVES AND THE HAVE NOTS is the #1 original cable series for African-American women in all of primetime • Saturday Night’s DEION’S FAMILY PLAYBOOK top-fi ve original cable series for African-American women on ad-supported cable: WELCOME TO SWEETIE PIE’S, IYANLA: FIX MY LIFE, DEION’S FAMILY PLAYBOOK, SIX LITTLE MCGHEES and RAISING WHITLEY WELCOME TO SWEETIE PIE’S 2014 ANNUAL REPORT FIVE CONSECUTIVE YEARS OF PRIMETIME GUNSLINGERS DELIVERY GROWTH Telling timeless stories of heroes facing challenging villains and situations. • 60 million THE AMERICAN REVOLUTION U.S. subscribers FOUR CONSECUTIVE YEARS OF PRIMETIME MOUNTAIN MONSTERS DELIVERY GROWTH ACROSS MANY DEMOGRAPHICS The only network celebrating the people, places and stories of the U.S. TNA IMPACT WRESTLING • 57 million U.S. subscribers DISCOVERY COMMUNICATIONS THE GLOBAL LEADER IN STANDARDS-BASED DIGITAL CONTENT FOR K-12 CLASSROOMS, STREAMING PLUS DIGITAL MEDIA DISCOVERY EDUCATION is transforming teaching and learning with award-winning digital textbooks, multimedia content, and professional development. • Available in half of all U.S. schools, half of all English primary schools, TECHBOOKTM DIGITAL TEXTBOOKS and in 56 countries worldwide The company’s web-native video portfolio, including TESTTUBE, DISCOVERY EDUCATOR NETWORK SOURCEFED, the recently launched SEEKER and more, extends the company’s 30-year mission to satisfy curiosity across platforms through daily content anchored by the best personalities on the web. DNEWS WITH TRACE DOMINGUEZ 2014 ANNUAL REPORT COMMITTED TO UNLOCKING THE VALUE OF OUR UNMATCHED GLOBAL DISTRIBUTION. In 2014, Discovery Family Channel debuted and recently Discovery Life began airing UNTOLD STORIES OF THE ER in the U.S. and Poland. • Discovery Family Channel has 70 million U.S. subscribers • Discovery Life has WEIRD, WILD AND DEADLY 46 million U.S. subscribers Magnetic, forward-looking stories that inspire and motivate viewers. • #1 rated ad-supported Hispanic TEXAS TROCAS cable network among men 25-54 The body, home, relationships and identity are women’s canvases for transformation. DESAFIO FASHIONISTA DISCOVERY COMMUNICATIONS WE REACH MORE VIEWERS IN MORE MARKETS ON MORE PLATFORMS THAN ANY OTHER MEDIA COMPANY, WITH AN AVERAGE OF 10 CHANNELS IN MORE THAN 220 COUNTRIES.* Key to our international success is our brand position, distribution WHEELER DEALERS advantage and best-in-class technical infrastructure. • Local offi ces in more than 100 markets MAN VS. EXPERT • 6,800 global employees • Nearly 60 on-air global brands THE UNEXPLAINED FILES * Country count includes countries and territories. 2014 ANNUAL REPORT Discovery produces content that appeals to a global audience, working across dozens of languages and cultures. We augment our global content with local productions and customized programming to increase relevancy and reach. 101 MILLION SUBSCRIBERS 84 MILLION SUBSCRIBERS 83 MILLION SUBSCRIBERS 64 MILLION SUBSCRIBERS • Highest-ever average international audience +10% LAUNCHED IN 2014 X IN NORTH AFRICA IN 24 & MIDDLE EAST MARKETS IN GERMANYIN INDIA IN INDIA IN DENMARK IN AUSTRALIA JANUARY FEBRUARYMARCH APRIL MAY JUNE JULY AUGUST SEPTEMBEROCTOBER NOVEMBERDECEMBER DISCOVERY COMMUNICATIONS LAST YEAR, DISCOVERY TOOK A CONTROLLING STAKE IN EUROSPORT, the #1 pan-European sports media brand, to strengthen our portfolio, diversify our genres and grow our impressions across Europe and Asia. 132 MILLION 70 MILLION 11 MILLION 9 MILLION • Average Eurosport live audience 757,000 subscribers The company has leveraged our mix of pay-TV and free-to-air channels to maximize viewership of key sporting events. • U.S. Open broke the 50 MILLION mark on Eurosport channels • Kanal 5, our largest broadcast channel in Denmark, aired the Williams-Wozniacki fi nal, earning a 30% share • Nadal French Open fi nal REACHED 4.1 MILLION VIEWERS, including on Discovery Max in Spain, setting a new daily record 2014 ANNUAL REPORT Discovery and Eurosport are creating new value with advertisers, affi liates,
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