Netflix could more than double its total subscriber additions in the second half of 2021 as its original content slate expands, while Q2 growth, fueled by children’s programming and international series, should be in line with guidance, according to Canaccord Genuity media analysts Maria Ripps and Michael Graham.

In a note to clients issued Wednesday (July 14), the analysts estimated that Netflix would report about 1.1 million customer additions in Q2, slightly above company guidance of about 1 million additions. But Ripps and Graham expect bigger gains in the second half of the year — about 14 million customer additions (more than twice the five million added in the first half of the year) — fueled by the return of several popular series and a slew of new originals.

Netflix is scheduled to report its Q2 results on July 20. 

Ripps and Graham expect Netflix to end 2021 with almost 223 million total paying subscribers, up 19.2 million from the prior year, but still behind the 36 million it added in 2020. In 2022, the analysts predict Netflix will have nearly 250 million global customers, up 26.6 million.

After a sluggish first half in 2021, Canaccord expects Netflix’s second half content lineup to have “significantly more firepower,” with the July return of series Atypical, Virgin River, Never Have I Ever, and one of its most popular shows of 2020, teen drama Outer Banks.    

Reality dating show Sexy Beasts debuts on July 21 and similarly themed reality hit Love Is Blind comes back a week later for a three-episode reunion. On the film side, the third installment of teen drama The Kissing Booth premieres on Aug. 11 followed by He’s All That (featuring the acting debut of Tik Tok star Addison Rae) on Aug. 27, and action comedy Red Notice, starring Dwayne “The Rock” Johnson, Gal Godot and Ryan Reynolds on Nov. 12. Lin-Manuel Miranda musical Tick, Tick … Boom!, season two of The Witcher, and Don’t Look Up are also slated for fourth quarter release.

New episodes of past hits after a COVID-induced hiatus should goose next year’s subscriber rolls even further, according to the analysts. 

“The content pipeline for 1H22 and beyond is also robust as COVID-driven production delays pushed out new seasons of some of the biggest titles like Stranger Things, The Crown and Ozark into next year, and Netflix continues to invest in unique content both in the U.S. and around the world which is helping to strengthen its competitive positioning and differentiate its library from those of rivals,” Ripps and  Graham wrote. 

Netflix has been shaking up its content mix of late, which is reflected in Canaccord’s own top 10 rankings. Animated children’s fare like The Mitchells vs. The Machines, Dog Gone Trouble and Wish Dragon have dominated Canaccord’s TV Power Rankings, while at the same time strengthening Netflix’s position against rival Disney Plus, the analysts wrote.

Original content is still a core growth engine for Netflix, and despite a lighter than usual slate in the past few months, about 64% of the SVOD service’s top ten shows in Canaccord’s power rankings were originals, compared to 63% in Q1 and 59% in Q4. 

As production for its tentpole titles was on hold, Netflix boosted its commitment to children’s content, licensing The Mitchells vs. The Machines from Sony Pictures, which stayed in the top ten rankings for each day of the quarter after rights were purchased. Kids movies also made up six of the top ten films in Canaccord’s power rankings  during the quarter, including Netflix-produced Dog Gone Trouble and Wish Dragon joining licensed fare like Home, Madagascar 3 and The Secret Life of Pets 2. 

Ripps and Graham expect that trend to continue, adding that Netflix already has a handful of kids series in the pipeline — A Tale Dark & Grimm and Dogs in Space slated for fall 2021 and Super Giant Robot Brothers expected in 2022.

Investments in local language content also are showing results across the board, with the popularity of series like Mexican mystery Who Killed Sara? placing second during the quarter in Canaccord Genuity’s TV Power Rankings and French thriller Lupin, Norwegian fantasy drama Ragnarok and Spanish teen drama Elite spending significant time in the top ten.

Netflix began producing local language series back in 2015 with the Colombian Cartel-themed Narcos, and followed that somewhat surprising hit with shows like Money Heist (Spain), Dark (Germany) and others. Now such shows are regular hits with viewers.

“...This segment of Netflix’s library serves not just as a tool to drive subscriber acquisition and engagement in international markets, but also as a key differentiating factor compared to other streaming services,” Ripps and Graham wrote. 

The analysts noted that Netflix plans to step up its already impressive local language output on several fronts.

In South Korea, where it has about 3.5 million subscribers, Netflix has invested about $700 million in two product facilities and local language content, and plans to spend another $500 million on movies and TV series produced in the country. The SVOD pioneer has spent about $420 million in India on content over the past two years and said that it plans to spend more than that on 41 new shows and movies it will release in 2021. 

Other countries will see similar investment. Netflix is opening a new office in Italy in the second half and plans to double the number of Italian original series next year; in the Nordic region, where it has 4.5 million subscribers, Netflix has already produced more than 70 original series and plans to open an office there in the second half of 2021. 

Netflix already has spent about $175 million producing shows in Colombia over seven years and plans 30 new projects before the end of the year. In Spain, where it has produced more than 50 titles and opened its first European production hub in Madrid in 2019, plans are to double the number of sound stages from five to 10 in addition to building new post-production facilities, a film lab and high-tech editing suites. In Russia, Netflix has announced plans to produce its first Russian original series — Anna K — a retelling of Tolstoy’s Anna Karenina, while in Mexico it plans a remake of hit comedy movie Nosotros Los Nobles.

The Discovery-WarnerMedia union has been touted as yet another confirmation that the TV industry is rapidly moving toward full-streaming distribution. But some analysts see the merger as benefiting the companies’ respective linear networks most, at least initially. 

WarnerMedia parent AT&T will receive $43 billion in cash and debt securities in exchange for contributing its content assets to an as-yet-unnamed spinoff, which will also include Discovery’s programming businesses. The combined entity would seem to have both feet planted firmly in the linear and streaming TV  camps, combining iconic networks like CNN, TBS, TNT, HGTV and Food Network with streaming assets HBO Max and Discovery Plus. 

While a lot of the hype surrounding the merger focused on the streaming aspects -- Discovery Plus has about 15 million customers and HBO Max has about 20 million -- some analysts see the deal as more of a boon for the old school cable networks. 

Also Read: Eureka, AT&T is a Phone Company Again 

“Isn't it ironic that once again, just like with Disney/Fox, in pursuit of trying to create a collection of assets formidable enough to successfully compete in the streaming future, we find two companies mainly combining linear TV networks?” Bernstein media analyst Todd Juenger noted. “This combination wouldn't result in a much bigger streaming business. It would result in a much bigger linear TV business.”

Discovery’s 19 linear networks -- including Discovery Channel, OWN, Animal Planet, HGTV, Food  and Investigation Discovery -- generated about $2.9 billion last year in affiliate fees. WarnerMedia’s Turner Networks -- including HBO, TBS, TNT, CNN, TCM and Cartoon Network -- don’t break out affiliate fee revenue, but Kagan, a unit of S&P Global Market Intelligence, estimated they were about $5.9 billion in 2020. Those numbers are likely to rise significantly.

“The Discovery networks are unique in that their group of 19 networks generate more revenue from advertising than subscription fees,” Kagan analyst Scott Robson said in an e-mail message. “By combining with WarnerMedia those networks have the opportunity to leverage scale to negotiate higher license fees. The newly formed company will still not have a major broadcast network in the mix which has helped the Disney, Fox and NBCU cable nets negotiate more favorable carriage deals, but the added scale is positive for the affiliate revenue outlook for Discovery and WarnerMedia.”

In a research note, MoffettNathanson media analyst Michael Nathanson wrote that Discovery has historically had difficulty monetizing its networks correctly -- its programming accounts for 16% of viewership but just 6% of affiliate revenue. WarnerMedia has fared better -- 12% of viewership and 14% of total fees, according to Nathanson. Together, the analyst estimated the channels would attract 29% of viewership and 20% of affiliate fees.

“No other company will have as much national viewing share as Discovery/WarnerMedia which should give them greater leverage to drive affiliate fees in negotiations with distributors going forward,” Nathanson wrote. 

For WarnerMedia, the chance to grow its international presence is a big motivator. According to Nathanson, Discovery generates about $2 billion in international affiliate fees annually, while Turner captures about $900 million. Together they would generate at least $2.9 billion. Tack on an estimated $2.1 billion in international ad revenue ($1.6 billion from Discovery and $500 million from WarnerMedia) and the international take rises to $5 billion, the same level that Disney generates outside of the U.S., according to the analyst. 

The deal also should help Discovery capture a greater slice of the domestic linear TV ad market. According to Nathanson, Discovery had one of the lowest CPMs, or cost per thousand impressions, in the industry in 2019 (around $2.68) while Turner had the highest at more than $4. The ability to negotiate ad deals with Turner, which also has a heavy sports programming component, should help Discovery get higher CPMs for its channels.  

On the downside, continued cord-cutting could depress the total revenue from linear affiliate fees, and its streaming offerings could lead to some cannibalization. But Discovery’s experience in selling targeted ads via its streaming offering  -- Nathanson estimated Discovery Plus gets more than three times the CPMs its linear networks receive -- should benefit HBO Max, particularly as it intends to release an ad-supported version in June.

Also Read: Islands in the Streams

Discovery shares were trading at about $33.70 each in afternoon trading Tuesday, down 11 cents each, a day after the deal was unveiled. AT&T shares were taking a bigger hit: they were down by 5% each ($1.82) to $29.56 each in afternoon trading.

Other programmers saw gains as speculation continued to swirl that other companies would follow Discovery-WarnerMedia’s lead, possibly further consolidating the content business. ViacomCBS was up 4.8% ($1.75) to $40.15; AMC Networks was up about 2% (72 cents) to $48.25; Fox was up 2% (66 cents) to $37.43; and Comcast (parent of NBCUniversal) and Disney were about even at $55.42 and $170.68, respectively, on Tuesday afternoon. 

Comcast said Wednesday that it has named Dana Strong CEO of Sky Group, replacing Jeremy Darroch who will step down from that role to become executive chairman of the British satellite unit. Strong, currently president of Comcast Cable’s Consumer Services, will report directly to Comcast chairman and CEO Brian Roberts.

Darroch has been CEO of Sky since 2007, and continued in that role when Comcast purchased the company in 2018 for $31 billion. He has had a long career at the British satellite giant, joining the company in 2004 as chief financial officer in 2004. 

During that time, he has tripled the size of the business and led the transformation of the company into Europe’s largest multi-platform TV provider with nearly 24 million customers. 

Strong has been a rising star at Comcast since joining the company in 2018 as president of Consumer Services.  In that role she was responsible for  Comcast’s residential business and has led new product and market launches in broadband, video, home security, and mobile. During her tenure, the company achieved record subscriber and broadband growth and the company’s highest levels of customer satisfaction.

“There are few businesses that have the track record of Sky, and I am delighted to have the opportunity to lead the company,” Strong said in a press release. “I’ve always admired Sky’s innovation, brand, and exceptional focus on the customer. I look forward to working with this incredible team to continue to grow the business and shape the next chapter for Sky.”

No replacement for Strong's Consumer Services position has been named, but Comcast said her leadership team will report to Comcast Cable CEO Dave Watson during the search. 

Strong has more than 25 years experience in international markets, having served as president and chief operating officer of Virgin Media in the UK, chief transformation officer of Liberty Global as well as CEO of UPC Ireland and COO of AUSTAR in Australia.

“I would like to thank Jeremy for his exceptional leadership of Sky and his partnership since we acquired the company,” Roberts said in a press release. “Sky’s values have been a perfect fit for ours and I credit Jeremy with building an incredible culture and executing the seamless integration with Comcast. He and his team have established a world-class brand and a strong, well-run business that will continue to flourish. Jeremy has been a terrific colleague to me and everyone at Sky, but I respect his decision and I am pleased that he’s agreed to stay on to help with the transition and advise the company.”

“I am delighted that Dana will be taking the helm at Sky,” Roberts continued. “She is an accomplished executive with an extraordinary ability to transform, inspire and drive positive change. She quickly made her mark on our US business, driving growth and innovation with an unwavering commitment to our customers. Her global experience and vision coupled with her leadership and track record at some of the largest media and telecommunications companies in the world make her the perfect leader for Sky.”

In the press release, Darroch said that his decision to step down from the CEO spot wasn’t easy, but he believes the timing is right. 

“I feel incredibly lucky to have been surrounded by colleagues who care as deeply as I do about this business and our customers and work tirelessly every day to make their lives better,” Darroch said in the release. “I would like to thank all of my colleagues at Sky and also Brian and the team at Comcast who I have thoroughly enjoyed working with. I have no doubt that Dana will take Sky into a new and exciting future.”

Netflix, already focusing heavily on its international opportunity as the U.S. market matures, will likely get most of its future growth from three key areas, with mobile broadband users representing the greatest opportunity, according to a report by MoffettNathanson media analyst Michael Nathanson.

Netflix has about 167 million paid subscribers globally, with 61 million of those in the U.S. and 105 million elsewhere. Domestic subscriber growth has slowed in the past several years from 5.3 million in 2012 to 2.6 million in 2019, and will likely continue over the next few years. Nathanson estimates that paid customer additions will shrink to 1.7 million in 2020 and to 903,000 by 2024.

The flattening out of the U.S. market was just a matter of time, Nathanson wrote. With 61 million U.S. subscribers, Netflix is now streamed in 76% of homes that stream video, and 80% of homes that have broadband. So, it was only logical that growth would decline. And decline it did, sharply. The 2.6 million U.S. subscriber additions Netflix reported in 2019 was 55% below the 4.5 million adds in the prior year. For the next five years at least, Nathanson predicts that U.S. adds will be around 1 million per year.

Nathanson added that even as cord cutting accelerates -- pay TV subscribers are declining at about a 3% annual clip -- it won’t help Netflix domestic subscriber rolls, because its existing penetration with pay TV providers is high. He estimated that with Comcast alone -- which integrated the Netflix app in its X1 operating system in 2016 -- penetration is about 67%.

“In other words, people are cutting the cord because they have Netflix,” Nathanson wrote. “They’re not cutting the cord and discovering Netflix for the first time.”

But it’s a different story internationally, and Nathanson believes that subscriber growth outside of the U.S. should more than double in the next five years. Nathanson estimated that Netflix would have 305.2 million global paid customers by 2024, with 66.4 million in the U.S. and 238.8 million in other countries.

Also helping out Netflix’s positioning internationally, is the near lack of competition from other streaming services. In his note, Nathanson pointed out that Comcast, despite its ownership of British satellite TV service provider Sky, didn’t mention an international component to its streaming Peacock service, which will launch in April. AT&T’s HBO Max will have a delayed international debut as the company agreed to extend its own content licensing agreement with Sky.

“That lack of international competition presents a long and open green field of opportunity for Netflix to keep growing outside the U.S.,” Nathanson wrote.

The analyst expects Netflix subscriber growth to focus on two areas with the most low hanging fruit first: U.S. Clones (those markets with high disposable incomes and broadband penetration and English-language fluency); and “Local Language Giants” (like Japan, South Korea and France).

U.S. Clones could create 16 million more broadband subscribers over the next five years, with 50 million additional high-speed internet customers coming from “local language markets by 2024," he predicted.

“Mobile First” countries like India and Southeast Asia, will require a little more work in terms of lower pricing and greater localization of content, Nathanson wrote, adding that Netflix would have to promote low-cost mobile broadband to drive penetration. He added over the next five years, he expects an additional 35 million broadband customers to come from those markets.

“The real game changer for Netflix, in our opinion, is the mobile opportunity,” Nathanson wrote, adding that based on Facebook and Instagram usage in those markets, the potential is huge. He estimated if Netflix could capture 2% of the Facebook users in Europe, Middle East and Africa and 5% in Asia-Pacific, it would add 50 million new customers to its rolls by 2024.

Last week, after Needham & Co. Laura Martin downgraded the stock and predicted that competition from the likes of Disney +, Apple TV + and Peacock would erode Netflix’s domestic customer base, Netflix shares took a big hit, dropping more than 3% in one day and casting doubt on the future of the SVOD pioneer.

And then, a few days passed.

By Dec. 16, investors seemed to have lost their doubt about the future of the streaming service, lifting the stock to $304.21, up 2% from the previous trading day (Dec. 13) and nearly 4% above the $293.12 hole the downgrade had pushed it into. By Tuesday (Dec. 17) afternoon, Netflix stock was up another 3.7% to $315.48, it’s highest level since Nov. 27 ($315.93). A day later, the stock grew yet again, closing at $320.80 on Dec. 18, up nearly 2%. On Dec. 19, the stock closed at $332.22, up another 3.6% rise.

Another crisis averted. Like the weather in New England, it appears that if Netflix shareholders don’t like the way the stock is moving, just wait a few minutes, things will change.

Fueling that growth spurt was a Securities and Exchange Commission filing where Netflix, notoriously stingy with detailed subscriber data, issued a report that showed while growth in the U.S. is beginning to slow, the slack is more than being taken up in other countries.

According to the filing,  which came out weeks before Netflix is scheduled to report Q4 results on Jan. 21, about 90% of its growth and half of its 158 million customers are coming outside of the U.S., with Europe, the Middle East and Africa (EMEA) clocking in with 140% customer growth and 196% revenue growth between Q1 2017 and Q3 2019. Netflix has said that starting in Q4 it will break out results by region.

In Asia, a market Netflix has been trying to crack for years, customers numbered about 14.5 million, but subscriber and revenue growth since Q1 2017 has been 211% and 229%, respectively.

Anyone who has followed Netflix for a length of time already knows that international has been the growth engine for the company for years. In a blog post, Lightshed Partners’ Rich Greenfield said domestic subscribers at Netflix have been on the slow since 2012, the same time as international additions started to pick up.

“Netflix has been an international growth story for years now – anything to the contrary is misleading,” Greenfield wrote. He added that there is still substantial runway for international growth and estimated there are 500 million fixed broadband households in EMEA, Asia-Pacific and Latin America (excluding China), growing at a rate of “tens of millions of households per year.” Netflix has about 91 million subscribers in those areas, implying a penetration rate of about 20%, vs. 66% for the U.S. and Canada.

“Simply put, the global growth opportunity is significant, particularly as Netflix leverages a large U.S. content base and invests heavily in local/regional content,” Greenfield wrote. “It is not hard to imagine Netflix reaching 200-250 million international subscribers in the future.”

Other analysts have pointed to the international opportunity in the past. Sanford Bernstein media analyst Todd Juenger has said he believes the SVOD pioneer could reach 300 million global subscribers by 2030. In a note last week to clients, he reiterated his bullish stance on the company.

The SEC filing also seemed to poke holes in another big criticism of the Netflix service, that its international customers won’t be willing to accept price increases. According to the filing, the average rate per home in the EMEA region has risen 19.7% since 2017, in Latin America it’s gone up 10% and in Asia-Pacific, rates have increased 5.7%, and there has been no effect on growth.

So, losing 4 million domestic subscribers doesn’t seem like such a big deal, except that Martin’s report showed that the biggest impact would be on perception. Domestic subscriber growth, she wrote, has been the catalyst that has driven the stock to new highs over the past couple of years. And though she acknowledges international growth -- her report came out before Netflix released its international figures on Dec. 16 -- she writes that U.S. subscribers are more valuable.

Martin wrote that the profit contribution of each U.S. customer is three times that of an international customer, which implies that the company’s negative free cash flow worsens as U.S. subscribers decline. That, Martin wrote, means Netflix has to divert more capital to recapture those subscribers, taking it away from content.

“The problem with Netflix if it loses U.S. subs is it loses its growth stock credentials,” Martin told CNBC on Dec. 10. “So it will no longer trade at 7 times revenue, it will get revalued at 15 times EV/EBITDA, which is like half on the stock price.”

She added that Netflix also must respond to the Disney + and Apple TV Plus price points. “You just can’t have a $13 [per month] response,” Martin said

Netflix stock has never been for the faint of heart. Go back to 2009 and 2010, when a 300% swing in the stock price over a matter of months wasn’t uncommon. The same held true for 2013, when Netflix stock ranged from a low of $13.14 each to a high of $52.60. Although the swings have gotten less dramatic recently, Last year, Netflix shares went from $191.96 on Dec. 29, 2017 to $284.59 on Jan. 29, 2018, a 48% increase in just 30 days.

So, I guess this is a long way of saying, don’t sweat the small swings in the stock. Bigger gains and losses are likely ahead.

Martin has made bold statements before (and been proven right). And though not everyone is right 100% of the time, people have been waiting for the Netflix bubble to burst for awhile.

Martin said that the competitively priced Disney + and Apple TV +, at $6.99 and $4.99 per month, respectively, has heightened the need for Netflix to come up with a similarly priced tier for consumers. Netflix raised its prices earlier in the year from $11 to $13 per month for its streaming service. Overall Netflix prices range from $9 for basic service (single stream, SD), to $16 for premium (four screens, HD and 4K).

In the Dec. 10 CNBC segment, Martin said Disney was the catalyst for the downgrade. She added that she believes about half of the 16 million new accounts Disney says have signed up for Disney + are coming from Netflix.

Related: The Song Remains The Same 

According to Yahoo! Finance, Netflix is trading at about 55 times Enterprise Value/EBITDA.

But there are a lot of questions around the impact of Disney + so far. Yes, 10 million people downloaded the app and signed up for the service on the first day, but the vast majority of those customers were getting it for free. And yes, some analysts predict about 24 million people signed up for the service in November, but again, a lot of those customers are coming from services that have offered free Disney + trials (Verizon, for example, is offering a free year of Disney + to its unlimited data customers).

And then there is the question of whether Disney + paying customers are dropping Netflix or any other SVOD service, or are just carrying them all.

Martin’s downgrade came just as Netflix chief product officer Ted Sarandos said more than 26 million people watched the much-hyped Martin Scorsese movie The Irishman in the first seven days after its Nov, 27 debut on the service, and that he expected 40 million to watch over 28 days. That performance was on par with the previous seven-day champ (Sandra Bullock horror movie Bird Box) which also tallied 26 million viewers after its debut about a year ago.

And it also should be noted that Disney + is loaded mostly with kids library content like Disney Channel series, animated classics and the Star Wars movies. Original content is limited, with Star Wars saga The Mandalorian topping the list, and other series like The World According to Jeff Goldblum, Encore! and High School Musical: The Musical: The Series. It wouldn’t be a stretch to think that Disney + subscribers are more than willing to shell out $7 per month for their children’s content needs, while the adults in the house watch Netflix, or Hulu, or Amazon Prime Video, or CBS All Access, or literally anything else.

In a research note, Pivotal Research Group CEO and senior media & communications analyst Jeff Wlodarczak attributed much of Disney +’s early success “to the fact that it is free for [about] 20 million potential U.S. households and usage by consumers that download the product has been anemic (unsurprising given the lack of original content).” He added that he believes that the discounting of Netflix stock because of Disney is “a mistake that will likely show up in very high subscriber churn as they try to move consumers even to their relatively low monthly pricing.”

In Wlodarczak’s eyes, Disney + is targeted at homes that have children less than 13 years of age (about 33 million households), “but is certainly not a Netflix killer.”

The solution in Martin’s view is something that other streaming services have adopted, but that Netflix has adamantly opposed: advertising.

Hulu, owned by Disney, is probably the prime example of an ad-supported streaming service. In Q3, Hulu said it had about 28 million customers, more than 70% who subscribed to its ad-supported tier, priced at $5.99 per month. Hulu also has an ad-free tier for $11.99 per month.

Peacock, the NBCUniversal streaming service set to launch in April, will be free to Comcast customers while others may have to pay an undisclosed and monthly fee. NBCU has said that Peacock will be ad-supported.

In her report, Martin wrote that Netflix could price a service at between $5 and $7 per month, and supplement it with a 6 minute to 8 minute per hour ad load. Since the average Netflix viewer watches the service about two hours per day, that could translate into an additional $6 of incremental revenue per customer per month, she wrote.

I’m not sure if Netflix will be as attractive with ads as without, but I’m equally unsure of whether Disney +, Apple TV +, HBO Max, Peacock and any of the others that will come along in the future will be either. I guess, like the weather in New England, we'll just have to wait and see. 

Long time media executive and former Fuse CEO Michael Schwimmer will join Dish Network and its sister streaming service Sling TV in June as EVP of international, business development and strategy, the satellite company said Tuesday. He will report to Dish EVP of programming and group president of Sling TV Warren Schlichting.

Schwimmer will be responsible for growing the company’s Dish TV and Sling TV multicultural businesses, as well as pursuing development and partnership opportunities in the U.S. and abroad for Sling.

“Michael is one of the key architects of what has become the Dish TV and Sling TV international businesses, and everything we are doing today traces directly back to his early work at Dish delivering international content,” Schlichting said in a press release. “His track record of creativity and innovation in our industry will be a tremendous asset for Dish as we seek growth in our international offerings.”

Schwimmer first joined Dish Network in 1996 as a member of its legal team and later was tapped to lead the company’s marketing and programming organization, playing a key role in launching the Dish International and DishLatino brands. He left Dish in 2005 to lead SiTV, later rebranded NUVOtv, a premier English-language destination for Latino entertainment. In 2014 he oversaw the acquisition of the Fuse Media enterprise from the Madison Square Garden Company. He resigned from Fuse in April. 

“My career has been devoted to helping build new businesses that champion great content for diverse audiences,” Schwimmer said in a press release. “I look forward to making a contribution to help grow the already strong position of the Dish brands as the destinations for the best multicultural content available and create new opportunities for the Sling platform.”

Comcast said Tuesday (June 5) that it has expanded the amount of international content available through its Xfinity and Xfinity Stream TV, adding 42 new channels.

Coupled with the networks available via the recent addition of Sling International on X1, Comcast customers now have access to a total of 415-plus international networks in more than 20 languages, Comcast said. 

The content also is organized and curated to make search and discovery by geography or language simple and easy. For example, X1 customers can just say “International” to go directly to the International destination on Xfinity on Demand.

Additionally, customers can use their voice to discover programming relevant to a specific region of the world - “Asian Entertainment,” “South Asian Entertainment,” “European Entertainment,” or “Brazilian Entertainment” are all voice commands that take the viewer directly to a curated assortment of channels, shows, movies, music and more.

“Xfinity X1 is now the go-to platform for the best international programming and viewing experience,” said Comcast Cable executive director, international strategy Rebecca Simpson in a statement. “With the demand for multicultural content increasing, we are thrilled to complement our existing array of international programming by adding more channels all thoughtfully curated into an easy way to navigate, discover and enjoy.”

X1 customers can access the current international programming that is part of their subscription, or subscribe to additional channels and/or packages of interest, which include:

• TV shows and movie collections from countries including Brazil, China, France, Germany, Greece, Israel, Italy, Japan, the Philippines, Poland, Portugal, Russia, Saudi Arabia, South Asia, and Vietnam.
• Multicultural networks available on the Sling International X1 app, featuring content from different countries in 21 languages, including Chinese (Beijing TV, CCTV News and iCable News), South Asian dialects (GEO TV, Jus Punjabi, Aaj Talk, and Bollywood News), and Arabic (Al Jazeera, ART Movies, and MBC).
• Programming, music and more from around the world from popular streaming services Netflix and YouTube available over the internet on X1.

Starting at $6.99 per month, International channels and packages can be added to a customer’s Xfinity TV subscription by visiting the International destination on X1, going to https://www.xfinity.com/, or by contacting the Comcast Call Center, which also provides in-language support for Cantonese, Mandarin, Korean, Tagalog and Vietnamese speakers.

Just days after saying it was ready and willing to make a counteroffer for 21st Century Fox assets pledged to The Walt Disney Co., Comcast now has about six weeks to put up or shut up.

Both Disney and Fox said on May 30 that they will hold their respective special shareholders’ meetings July 10 to vote on the $68 billion deal. Disney’s is slated for 10 a.m. at the New Amsterdam Theater in New York, Fox’s at the same time at the New York Hilton Midtown. While both companies have recommended that shareholders vote in favor of the transaction approved by their boards months ago, Fox acknowledged it was “aware” that Comcast could make a competing offer.

Should Comcast lob in an all-cash offer (and every indication is that it will), the shareholders’ meetings could be postponed to a later time.

Waiting on AT&T Ruling

Comcast is expected to wait until June 12 to make a formal offer for the assets. That’s when U.S. District Court Judge Richard Leon is expected to make his ruling on the other big media deal on the table: AT&T’s $108.7 billion purchase of Time Warner.

Much has been made of Comcast’s intentions, mainly surrounding the inevitable bidding war that a counteroffer would touch off. But more broadly, its move underscores just how rapidly the pay TV landscape is changing.

In one fell swoop, the deal would give Comcast control of two sizable content and distribution assets inside the U.S. (online video service Hulu) and outside (U.K. satellite-TV giant Sky).

Hulu, the online service partly owned by Disney (30%), Fox (30%), Comcast (30%) and Time Warner (10%), about a year ago launched Hulu Live, a virtual multichannel video programming distributor that now has about 800,000 customers. That’s in addition to the Hulu SVOD service, which boasts around 20 million customers.

Getting Fox’s 30% interest in Hulu would give Comcast 60% control of a national OTT distribution arm — it would likely try to buy out Disney and Time Warner at a later date — and could position the cable operator nicely for any changes that may come in the distribution business.

Adding Fox Networks International, Sky and Star India, Fox’s pay TV network in India, would also lessen the blow of increasingly intense competition in the U.S. by boosting Comcast’s international exposure from 9% of total revenue to 25%.

“It’s an international play,” said one person familiar with Comcast’s thinking, who asked not to be named. “You’ve got Sky News, they have an OTT platform called Sky Now; over in India, 400 million people watch a cricket match. There’s a lot of opportunity internationally.”

Comcast made a formal offer for 100% of Sky in April valued at $31 billion, a deal that trumps an earlier buyout offer by Fox. Unlike the Fox deal, it is expected to get little pushback from U.K. regulators. Adding the Sky bid to an anticipated $78 billion offer for the Fox assets would push Comcast’s total commitment to the Murdoch family well over $100 billion.

Comcast was an early participant in the bidding for the Fox assets last year, but dropped out after it became apparent Disney was the preferred suitor. Comcast apparently floated an all-stock deal that was at a 16% premium to the Disney bid, but said in a statement at the time it “never got the level of engagement needed to make a definitive offer.”

Cable Declines, Netflix Soars

Since December, cable companies have endured heavier-than-expected video subscriber losses and a shift in investor sentiment toward alternative distribution. Comcast shares have lost more than 20% of their value since the beginning of the year, and the rest of the sector has seen similar declines.

Meanwhile, shares in Netflix, which practically invented the SVOD space, are up by more than 80%, and last week the OTT service passed both Comcast and Disney in total value, with a market cap of $153.7 billion. Disney’s market cap was $149.02 billion and Comcast’s was $144.9 billion as of May 31.

“It feels like Comcast wants it more than Disney partly because Disney needs Fox less than Comcast,” Pivotal Research Group CEO and senior media & communications analyst Jeff Wlodarczak said. “In regards to developing a global OTT platform, Disney probably does need Fox less than Comcast.”

Foreign currency rates helped drag down Discovery Communications' Q4 results, as cash flow outside the US fell 12% erasing a 9% increase domestically.

Revenue in the fourth quarter was up 2% to $1.7 billion, fueled by a 3% gain at US Networks and slight growth internationally. Cash flow was essentially flat in the period at $581 million as a 12% decline internationally, mainly due to unfavorable foreign exchange rates. Excluding currency effects, fourth quarter total revenue and adjusted OIBDA grew 4% and 3%, respectively.

“Discovery’s diversified set of nonfiction, sports and kids’ entertainment brands, and strong strategic positioning continued to drive attractive distribution agreements, helping to deliver solid operating and financial results in 2016,” said Discovery CEO David Zaslav in a statement. “As we begin 2017, we will continue to invest in our premier global IP and brands to nourish fans across all screens, all platforms and all services to drive shareholder value and propel our business for years to come amid the rapidly changing media landscape.”

Full year revenue increased 2% to $6.5 billion, as 5% growth at U.S. Networks was partially offset by a 2% decline at International Networks, primarily due to the sale of SBS Radio and currency effects.  Full year cash flow was essentially flat (up 1%) at $2.4 billion as 8% growth at U.S. Networks was more than offset by a 12% decline at International Networks, partially due to the sale of SBS Radio and currency effects.  Excluding currency effects and the impact of the SBS Radio sale, total Company revenues and Adjusted OIBDA both grew 5%.

Discovery Communications has named industry veteran Michael Lang as executive vice president of International Corporate Development & Digital, responsible for the strategy and execution of mergers, acquisitions, joint ventures, divestitures, and other equity-related transactions and third-party partnerships.

On the digital side, Lang also will work with the international management team to boost existing initiatives, including the Eurosport Player, Dplay and Discovery K!ds Play, and to help shape and execute the division’s overall digital strategy.

Lang will assume his new responsibilities in April and will report to Discovery’s chief development, distribution and legal officer Bruce Campbell and Discovery Networks International president Jean-Briac Perrette.

Lang has a long history in the media business, serving as CEO of film studio Miramax and leading business development for Fox Entertainment from 2004 to 2010, where he helped create Hulu, acquire MySpace and launch several new cable channels. He began his media career in the 1990s at The Walt Disney Company in both Corporate and operating roles.

“I am thrilled to have Mike working with Bruce and JB to accelerate the growth of our international business and extend the reach of our content across all screens around the world,” Discovery CEO David Zaslav said in a statement.

 Lang currently leads Lang Media Group, an advisory and sponsor equity firm, which advises traditional and digital media clients on strategic issues, M&A, digital distribution, organizational needs, over-the-top product development, as well as raising money via venture capital and private equity. LMG helped rights management software company FilmTrack raise $30 million in capital and  assisted in the sales of the Harlem Globetrotters and video game developer Foundation 9.

 “As a highly regarded strategist, dealmaker and executive in both the entertainment and digital space, Mike’s vision and relationships combined with our robust portfolio, deep talent and strong momentum, will greatly benefit Discovery’s multi-platform strategy and drive immediate and impactful growth,” Campbell said in a statement.

“I've known Mike for more than a decade and he's one of the most strategic and driven business development leaders in media with a unique background helping to build some of the most successful digital businesses and brands,” Perrette said in a statement. "I couldn't be more excited about having Mike join our team."

Scripps Networks Interactive has named Simone Nardi to managing director, Finance and Operations for its international division. Based in New York, he will continue to report to Jim Samples, president, International.

Nardi joined Scripps Networks in 2013 as the international Chief Financial Officer, will now manage finance and operational responsibilities, leading the international teams based in New York and Knoxville. His new duties will include finance, program licensing, and content and brand strategy. Additionally, he will serve as the principal liaison on all international technical operations, facilities and IT support.

 Nardi sits on the Board of Directors at UKTV, a joint venture with BBC Worldwide, and will now spearhead Scripps Networks Interactive’s joint venture relationship with Shaw Communications in Canada. 

“Simone is a fantastic leader and an integral member of my international executive team,” Samples said in a statement. “His vast international finance and operational experience coupled with his strategic insights have already contributed so greatly to the team during this period of rapid growth and investment in Scripps Networks’ international business.”

Prior to joining Scripps Networks, Nardi served as a senior vice president and CFO for NBC Universal’s international channels and television production operations. He has also served as vice president and CFO for NBC Universal’s business development division in New York and as interim CFO and Treasurer at Hulu.

Discovery Communications said it has promoted Helen Hawken to Vice President of Production and Development, Factual for Discovery Networks International.  She had previously held the role of Director of Programming, Factual, for Discovery Networks International and will move into her new role immediately, reporting to DNI’s EVP and chief creative officer Phil Craig.

In her new, expanded role, Hawken will develop and commission both natural history and factual productions for Discovery Networks International’s London production hub to be broadcast in over 200 countries including the UK.

“Helen has made a terrific impression on me in the short time we have worked together and has been a powerful force in factual programming for many years,” Craig said in a statement. “She has some fantastic ideas for the new style of natural history we are developing here, and for many other genres.  I look forward to moving hit shows forward into production with her in the years to come.” 

During her tenure at Discovery Networks International, Hawken has commissioned some of its most successful animal programming including: Meet the Sloths; Meet the Orangutans; The Ape Who Went to College; Robson Green’s Ultimate Catch and Seven Deadly Sins with Richard E. Grant.  

“I am delighted to be working with Phil to help realize his vision for the international network portfolio at this exciting time," Hawken said in a statement. “I can't wait to start developing and commissioning bold ambitious new ideas and building on the success of our returning series. I look forward to collaborating with producers in the UK and internationally, as well as colleagues in the U.S. networks and local and regional markets."

Hawken has also served as executive producer on many hit shows in the factual and specialist factual genres including: Man V Expert; Marooned with Ed Stafford; Naked and Marooned; You Have Been Warned; What Happened Next? and Combat Dealers.

Prior to joining Discovery Networks International in 2012, Hawken worked for a wide range of independent producers across a number of genres, including: science; history; reality; factual entertainment; features and documentary series for both UK and international broadcasters, including: the BBC; Channel 4; Discovery; Science; PBS and Good Food Channel. 

About one month after taking over as EVP and chief creative officer at Discovery Networks International, Phil Craig announced five new series and specials ranging across genres like natural history, engineering, survival, science and aviation. The five series and specials will be broadcast across Discovery’s networks in more than 220 countries and territories in 2015 and 2016.

“I am thrilled to announce some fresh new content that expands the range and loosens the filters on some of our classical factual genres,” Craig said in a statement. “I came to Discovery to be part of a brand I’ve loved for nearly 30 years, to give our global content more energy, take it to new heights, to surprise and delight our viewers and satisfy their endless curiosity. This is just the beginning, as our London production hub starts to incubate new ideas with our independent production partners worldwide.”

Craig officially joined Discovery Networks International in February. He had previously been Head of Factual at ABC TV in Australia, and has a long history as a producer, and had led several past productions for Discovery, including Flight 93: The Flight That Fought Back.

“Some of this new content is moving to broadcast quickly, like our documentary on the AirAsia tragedy as the current investigation unfolds and the public’s curiosity remains high,” Craig added in his statement. “Others will take more time to develop, as sometimes epic stories need time to unfold.

The new shows and series are:

TERROR IN THE SKIES: AIRASIA AND BEYOND(April 2015)

This 1x60’ documentary examines the tragic events of Dec. 28, 2014, when AirAsia flight 8501 and its 155 passengers and seven crew members were lost in a storm, 40 minutes into their journey from Indonesia to Singapore. The documentary special reveals troubling connections between this accident and the shocking Air France disaster of 2009, and explores the cutting-edge technology designed to prevent such tragedies taking place again. Terror in the Skies is produced by ITN Productions and is commissioned by Elizabeth McIntyre and executive produced by Tom Gorham.  Ian Russell is the executive producer for ITN.

ENGINE ADDICT WITH JIMMY DE VILLE(Autumn 2015)

This all-new 6x60’ series follows extreme engineer Jimmy de Ville on his mission to hunt down some of the world’s most rare and iconic engines and repurpose them in the most uncanny ways. As an engineer, race car driver, adventurer and soldier, Jimmy has been tinkering with – and rebuilding – engines and vehicles his entire life. In Engine Addict with Jimmy De Ville, Jimmy will explore abandoned factories, junkyards and deserted airfields to unearth an incredible range of combustion engines across the globe – traveling to Poland, India, Brazil, Sweden, Austria and the United Kingdom. Engine Addict with Jimmy De Ville is produced by Maverick TV. The series is commissioned by Elizabeth McIntyre and executive produced by Victoria Noble for Discovery Networks International, and is executive produced by Dan Goldsack and Jim Sayer for Maverick TV.

LOST AND STARVING (wt)(Winter 2016)

This series mixes adventure, survival and food, giving viewers a seat at the table for bizarre foods that just might save your life. The 6x60’ series features Mother Nature in her rarest form, teaming up British chef and restaurateur Matt Tebbutt with Kiwi survivalist and alpha male Josh James (pictured) to challenge not only their survival and culinary skills, but also one another.

Lost and Starving is produced by betty. The series is commissioned by Sarah Davies, executive produced by Liz Brach, with producer Rob Holloway for Discovery Networks International. For betty, Tom Sheahan is executive producer and Neil Smith is creative director.

THE BRAINY BUNCH (wt)(2016)

This entertaining, character-led series, inspired by “The Big Bang Theory,” introduces viewers to the personalities and keen minds behind some remarkable breakthroughs in science, technology and medicine. The series will feature more than a dozen pioneers in the fields of space, technology, aviation, robotics and design, who will work against all odds to create what was once deemed impossible, and ultimately, transform the way we live. Featuring an international cast of scholars, engineers, scientists and technicians from renowned institutions, each episode provides a peek behind closed doors of the world’s most innovative labs, workshops and test centres.

The Brainy Bunch (wt) is produced by Lime Pictures and is commissioned by Elizabeth McIntyre and executive produced by Tom Gorham. Jack Kennedy is the executive producer for Lime Pictures.

LIFE OF DOGS (wt)(2016)

This is Discovery Networks International’s first major natural history commission, made in an energized, popular style that Craig has termed “New-Chip,” a unique blending of traditional blue chip natural history with a new style of immersive, revelatory, storytelling. 

This 5x60’ series provides unique insight into the incredible natural history of dogs. Observing dog breeds from across the world in their native settings, and in their modern day homes with humans, it reveals how the best friend that sits at your feet became so perfectly adapted to serve your needs or read your emotions, and how each breed has developed unique characteristics to better live and work alongside human beings.  The series focuses on dogs at all four stages of domestication – wild dogs, worker dogs, domesticated pet dogs and the dogs released back into the wild – to reveal how dogs became our best friend and to show this amazing species in all its glory.

Life of Dogs (wt) is produced by Plimsoll Productions, with multiple award- winning natural history filmmaker Dr. Martha Holmes at the helm, and is commissioned and executive produced by Helen Hawken for Discovery.

After 22 years with the National Basketball Association in five different positions, Adam Silver assumed the role of the league’s commissioner on Feb. 1, succeeding David Stern. Over the course of his tenure, including eight-year stints as deputy commissioner and chief operating officer and as president of NBA Entertainment, Silver played an integral role in growing pro basketball’s worldwide presence and in negotiating the league’s last three collective bargaining agreements with the NBA Players Association, as well as its last two TV pacts. He also helped with the development and launch of the WNBA and the NBA Development League, the creation of NBA China and the partnership with Turner Broadcasting System to jointly manage the league’s myriad digital assets.

Silver began his time atop the league presiding over February’s All-Star Game festivities in New Orleans. In April, as the playoffs tipped off, he was thrust into the thicket of controversy emanating from racial remarks by Los Angeles Clippers owner Donald Sterling. His decisive leadership defused the highly charged situation that ultimately resulted in the sale of the team to former Microsoft CEO Steve Ballmer for a record $2 billion.

Earlier this month, Silver secured the league’s national media rights into the middle of the next decade via extensions with Disney’s ESPN and Time Warner Inc.’s Turner Sports. Not only do the deals expand linear game and digital rights for the partners, but the $24 billion pacts represent the largest rate of increase for any of the major North American sports leagues.

As part of the deal with ESPN, the NBA, long at the forefront of technological and digital development, will hold an equity stake in an over-the-top service melding pro basketball and other properties.

And as the NBA tips off its 2014-15 campaign this week, it is poised to become the first league in which regional sports networks will live-stream in-market games on a widescale basis.

For these and other reasons, Silver is the Multichannel News sports executive of the year. He touched on these and other subjects during a recent interview with online news editor Mike Reynolds and programming editor R. Thomas Umstead. An edited transcript follows.

MCN: You’ve been with the league a long time and with [former commissioner] David [Stern] for many years. Are there things you can only realize by having the job?

Adam Silver: I’d say, just day-to-day, there is a huge difference between being the No. 1 and the No. 2 guy.

I think someone in basketball once said the longest distance in sports is the distance between the coach and the assistant coach … And I think it’s just very different at the end of the day when you are the one making the ultimate decisions — big decisions and small decisions — most of which never become public, but in terms of dealing with 30 disparate teams and 30 independent owners, many of whom have a different point of view from other owners on certain issues, that it’s a constant balancing of priorities. I would just say being the CEO of the organization poses very different challenges than my prior five positions.

MCN: Do you speak to David often? Can he stay away from things?

AS: David (laughter) remains a consultant to the league and a very close personal friend. We talk now and again and in fact, David came to Berlin, where the San Antonio Spurs played Alba Berlin. It was great to spend time with him and his wife, Diane.

David has an office down the street from the NBA’s offices in New York and he’s doing some consulting and some speaking and is doing very well. As for me, obviously in a new role, it’s been a really exciting first few … I guess nine months now.

MCN: The league has a presence in Europe. [National Football League commissioner] Roger Goodell has talked a lot about London. Do you want to expand there, or will you go stateside first?

AS: There are no plans to expand anywhere at this time. Europe expansion is something we’ll continue to look at. It’s a long-term project, but we’re seeing the emergence of true state-of-the-art facilities in Europe … But there are still economic issues in southern Europe that are an impediment to expanding in Europe.

The league right now, we’re in the process of sort of solidifying the 30 franchises that we have in the U.S.; we’re seeing the benefits of the new collective bargaining agreement, plus revenue sharing, kick in where we’re moving to the point where every franchise is in a position where they can compete for championships and hopefully run profitable franchises. Expansion is not on the front burner right now. It’s something we’ll continue to look at both in Europe and domestically, but there’s nothing imminent.

MCN: How do you see the season going this year?

AS: The state of the league is terrific. I can’t remember a time when there were more interesting and exciting franchises that fans were hotly anticipating watching. I can’t wait to see the new Cleveland Cavaliers, the new Chicago Bulls, Phil Jackson’s New York Knicks, the impact that Luol Deng will have on Miami. What’s [Los Angeles Lakers star] Kobe [Bryant] got left in the tank? The Clippers under Steve Ballmer. The Spurs, let’s not count them out. Let’s see if they can repeat and if Tim Duncan can get his sixth ring before he retires.

We have a really healthy combination of young players coming in, experienced all-stars.

What we’re seeing, too, as part of the impact of the new collective bargaining agreement, it’s not just financial. It’s not just creating a better financial environment in the league, but also we’re seeing greater parity and we’re seeing every team, regardless of market size, in a position to potentially compete, and I think that’s really healthy for the league.

MCN: Does that translate into higher ratings?

AS: Absolutely. I know ESPN and Turner are anticipating ratings growth this year. Again, I think it’s a function of more so-called national teams, more exciting teams that people throughout the country are interested in watching.

MCN: How important is the NBA’s move into more digital technology in terms of getting things to the consumer?

AS: I think it’s really important. We’re seeing now, with the announcements of HBO and CBS going over the top … I think we were early adopters in that we recognized we had to take the games to whatever platform our fans wanted to consume them on.

Some of the [regional sports networks] have been experimenting with authenticated subscribers. And so, if somebody is already paying their distributor for the games and wants to watch those games on his or her tablet or whatever mobile device, we think it makes a lot of sense to deliver them the games in that fashion.

So if you’re not able to be home in front of your large-screen HDTV, but you’re on the go or at a friend’s house, you’re able to just take out your mobile device and watch the game. So we think that’s critically important for our fans.

MCN: Can you give us a sense for the OTT service ESPN is going to launch with the league?

AS: It’s going to be a 24/7 streamed service to mobile devices. It will contain a full package of NBA games, and will likely include other live sports as well. It’ll be a package that is going to be made available directly to the consumer and possibly paid through their mobile provider, with potentially some sort of surcharge on top of whatever their monthly fee is in order to get that additional programming.

Depending on the technology, it may be an always-on service based on the new technology we hear is coming to cellphones. There potentially will be a surcharge for the content but won’t be an additional charge for the additional bandwidth that that service is using on a monthly basis, making it more affordable.

But we think it’ll be a very attractive offering, and we see ESPN sort of dipping their toe into the over-the-top waters and at the same time balancing that against the fact that they are very much part of the [cable package].

MCN: You mentioned the HBO and CBS announcements. [Both programmers announced plans for over-the- top subscription-TV services earlier this month.] Can the service launch earlier than 2016-17?

AS: I think there’s a possibility. We wanted to get our core television agreement done and then we agreed we’d quickly turn back to the OTT service. So we have an agreement in principle with ESPN but, in fact, I just spoke to [ESPN president] John Skipper earlier today about continuing our discussions so we can firm up exactly how we’re going to launch this OTT service. There is certainly no reason that we’re going to wait two years in order to do something.

MCN: Given the streaming from the RSNs and the OTT service, won’t they compete head-to-head with [out-of-market package] NBA League Pass?

AS: I think for those fans, customers, that want League Pass, I think it’s a different customer that wants a larger selection of games, or wants to get all games of a particular team that he or she wants to follow, or get the full complement of games every night that aren’t offered on a national service. So I think the services will be complementary.

MCN: How is NBA TV performing?

AS: We’re very happy with NBA TV. We love the production being supplied by Turner and the use of their talent down in Atlanta. And in fact, as part of our new television relationships, Turner has agreed to now take on the affiliate sales for NBA TV as well. So rather than the league office selling NBA TV to the distributors as a one off, we’ll now be part of the sales team that’s providing TNT, TBS, Cartoon [Network], CNN and other networks, which we think will give us a much stronger position in the marketplace.

MCN: The new deal is $24 billion dollars over nine seasons, with the biggest rate of increase among the major sports leagues in the states. Is that a function of being the last to the table, the league’s being in a great position, or are you guys just the best negotiators?

AS: [Laughter.] I think it’s a testament to the fantastic long-term partnerships we’ve had with Disney and Time Warner.

MCN: During the press conference you said you held discussions, but not negotiations, with Fox and Comcast/NBCUniversal. Were you and the media committee unanimous in this decision?

AS: Yes, we were unanimous in this was the way to go. I will say that we have very close relationships with Comcast and Fox. Fox has 17 of our teams’ RSN deals and Comcast has eight … As to whether we could’ve gotten more if we went to market, I guess we’ll never know. But we feel very good about the deals we did.

MCN: There will be a 12-game package that Turner will have in addition to its Thursday-night doubleheaders. Was Turner ever in the mix for The Finals in some capacity, on a shared, alternating-years basis?

AS: I can say that over the course of many months of negotiations we discussed several different permutations in terms of The Finals and [the] All-Star [Game] and the other marquee properties. I think all sides agreed that in order to get these deals done on the timeframe, we weren’t going to be able to do it if we rejuggled where all the properties went.

MCN: In hindsight, how do you view the sale of the Los Angeles Clippers and the Donald Sterling situation?

AS: In the moment, I didn’t have the luxury of thinking long-term. But now to me what that incident represents is the NBA’s ability to defend the values we share as a league and as a community member of a larger sports community. For me, it was enormously impactful as an early experience in learning how to be a leader. Again, I can only say that I did the best I could under what was a very, very trying circumstance at the time.

MCN: The [Atlanta] Hawks situation [Bruce Levenson, then-principal owner of the team, voluntarily agreed to sell his stake in the Hawks after the leak of an email that urged team officials to make changes to attract more white fans to games]: Did the league get a bit of a pass because when the news surfaced the media was so focused on the NFL’s Ray Rice problem? Could new ownership be in place by year-end?

AS: To your first question, I’d say I don’t think we got a pass on Atlanta and I credit Bruce Levenson for the way he handled the situation. His situation was completely different than the situation we had in Los Angeles. Mr. Levenson self-reported that he made that mistake to the league office and he decided completely on his own to sell his stake in the team. So I think all the credit goes to him for the way it was handled and why it wasn’t necessary for it to be an ongoing story. He brought closure to it almost immediately.

And in terms of the timeline for sale, you know, Bruce Levenson remains the owner of that franchise. It’s his process that he’s running to sell the team. So I know that [Hawks president and former Turner executive] Steve Koonin said he is hopeful that the team gets sold by the end of the year. I’m not sure how realistic that timeline is … And while there’s not a set timeframe, I know they’re moving as quickly as they can.

MCN: Did you speak to Roger Goodell about the Ray Rice incident?

AS: Roger and I did speak and it would not be appropriate for me to comment on those conversations.

MCN: We wanted to wind down with a little bit of fun. We’re fantasy players: Any inside scoop from the commissioner about when Kevin Durant comes back?

AS: I don’t have any inside scoop. I mean he is a wonderful young man and the league is going to miss him almost as much as [Oklahoma City] will when he’s out. And I just wish him all the best and I hope he’s back on the court as soon as possible.

MCN: The 2015 All-Star Game is at Madison Square Garden. Saturday night is at Brooklyn’s Barclays Center. Was this a Solomonic or a Silver-esque compromise?

AS: Yes. It’s Friday and Saturday in Barclays. We’ve got the rookie/sophomore game Friday night and All-Star Saturday Night events. And this was something [Nets owner Mikhail] Prokhorov and [Knicks owner James] Dolan came to an agreement that it made sense. I think they both wanted the All-Star Game for this season and both, in essence, had a claim to it. You had a new building in Brooklyn and you had a transformed, as they call it, building in Manhattan. Given that New York is already such an incredible basketball Mecca, let’s make it the center of the world for basketball, so that we can amplify that impact by using two arenas instead of one. I think they both thought it was a great idea and are working together very cooperatively.

MCN: You dunking the ball or getting out of Shaq’s grip [Silver was hoisted at an All-Star Game event by O’Neal] — what’s more realistic?

AS: He kept coming closer and closer and I thought he was about to whisper to me and all of a sudden I was being levitated. And the only way I’m going to dunk, frankly, is if Shaq picks me up. I have no hops these days.

CBS CEO Les Moonves said the company is considering streaming Showtime content direct to consumers in international markets.

Speaking at Goldman Sachs’ 23rd Annual Communacopia Conference in New York Wednesday, Moonves noted that Showtime currently sells individual shows to other networks in international territories.

“I can see sometime in the future, and I don’t know how long that is, where we’re able to offer a Showtime product and stream it overseas internationally,” he said. “This would be a great way to establish a Showtime channel in the future and stream it all over the world.”

Moonves said that CBS was keeping an eye on Scandinavia, where HBO is offering its programming directly to consumers, rather than through a cable or satellite distributor. “We think it’s very smart.”

Domestic streaming of Showtime directly to consumers seemed a bit further off.

“Is there sometime in the future that that could happen? Absolutely. I don’t know when it is. I don’t know when the timing is right. It’s very exciting,” Moonves said.

Moonves also acknowledged that Tribune Co., which is the largest affiliate group for The CW, owned by CBS and Time Warner, has been looking for more input into how the network is programmed.

Tribune CEO Peter Liguori is a former programmer, Moonves noted. “He would like to participate. He has some good ideas. He’s part of our team. Will there be some change in how the CW is structured going forward? I don’t know.”

Moonves added that Tribune, which recently added the CBS affiliation in Indianapolis, is “a very important part of our future.”

Discovery Communications reported higher second quarter earnings thanks to growth of its international business.

Net income rose 26% to $379 million, or $1.09 per share, from $300 million, or 82 cents per share, a year ago, topping Wall Street expectations.

Revenues rose 10% to $1.61 billion, with growth from international acquisition offsetting a 2% decline at Discovery’s networks in the U.S.

“The operating strength across Discovery’s organic businesses, along with increased contributions from strategic acquisitions, led to sustained financial momentum during the second quarter,” David Zaslav, CEO, said in a statement. “Our persistent focus on building a broad and deep content portfolio to leverage the opportunities across our unique distribution platform is driving viewership and revenue growth worldwide as pay-tv continues to evolve. Going forward, investing in compelling programming remains a priority as we integrate our recent acquisitions and build new avenues of growth so we can deliver additional long term value to our shareholders."

During the company’s conference call with analysts, Zaslav said the company was well-positioned in the face of the industry’s focus on consolidation.

Discovery said that for the full year, it expects total revenue to be between $6.45 billion and $6.525 billion, adjusted operating income to be between $2.6 billion and $2.65 billion and net income to be between $1.225 billion and $1.275 billion, cutting the high end of each forecast.

Adjusted operating income for the U.S. networks was down 1% to $466 million.  Distribution revenues were down 8% to $319 million as higher rates were offset by lower streaming payments from the Netflix deal that was cut a year ago. Excluding the decline in licensing deals, distribution revenues were up 4% and total revenues were up 4%. Zaslav said Discovery is in talks with all of the streaming VOD providers and expects eventually to have some relationships that are mutually beneficial.

Advertising revenues rose 5% to $446 million despite canceling the live Everest event on Discovery Channel, competition from the World Cup and the sale of HowStuffWorks.com

Discovery CFO Andy Warren said the company expects third quarter ad sales growth will be in the mid-single digit range.

Zaslav said that in the upfront, Discovery got price increases in the mid-single-digit range but that sales volume was lower.

“We decided to sell less into the upfront market,” he said, focusing on maintaining its CPM levels. “If the scatter market performs similar to what it's done in the last few years, we'll have some significant upside for having that extra inventory.” 

Warren also pointed out that OWN, Discovery’s joint venture with Oprah Winfrey, “continues to increase its cash flow generation and repaid Discovery $20 million in the second quarter.”

At the international networks, operating income jumped 19% to $297 million. Revenues were up 23%. Discovery completed its acquisition of Eurosport during the quarter. Excluding Eurosport and currency fluctuations, the company said revenues were up 14% and operating income was up 15%.

Analyst Todd Juenger of Sanford C. Bernstein, in a research note, said that this quarter had been hard to forecast and remains tough to evaluate because of Discovery’s acquisitions, currency adjustments and SVOD deals.

“What we got was definitely a beat. The magnitude and source of the strength, compared to expectations, is harder to discern," Juenger said.

Juenger noted that “Discovery took down the top end of fiscal 2014 guidance, ut everyone on the Street, (including us) was already near the low end anyway.”

Now he says the short term focus is on advertising, while the long-term debate remains focus on the European acquisition/growth strategy.

Discovery Networks International, the international programming arm of Discovery Communications, reported its strongest quarter ever in terms of online and television viewership, fueled by strong showings across its portfolio of networks.

Overall, DNI’s international networks reached 621 million viewers around the world in the second quarter, a 3% increase year-over-year. Top performers included Discovery Channel (366 million viewers); Animal Planet (252 million viewers) and TLC (204 million viewers).

The average audience for the division also reached a new record (2.9 million viewers, up 9% from last year). DNI also attracted 11 million visitors to its websites, its highest ever digital audience (up 45% from last year) and 38 million fans to its social platforms, a 205% increase from the previous year due especially to increases in India, Australia and South East Asia.

“This outstanding performance is testament to the strength of our global business,” said DNI president JB Perrette in a statement. “Once again we’re raising the bar in the international content space on-air and online.”

Helping to push the increases were strong performances from individual networks. Discovery Kids experienced a 33% increase in the period, spurred by strong performance from key markets like Brazil, while the division enjoyed double-digit growth at stalwarts Animal Planet, Investigation Discovery and Discovery Home and Health.

DNI’s free-to-air portfolio also posted strong growth – it was up more than 12% in Western Europe overall for the quarter with records broken in Spain for Discovery Max’s coverage of the French Open tennis final.

Global satellite television revenue is expected to reach $99.9 billion by 2020, a nearly 14% increase from last year’s $87.8 billion in sales, according to a new report by Digital TV Research.

The Global Satellite TV Forecasts estimates that Asia Pacific and Latin America will show the strongest growth, while western Europe declines as completion for other platforms increases.

The Digital TV Research report looks at 138 countries and estimates that total satellite homes will rise from 192 million at the end of 2013 to 271 million by 2020. Of those 78.5 million additional homes, 27.7 million will come from India,  5.8 million from Brazil and 5.4 million from Indonesia, the report estimates. The pay TV subscriber total will more than double in 47 countries, while 13 countries will experience declines between 2013 and 2020.

Digital TV Research predicts satellite TV revenues will overtake cable TV revenues in 2014, accounting for 46.0% of total pay TV revenues and rising to 47.8% by 2020.  The US will remain the satellite TV market leader by revenues generated, while India will add the most satellite TV revenues ($3.2 billion; tripling its total) between 2013 and 2020. Next is Brazil with an additional $1.6 billion, followed by the US with an additional $1.5 billion. The report predicts that satellite revenue will more than double in 44 countries in the next six years.

Others will see declines as competition continues to heat up.  
“Satellite TV revenues will decline for 19 countries between 2013 and 2020,” said report author Simon Murray in a statement. “Much of this is due to greater competition forcing satellite TV platforms to offer cheaper packages which will lead to lower ARPUs. Furthermore, low-cost satellite TV packages are making a significant impact in several countries.”

Including free-to-air and pay satellite TV households, the report estimates that 439 million homes will directly receive TV signals via satellite dishes by 2020, up by almost 100 million from 2013. More than 25% of global TV households will have a satellite TV dish by 2020, up from 18.3% in 2010 and 22.3% in 2013, according to Digital TV Research.

Sanford Bernstein media analyst Todd Juenger took another deep dive into the international programming market, issuing a “blackbook” Wednesday that takes a detailed look into the Latin America region. His conclusion: international programming will be the “single biggest factor separating winners and losers over time in large-cap media.”

Juenger, always a big proponent of the potential of international programming,  took the concept a step further, adding that he believes international pay television markets will grow for years to come, while the U.S. will only get worse.

Latin America tops his list as the most lucrative international pay TV market – he estimates that pay television subscribers will grow at an 8% annual clip for the next five years, with advertising revenue doubling that pace.

The top programmers internationally, according to Juenger are Discovery Communications – which has said that 2014 will be the first year that international revenue exceeds domestic sales – 21st Century Fox and Time Warner Inc.

Juenger estimates that the three networks will grow revenue at between 11% and 12% annually over the next five years, well ahead of their peers because of the investments they have made in the region over time, including securing channel positions in basic tiers, which are no longer available to competitors.

“That investment has paid off in the form of better distribution (more networks, in the most popular tiers, with better channel positions) across the fastest-growing tiers and countries in the region,” Juenger wrote.

AMC Networks, Scripps Networks and Viacom will have a rougher go of it internationally, according to Juenger, mainly because they were late to the game. But there is room for growth, especially as consumers trade up to more expensive tiers as they become more affluent. But that, Juenger wrote, “is a long way off.”

Still, those programmers are playing close attention to the international market. AMC acquired European programmer Chellomedia from Liberty Global for about $1 billion earlier this year, which should boost its presence on that continent, but it as a small presence in Latin America. Viacom, whose Star India is one of the most popular networks on the sub-continent, also has just a few channels in Latin America, but is working to boost that presence. Viacom recently acquired a free-to-air network in Brazil that it is converting to pay TV, which should help grow its affiliate revenue and advertising clout in that top Latin American market.