On January 4, Discovery Plus debuted in the U.S. with no major device support hassles. The new $4.99-a-month SVOD service is available on all four major OTT device platforms: Roku, Amazon Fire TV, Apple TV and Android TV. And coming next is an international launch, in which Discovery will leverage its library of local-language content and portfolio of live sports to drive its direct-to-consumer offering across more than 25 key markets in 2021, including the Nordics, Italy, the Netherlands and Spain. Discovery Plus will also launch in Latin American markets, including a planned launch in Brazil, and in parts of Asia.

While other conglomerates are going all-in with video streaming, disrupting traditional revenue streams like linear pay TV and theatrical distribution, the executive in charge of Discovery Plus, Lisa Holme, Discovery group SVP of content and commercial strategy, and direct-to-consumer, describes a more measured approach to over-the-top distribution. 

She spoke to Next TV about cord cutters, the new streamer’s reality content and expansion plans.

Also Read: Discovery Plus: Everything You Need to Know

NEXT TV: What are your subscriber growth goals for Discovery Plus over the next 12 months?

Lisa Holme: We’re focused obviously on subscriber growth, which is really about getting new people in and then making sure that we're satisfying them once they're there. We are continuing to roll out more and more content, particularly original content on the service. So hopefully that will drive growth in viewership of originals and growth in brand affinity for Discovery Plus. Part of what's key to that, particularly the roll out of original content, is making it really clear how this (content) is incremental to your cable subscription and to services you may already have. So making sure that we've got a really satisfying volume and quality of content that you can only see on Discovery Plus - that'll be what really drives the growth (of the streamer).

NEXT: Are you looking to hit a certain number in the U.S. and worldwide?

L.H.: We haven’t been sharing specific subscriber growth externally, but we are really looking to build a service that satisfies the users that we have

Who are you going after in terms of audience? Cord cutters or Discovery subscribers?  

L.H.: Ideally we're building a product that is satisfying for both cord-plus consumers and the cord cutters. For the cord-plus consumers, we're really leaning into that original content that you can only get (at Discovery Plus). In many cases with spinoffs of existing shows and/or new shows starring talent that are really associated with the Discovery networks, so that you're getting more of what you love. So we have four 90 Day Fiancé spin-offs on Discovery Plus. We have a special show with Bobby Flay and Giada De Laurentiis from Food Network that isn't airing on Food Network (only on Discovery Plus) called Bobby and Giada in Italy. So for the cord-plus consumers, we're trying to really give them more of what they love and then for the cord cutter population we're really excited about both the opportunity to get all of our existing content to them in the ways that they prefer consuming content. So in addition to the known franchises for the cord-plus consumers, we are also trying to lean into really brand new original content that would appeal to those cord-cutters.

NEXT: Do you look at Discovery Plus programming as a way to drive subscriber growth or is Discovery Plus a complimentary service to the network?

L.H.: Both.

NEXT: Is there any concern that by offering Discovery content in a streaming manner, that Discovery will lose pay TV bundle subscribers?

L.H.: I think so many people that have pay TV are subscribing for news and sports, so the existence of Discovery Plus doesn't really have any impact on their ability to get news and sports in the most satisfying way through pay-TV. So for us, we're really thinking about, as people do cut the cord—whatever drives them to make that decision—we want to still give them access to our content in one way or another. That's what Discovery Plus is about.

NEXT: Discovery programming is reality based. Is there any non-reality based content that you are looking to introduce to Discovery Plus audience in the coming months?

L.H.: The core offering of Discovery Plus truly is around nonfiction/non-scripted programming. That's where we are the market leaders. That's where we truly distinguish ourselves as far as being the best, the highest quality, the most volume, the most variety in that unscripted space, so that is the focus. But even within the unscripted space, we are taking a few swings on genres that may not be quite as core to what we already do on the network. So documentary films is probably the most obvious of that, where we'll do a lot more documentary programming for Discovering Plus than what we do for our networks. 

NEXT: Are you looking for prestigious theatrical documentary fare that could see Oscar runs?

L.H.: There will definitely be theatrical style feature documentary films as part of the offering. A documentary called P.S.: Burn This Letter Please  (about a part of LGBT history that has never been told) played the 2020 festival circuit and is already live on Discovery Plus. We have a couple of pretty exciting announcements coming up about other documentaries that are potentially award contenders that we've made into theatrical releases. So we will go beyond the TV special type of documentary storytelling.

NEXT: Unlike many new streamers, Discovery Plus launched earlier this month complete with a thousand hours of original content. Do you think that the ability to create non-studio original content for Discovery Plus gave you a leg up in this streaming wars?

L.H.: As consumers are evaluating what streaming services are really critical for them, I think they are increasingly looking to, ’What can I get there that I can't get anywhere else?’ And that tends to be an itch that original programming scratches. ‘What can I watch that somebody hasn't already seen that's new to me and new to the world?’ So we knew original content was going to be really critical to the success of Discovery Plus. Because we produce unscripted programming where the production models can be really flexible, we managed to stay in production on a raft of shows while keeping everybody safe. So we have 90 Day Diaries, which was entirely self-shot at home by the cast and Amy Schumer Learns to Cook: Uncensored (the directors cut version of the Food Network show). So we’ve been better able to keep new the original content pipeline in production than if we were in the scripted space where it would be a little more challenging

NEXT: Discovery Plus does not have its own original commissioning team, correct?

L.H.: There’s not a separate Discovery Plus development team. The way we're working is every (Discovery) network's development team is out there, scouring the landscape, looking for the best programming, bringing it in, and then we all talk about it together. We then decide what makes sense to premiere on Discovery Plus and what makes sense to premiere on one of the networks, which will then eventually make its way to Discovery Plus. 

NEXT: How do you determine what shows will land on Discovery Plus and what shows will go to Discovery networks?  

L.H.: There are a few things that we are looking for in terms of what's right for Discovery Plus versus what's right for one of the networks? The younger skew is probably the most obvious, where we are expecting our subscribers of Discovery Plus to be a decade or two younger in age relative to the median viewers on the Discovery networks. The other big filter is that original content for Discovery Plus is really built for getting people in the door. What is the show that people feel like, ‘I have to watch that so badly that I'm going to pull on my credit card and become a subscriber of this service.’ Programming for the networks is generally more about driving viewership than about getting somebody to call their cable company and add that network to their package. So we're much more focused on content that's going to drive that subscriber acquisition. So it may be nosier or buzzier (content). Is (this content) going to be marketable? Is it more premium and makes people feel like they need to be part of a subscription service in order to watch it. 

NEXT: In the future will Discovery Plus have its own original content commissioning team?

L.H.: I mean there is and will continue to be a small team of folks who are working on content for Discovery Plus as their only job. (People who) wake up everyday and go to bed every night worrying about how the content is performing? What do we need more of or less of? But the network teams who have extraordinary expertise in true crime, food and in home will continue to be involved. There’s not a plan that the network teams will stop producing content for Discovery Plus. The network teams will remain very involved in all of the development and production of originals for whatever the platform is. 

Discovery said Thursday that former Hulu executive Lisa Holme has joined the programmer as group senior vice president, content and commercial strategy, direct-to-consumer. Holme is based at Discovery’s Los Angeles office and reports directly to Discovery’s CEO, global direct-to-consumer, Peter Faricy.

In this newly created role, Holme is responsible for setting the content strategy for Discovery’s DTC products in the US, including the curation, commissioning and acquisition of content. She will also manage commercial strategy, with a specific focus on distribution partners in alignment with Discovery’s ad sales teams.

“Lisa brings an impressive track record of success in content to Discovery and will be a key leader as we scale our direct-to-consumer businesses,” Faricy said in a press release. “Lisa’s leadership of our DTC content strategy and commercial partnerships will further bolster Discovery’s position as the leader in unscripted entertainment across all platforms.”

Prior to joining Discovery, Holme spent nearly ten years at Hulu, holding senior leadership positions including most recently, leading development of Hulu’s international expansion strategy and business plan. In her prior role as VP of content acquisition, she was responsible for Hulu’s content strategy and licensing. Prior to Hulu, she worked in production and development at Illumination Entertainment and as a consultant at McKinsey & Company.

“Discovery has excelled at delivering unique and entertaining content to a global fan-base of customers,” Holme said in a press release. “I’m thrilled to join the team at this exciting moment as the company expands its direct-to-consumer presence, building on its success with additional high-quality programming that will reach consumers in a range of compelling, new ways.”

This is being called the golden age of TV programming for scripted shows, in particular.

More shows than ever are being produced, viewers are binge watching them hours at a time through video on demand and streaming services like Hulu and Netflix. And media companies are making piles of cash licensing shows to streaming services, or using them to build their own subscription businesses.

Nonfiction programming has always been a bit of a stepchild in the programming world. People watch, sure. But even the best reality doesn’t get the same acclaim. Nor is it seeing the same kind of demand in this era of peak TV.

All of which leads to the question: What is reality programming’s value in an increasingly on-demand world?

While some nonfiction programming appears on Netflix and Hulu, the opportunities have been more limited.

“With respect to the subscription video-on-demand space, there has been no interest at this particular time in any of the reality types of programming,” one studio executive said.

Unlike networks, which need to fill a programming grid, buyers in an on-demand world are looking for shows that will give their services cachet and recruit and retain subscribers. “Reality is popular on networks, but it’s still viewed as voyeuristic. It’s not necessarily high-end programming,” the studio executive said.

Finding Viewers on SVOD
But as subscription services proliferate and mature, their attitude toward nonfiction could be changing. Viewers are watching more reality shows on demand. Streaming services are showing more interest in creating their own unscripted programming and adding existing shows to their offerings.

According to comScore, the top 10 rated reality programs for the 2016-17 broadcast season garnered more than 66 million VOD transactions, up 26% from the prior broadcast season’s reality programs. The gain came as overall VOD transactions dipped 3% from the prior year.

“I talk to people who produce shows for Discovery, Scripps Networks and A+E [Networks], and they all say they’re getting more interest from SVOD,” MoffettNathanson Research analyst Michael Nathanson said. “Given the price of scripted programming is going up, they’re looking at unscripted, which is less expensive, so they can raise their margins.”

Hulu currently pitches subscribers what it calls the largest offering of unscripted programming available on a streaming platform, with thousands of episodes from Scripps Networks, A+E and NBCUniversal.

“As SVOD programmers, we are always looking for content that will drive subscriber growth and keep viewers engaged,” Hulu vice president of content consumption Lisa Holme said. “We see unscripted series as an excellent driver of engagement and consumption, which correlate highly with retention. In the case of Hulu, we uniquely have a very robust advertising business, and so driving lots of hours of consumption is a priority for us, and unscripted can be a cost-effective way to balance the overall portfolio of content.”

Holme said Hulu subscribers watch a lot of unscripted programming. It accounts for a double-digit share of overall consumption on the service. “Outside of catching up on the latest episode of current series — The Voice, The Bachelor, etc. — we see a lot of viewing of character-based reality and competition-based reality, as well as, more recently, … food, home, travel-related series,” she said.

Prior seasons of broadcast series such as CBS’s Survivor and Amazing Race are popular, too. “People are often surprised that prior seasons of those series, as well as series like [Real] Housewives and [Keeping Up With the] Kardashians are consumed as much as they are on Hulu,” Holme said.

Netflix did not return calls seeking comment on nonfiction programming. Netflix’s reality offerings include Skin Wars, Tornado Hunters, America’s Funniest Home Videos and Undercover Boss.

Audiences as Loyal as Scripted Fans
TV networks say unscripted shows attract loyal audiences just like scripted programs.

“People want to be entertained, whether by scripted or unscripted,” Nancy Daniels, president and general manager of Discovery Communications’ s TLC, said. “They seek out what connects with them. We’ve seen big success with our shows even in this landscape where there are so many choices.”

While it’s harder to get viewers to watch reruns, Daniels said people watch old episodes of series like Little People, Big World to see what the characters looked like when they were younger. “The twins, Jeremy and Zack, have gotten married. They’re having children of their own. But you can go back to when they were 10 years old, starting out,” she said.

While TLC shows still get the bulk of their viewership on the linear channel, the shows that do best on the network also do best on demand or on the TLC Go app. TLC this year created an original spinoff of its 90 Day Fiancé franchise for the app called 90 Day Fiancé: What Now. “It’s been a huge driver for us on Go,” Daniels said.

Off-channel viewing is becoming an important factor in deciding which TLC series get renewed, Daniels said. “We’re not just looking at linear ratings anymore; we’re looking at overall audience engagement,” she said. “That’s certainly been an evolution for us over the last couple of years.”

App viewing is one way Discovery Communications is monetizing its mainly nonfiction programming.

“When it comes to Discovery unscripted, ours has tremendous value,” Discovery Communications chief commercial officer Paul Guyardo said.

Guyardo said that about 40% of what’s being watched on Discovery’s Go apps is library content, as opposed to current series. “Forty percent is a lot bigger than we thought,” he said.

For series on Investigation Discovery, people are streaming episodes they’ve already seen, “to pick up on clues that they didn’t catch the first time,” Guyardo said.

Discovery Communciations is not selling its programming to Netflix. It does have some shows on Hulu. The company is focusing on getting its core networks included on skinny bundles being offered by virtual distributors being rolled out by Hulu, DirecTV, YouTube and others.

Guyardo insists there’s demand for Discovery’s unscripted programing. “It’s our choice not to sell it in pieces, but rather to feature it all on our own digital platform or in skinny bundles, so we’re getting all the shows’ branding and equity.”

He added that Discovery’s programming is a good deal. “If you look at it relative to what distributors are paying for sports or paying for scripted, I would say we are an exceptionally good value.”

Producers said the subscription services are coming to them looking for original unscripted shows.

“Nonfiction may not be as sexy, but it’s very, very cost-effective,” said John Ford, a former Discovery executive and now general manager of NPACT, a trade association representing non-fiction programmers with about 100 member companies. “So you look at broadcast and cable any time of year, you take out sports programming, and many of the top 10, top 15, top 20 programs are nonscripted.

“You can create a pretty good nonscripted show for three or four hundred thousand dollars an hour,” Ford said. “On an hourly basis, you’re spending $3 million to create a scripted show. So you get 10 times the programming for your dollars in nonscripted.”

Ford pointed out there are already documentaries about food and wine on Netflix. Netflix has commissioned the producer of the acclaimed series Planet Earth to make an eight-part series, Our Planet, due to appear in 2019.

Netflix also has some older off-network nonfiction shows as well. “It’s interesting to look, just to troll through Netflix and see all the nonfiction shows that are there,” Ford said. “You’ll find inventory that I was executive producer on back in 2005 and 2006 still lurking in the inventory somewhere.”

Ford said the production of nonfiction programming for Netflix and the other streaming services flies under the radar because the shows don’t involve big stars and budgets. “What’s going on in nonfiction doesn’t necessarily claim the headlines, but I can tell you our members are actively pitching and producing for all of the OTT services,” Ford said.

Digital Is Key to The Workshop
Tom Farrell, CEO and executive producer for The Workshop, said his company is banking on selling shows to on-demand services. Last year, Amazon Prime green-lighted a series about tennis star Novak Djokovic produced by The Workshop, with Farrell as one of the executive producers.

“Everything that we develop has an eye on the digital world now,” Farrell said. “So while we’re still finding homes in the linear space, you would be foolish not to be looking at the digital component of our business.”

Production standards for on-demand shows might be higher than those for networks. “The viewer is so much more demanding because they’re going to it consciously, rather than stumbling upon it setting there on the couch riffing through the channels,” Farrell said. “You make a conscious decision, so I think your expectations are higher.”