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Discovery Makes Mobile Deal With Verizon

Discovery has made a content deal to provide clips of current series on its networks and full-episodes of past seasons to Verizon mobile subscribers.

The agreement was announced by Discovery CEO David Zaslav during the company's second-quarter earnings conference call Wednesday.

Zaslav says the deal helps Discovery move beyond its traditional subscriber base. It comes at a time when pay TV subscribers are declining and more are relying on streaming to consume video programming.

The deal "adds another source to our distribution revenue stream," Zaslav said.

Zaslav also said that Discovery's new deal with Comcast includes significant subscriber fee increases.

He said that the deal means that the company has largely reset the growth rate for its distribution agreements. Those agreements used to call for annual increases at a rate equal to the consumer price index. Beginning four years ago, the agreements called for increases Zaslav said reflects the strength of Discovery's brand and the networks' gain in share of viewership.

The strong price escalators mean Discovery is "positioned for long-term growth in the U.S," he said.