Discovery announced that its new subscription video-on-demand platform, Discovery Plus, is now being resold through Amazon Prime Video Channels.
For now, the $6.99-a-month premium iteration of the streaming service will be resold and repackaged through Amazon’s Prime Video app. An ad-supported version will arrive on Prime Video Channels at a later date.
Discovery reported better-than-expected early subscriber numbers for Discovery Plus in February. But it has ambitious growth goals for the direct-to-consumer service—goals that probably trump any impulse not to have its service disaggregated though the Amazon Prime Video app, a move resisted by Disney and WarnerMedia, among other media companies.
Amazon Prime Video Channels has been a powerful subscription driver for many SVODs, accounting for half of all customers for certain niche services. That comes at a price. Amazon takes around 30% of subscription dollars from services sold through its Channels platform. BMO Capital Markets estimated that Prime Video Channels generated as much as $3.6 billion in revenue sharing in 2020.
But again, for Discovery Plus, which is trying to grow a meaningful addressable advertising business, expanding reach matters. Amazon also announced Thursday that it has surpassed 200 million Prime Members globally.
The Channels announcement comes a week after Discovery Plus launched on Comcast’s Xfinity X1 and Flex pay TV platforms.
“Today’s launch on Amazon Prime Video Channels expands access to Discovery Plus for millions of Amazon customers beyond Fire TV streaming devices and Fire TV Edition Smart TVs,” said Gabriel Sauerhoff, senior VP of digital distribution and commercial partnerships at Discovery, Inc., in a statement. “This innovative relationship provides multiple, compelling ways for us to reach and delight consumers with a truly differentiated streaming experience through Discovery Plus.”
Added said Soumya Sriraman, head of Prime Video Channels: “Adding Discovery Plus and its exciting roster of top brands reinforces Prime Video Channels' promise of bringing the best shows to our customers, all in one place. With a discovery+ channel subscription, Prime members now have even more ways to access content they love directly on Prime Video including shows such as Magnolia Table with Joanna Gaines, Guy’s Grocery Games, and Bobby and Giada in Italy.”
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!