Discovery Inc.: Shifting From Linear to Platform Business through Direct-to-Consumer Strategy

Case Code: BSTR649
Case Length: 19 Pages
Period: 2010-2021
Pub Date: 2023
Teaching Note: Not Available

Price: Rs.400
Organization : Warner Bros. Discovery
Industry : Media
Countries : United States
Themes: Growth Strategy, International Business, Brand Strategy,Platform Model

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case provides insights into how Discovery Inc. (Discovery), a global leader in real life entertainment, changed itself from a cable TV company to an OTT content provider with a platform business. While Discovery already has a number of popular linear TV channels, it entered the OTT (Over the Top) space in 2020 with Discovery +, so as to manage and sustain the linear business. Discovery+ was launched, as a direct-to-consumer streaming service featuring television series, movies and original programming. Within its first year, discovery+ was available in 25 countries, including India, the UK and Ireland, the US among others. Discovery’s emphasis on D2C strategy made a positive impact on the company’s performance.

Next, the case explores Discovery’s e-commerce strategy in detail. Since early 2010s, Discovery had started increasing its focus on D2C offerings. The case also details Discovery’s D2C strategy for digital/OTT platforms. Discovery offered international D2C propositions for OTT space in three categories-sports, lifestyle and factual. The case then focuses on Discovery+ launch in different countries. The case also analyses in detail how Discovery’s merger with WarnerMedia would create a global D2C streaming platform. The case concludes with a discussion on Discovery’s financial performance and future challenges including the success of the mega-merger.

Issues

The case is structured to achieve the following teaching objectives:

Identify the need for a linear business to build a platform business.
Understand the importance of direct-to-consumer strategy in the Digital/OTT platform.
Evaluate the strategy needed to help a company gain a strong foothold in direct-to-consumer space.
Examine the benefits of a Merger.

Introduction

Early Days

The Transition From Cable Tv To OTT Content

Shift To Direct-To-Consumer (D2C) Strategy

D2C Strategy For Digital/OTT Platforms

Discovery’s New Streaming Service - Discovery+

Merger With Warner Media To Create A Global D2C Streaming Platform

The Road Ahead

Exhibits