Skip to main content

Discovery Communications CEO is not a fan of streaming TV

discovery zaslav streaming david
Image used with permission by copyright holder
David Zaslav, CEO of Discovery Communications, had some not-too-kind predictions about the state of the U.S. television market as a result of the growth in streaming television services, and the potential for the marginalization of scripted network series and lucrative advertising dollars.

At the Bernstein Annual Strategic Decisions Conference, Deadline reports, Zaslav did not make light of the fact that while all streaming services, including Netflix, Amazon Instant Video, Hulu, and others, are indeed offering scripted TV series from traditional networks, they are also increasingly launching their own original content. And that content isn’t exactly lacklustre: it ranges from popular shows like House of Cards and Orange is the New Black (Netflix) to Transparent and Bosch (Amazon Instant Video.) “Why,” he asked, hypothetically mimicking a streaming service, “should I buy a scripted series that ran on a cable network? I’ll build my own.”

Related: Netflix raises the stakes, plans to launch 20 original series per year

This isn’t an issue now as all services offer a nice mix of both. And library scripted series content still makes up the bulk of the offering. But could tides shift, where traditional shows that once generated advertising revenue from traditional linear TV networks, no longer be desirable? Consider that there have already been shows that were dropped by networks, likely due to them pulling in less-than-stellar advertising dollars, only to be “saved” by streaming TV services that don’t rely on ad bucks: Arrested Development is perhaps the most notable example and, most recently, Hulu gave the Fox-cancelled show The Mindy Project a second life through its service.

Zaslav’s concern is that while scripted TV shows are still managing to make money thanks to these syndication subscription video-on-demand (VOD) deals, what if streaming services no longer feel the need to syndicate, and become full production houses in their own right?

He goes so far as to call the fact that cable programmers sold their shows to these services a “mistake” because there are no ads, nor any branding that would showcase where the show originally appeared. And, without proper Nielsen ratings for streaming television programming — which is viewed on everything from big screen TVs to computers and mobile devices — viewership numbers are tough to track, and, therefore, its virtually impossible to monetize the content and put a real value on it. “It’s critical,” he says, “that it gets measured. There’s stuff falling off the table that we’re not getting credit for.”

We’re a long way from streaming TV services becoming full-on networks that produce a steady stream of content that rivals traditional TV lineups. But it does seem as though things are moving in that direction: Netflix confirmed earlier this year that it plans to launch 20 new, original series each year, and eight have already been confirmed for 2015. Plus, there’s original content like the upcoming documentary on singer and activist Nina Simone, and the Full House reboot, Fuller House. Amazon has already given the green light for five new series in the 2015/16 season of many that it’s piloted. That said, these services still rely heavily on scripted shows that have done well on traditional TV and are ripe for the binge picking – from The Walking Dead, to Breaking Bad, Mad Men, Modern Family, Sons of Anarchy, and more. Hulu recently nabbed exclusive rights to content from Cartoon Network, Adult Swim, TNT, and TBS.

Still, Zaslav’s point-of-view certainly gives the industry something to think about.

Editors' Recommendations

Christine Persaud
Christine has decades of experience in trade and consumer journalism. While she started her career writing exclusively about…
3 Peacock movies you need to stream this weekend (March 15-17)
A man and a woman talk in The Place Beyond the Pines.

With the 2024 Oscars now just a memory and college basketball about to go into overdrive with March Madness, this weekend feels a bit empty in terms of movie choices. Of course, you could see Kung Fu Panda 4 or Dune: Part Two in theaters again, or you can stay at home and see what's streaming.

If you do, there's a great selection awaiting you at an unlikely streamer. Peacock has a killer lineup, with the Oscar-winning Oppenheimer now streaming. But there are other movies, most neglected and woefully underrated, that are worth your time, too. One is an epic crime drama, another is a campy comedy from the '90s, and the final recommended movie is a modern Western starring a former Batman.
The Place Beyond the Pines (2012)

Read more
Former Apple exec joins upcoming sports streaming service as CEO
Pete Distad, CEO of the new sports streaming service from Disney, Fox, and Warner Bros. Discovery.

Former Hulu and Apple executive Pete Distad will serve as CEO of the new sports streaming service from Disney, Fox, and Warner Bros. Discovery. Handout photo

It doesn't have a name. It doesn't have a launch date. (And if you already subscribe to a streaming service like YouTube TV, this really isn't for you anyway.) But the upcoming super sports streaming service that combines the sports you'd find from Disney (think ESPN and ABC), Fox, and Warner Bros. Discovery now has someone in charge.

Read more
Apple’s MLS Season Pass is streaming all games free this weekend
MLS Season Pass on Apple TV.

If you're a fan of Major League Soccer and haven't yet experienced MLS Season Pass on Apple TV (the app, not the hardware), this is a good weekend to do so. All 14 matches on this weekend's schedule are available to stream — even if you're not a subscriber.

MLS Season Pass has the exclusive rights to MLS matches in the U.S. In its second season, it's quickly proven to be a strong service. Games are streamed in 1080p at 60 frames per second (which should be the standard for all sports), and with a good bitrate, too, so the picture quality is excellent.

Read more