Discovery Incorporated, the parent organization of channels like HGTV and Animal Planet, has finally succeeded to collaborate with Hulu.
The deal was announced on Wednesday. According to the terms of the partnership, the company, which is based in Silver Spring, Maryland, will supply the on-demand content library of Hulu with the old episodes of its programs.
Discovery manages several cable networks like OWN, TLC, and its channel namesake, The Discovery Channel.
Moreover, they present reality programs like “Say Yes to the Dress,” “MythBusters,” and “Property Brothers.”
Gunnar Wiedenfels, the chief financial executive of Discovery, revealed at the August earnings call that there has, indeed, been a marked decrease in the company’s customers for its channel portfolios.
This five percent decline comes all together with its most well-known channels down three percent. Hence, Wiedenfels said that this trend has made Discovery decide to offer skinny bundles.
David Zaslav, Discovery’s CEO, affirmed this move of the company to enter the upstart TV services market. He said that they like this type of service and they are focusing on it now.
The population of cord cutters has risen with pay TV customers cancelling cable services which they reckon as not budget friendly.
Media firms such as Discovery have worked hard to get their channels included in the increasing number of Internet TV service providers like Hulu, DirecTV Now of AT&T, and Sling TV of Dish.
The agreement which Discovery inked with Hulu is a strategy which is viewed as assisting network owners to regain the subscribers they lost to prevailing streaming service providers.
As they rely on subscription payments in order to profit, these channel owners’ woes have also been curbed somehow with the help of these new Internet TV offerings.
In 2017, Discovery accomplished an $11.9-billion acquisition deal of the Scripps Networks Interactive. The purchase transformed the media company into a major player in unscripted TV broadcasting.
The main channels of Scripps like Travel Channel, HGTV, and Food Network are already on the live TV offerings of Hulu.
Discovery’s channels were also recently added to AT&T Watch’s package which was introduced in June. For $15 monthly, subscribers can enjoy over 30 channels of live TV.