WEBVTT - Think Global, Act Local: Discovery International Chief JB Perrette on How to Win the Worldwide Streaming Race 0:00:08.400 --> 0:00:12.680 Welcome to Strictly Business, Variety's weekly podcast featuring conversations with 0:00:12.760 --> 0:00:16.040 industry leaders about the business of media and entertainment. I'm 0:00:16.079 --> 0:00:19.639 Cynthia Littleton, co editor in chief of Variety Today. My 0:00:19.720 --> 0:00:23.440 guest is J. B. Perette, President CEO of Discovery International. 0:00:23.760 --> 0:00:25.920 While many in the industry are just starting to think 0:00:25.960 --> 0:00:29.280 about programming for global audiences, Discovery has been at it 0:00:29.360 --> 0:00:33.320 for years. Perette oversees more than two channels serving up 0:00:33.320 --> 0:00:36.880 programming in more than fifty languages. He also has experience 0:00:37.080 --> 0:00:41.479 in the direct to consumer arena through his oversight of Discoveries, Eurosport, 0:00:41.560 --> 0:00:45.559 linear and streaming platforms. Perette is a longtime lieutenant of 0:00:45.600 --> 0:00:49.440 Discovery CEO David Zaslow. The two work together at NBC 0:00:49.840 --> 0:00:53.400 for years before reuniting about a decade ago at Discovery. 0:00:53.479 --> 0:00:57.240 In our conversation, Perette shares his enthusiastic thoughts on the 0:00:57.240 --> 0:01:00.240 potential that he sees for the pending merger of Owner 0:01:00.320 --> 0:01:03.959 Media and Discovery. He also weighs in on what events 0:01:04.000 --> 0:01:07.800 like the Olympics mean to subscription businesses, and he talks 0:01:07.800 --> 0:01:11.240 about how Discovery is proceeding with the international rollout of 0:01:11.240 --> 0:01:15.000 its Discovery Plus streamer. Our conversation took place just before 0:01:15.160 --> 0:01:18.080 Discovery became involved in a public battle with the government 0:01:18.080 --> 0:01:22.480 of Poland over efforts to ban non European companies from 0:01:22.480 --> 0:01:26.680 owning media in the country. Discovery owns tv N Group, 0:01:26.840 --> 0:01:29.600 which marks the largest single investment in the nation by 0:01:29.640 --> 0:01:32.880 a US company. Tv N Group includes a news channel, 0:01:33.000 --> 0:01:35.520 TVN twenty four that has been the target of the 0:01:35.560 --> 0:01:38.880 license renewal fight. Discovery has vowed to press its case 0:01:39.000 --> 0:01:42.520 through the existing trade treaty between the US and Poland. 0:01:43.120 --> 0:01:46.360 In a later interview, Herrette told me that Discovery was 0:01:46.560 --> 0:01:50.840 quote watching very closely to defend our business interests against 0:01:50.920 --> 0:01:56.200 regulatory overreach an anti consumer behavior. Herette's thoughts about how 0:01:56.240 --> 0:01:59.560 all TV is local and other insights are coming up 0:01:59.640 --> 0:02:12.760 right to this break. J. B. Parrett, president of the 0:02:12.800 --> 0:02:16.440 CEO of Discovery International, thank you so much for joining 0:02:16.480 --> 0:02:19.680 me today. Great to be here. From your perch, I 0:02:19.720 --> 0:02:22.760 realized that issues about the merger and the deal are 0:02:22.800 --> 0:02:25.640 still are still very much in the pending phase, and 0:02:25.720 --> 0:02:29.320 that you can't talk in keep specifics, but from your 0:02:29.360 --> 0:02:33.280 perch in the international world, based out of London, overseeing 0:02:33.400 --> 0:02:36.320 you know dozens of dozens of channels in all major 0:02:36.440 --> 0:02:39.840 territories of the world. Can you talk about what you 0:02:39.880 --> 0:02:42.320 see as the kind of the thesis for the merger 0:02:42.560 --> 0:02:46.160 shaping up and how it will affect the international markets 0:02:46.200 --> 0:02:52.320 that are so crucial to the global streaming racist these days. Sure, 0:02:53.160 --> 0:02:57.040 thanks to Yeah, so we we I would say Discovery. 0:02:57.040 --> 0:02:58.720 I've had the privilege of being this rule now for 0:02:58.760 --> 0:03:04.400 almost eight years. UH, and it's been an incredible journey. UM. 0:03:05.240 --> 0:03:08.720 But Discovery's journey really in the North Star that has 0:03:08.720 --> 0:03:11.040 been the focus of it for over three decades, has 0:03:11.080 --> 0:03:14.840 been really kind of following the consumer um, which I 0:03:14.880 --> 0:03:17.840 think is as true then as it is now and 0:03:17.880 --> 0:03:19.760 if you think about the evolution. It was one of 0:03:19.760 --> 0:03:24.040 the first companies to UH in the in the early 0:03:24.120 --> 0:03:29.320 nineties kind of move um internationally. It's actually first channel 0:03:29.360 --> 0:03:34.000 was launching the UK, and that was because it thought, 0:03:34.240 --> 0:03:37.240 you know what, this incredible content that we're producing and 0:03:37.360 --> 0:03:41.760 stories are universal and we can tell not them just 0:03:41.840 --> 0:03:44.240 a great American audiences, but we can tell them to 0:03:44.280 --> 0:03:47.320 audiences around the world. And so they branched out, followed 0:03:47.320 --> 0:03:50.760 the customer and took the content around the world over 0:03:50.760 --> 0:03:56.240 the last three decades. Then secondly, that following the customer 0:03:56.320 --> 0:03:59.160 led to the innovation of saying, okay, well we're doing 0:03:59.160 --> 0:04:01.440 this in pay tell of vision. But at the end 0:04:01.480 --> 0:04:03.000 of the day, there are many markets around the world 0:04:03.000 --> 0:04:07.720 where pay television was underpenetrated, and so, again led by 0:04:07.760 --> 0:04:10.600 the customer, people said, well, why don't we launch some 0:04:10.680 --> 0:04:14.760 free to air channels and broaden the reach of our 0:04:14.800 --> 0:04:17.800 content and our stories to more customers. And so we 0:04:17.839 --> 0:04:21.520 are now the second largest broadcaster in Europe as an example, 0:04:21.800 --> 0:04:26.039 UM through our freed air channels across Nordics, Poland, Italy, 0:04:26.240 --> 0:04:30.960 UK Spain, Germany. Uh and so uh now we're in 0:04:31.040 --> 0:04:33.920 sort of the next phase, which is obviously in this 0:04:34.480 --> 0:04:40.359 director consumer world, is there are increasing number of customers 0:04:40.440 --> 0:04:43.360 that obviously want to access content on on demand and 0:04:43.400 --> 0:04:46.400 a direct consumer fashion. And we've embarked on that journey 0:04:46.400 --> 0:04:49.279 with Discovery, plus the Warner team obviously has been in 0:04:49.279 --> 0:04:53.440 that journey with HBO Max uh and uh. So where 0:04:53.520 --> 0:04:55.839 that's the next chapter that we're leaning into heavily. And 0:04:55.839 --> 0:04:58.080 I think when you look at those two companies coming together, 0:04:58.240 --> 0:05:01.440 one of the things that is true about this director 0:05:01.440 --> 0:05:06.440 consumer world is people want choice and they want simplicity. 0:05:07.440 --> 0:05:12.880 Uh and UH. If you see obviously the the fairly 0:05:12.920 --> 0:05:15.839 wide number of different streaming services that are available now. 0:05:15.880 --> 0:05:17.760 I think people are starting to say, we'll wait a second. 0:05:18.080 --> 0:05:20.640 You know, it would be great if, rather than forcing 0:05:20.640 --> 0:05:23.080 the customer to understand what show is where, if more 0:05:23.080 --> 0:05:26.560 of it were somehow more easily accessible. And I think 0:05:26.600 --> 0:05:30.479 part of what is the incredible potential of this, these 0:05:30.480 --> 0:05:36.760 two companies coming together is the unparalleled breadth of content 0:05:36.839 --> 0:05:41.920 offering across all genres, whether it be lifestyle, factual UH, 0:05:42.040 --> 0:05:48.560 some of the greatest traumas, UH, comedy, UM kids documentaries. 0:05:49.160 --> 0:05:54.240 This is a powerhouse of unparalleled content offering. And what 0:05:54.320 --> 0:05:57.320 we've got to work on here with the team as 0:05:57.360 --> 0:05:59.680 we go through the process is figuring out how do 0:05:59.720 --> 0:06:02.760 we take those that incredible offering and bring it to 0:06:02.839 --> 0:06:07.440 customers in a simple UH and compelling fashion. UM. But 0:06:07.600 --> 0:06:10.840 we think we have a incredible lineup of stories and 0:06:10.960 --> 0:06:13.200 genres that HE is unmatched in the industry, and we're 0:06:13.200 --> 0:06:15.400 excited to bring that to market just as soon as 0:06:15.400 --> 0:06:17.920 we can, obviously get through the regulatory approval process and 0:06:17.920 --> 0:06:22.400 and operationalize it. What have you learned, even in small levels, 0:06:22.440 --> 0:06:25.719 even in some smaller markets, about how you know how 0:06:25.800 --> 0:06:30.080 customers embrace streaming, how they embrace streaming versus linear and 0:06:30.080 --> 0:06:32.600 how that changes what they're willing to pay for and 0:06:32.640 --> 0:06:35.680 how they consume. We obviously have been at this for 0:06:35.720 --> 0:06:39.839 several decades, and I'd say are the leading global media company, UH, 0:06:39.880 --> 0:06:41.720 And so we have a lot of lessons. I think 0:06:41.800 --> 0:06:44.839 Number one is it's not a one size fits all UM. 0:06:44.920 --> 0:06:48.400 And that sounds simple, but the reality is, as I 0:06:48.440 --> 0:06:52.640 always say internally, UH, the idea of international as a 0:06:52.680 --> 0:06:56.680 single word is the greatest misnomer. UM. You know, this 0:06:56.760 --> 0:06:59.560 is a collection of very different, very diverse, very rich 0:07:00.400 --> 0:07:03.800 markets UM. Uh, and everyone is a little bit different. 0:07:04.480 --> 0:07:08.719 Number one. Number two is UM you know. I think 0:07:08.720 --> 0:07:12.160 what we see as part of our differentiation also compared 0:07:12.200 --> 0:07:15.160 to others in the industry, is we've been at this 0:07:15.320 --> 0:07:19.960 in producing not just great US content that obviously travels, 0:07:20.520 --> 0:07:24.400 but we've been producing great local content in many of 0:07:24.400 --> 0:07:27.560 the biggest markets there for decades. And so we have 0:07:28.200 --> 0:07:31.840 a very unique combination of great international and US created 0:07:32.560 --> 0:07:36.680 UH stories that travel and great local stories. And that 0:07:36.760 --> 0:07:39.760 combination of great international and great local to US is 0:07:39.880 --> 0:07:43.840 sort of the secret sauce that differentiates UM. A Discovery 0:07:43.920 --> 0:07:47.000 Warner proposition, uh, compared to some of the others that 0:07:47.040 --> 0:07:52.320 may be more just dominant US lead content offerings, and 0:07:52.600 --> 0:07:55.440 the reality is to scale and a lot of these markets, 0:07:55.480 --> 0:07:59.720 the US content is you know, very valuable, and that 0:07:59.800 --> 0:08:03.520 d libraries incredibly valuable, and in the genres traditional genres 0:08:03.520 --> 0:08:07.600 of discovery, UH, a lot of those stories are truly universal, 0:08:08.040 --> 0:08:10.560 which is one of the great things that has allowed 0:08:10.640 --> 0:08:14.160 us to expand and become the leading global media company. 0:08:14.200 --> 0:08:17.480 Is you know, comedy isn't, as an example, is a 0:08:17.520 --> 0:08:23.360 lot harder because comedy is much more national, much more local, uh, 0:08:23.400 --> 0:08:29.480 and so doesn't necessarily travel as well. But stories about adventures, survival, lifestyle, um, 0:08:29.520 --> 0:08:33.319 you know, uh, true crime, even you know, these are 0:08:33.360 --> 0:08:37.920 genres that that are truly stories that resonate everywhere, and 0:08:37.960 --> 0:08:40.320 so that is one of the great uniqueness. So not 0:08:40.440 --> 0:08:42.439 one size fits all. You gotta tailor to the market, 0:08:42.480 --> 0:08:44.520 and you've gotta have infrastructure on the ground. And I 0:08:44.520 --> 0:08:46.200 think one of the other things that we've done over 0:08:46.240 --> 0:08:49.280 these years is we've got people and teams that know 0:08:49.400 --> 0:08:51.800 the local markets, that know the marketing app channels, and 0:08:51.880 --> 0:08:56.600 know the production communities are producing stories um and close 0:08:56.640 --> 0:08:59.839 to the greatest storytellers and all these markets. And we 0:09:00.040 --> 0:09:02.959 are in a period also where content is traveling and 0:09:03.000 --> 0:09:05.240 actually real credit to Netflix on this one, which is 0:09:05.280 --> 0:09:08.480 really sort of flatten the world from a consumption standpoint 0:09:08.480 --> 0:09:12.280 of international global content UM and great stories can come 0:09:12.320 --> 0:09:16.880 from anywhere, and we think that again on this journey. 0:09:16.920 --> 0:09:20.320 We're incredibly well positioned because we have decades worth of 0:09:20.360 --> 0:09:23.320 storytelling at the international and local at the U S 0:09:23.360 --> 0:09:27.160 and local international markets level, and we're looking forward to 0:09:27.160 --> 0:09:30.400 bring that together as we roll out Discovery Plus and 0:09:30.440 --> 0:09:32.760 as we figure out how best to bring this to 0:09:32.880 --> 0:09:36.120 market in the in the Discovery Warner context. As the 0:09:36.200 --> 0:09:40.199 delayed Tokyo Games get underway, how do you feel about 0:09:40.240 --> 0:09:43.840 your investment in them and how you know, especially under 0:09:44.040 --> 0:09:46.880 the kind of extraordinary circumstances that the Tokyo Games are 0:09:46.880 --> 0:09:49.480 gonna unfold, how do you feel about that as an 0:09:49.480 --> 0:09:52.880 investment for Eurosport? Right now, the Olympics are truly the 0:09:52.920 --> 0:09:56.640 greatest event in the world um and then there's no 0:09:56.760 --> 0:10:01.400 there's no bigger event in in media on a global 0:10:01.440 --> 0:10:05.360 scale in the Olympics and the history of the Olympics, 0:10:05.360 --> 0:10:08.120 if you look back over the last several ones, is 0:10:08.160 --> 0:10:11.679 every games has a different narrative challenge building up to 0:10:11.720 --> 0:10:14.720 the Games, whether it be doping or you know, the 0:10:14.760 --> 0:10:19.320 preparations and the issues around real prep, and you know 0:10:19.440 --> 0:10:21.559 Athens had a lot of the prep issues. And one 0:10:21.559 --> 0:10:25.920 thing that's been consistent, a lot of that conversation happens 0:10:26.360 --> 0:10:28.319 building up to the games, a lot of noise, a 0:10:28.360 --> 0:10:31.040 lot of questions. Obviously, this one is not immune to 0:10:31.080 --> 0:10:34.800 that either, with this unique COVID environment that we're all 0:10:35.080 --> 0:10:39.640 fighting through. But the same one very important rule is 0:10:39.640 --> 0:10:42.000 true in every single one of those cases. The minute 0:10:42.040 --> 0:10:45.000 the flame gets lit, which as you said, has just 0:10:45.080 --> 0:10:50.360 happened today, the focus turns to the athletes and the 0:10:50.400 --> 0:10:56.760 incredible stories of these people who have persevered, particularly in 0:10:56.800 --> 0:11:00.240 these last two years amidst you know, all the prep 0:11:00.280 --> 0:11:06.160 they did, the postponement at retraining, retraining in very difficult situations. Obviously, 0:11:06.720 --> 0:11:09.280 and while yes, the current one will be unique in 0:11:09.360 --> 0:11:14.559 terms of obviously no crowds and limitations, but the flip 0:11:14.600 --> 0:11:17.840 side is the great thing about the Olympics, which is 0:11:17.880 --> 0:11:23.439 these unbelievable stories of human achievement UH and perseverance and 0:11:23.640 --> 0:11:27.800 UH are going to be more true than ever in 0:11:27.840 --> 0:11:32.000 the Tokyo Games and so UM we're excited to bring 0:11:32.040 --> 0:11:35.319 those stories to the all the European viewers. We obviously 0:11:35.360 --> 0:11:39.000 will be the home of the Olympics across all of 0:11:39.040 --> 0:11:43.760 Europe UM effective now, and we will be providing UH 0:11:43.800 --> 0:11:47.280 and LEANING in as we've launched Discovery Plus UH in 0:11:47.320 --> 0:11:50.959 a handful of European markets. UH. The the only place 0:11:50.960 --> 0:11:53.120 where you'll be able to get every minute of the 0:11:53.120 --> 0:11:57.840 Olympics live will be on Discovery Plus in the UK, 0:11:58.040 --> 0:12:03.480 the Nordics, Netherlands, Italy, UM, UH and and UH. And 0:12:03.520 --> 0:12:06.520 then in markets where we haven't yet launched on Eurosport Player, 0:12:07.280 --> 0:12:09.480 we'll have every moment in the Olympics live. And so 0:12:09.520 --> 0:12:11.679 we have a unique proposition that we're excited to bring 0:12:11.720 --> 0:12:17.559 the fans across Europe UM and we we're we're very 0:12:17.559 --> 0:12:19.880 confident that it will continue to be a great event 0:12:19.920 --> 0:12:21.720 that will unify the world and the frankly, the world 0:12:21.800 --> 0:12:25.160 right now needs great stories to bring us together and 0:12:25.200 --> 0:12:30.360 that show the resilience and the accomplishments of of humanity. 0:12:30.440 --> 0:12:33.280 So the positives I think is meant to be the 0:12:33.400 --> 0:12:36.160 sort of hallmark of of of these Tokyo Games at 0:12:36.160 --> 0:12:40.280 these critical time. UM Sports, as you said, is a 0:12:40.320 --> 0:12:45.720 complicated business. UM. But the flip side is, UH, what 0:12:45.760 --> 0:12:49.680 we've also done as you've seen this so slight change 0:12:49.679 --> 0:12:52.600 in our evolution is as we're rolling out Discovery Plus, 0:12:52.679 --> 0:12:57.640 Sports and Entertainment, we'll sit together in the product UM 0:12:57.720 --> 0:13:01.160 And just to be clear, Eurosport is going to be 0:13:01.200 --> 0:13:05.560 integrated into the Discovery Plus platform. That's right. So it 0:13:05.600 --> 0:13:08.280 are in the markets I describe before, it already is 0:13:08.840 --> 0:13:12.319 essentially rolled into the Discovery Plus offering, so you can 0:13:12.320 --> 0:13:15.480 have entertainment and you can have entertainment and sports. And 0:13:15.520 --> 0:13:18.000 as we roll out Discovery Plus and more markets, the 0:13:18.000 --> 0:13:21.320 same will be true across Europe, where you'll be basically 0:13:21.320 --> 0:13:24.920 having one product. Back to the conversation we had earlier 0:13:24.960 --> 0:13:29.400 about simplicity and choice, UH, that's kind of our north star, 0:13:29.559 --> 0:13:33.040 focused on the customer and the consumer interests, and we 0:13:33.080 --> 0:13:36.560 think the simplicity and choice and bringing that together in 0:13:36.600 --> 0:13:39.120 one product in one offering and allowing people to actually 0:13:39.200 --> 0:13:43.160 enjoy the best of entertainment and real life entertainment, but 0:13:43.320 --> 0:13:45.720 also be able to actually watch some of the premier 0:13:45.720 --> 0:13:50.160 sporting events in the world, all within the same product offering, 0:13:50.520 --> 0:13:54.480 UH is ever more compelling and so UM we're going 0:13:54.520 --> 0:13:56.640 to continue to lean into it. We have a number 0:13:56.679 --> 0:13:59.400 of different sports rights across Europe and we're into we're 0:13:59.400 --> 0:14:03.400 really folk based on rolling the great eurosport and sports 0:14:03.400 --> 0:14:07.920 content overall into the Discovery Plus offering for consumers. So 0:14:08.040 --> 0:14:10.840 you have to be I mean the timing of these 0:14:10.920 --> 0:14:14.600 delayed games. At the time that you're rolling out Discovery Plus, 0:14:14.679 --> 0:14:18.040 you have Olympics as a very strong you know, almost 0:14:18.080 --> 0:14:22.800 your your burker is the Olympics rights that are Can 0:14:22.840 --> 0:14:25.880 you talk about how how you have sliced up those rights? 0:14:25.880 --> 0:14:30.560 How are you presenting them on Eurosport So um, we 0:14:30.600 --> 0:14:34.560 obviously have certain obligations with the IOC for a certain 0:14:34.560 --> 0:14:36.640 amount of free to air coverage, which we do either 0:14:36.680 --> 0:14:39.800 on our own channels or with sub licensed partners in 0:14:39.800 --> 0:14:44.200 individual markets. UM. But as I mentioned earlier, the key thing, 0:14:44.720 --> 0:14:49.400 UH will be that really Discovery Plus and Eurosport Player 0:14:49.400 --> 0:14:51.640 in the markets were Discovery Plus is not yet available, 0:14:52.200 --> 0:14:55.000 will be the only place that you can get every 0:14:55.040 --> 0:14:57.240 single minute live. So if you know there's over three 0:14:57.240 --> 0:15:01.080 thousand live event hours uh of the Olympics in the summer, 0:15:01.720 --> 0:15:04.880 um and the only place where you can literally if 0:15:04.920 --> 0:15:06.400 you're a fan of the sports and you don't want 0:15:06.400 --> 0:15:09.920 to necessarily figure out, you know, what's on here, what's 0:15:09.960 --> 0:15:13.720 on there? You know you through the Discovery Plus subscription 0:15:13.880 --> 0:15:16.240 or U Sport Player subscription, you don't have to think 0:15:16.280 --> 0:15:18.600 of any of that. It will be personalized, tailored to you, 0:15:19.240 --> 0:15:21.160 and you have every minute of the games which you 0:15:21.200 --> 0:15:27.120 can access um live through uh either either service. And 0:15:27.160 --> 0:15:29.920 as we get to Beijing, which is obviously in the 0:15:29.920 --> 0:15:32.920 winter and six months away and has been prepared for Paris, 0:15:34.240 --> 0:15:37.040 which will be a huge homecoming of the Games across Europe, 0:15:37.720 --> 0:15:39.480 and by that point in time, we obviously will be 0:15:39.560 --> 0:15:42.080 much further along in terms of rolling out Discovery Plus 0:15:43.080 --> 0:15:45.440 or whatever. The subsequent product at that point will be 0:15:46.040 --> 0:15:51.840 um we uh we. We can't wait to use this 0:15:51.920 --> 0:15:54.480 incredible event to bring more and more people into the 0:15:54.520 --> 0:15:57.160 tent and into the fold and experience not just the 0:15:57.200 --> 0:15:59.200 games but all the other content that will come with it, 0:15:59.680 --> 0:16:03.640 uh uniquely on on our Discovery class and streaming platform. 0:16:03.680 --> 0:16:06.680 And do you there, the excitement level and the buzz 0:16:06.680 --> 0:16:10.400 and the traction is enough to get you the sponsorship 0:16:10.600 --> 0:16:14.000 and they get the traction in the revenue generating areas 0:16:14.040 --> 0:16:17.680 that you need to justify the rights of fees like 0:16:18.000 --> 0:16:22.320 you feel like this has been a good investment for Eurosport. Absolutely, 0:16:22.520 --> 0:16:26.440 I mean it is. There's look, as we were talking 0:16:26.440 --> 0:16:30.240 about it's it is. Sports is an expensive proposition by 0:16:30.280 --> 0:16:35.880 its nature, but it's also a beacon, uh and a 0:16:35.880 --> 0:16:38.600 as David Zaslow says, in terms of, you know, thinking 0:16:38.640 --> 0:16:41.880 about stuff in the subscription world where people will pay 0:16:41.920 --> 0:16:44.920 for it before they'll pay for dinner, sports is at 0:16:44.920 --> 0:16:47.800 the very top of that pyramid because it draws a 0:16:47.840 --> 0:16:52.480 passion and an interest that is almost like nothing else 0:16:52.520 --> 0:16:55.600 in the world. And so it's a very powerful tool. Um. 0:16:56.080 --> 0:16:59.840 And we're excited to have the pre eminent event uh 0:17:00.080 --> 0:17:03.080 for Tokyo, for Beijing and then on to Paris to 0:17:03.160 --> 0:17:05.679 help us on this journey continue to scale and get 0:17:06.000 --> 0:17:09.440 Discovery Plus in front of more and more audience and 0:17:09.520 --> 0:17:11.800 consumers over the next you know, two or three years, 0:17:12.960 --> 0:17:15.639 how much you talked about the need for tailoring and 0:17:16.119 --> 0:17:19.360 customizing for individual markets. I imagine that you're doing that 0:17:19.480 --> 0:17:23.000 for the within the Discovery Plus platform as well. Or 0:17:23.040 --> 0:17:26.280 is that more of a uniform offering now it's all 0:17:26.400 --> 0:17:31.720 very customized because Uh, at the end of the day, again, 0:17:31.760 --> 0:17:34.640 in every market, we have a combination of what will 0:17:34.680 --> 0:17:39.960 be consistent is sort of the deep and rich library 0:17:40.080 --> 0:17:42.720 of US LED content will be available on all the 0:17:42.720 --> 0:17:46.399 different platforms. But what is different in every market is 0:17:46.840 --> 0:17:49.359 UH the other part of the equation, which is the 0:17:49.400 --> 0:17:52.919 great local content. And so whether you're you know, in 0:17:53.160 --> 0:17:57.160 UH in Norway and all of our great Norwegian series 0:17:57.160 --> 0:18:00.560 and comedies, etcetera that will complement the service, or in 0:18:00.640 --> 0:18:04.240 Italy with all the great Italian content and the years 0:18:04.280 --> 0:18:07.399 of of US being the number three broadcaster there and 0:18:07.640 --> 0:18:09.639 being able to provide all the content provide war. If 0:18:09.680 --> 0:18:12.760 you're in Brazil UH and you have all of our 0:18:12.800 --> 0:18:16.520 local Brazilian content that we commission UH, it will be 0:18:16.760 --> 0:18:20.320 a a. And then again, sports obviously is a layer 0:18:20.320 --> 0:18:24.120 on top. So it's not a uniform global offering other 0:18:24.200 --> 0:18:27.520 than the kind of core elements of it. In terms 0:18:27.560 --> 0:18:33.040 of the US LED UH factual programming. UH is consistent 0:18:33.760 --> 0:18:36.840 UH generally everywhere in terms of its offering, but it's 0:18:36.920 --> 0:18:43.160 then supplemented with incredibly strong local entertainment content, local factual 0:18:43.240 --> 0:18:50.200 content and sports in select markets don't go anywhere. We'll 0:18:50.240 --> 0:18:54.159 be right back with more from Discovery International CEO J. B. Perrett, 0:19:00.840 --> 0:19:04.600 and we're back with more from Discovery International CEO J B. 0:19:04.800 --> 0:19:09.320 Per Where do you see either areas for expansion for 0:19:09.440 --> 0:19:13.240 you or areas markets where you see real growth? Where 0:19:13.240 --> 0:19:17.240 do you see opportunity right now? Internationally? I think there's 0:19:17.240 --> 0:19:19.800 a couple of different areas that if you think about it, 0:19:20.080 --> 0:19:24.520 UM there are still as a percentage, you know, we 0:19:24.560 --> 0:19:28.440 think of the US UM and and pay TV penetration 0:19:28.440 --> 0:19:30.840 in the US, which obviously had hit you at its 0:19:30.880 --> 0:19:35.919 peak five you know, almost ninety and has obviously come 0:19:35.960 --> 0:19:38.280 down a bit, but streaming is sort of a different 0:19:38.359 --> 0:19:43.639 version of it's still pay television in outside of outside 0:19:43.640 --> 0:19:46.320 of the US, there are many many big markets, take 0:19:46.400 --> 0:19:50.879 Italy as an example, where uh the entry price of 0:19:50.960 --> 0:19:54.679 traditional package of PayTV yet sort of forty dollars plus 0:19:54.760 --> 0:20:00.840 or fifty dollars plus has uh capped the the potential 0:20:00.920 --> 0:20:03.720 and where penetration of that kind of an offering has been, 0:20:04.600 --> 0:20:08.520 you know, not more than at its peak. And so 0:20:08.600 --> 0:20:12.600 you have of the audience and the customer base that 0:20:13.000 --> 0:20:16.359 UM just never found that compelling enough and the price 0:20:16.400 --> 0:20:19.520 point may be too high as an entry price point 0:20:19.680 --> 0:20:21.960 for them to experiment in some of the premium content, 0:20:22.040 --> 0:20:26.359 and so our ability to take our product offering and 0:20:26.400 --> 0:20:30.240 sort of this uh in this you know, five to 0:20:30.400 --> 0:20:34.919 seven dollar price range um uh and bring it to 0:20:35.000 --> 0:20:39.240 market with partners like Telecom Italia the mobile partner like 0:20:39.320 --> 0:20:44.440 a Vota phone UM and bring their enormous mobile bases 0:20:44.480 --> 0:20:48.679 which are you know, in some cases ten x the 0:20:48.760 --> 0:20:54.800 size of the traditional PayTV universe. We have an enormously 0:20:55.040 --> 0:20:59.639 bigger serviceable addressable market number one and number two, we 0:20:59.680 --> 0:21:02.520 have an tree price point and a package uh and 0:21:02.600 --> 0:21:06.679 a service offering that is way more compelling at a 0:21:06.720 --> 0:21:09.440 price point that's way more attractive for people to experiment 0:21:09.440 --> 0:21:12.480 and get in with than historically what was priced that 0:21:12.640 --> 0:21:15.840 you know, again ten x higher than where we are. 0:21:15.960 --> 0:21:20.160 So for us, that's probably the single biggest opportunity is 0:21:20.880 --> 0:21:24.560 getting more people uh exposed to our content with a 0:21:24.600 --> 0:21:28.520 great new product um and user experience that they can 0:21:28.880 --> 0:21:32.600 you know, enjoy uh on their own schedule and on 0:21:32.600 --> 0:21:36.399 their own time UH and uh, and working with partners 0:21:36.440 --> 0:21:41.160 who can help deliver that too. Uh. You know, hundreds 0:21:41.160 --> 0:21:44.520 of millions of more users than we ever were historically 0:21:45.119 --> 0:21:47.280 when we were you know, sort of stuck in the 0:21:47.359 --> 0:21:51.359 higher priced PayTV packages and bundles, which are still compelling 0:21:51.400 --> 0:21:55.159 by the way for a certain customers segment. So I know, 0:21:55.320 --> 0:21:57.439 oftentimes this is sort of made into a debate of 0:21:57.960 --> 0:22:02.720 you know, does pay TV die and streaming win. Our 0:22:02.800 --> 0:22:07.080 view is look over the decades when pay television originally 0:22:07.080 --> 0:22:09.399 came out in the eighties, people, and then in the 0:22:09.440 --> 0:22:12.720 nineties started to get traction, people settling broadcast is gonna die, 0:22:12.720 --> 0:22:15.720 and broadcast is still alive and and well, and yes, 0:22:15.720 --> 0:22:19.280 audiences just shifted, but it's still a pretty healthy business 0:22:19.280 --> 0:22:21.360 and has made you know, a ton of money over 0:22:21.400 --> 0:22:24.240 the years, um. And so for us, it's not about 0:22:24.359 --> 0:22:26.399 the death of one and the survival of another, but 0:22:26.400 --> 0:22:30.359 it's about geography shifts, and we like this idea of 0:22:30.359 --> 0:22:33.320 being able to superserve customers, some of whom will want 0:22:33.320 --> 0:22:36.159 to continue to watch linear channels. Maybe those are slightly 0:22:36.280 --> 0:22:39.560 you know, an older demographic, UM, but we don't want 0:22:39.560 --> 0:22:41.760 to exclude them. And so the linear channels are still 0:22:42.119 --> 0:22:44.840 important in that respect. H and free to air is 0:22:44.880 --> 0:22:47.440 still valuable from that respect and gives us also a 0:22:47.480 --> 0:22:52.080 great marketing and promotional channel to drive these other products. 0:22:52.480 --> 0:22:55.639 Pay TV is still vibrant and healthy. And then we 0:22:55.680 --> 0:22:58.640 have this whole new uh customer segment that does want 0:22:59.040 --> 0:23:02.760 UH have access on a direct a consumer basis and 0:23:02.800 --> 0:23:06.320 a more flexible uh kind of ability to choose smaller 0:23:06.359 --> 0:23:09.399 packages of their liking. And that's a whole new customer 0:23:09.440 --> 0:23:11.560 segment for us to go after, and frankly a bigger 0:23:11.560 --> 0:23:14.280 one given the scale that we just talked about of 0:23:14.280 --> 0:23:16.159 of people who might be interested in that at that 0:23:16.200 --> 0:23:19.240 price point versus the higher price you know, bigger bundles. 0:23:19.600 --> 0:23:21.680 Um JP. Tell me a little bit about yourself. How 0:23:21.720 --> 0:23:26.480 did you get into the business of international television. Where 0:23:26.480 --> 0:23:30.800 did you grow up? So? I I I'm I'm a hybrid. 0:23:30.880 --> 0:23:34.760 So my father's French, my mother's American, UM, hence the 0:23:34.800 --> 0:23:40.120 accents American, and the name is French. UM. I grew 0:23:40.200 --> 0:23:42.600 up in uh in New York mostly New York City, 0:23:42.680 --> 0:23:45.719 was born and raised in New York City. UM in Manhattan, 0:23:45.960 --> 0:23:48.560 which people sort have always sometimes scratched theirhead and didn't 0:23:48.560 --> 0:23:50.800 realize that people actually do grow up and live in Manhattan. 0:23:51.760 --> 0:23:54.680 Are born and raised in Manhattan. Uh. And my father 0:23:54.800 --> 0:23:56.879 is from Brittany in the northwest part of France, and 0:23:56.920 --> 0:23:59.640 so I have very strong ties there and it's about 0:23:59.640 --> 0:24:04.000 everything summer of my life. Uh there Uh, so I'm 0:24:04.040 --> 0:24:08.960 sort of by I'm a different Bi coastal uh, East 0:24:09.000 --> 0:24:13.280 coast and and and French coast um. UH. And I 0:24:13.840 --> 0:24:16.639 I came in um to the media business in in 0:24:16.680 --> 0:24:21.480 two thousand UM, starting at NBC in business development and 0:24:21.480 --> 0:24:24.320 then has spent the last you know, over two decades 0:24:24.480 --> 0:24:26.440 of working here. And I've had the great privilege early 0:24:26.480 --> 0:24:29.800 on in my career at NBC of coming uh into 0:24:29.840 --> 0:24:35.040 contact with David Zaslow UH and UH have been a 0:24:35.119 --> 0:24:38.800 huge fan and he's been an enormous uh not just 0:24:39.160 --> 0:24:42.560 UH you know, mentor and UH guide, but somebody I've 0:24:42.640 --> 0:24:45.600 learned a ton from and obviously respected from very early 0:24:45.640 --> 0:24:48.640