Discovery Inc. is joining the streaming league as it gets set to launch its streaming service called Discovery+. The company hopes to edge out competition as it will focus on unscripted shows about romance, food, and home improvement that will it stand out in a highly competitive market.
The company also announced that Discovery+ will launch on Jan. 4 and a subscription with advertising will cost $4.99 a month in the U.S., while an ad-free version will be priced at $6.99.
Discovery+ is the company’s biggest bet yet that it can make money from the growing legions of cord-cutters who don’t subscribe to cable TV, following the introduction of niche offerings featuring golf, cycling, and cooking.
Discovery shares rose as much as 5.6% to $29.22 in New York trading Wednesday, after CNBC reported on the coming launch. The stock is down 15% this year.
Bloomberg Technology reports that the service could attract subscribers quickly, thanks to a deal giving Verizon Communications Inc. customers free access for up to one year. The agreement is similar to the one that Walt Disney Co. struck with Verizon to boost subscribers to Disney+. In February, Disney said about 20% of that streaming service’s customers — or about 5.3 million — came from Verizon in the first two months.
Discovery+ will feature thousands of episodes from its portfolio, which also includes the Food Network and the namesake Discovery Channel. The service will have new shows from Magnolia Network stars Chip and Joanna Gaines, who are famous for the HGTV series “Fixer Upper”; spinoffs from TLC’s popular “90 Day Fiancé” franchise; and nature shows from the BBC. Discovery has also licensed programming from A+E Networks, home of the History, Lifetime, and A&E channels.
