The world's media stocks are far from immune during this current market volatility, and Discovery Communications suffered with a 14.6% fall ($1.76) on Oct 24. While Friday saw a modest recovery during later trading, at one point Discovery's stock hit a 10-year low, at $10.02.
Investment bank JP Morgan cited the advertising downturn, both in the US and international markets. Senior JP Morgan analyst Vasily Karasyov, said: "Domestic markets are facing a weak scatter market caused by cuts in marketing budgets,"; he said. "Internationally, cable networks' pricing power appears to be eroding as clients look to broadcast networks for reach."
Discovery reports its Q3 results on Nov 7, and at that time some might question the timing for its latest promised channel launch in Britain, on the UK's 'Freeview' DTT system, which is entirely dependent on ad-income for its revenues. Discovery is paying a reported £10m a year to secure space for its as yet unnamed network.
Discovery is also watching its pennies as far as its Animal Planet brand is concerned. Animal Planet International is closing its London HQ office, and will be leaving its commissioning to Discovery Networks International's offices in London and Washington.

Source: Rapid TV News 2008

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