Latin America soon to become the most important market for Discovery Communications

David Zaslav, CEO and president of Discovery Communications, said the company is interested in Latin America, adding that the region can soon become the main market for the group.Zaslav spoke with Charlie Crowe, chief executive of C Squared, during the first day at the Festival of Media LatAm held in Miami Beach. He said that this year the company is investing over a billion dollars in the production of content in the region, and in November it will launch the signal TLC, which is very popular among the Women 18-49 demographic.“We’re in a growth stage and the international market is a key part of it,” said Zaslav. He used the example of Brazil, where pay-TV penetration is only 22%, offering great growth potential. In contrast, growth in the U.S. market is a function of competitors taking market share from each other, not on the development of new markets.Zaslav also pointed out that this year Latin America generated US$650 million, with a pay-TV contribution of 66%. In the U.S. the pay-TV-free-TV ratio is about 50/50.He also talked about the figures for Mexico’s TV metrics, which have been in place for two years. “Mexico is reporting pay-TV audience numbers well below from where we are,” added Zaslav.On the digital front, the executive admitted they are still searching for the most beneficial business model for the company. In the U.S. Discovery has already established an alliance with Netflix to feature content 18 months after its original airing.“We know the digital market is a new window, and a new way to take a bite out the apple,” said Zaslav.