Selasa, 08 April 2014

Discovery Wants Your Dog to Watch TV

Even the most faithful canine can only watch so much of the Kardashians. Realizing as much, Discovery Communications, the company behind Animal Planet, has bought an unspecified stake in DogTV, a two-year-old network created with U.S. canines in mind.

The channel broadcasts 24/7 and its content is split into three categories: relaxation (think New Age music and a slow-pan of sleeping dogs), stimulation (chirping birds and wrestling puppies) and exposure (busy intersections, babies, mailmen, etc).

The target market is people who feel guilty about leaving their pets home alone, and the idea isn’t new. A similar product called The Puppy Channel has been around for almost two decades (“This American Life” produced a great radio profile of its creation).

In August, however, DogTV closed its distribution deal with DirecTV, moving beyond its Internet-only status. At the time, DirecTV estimated that half of its 20 million customers were dog owners and potentially interested in the channel.

To be sure, the market is huge. Some 43.3 million U.S. households have at least one dog. But the challenge for the scruffy network is apparent and sizable: how to monetize? Dogs sit outside of the 18-49 year-old demographic sweet spot that marketers hone in on. Also, they are dogs.

So far, DogTV has gone with the HBO-model, charging a monthly subscription of $5 on DirecTV and $10 for online streaming.  The channel may even have some advertising potential, if it can get owners to watch, too.

Dan Fox, Discovery’s Senior Vice President of Corporate Development, said DogTV is “a natural fit.” Indeed, the offering has one attribute that Discovery (DISCA) really likes: a lack of big-name stars. For every hit episode of “X Factor” or “NCIS” on competing channels, there are a crowd of sizable salaries (Shakira isn’t cheap). Discovery, however, focuses on non-fiction fare that skips all those costs.

The folks on its “Deadliest Catch” and “My Big Fat American Gypsy Wedding” are a bargain relative to most TV talent, which is a big reason why the company realized a 19 percent net profit margin last year. There’s nothing mangy about that.

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