David Zaslav is Discovery's $52-million man

Discovery Communications Chief Executive David Zaslav might have had a rocky year in 2011 -- his joint ventures OWN: The Oprah Winfrey Network and the small kids' network HUB stumbled badly -- but the struggles didn't affect his compensation.

Zaslav's 2011 pay package, which included salary, stock, options and other perks, was valued at $52.4 million -- more than 20% over the 2010 level of $42.6 million. 

The large package propels Zaslav into the upper stratosphere of media compensation, and makes him among the highest paid executives in the nation.

In comparison, Robert Iger, chief executive of the much larger Walt Disney Co., collected a $31.4-million package last year. Viacom Inc.'s Philippe Dauman last year received $43 million (considerably less than Dauman's 2010 compensation of $84.5 million). Time Warner Inc. Chief Executive Jeff Bewkes took a slight pay cut last year, collecting $25.9 million.

Zaslav's base salary was nearly $3 million.  His stock and option grants were valued at $44 million, according to the company's proxy filed late Friday.  Some of the options were allocated in 2008, when Discovery's stock was trading at below $20 a share.  On Monday, Discovery's shares traded around $51.

A Discovery spokesman said 90% of Zaslav's compensation was due to stock appreciation.

In the proxy filing, Discovery said it had a strong year financially, with revenue climbing 12% to $4.2 billion. Net income from continuing operations jumped 75% to $1.1 billion.

But there were setbacks. Wall Street analysts have been discounting the value of OWN. Some are questioning whether the company will write down the network's book value this year.

Discovery, which owns 50% of OWN, has invested more than $312 million in the channel. Winfrey owns the other 50%.

Winfrey on Monday conceded that OWN has been trickier than she had anticipated during an appearance on "CBS This Morning."

According to Discovery's filings, its other highly compensated executives included founder and Chairman John Hendricks, who received a package valued at $8.9 million; Chief Financial Officer Bradley E. Singer, whose compensation was valued at $4.2 million; and Mark G. Hollinger, president of Discovery Networks International, whose compensation topped $5.5 million.  Former Chief Operating Officer Peter Liguori, who left Discovery at the end of the  year, received $4.8 million.

Discovery declined further comment.

Oprah's success hasn't followed her to OWN

Oprah Winfrey acknowledges her OWN mistakes

OWN cable network to cut jobs, replace executives

-- Meg James  

 
Photo: Partners Oprah Winfrey and Discovery Communications Chief Executive David Zaslav toast their joint venture OWN: Oprah Winfrey Network.  Credit: Robin Layton / OWN

 

Discovery Channel to air all 7 episodes of 'Frozen Planet' series

Discovery Channel extricated itself from a political ice storm by announcing it would air all seven episodes of "Frozen Planet," a wildlife and natural history series co-produced with the BBC.

The program -- which explores life in the earth's polar regions and the environmental effects of rising temperatures -- will premiere March 18 and air on subsequent Sundays, Discovery said Tuesday. 

Four years in the making, the series was produced by the same documentary team behind the channel's critically acclaimed series "Planet Earth."  Discovery said the U.S. version of "Frozen Planet" will be narrated by actor Alec Baldwin.

"Frozen Planet" is currently running on the BBC in Britain and generating huge ratings. 

Controversy erupted last month when reports surfaced that Discovery was considering ditching the seventh episode of the series, which delves into the thorny issues of global warming. That episode, "Frozen Planet: On Thin Ice," includes on-camera shots of British naturalist Sir David Attenborough, who narrates the British version, discussing what shrinking glaciers and rising temperatures mean for people and wildlife that live in the region as well as the rest of the planet.

Activists launched an online petition urging Discovery Channel to run the entire series, including "On Thin Ice."  The channel is owned by Maryland-based Discovery Communications.

The ruckus surprised Discovery executives, who had not screened all of the episodes until last week.

"Up until today we had not made any programming or scheduling decisions, and today we made our announcement," said Katherine Nelson, Discovery Channel spokeswoman.

RELATED:

"Terra Nova" fights against extinction

"American Chopper" build-off bikes revealed

Discovery's No. 2 executive plans to leave

-- Meg James

Photo: Polar bears in the Discovery Channel series "Planet Earth." Credit: Terry Andrewartha / Discovery Channel and BBC

Peter Liguori to exit Discovery Communications

Discovery Communications Chief Operating Officer Peter Liguori is stepping down at the end of the year, the cable programming giant said in a regulatory filing.

The departure of Liguori, who joined Discovery about two years ago, was not unexpected. Initially based in Discovery's suburban Washington, D.C., headquarters, as of late he spent most of his time in Los Angeles. Unlike his previous positions at News Corp.'s FX and Fox Broadcasting, where he was intimately involved in programming and marketing strategy, his role at Discovery was more administrative than creative.

Discovery said it would not replace Liguori and is eliminating the position of chief operating officer at the company.

Liguori was primarily tasked with overseeing Discovery's joint ventures, including OWN, the cable network it launched this year with Oprah Winfrey, and the Hub, a kids cable channel that counts Hasbro as its partner.

However, when Winfrey decided to make herself chief executive of OWN, Liguori was squeezed out of much of the day-to-day activities at the network. On the one hand, that meant he was free of the turmoil that has surrounded the channel since even before it launched. On the other hand, it also took away one of his key responsibilities. The way the situation was handled also chafed at Liguori, people close to him said.

In a statement, Liguori called his stint at Discovery "incredibly rewarding."

Discovery Chief Executive David Zaslav thanked Liguori for "tackling some pretty challenging special assignments, including the launches of our joint venture networks -– the Hub, OWN and 3net." The latter is a 3-D cable channel Discovery launched with Sony Corp. and Imax.

--  Joe Flint

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Liguori's contract gets sweetened for taking helm of OWN

Norman out, Liguori in at OWN

Discovery taps Peter Liguori

Photo: Peter Liguori. Credit: Fox Broadcasting.

 

 

Discovery Channel deal with Maker's Mark leaves bad taste

Discovery Channel once took great pride in ambitious programs that enlightened audiences about the mysteries of Earth.

Now it takes great pride in being the first television network to carry ads for Maker's Mark bourbon.

Those were the words Discovery Communications Ad Sales President Joe Abruzzese used to describe the cable channel's new deal with Maker's Mark, under which it will produce custom-made commercials to run in several top shows including "Swamp Brothers" and "Gold Rush."

“Discovery Channel’s viewers and the Maker’s Mark brand fans share so many similar attributes and interests, it was a natural fit," Abruzzese said in a statement.

Liquor advertising on television is not new. Although still fairly taboo on broadcast television, cable TV has embraced the hard stuff over the last several years. Discovery's straying somewhat from its original vision of programming that would enlighten audiences about the world is also nothing new.

In a letter on its website, Discovery Communications Chief Executive David Zaslav wrote, "We are committed to responsible corporate citizenship, inspiring our viewers with on-air messages, promoting and practicing sustainability for our planet, supporting lifelong learning, working with our partners, giving back to our communities, helping our employees thrive at work, and growing a diverse and successful industry."

In many ways, Discovery still lives up to its original goals every day. It still puts on plenty of high-caliber shows and documentaries such as "Life" and "Planet Earth" to balance with the heavy dose of reality shows such as "American Chopper" and "Hogs Gone Wild." It tries to walk the fine line between offering up programming with good taste with programming that tastes good.

In that light, blatantly getting into bed with a liquor brand seems like bad idea for a Discovery, whose own CEO says the company is "committed to making a positive impact in the lives of our viewers." Seeing Discovery celebrate teaming up with a hard liquor company and producing custom-made commercials is, like a shot of Maker's Mark, a little hard to swallow.

Discovery had revenue of almost $3.8 billion last year. Surely it can grow that number without giving its viewers and its brand a hangover.

-- Joe Flint

Discovery's David Zaslav awarded $42.6 million in compensation in 2010

David Zaslav, chief executive of the Maryland-based Discovery Communications Inc., was awarded a compensation package valued at $42.6 million in 2010 -- more than triple his compensation for the previous year.

That's a lot of TLC.

Discovery owns such channels as Discovery, TLC, Animal Planet, Planet Green, Discovery Fit and Health as well as 50% of the Oprah Winfrey Network. Zaslav, a former high-level NBCUniversal executive, took the helm at Discovery in January 2007, a year before the company went public.  Its shares have increased by nearly 20% this year, closing Monday at $40.48. 

Zaslav was paid $2 million in salary. He received stock awards of $20.3 million and options that are currently valued at $15.4 million. The company also provided $4.4 million in non-equity incentives, plus other compensation, including travel and security expenses. Zaslav's total compensation for 2009 was $11.7 million.

The information was contained in a filing Monday to the Securities and Exchange Commission. 

Discovery's founder and chairman, John S. Hendricks, accepted a package valued at $9.5 million for 2010 -- a substantial reduction from his $17.3-million package, boosted by stock options, during the previous year. 

Mark G. Hollinger, chief executive of Discovery Networks International, received $5.6 million in 2010, and Peter Liguori, the company's chief operating officer, collected $4.9 million in salary, bonus, stock and options. Chief Financial Officer Bradley E. Singer's compensation was valued at $4 million.  

-- Meg James

 

OWN: Oprah Winfrey Network launches with high expectations

Soon it will be time to measure the Oprah bounce.

On Saturday, a switch will be flipped and OWN: Oprah Winfrey Network will be available in nearly 85 million homes.  It is the most highly anticipated launch of a cable channel in more than a decade, in large part because of the pedigree of its founders. Discovery Communications, Winfrey’s partner in the venture, has contributed channel space and has paid more than $110 million in start-up costs.  Winfrey too has much riding on the channel’s success.  She lent her name, website and programming vision, realizing the results will help shape her legacy. 

The television industry has been eager to see whether the power of Winfrey — she can drive sales of books, candles and other products with a mere mention on her show — will translate into throngs of viewers flocking to her cable channel.

Winfrey hesitated before moving forward with OWN.  In O Magazine, she wrote that she was initially fearful that she would not be able to “duplicate what I’ve done” with “The Oprah Winfrey Show,” and that gave her pause.  She eventually came to terms with the cable channel not necessarily being a way to create a “new phenomena” but instead as an opportunity to continue doing what she loves. And she knew, after 25 years, that it was time to end her daytime show. 

“In the late '80s, I stopped making television just to make television, and started making television that was going to service the viewer,” Winfrey said in a recent telephone interview.  “And that’s the foundation for this network, and that’s why I think that the network is going to work. I’m betting on myself because no one else programs this way, thinking about the viewers the way that we do.”  

Although the channel will be available in about 85% of the homes in the U.S. that have cable and satellite TV, Winfrey and Discovery have sought to tamp down expectations of a big launch. Winfrey professes to have devoted only 10% of her time to the formation of OWN.  Instead, she has been focused on the final season of her syndicated talk show, which will end production in May with its closing episode airing in September.  Nonetheless, her stamp on OWN will be apparent. 

A marquee show on the new channel will be “Oprah Presents Master Class,” a biography series showcasing Winfrey's conversations with such luminaries as Maya Angelou, Condoleezza Rice, Diane Sawyer and Simon Cowell.  Twenty-five episodes of “Season 25: Oprah Behind the Scenes” will follow the making of the final season of “The Oprah Winfrey Show.”  Personalities nurtured by Winfrey, including Phil McGraw and Dr. Mehmet Oz, will be featured in prime time.  Winfrey herself encouraged the Duchess of York, Sarah Ferguson, to participate in a six-episode documentary series called “Finding Sarah,” which, according to OWN, will explore Ferguson’s “lifelong battles with weight, relationships and finances.”

Winfrey said she is not worried about the ratings produced by shows during the channel’s first few months — despite the harsh glare of the spotlight.

“We will make adjustments as we go along,” she said.  “It’s only going to get better.”

She is ready for pointed critiques and second-guessing that comes with being part of such a high-profile enterprise.

“You know that you are not going to satisfy everyone, but that’s what maturity does for you,” Winfrey said.  “I am really prepared for all of the criticism, all of the snarky `could’ve' and `should’ves.'  But that doesn’t matter. This launch is the birthing of my baby, it’s not the raising of the baby, and that’s the important part.”

Besides, she has had experience getting crushed by the less-than-hoped-for results of an opening weekend.

Winfrey said she was devastated after the October 1998 release of the film “Beloved.”  In its premiere weekend, Winfrey’s pet project about a former slave, based on a Pulitzer Prize-winning novel by Toni Morrison, came in third at the box office, behind the Sandra Bullock film “Practical Magic” and “Bride of Chucky.”  

The horror of watching her movie, directed by Jonathan Demme and starring Winfrey, being trumped by an evil scarface doll sent her into a depression and eating binge.   

“I’m not going to go into a macaroni-and-cheese tailspin again,” Winfrey said. “This is about having a vision about something that’s bigger than yourself.”

— Meg James

Photo: Oprah Winfrey this month taping her show in Australia. Credit: David Crosling /Associated Press.

Hasbro and Discovery not toying around with the Hub

There will be another player in the kid-TV biz starting Sunday when the Hub -- a cable channel from Discovery Communications and Hasbro -- flips on the switch.

Born out of the ashes of Discovery Kids, a cable network in 60 million homes that never made much of an impression, Discovery and Hasbro are hoping eventually to challenge Viacom's Nickelodeon empire, Time Warner's Cartoon Network and Disney's Disney Channel and Disney XD for a piece of the more than $1 billion in advertising and sponsorship money that is spent trying to reach kids every year.

But the Hub also will be getting a lot of scrutiny from watchdogs. Although the channel has said only about 20% of its programming will be based on toys and games from Hasbro, some activists are griping that the network will end up being nothing more than a shill for the toy giant.

The FCC has regulations about advertising on kids' TV, and the Hub already has said it will carry fewer commercials than its rivals in hopes of convincing parents it's about the content, not about moving toys from shelves into shopping carts. 

Running the channel is Margaret Loesch, the well-regarded kids' TV executive who made Fox Kids a powerhouse 20 years ago. She promises the network will be more than just ads for Hasbro. "There have been many shows created just to try to help move toy lines that have come and gone very quickly," Loesch said.

Read more about the launch of the Hub: "New kids' TV channel raises product-placement concerns."

-- Joe Flint

Photo: Margaret Loesch. Credit: Genaro Molina / Los Angeles Times

The Morning Fix: Oscar working on timing. Hasbro and Discovery not toying around. `Superman' has its director.

After the coffee. Before yet another flight to New York.

The Skinny: Discovery's and Hasbro's new kids channel doesn't premiere until Sunday, but the critics are already pouncing. Can't Google everyone with Google TV. "Superman" has its next director. The FCC wants more dirt from Comcast and NBC Universal as part of its review

Oscars on the move. The Academy of Motion Pictures Arts & Sciences wants to move the annual Oscar Awards telecasts from its current home of the end of February or early March to January or early February. The motivation is to make the Oscars one of the first awards shows instead of the last so there is less chance of awards-show fatigue impacting the telecast's ratings. The challenge is finding a new home that won't get run over by football. Huh? That's right, football. See, the NFL wants to expand its regular season to 18 games (that's a debate for another day) and if (when) that happens, it will mean the Super Bowl and probably some of the playoffs will get pushed well into February. That means the Oscar folks (and host network ABC) have to find a home where they won't bump up against all that football hype on rival networks and still get ahead of other shows. The scoop from the Los Angeles Times.

Not toying around. On Sunday, Discovery and Hasbro will launch "The Hub," a new cable channel aimed primarily at kids age 6-11. Not only will it face tough competition from entrenched channels such as Viacom's Nickelodeon and Disney's Disney Channel and Disney XD, it will also be scrutinized by media watchdogs. That's because there are concerns that Hasbro will try to make the network into nothing but ads for its toys. The channel's boss, respected kids TV executive Margaret Loesch, says that won't be the case and that only about 20% of Hub shows are based on Hasbro products. But will that be enough to silence the critics? More on The Hub from the Los Angeles Times.

Google this! Google, the search engine that wants to become the connector between the Internet and the television, unveiled its content partners, but the list was more notable for who wasn't on it. While several cable networks, including CNBC, HBO and Turner Broadcasting are on board, the big broadcast networks are steering clear of Google -- for now anyway. To get Google TV, at least in its early incarnation, you'll need either a Sony high-definition TV set, a Blu-ray player or a special set-top box. In other words, it may take a little while for this thing to take off. More on Google's small-screen dreams from the New York Times.

Peace accord. Mexican broadcaster Grupo Televisa is shelling out $130 million for a 5% stake in Univision and an additional $1.07 billion in convertible debt that translates into 30% of Univision's shares, according to the Wall Street Journal. Besides giving Univision a much needed infusion, it ends years of acrimony between the two media giants.

And the backlash begins. Although many critics are worshiping "The Social Network" and already talking about how many Oscar nominations it should get, gripes about the portrayal of women in the movie are starting to surface. Missing from the movie, says Rebecca Davis O'Brien in the Daily Beast, are women who aren't "doting groupies, vengeful sluts, or dumpy, feminist killjoys." 

He's baaack! Former NBC Enertainment chief Ben Silverman is back to doing what he does best -- making new versions of successful shows. He's near a deal to make a sitcom for ABC based on an old Latin American comedy called "I Hate This Place." Not sure what's more ironic, that ABC -- whose old entertainment chief Steve McPherson loathed Silverman -- will be home for the show or that Deadline Hollywood, which relished in Silverman's downfall at NBC, was where the story was leaked.

Super Director. Zack Snyder, whose credits include "300" and "Watchmen," has been tapped to direct the latest version of "Superman" for Warner Bros. and Legend Pictures. Chris Nolan will produce. Deadline Hollywood on the choice and what Snyder's thoughts are about taking on the franchise.

Where's mine? The Wrap makes the shocking discovery that even in a field as challenged as journalism, there are some people pulling down huge salaries. Next you'll tell me there are hockey players making big bucks too. The hook for the story is that Michael Ausiello, an Entertainment Weekly writer best known for his television casting scoops, is launching his own website, backed by the owners of Deadline Hollywood. Hey, if someone wants to pay top dollar for content, you'll get no complaints from me.

Inside the Los Angeles Times: Thomas Tull, the chairman of Legendary Pictures, is buying out his original investors and has new partners in Fortress Investment Group and Fidelity. The Federal Communications Commission wants more inside information from Comcast and NBC Universal as part of its review of their pending merger. 

-- Joe Flint

Follow me on Twitter and I'll tweet you something special. Twitter.com/JBFlint

Discovery and Hasbro's Hub kids' channel gears up for launch

The Hub, a new kids' cable channel being launched by Discovery Communications and Hasbro Inc., will spend roughly $20 million to hype its Oct. 10 launch and is setting its sights on younger viewers as other kids' channels aim for teens.

Although the Hub, which will launch in about 60 million homes, is still keeping its schedule close to its vest, the network's Chief Executive Margaret Loesch, a veteran kids' television programmer, thinks there is an opening for the channel to woo kids and the advertisers trying to reach them.

"Our competition is starting to age up," Loesch said at the Television Critics Assn.'s summer press tour  in Los Angeles. The Hub will focus primarily on viewers in the 6-to-12 age range.

Established networks, particularly Disney XD and Cartoon Network, have been going after slightly older teens and often focus their efforts on boys versus girls. Nickelodeon, the reigning kids' channel, and Disney Channel are also becoming more known for shows that appeal to teens and tweens.  

Even if there is an opening to snag younger viewers, the Hub will face an uphill battle. Though 60 million homes is a solid start, it will still trail other kids' channels in reach and it will take several years to find parity in reach.

With Hasbro as a partner, there has been some concern from advocacy groups that the channel will be more interested in promoting toys than enlightening and entertaining kids. Loesch said about 25% of the cable channel's programming will be tied to Hasbro, including "Transformers Prime," a series based on the company's highly successful characters, and a game show version of "Clue."

However, the Hub will also have other original and acquired content, including "Pound Puppies," a cartoon that features the voices of Betty White and Eric McCormack. It will also have a game show block on Friday nights aimed at families.

In an interview, Loesch said that so far she has not heard grumbling about the concerns of advocacy groups from the media rather than the groups themselves, but she is aware that the channel will be under a microscope when it launches later this year.

"We're being so careful about content, I'm hoping we'll side-step any brouhaha," she said.

Hoping to appeal more to parents and kids, the Hub will not carry a full advertising load in much of its programming. Although federal regulations limit the amount of advertising in programming aimed at kids to 10.5 minutes an hour on weekends and 12 minutes an hour on weekdays, shows on the Hub that are aimed at preschoolers will carry just six minutes of local and national advertising. Shows that are geared to young children will also have fewer commercials than allowed by the Federal Communications Commission.

On the advertising front, Loesch said only one major toy manufacturer has steered clear of the Hub because of its ties to Hasbro. She declined to say which advertiser, but people familiar with the situation say Hasbro rival Mattel has not exactly been rushing out to buy time on the Hub.

Interestingly, the Hub is selling advertising time to other kids' channels, but has not been able to buy commercials on its rivals. Loesch said the network will buy local commercials on cable systems carrying Nickelodeon, Cartoon and other kids' channels to promote itself.

The Hub has also bought a few reruns, including sitcoms "The Wonder Years" and "Doogie Howser, M.D." That  strategy was embraced by Nickelodeon's Nick at Nite, which in its early days featured reruns of classic sitcoms. Loesch said she is not trying to duplicate Nick at Nite but is  looking to find popular reruns that kids and parents can watch together.

-- Joe Flint