Press Release: Liberty Digital, Inc. and Discovery Communications, Inc.
December 7, 2000
LOS ANGELES, CA -- Liberty Digital, Inc. (Nasdaq: LDIG) and Discovery Communications, Inc. (``DCI'') yesterday
announced an agreement to jointly assess the creation of a commerce-based, interactive, digital television channel
targeted to the online leisure travel sector, a market expected to reach $25 billion by 2003.
Under the agreement, Liberty Digital and Discovery Communications will explore the development of a video channel
interactively enhanced by a range of narrowband and broadband technologies that would allow consumers to request
information, browse destinations around the world, book trips and purchase related items such as travel guides
and accessories. This new commerce channel will complement Discovery Communication's existing entertainment brand,
the Travel Channel.
``Exploring this opportunity with Discovery marks another key milestone in the implementation of our interactive
television initiatives,'' said Lee Masters, president and CEO of Liberty Digital. ``Travel has terrific potential
for interactive television applications. Not only is it the largest business-to-consumer category on the Internet
but travel also brings with it an extraordinary visual component that promises to be compelling for viewers. Early
successes in selling travel over the television have already been achieved in Europe, helping underscore our optimism
for the category. Joining forces with Discovery Communications whose strong consumer brands, worldwide reach, production
and distribution skills and superior travel content library would bode well for our joint delivery of a leading
entry in interactive travel.''
``Discovery believes television-based travel commerce has tremendous growth potential and is a natural category
for us to apply cutting edge interactive technology,'' said John Hendricks, founder, chairman and CEO of Discovery
Communications. ``Discovery looks forward to working with Liberty Digital on this important project because of
the visionary and creative role it plays in the sector, its forward thinking about interactive television and its
deep industry relationships. Today's announcement deepens our commitment to provide the highest quality real world
content across all emerging mediums and enhances Discovery's position as the leading global real world media and
entertainment company.''
Online consumer travel is currently the largest sector of total B2C consumption, with estimated total revenues
of between $6 and $8 billion in 1999, according to multiple sources. The market is expected to reach as much as
$25.2 billion by 2003, or 24% of the entire B2C space, according to eMarketer 2000. Within the travel vertical,
airline ticket bookings dominate sales, but hotel reservations, rental car bookings and vacation packages are expected
to increase substantially as the means evolve to book entire trips online.
About Discovery Communications, Inc.
Discovery Communications, Inc. (DCI) is the leading global real-world media and entertainment company. DCI has
grown from its core property, the Discovery Channel, first launched in the United States in 1985, to current global
operations in 150 countries with 180 million total subscribers. DCI's programming is tailored to the specific needs
of viewers around the globe, and distributed through 77 separate feeds in 33 languages. DCI's 33 networks of distinctive
programming represent 14 entertainment brands including TLC, Animal Planet, Travel Channel, Discovery Health Channel,
Discovery Kids, and a family of digital channels. DCI's other properties consist of Discovery.com and 165 Discovery
Channel retail stores. DCI also distributes BBC America in the United States.
About Liberty Digital, Inc.
Liberty Digital, Inc. is a diversified new media company focused on the development of interactive television programming
in addition to its interests in interactive television technology, e-commerce and content businesses. Liberty Digital
also owns and operates a subscription music business that provides continuous, commercial free music programming
to homes and businesses. Liberty Digital's Series A Common Stock is traded on the Nasdaq National Market under
the symbol LDIG.
This press release contains forward-looking statements which are made pursuant to the Safe-Harbor provisions of
the Private Securities Litigation Reform Act of 1995. Words such as ``intends,'' ``believes'' and similar expressions
reflecting something other than historical fact are intended to identify forward-looking statements, but are not
the exclusive means of identifying such statements. These forward-looking statements involve a number of risks
and uncertainties, including the timely development and deployment of a television channel, the market acceptance
of said channel and other factors. These statements are also based upon a number of assumptions and estimates which
are inherently subject to uncertainties and contingencies, many of which are beyond the control of the parties,
and reflect future business decisions which are subject to change. Some of these assumptions may not materialize,
and unanticipated events will occur which can affect the relationship between the company and Discovery. The parties
undertake no obligation to revise or update any forward-looking statements in order to reflect events or circumstances
that may arise after the date of this release.
SOURCE: Liberty Digital, Inc. and Discovery Communications, Inc.