NBC cable veteran to oversee Discovery

For the second time this week, NBC Universal on Thursday lost one of its most senior executives when the head of the company’s lucrative cable TV operations was lured away to run Discovery Channel’s parent.

The hiring of David Zaslav, president of NBC Universal cable and new media, as chief executive of Discovery Communications Inc. follows NBC Universal Television Group President Randy Falco’s being named chairman and CEO of Time Warner Inc.’s AOL division.

The loss of the pair is especially painful for NBC Universal and its parent, conglomerate General Electric Co., because the two men oversee the bulk of the money-making side of GE’s entertainment business.

An 18-year NBC veteran, Zaslav helped build the CNBC, MSNBC, Bravo, Court TV and A&E; channels. During the last two years, NBC Universal has relied on Zaslav’s cable division to produce profit as the NBC broadcast network faltered, falling from first to fourth place in prime-time ratings.

The departures turn up the heat on NBC Universal Television Group CEO Jeff Zucker, the likely successor to NBC Universal CEO Bob Wright. Zucker already is under pressure to turn things around. Last month, NBC Universal announced a $750-million restructuring over two years.

NBC Universal declined to comment.

The move marks a homecoming of sorts for Zaslav, 46, who got his start in the business as a young lawyer working on behalf of Discovery.

But, Zaslav said in an interview, he wanted to stay put, and initially spurned Discovery’s overtures to take charge of its ambitious expansion.

“I have been so happy at NBC and building its cable business,” he said. “But there was this nagging little voice, saying, ‘Discovery.’ I just felt this was destiny.”

Based in Silver Springs, Md., Discovery boasts $2.7 billion a year in revenue, with more than 100 global networks that include Animal Planet, Military Channel and BBC America. It also sells educational products and operates Discovery stores.

Under Discovery’s complicated ownership, Liberty Media Corp. Chairman John Malone’s 49% share operates as the public company, Discovery Holding Co. Cox Communications Inc. and Advance/Newhouse Communications each own a 25% stake, with Discovery Chairman John S. Hendricks holding the remainder.

Zaslav will join the company at a crucial time amid speculation on Wall Street that Cox and Advance/Newhouse will fold their shares into Discovery Holding Co., which would make Zaslav CEO of a large, public media company.

Zaslav replaces longtime CEO Judith McHale, who agreed to step down at year-end after ratings at the core Discovery and TLC channels plummeted in 2005. Such popular shows as TLC’s “Trading Places” declined in popularity. Ratings at the two channels have rebounded this year.

“They have a great brand but they’ve been hurt by all of the competition, and in large part, they brought on some of that competition themselves,” said Brad Adgate, research director for ad-buying firm Horizon Media. He noted that Discovery expanded quickly by launching such channels as Discovery Kids, Discovery Times, Discovery Health and the Science Channel.

Discovery has launched an in-depth news program featuring Ted Koppel, former host of ABC’s “Nightline.” But some within Discovery have worried that the company in recent years has been too focused on chasing ratings with such shows as TLC’s “Miami Ink,” which follows tattoo artists, and “Little People, Big World,” about dwarfs.

In recruiting Zaslav, Discovery’s board passed over several internal candidates, including Billy Campbell, president of Discovery Channels U.S.

Zaslav said that he had kept in touch over the years with Hendricks. Several years ago, Hendricks saw the promise of a high-definition channel. Zaslav borrowed that idea and launched the now highly profitable Universal HD.

“This is a chance for me to really build on something that John Hendricks started,” he said of Discovery, which launched in 1985.

In a statement, Hendricks called Zaslav “the perfect choice to steward the valuable stable of Discovery brands and to guide our global company into the digital future.”

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