Spun off from Liberty Media (LCAPA) in 2005, Discovery is a holding company for two businesses: Ascent Media Group, which helps create and distribute television shows and films; and a 67% stake in Discovery Communications, which creates and distributes programming through cable channels such as Discovery Channel, Animal Planet and The Learning Channel. Since 2005, Discovery Communications has generated all of the company's positive net income (the company does not consolidate revenue and operating income for both businesses).

The Ascent business generated about half of its revenue in 2006 from television advertising, which has been in decline due to threats from the Internet channel and weakness in the U.S economy; the company also generates significant business in the U.K. In addition, cable companies have been consolidating (e.g. the joint acquisition of Adelphia by Comcast and Time Warner Cable), thus decreasing Discovery's negotiating power when distributing its programming.

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