Good day, ladies and gentlemen and welcome to the Q4 2014 Discovery Communications Inc. Earnings Conference Earnings Call. My name is Gem and I will be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of the conference. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Ms. Jackie Burka, Vice President of Investor Relations. Please proceed, ma’am.

Good morning, everyone. Thank you for joining us for Discovery Communications 2014 fourth quarter and year end earnings call. Joining me today are David Zaslav, our President and Chief Executive Officer and Andy Warren, our Chief Financial Officer. You should have received our earnings release, but if not, feel free to access it on our website at www.discoverycommunications.com. On today’s call, we will begin with some opening comments from David and Andy. After which, we will open up the call up to your questions. Please keep to one or two questions, so we can accommodate as many people as possible. Before we start, I would like to remind you that comments today regarding the company’s future business plans, prospects and financial performance are forward-looking statements that we make pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are made based on management’s current knowledge and assumptions about future events and they involve risks and uncertainties that could cause actual results to differ materially from our expectations. In providing projections and other forward-looking statements, the company disclaims any intent or obligation to update them. For additional information on important factors that could affect these expectations, please see our Annual Report for the year ended December 31, 2013 and our subsequent filings made with the U.S. Securities and Exchange Commission. And with that, I will turn the call over to David.

Good morning, everyone and thank you for joining us. Last year, Discovery’s investment in content, brands and new international platforms generated more impressions in scale than ever before. Better than double-digit growth in international audiences, expansion of our global flagships into new markets and establishing the leading sports provider in Europe is creating strong operating leverage across the company and long-term value for advertisers, audiences, distributors and shareholders. 2015 marks Discovery’s 30th anniversary and we built our portfolio and brand through a consistent strategy. A strategy of investing in our channels and programming to take market share in the U.S. and market share around the world, investing in local teams, infrastructure and boots on the ground to drive our global business, and owning our rights and IP across platforms and regions to strengthen our network portfolio and provide the foundation for our direct-to-consumer offerings. The core of our strategy is to continue investing in content, which feeds an average of 10 channels in more than 220 countries and to grow our market share in markets around the world. This investment has paid off and our share of primetime viewers 25 to 54 in the U.S. has risen from 7% in 2008 to 12% today. Our international viewership continues to set records, gain share, and grow dollars in key markets around the world. We ended 2014 with nearly 3 billion cumulative global subscribers, up from 2.5 billion at the end of 2013. And we grew our average international audience by 13%. More people are spending more time with our content than ever before. Consumers all over the world are consuming more video and more programming than ever. Because we own the vast majority of our worldwide content and IP, we can take advantage of new ways to distribute and monetize our…

Thanks, David and thank you everyone for joining us today. As David highlighted, despite industry challenges and the domestic ad market and increasing foreign currency headwinds, our expansive network portfolio drove audience and market share gains around the globe. On a reported basis, total company revenue for the year increased 13% and adjusted OIBDA increased 4%. As expected, given that over half of our revenues are now outside the U.S., the strengthening dollar was a major headwind in 2014 as changes in currency rates had an approximately $100 million negative revenue impact and $70 million negative adjusted OIBDA impact versus 2013 and reduced our full year reported revenue growth by 2% and our adjusted OIBDA growth by 3%. It’s important to note that, but for the additional negative FX impact, since our November 4 earnings call, it would have been within our then guided full year OIBDA range. Total company organic revenues, which excludes the impact of foreign currency, SVOD licensing revenues, newly acquired businesses, and the consolidation of Discovery Family grew 7% and adjusted OIBDA grew 6% for the year as we further demonstrated our ability to deliver consistent financial results even as we continued to invest in building our networks and operations worldwide. Total company margins on an organic basis were 42% in line with 2013. Full year net income available to Discovery Communications grew 6% to $1.1 billion in 2014 primarily due to improved operating performance as well as $105 million decline in mark-to-market equity-based compensation, a $56 million decline of losses from hedging derivatives, and a $49 million decline in tax expense partially offset by a $74 million increase in restructuring costs associated with Discovery Family and Eurosport, and $63 million less in gains related to the Discovery Japan and Eurosport transactions. Our full year booked…

Thank you. [Operator Instructions] First question comes from the line of Ben Swinburne from Morgan Stanley. Please proceed.

Thank you. Good morning. David, could you talk a little bit more – I know you said there is going to be more information over the next couple of months, but there was some really interesting comments about direct-to-consumer in your opening remarks, what are you learning so far in Europe about the appetite for consumers to buy your content directly and it sounds like you think that’s the way the world is headed in the U.S., which at least to me seems like a shift in maybe your thinking, can you talk about how that thinking has evolved? And then I just had a quick follow-up for Andy on some of the guidance points.

Sure. Thanks Ben. Look, I think that the existing marketplace in the U.S. is going to stay as it is. I don’t think it’s going to grow the ecosystem in terms of the basic cable bundle, but it seems to be quite stable. What we are learning outside the U.S. we are – is that if we have super fan content, our Eurosport app that’s $8 a month, we are getting big spikes before the Australian Open with people signing up, where they can get eight courts. It’s not affecting our viewership on Eurosport at all. We got a big spike right before the Tour de France. So that owning sports rights, particularly for affinity groups, we don’t need to own the big soccer. And so we have been out acquiring a lot of specialty rights that we think can really bolster that business. And with 250,000 people and growing, we are talking to them. We are seeing what they like. And so I think if anything we have learned that the superfan group gives really valuable that people still love to watch TV traditionally, but when they are going out of their home and there is something that they really love and sports is probably the easiest one. The other area that we think we have a real chance to monetize is down in Latin America, where we have kids, which is another sports and kids being probably the two areas that most lend themselves to the superfan and the direct-to-consumer. But we are also offering an over-the-top service in Northern Europe, in Norway, Denmark, Sweden and Finland with Dplay and we are finding some success with that. Here in the U.S., we are hoping that TV Everywhere continues to grow. We were very effective in getting our deals…

That makes sense. And then just Andy, you gave us a lot to chew on there right at the end on guidance. On your domestic advertising comments, can you just give us a little more color on what you are expecting for Q1? I couldn’t tell if you were saying you think that the business will grow or just improve and then your comments for the year about the market being tepid, it sounds like you are assuming a pretty flattish year for ad growth in ‘15, but I was wondering if you could add any comments there?

Yes, sure, Ben. So look for the first quarter, what we said was we expect U.S. ad sales to accelerate from the down three we experienced in the fourth quarter. So, we do see pricing that’s solid relative to the upfront. We are seeing cancellations and options that are kind of at or better than normal levels. Look, the biggest determiner for us will continue to be the variability of our delivery. So, we definitely see still a relatively tepid environment. It’s kind of the word we used and carefully chose that word, but we do think we will have a slightly better performance in the first quarter and that kind of continued slightly better performance than the fourth quarter throughout 2015.

The area that we are seeing improvement is in volume. For our guidance, we have assumed that it will remain tepid for the year. So far, 5, 6weeks in, it’s better than what we have projected, but we really don’t have a lot of visibility to how it’s going to be for the next three quarters and so we have assumed that it’s going to be tepid.

Got it. Thank you.

Thank you. The next question comes from the line of Anthony DiClemente from Nomura. Please proceed.

Thank you very much. I just have one for David and one for Andy. David, just on the Discovery Channel and the evolution of leadership at the network, now that Rich Ross has started, I am wondering if you think there is going to be a shift in the programming strategy there? Maybe to broaden the appeal of Discovery, you mentioned you guys are global and the global appeal of your programming strategically, but I am also thinking in terms of broadening perhaps the target demographics for Discovery here in the U.S.? And then for Andy, I just had a quick one, which was you guys in the quarter reclassified some of your OIBDA losses, I guess from your U.S. and the international segments into education. And just to kind of help us get the model right for 2015, I was wondering if you can quantify the impact of that, what’s implied in your guidance, just in terms of the different breakout of OIBDA in those three segments? Thanks.

Thanks, Anthony. Look, I think that when we look at Discovery Channel in general, we feel great about it. First, it’s terrific to have a strong creative leader with Rich there. And he has brought on a few good people in areas where we thought that we could build on. And we also have a great team at Discovery. But when you look at Discovery last year, it was flat. Outside the U.S., we were up double-digit. So, we are up in 229 countries double-digit and in the U.S. we are flat. One thing to remember is we program our channels, Discovery, Animal Planet, Science, TLC, ID, we program these globally, Velocity, but it gives us tremendous leverage. So, the fact that in 229 countries we were up double-digit, and in the U.S., we were flat. That actually was a successful year for us. We are not satisfied, because the U.S. is a big market and we want to drive it. The good news is that Discovery has shown a tremendous amount of strength coming into this first – into the first 6 weeks of the year. We are up more than 20% from where we were in the third and fourth quarter. Discovery is now the number one non-sports network in America, every week of the last 6 weeks. On Friday nights, Discovery is the number one network in America, including the broadcasters for men. And to your point, one of Rich’s key initiatives is to bring more women back. If you look at Discovery outside the U.S., we have much more co-viewing in terms of a younger demographic and we have much more women watching. And we have taken a big step on Friday nights, where we have Gold Rush and Alaskan Bush. Not only we are the…

Thanks, David.

Your question Anthony about the segment reporting, a couple of comments. We wanted for investors to clarify and simplify kind of how we look at the business. Obviously, the studio business is very different from the networks business. So, as we have invested in IP as we have grown our presence in the studio business, we wanted to separate that and have it clarified so that the U.S. networks, international networks will truly stand alone. So, within this new segment called education and studios, we do expect for 2015 education have a slightly lower OIBDA than it had in 2014 as we invest in a longer cycle tech book. And also we expect studios to have a continued loss profile as again we build that asset and own more and more global IP. So think in terms of that segment, while I understand that OIBDA was meaningfully down in the fourth quarter, driven by again investment in assets, particularly long cycle tech book as well as studio IP. And we expect in ‘15 again that to be roughly breakeven to OIBDA for that segment.

Okay, that’s helpful. Thank you both.

Thank you. The next question comes from the line of Kannan Venkateshwar from Barclays. Please proceed.

Thank you. Just a couple of questions. The first is on the operating leverage in the international business, it looks like the content investments there, especially in sports we keep going up. But on the other hand, is there any offset in terms of maybe integrating the sales forces or other cost items that we can expect now that we have been a few months into the Eurosports? And the second question is on the FX side, could you break out for us what the cash impact of FX is or is it largely a translation impact that we are looking at right now? Thanks.

Thanks Kannan. Look, on the international rights that we are acquiring, one of the advantages that I think we have with Eurosport, we reach 130 million homes with our Eurosport Pan-European feed. And then we have another two to three channels in the 55 countries across Eastern and Western Europe. Unlike the U.S., where it’s football, baseball and basketball, which are very popular, and if you are in sports you have to have those three, the equivalent of that would be soccer. But aside from soccer, there are affinity sports that are very popular in some regions and not so popular in others. So we have been able to pick up sports rights I think for very, very good values. Now, we are investing because we think having those rights will build our over the top service, where we make almost $100 a subscriber. We also see that we don’t – when we look at Eurosport, we look at it as how does it build our whole package. So we might have three sports channels, but then we have another ten channels. And we have integrated on distribution and on the ad sales side with very little incremental cost because we already had local teams in place. And we are finding that the ability to go to the distributor with all of it will get us more value. And so you might see Eurosport’s margins dropping as it’s broken out individually. But the overall package of international will be rising and we think we will accelerate, because having these must have rights together with our ten channels, we are in almost every market, Discovery is the number one market for men, we have women’s channels will give us more strength. In addition, we are going to be careful. We looked at Formula 1 and we like the idea of Formula 1, because it’s popular in 220 of our 230 countries, but the valuation was just way too high, so we walked away. Andy?

Yes. Kannan to add to that, we have said that a strategic and financial imperative for us is to grow our margin for our international business and you can see that we did that by 200 basis points in 2014. So to your point, we are definitely seeing and driving that leverage. So as we think about 2015, while investing in sports and that will create a lot of long-term leverage in value, we will depress margins. Outside Eurosport and outside foreign exchange, we still see margin accretion for international business. Even despite what I mentioned was that $50 million bad guy associated with the collapse of the Russian currency and the economy. So we still see that operating leverage. We are having a lot of success on cost productivity. We have done a really good job on driving cost synergies above SBS and Eurosport. So we are going to invest in content that drives value. We are going to continue to look at cost productivity to ensure base organic margins are up year over year over year.

Thanks. And could you help with the FX question? Which is, is it largely translation and there is no real cash impact?

No, there is definitely a cash impact as well. While it is translation, there is – when the day is done, this is both a transactional and translation risk. So, our all-in reported free cash flow expectation of up low single-digits certainly includes the fact that FX is depressing our currency impact of cash flows as well.

And when we look at our international business, we have full conviction and we – we have full conviction because these things are cyclical. We are looking at growing our international business double-digit. We are looking at drive. We have our local teams in place. Our market share grew over 13% last year. We think we can do that again this year. A lot of others are not investing internationally. Our model of global brands and global content gives us tremendous efficiency. And we love our international business. I think over time, things can flip the other way, where it’s working for us, but we are continuing to drive our market share and we are being helped by the fact that others are walking away. We also have conviction in Russia. We have a big business there. We have great brands and there is some challenges, in terms of the politics. But having said that, by the end of the year we need to restructure where we own only 20% of the entity, but there has been a lot of interest in our brands, in our content, in getting us value for that and there has also been some green shoots around Putin looking again at pay-TV. So for us, we think Russia is a long-term growth market. There is certainly a lot of turbulence there, but our cost of content is very low. We have a huge amount of content in Russian language that’s already there and relationships. So while others are saying let’s invest less internationally and let’s walk away from Russia, we are staying in Russia and we are continuing to push very hard on international, where we see not only great growth, but a lot of what we have talked about in terms of what’s facing the U.S. market, the slowing behavioral changes in the way content is consumed. Latin America is 4 years, 5 years, 6 years behind. There are markets in Eastern Europe that may be more than that. So we see it as a big hedge and a big opportunity to take advantage of what we have built over the last 7 years or 8 years.

Just to add one other point, because we have the most profitable international business, obviously, the strengthening dollar impacts us significantly, but it’s important to realize that a lot of the things that we have done with regard to like issuing euro debt a year ago, the TF1 put that’s opened, all of those actually are helping us the other way. In dollar terms, that Euro debt is now less expensive. The put in dollar terms is now less expensive. And so a lot of those activities actually help to offset the dollar translation of our very profitable business.

Alright. Thank you.

Thank you. The next question comes from the line of Doug Mitchelson from UBS. Please proceed.

Thanks so much. David, you talked a lot about programming strategies on the call. Nancy Dubuc, CEO of A&E recently lamented the lack of creativity and risk taking. She has been seen in the nonfiction genre the last couple of years and still a pretty sort of core genre for you, I am curious, David, would you agree with that characterization. And whether you agree or disagree, can you walk us through how the market for nonfiction has been changing over time, in your view. And Andy, I am not very good at math, so I just wanted to make sure I am doing the guidance correctly is $1.82 to $1.91 sort of basically the EPS after FX impact range you are giving us, FX impact about $0.16, am I doing that math right? Thank you both.

Okay. Thanks Doug. Nancy is a good friend. I spent many years on the board of A&E. I think in history, she is doing a very nice job for them and she is a great programmer. I would say that I somewhat disagree. I think the risk taking has been too much. We are actually going in the other direction. If you look at what’s happened to nonfiction, you see the aggressiveness of picking really kind of wacky characters of – it’s almost become scripted in the way that it’s presented. And I think the audience here in America gets it. They get that this isn’t really nonfiction, that some of these fights aren’t real, that some of these characters aren’t real. And so what’s really been working for us is forget about what everyone else is doing, which is looking for more extreme characters, more extreme contention, to get back to basics. And we have actually made a strategic decision to do that and it's working for us. If you look at Treehouse Masters, no one is throwing mud at each other in Treehouse Masters. This past Tuesday night we did 19 and Counting. We are the number one network in America for women. And we got a 26 in the demo and what is it about, it’s about a family that home schools their kids and we followed it with another very wholesome family that’s struggling with the issues that everyone in America is struggling. And so for us, whether it’s Alaskan Bush, Gold Rush, Last Frontier, 19 Kids and Counting, Treehouse Masters, we think that a lot of the nonfiction challenge has been going into this extreme area. We are getting back to great characters, heroic characters that are doing jobs, that are facing challenges that all of us as we sit on the couch look at and admire. That’s why people love Gold Rush. That’s why they still, after 11 seasons, they love Deadliest Catch. Last Frontier and Bush are about families living off the grid. And so I think that nonfiction is working very well for us. And we have to remember what we do best, which is great authentic characters that are fighting the fight to live – to make the best of their lives and when we do that, we do very well.

Thanks David. Andy?

Yes. Doug, to answer your question, your math is very much in line with kind of our thinking. Our pre-FX adjusted EPS of up high single to low double translate to the kind of math and process you just laid out.

Great. Thank you.

Thank you. The next question comes from the line of Jessica Reif Cohen from the Bank of America Merrill Lynch. Please proceed.

Thanks. I have a couple. First, on advertising, I heard what you said about the near-term, but your change in the upfront, does that signal any change in longer term advertising outlook or your strategy and selling in the U.S.?

Okay. Look, I think we came off of a slowdown in the second half of last year where the volume just stopped. Volume is better now, but we are just not prepared to give guidance to say that volume is going to continue at this level and accelerate. So, I think your guess is as good as ours. On the upfront, that was really a decision that was driven by Joe Abroze and the team. We looked at who has been coming to the upfront over the last couple of years and then we looked at who comes to a number of the dinners that we do around that time. And we find that the more senior players are coming to the dinners and that we weren’t getting the buyers that are making a difference in the upfront. So, we are going to have a lot of the same material. We are going to have the same sell. But we are going to do it in small teams going directly to the buyers and the agencies and we think this year that that could be more effective. We will assess how it goes. It was really Joe feeling that going to the offices of the actual buyers will be stronger, getting directly to the buyers themselves.

Right. And then given the currency headwinds, I mean, looking at it another way given the dollar is so strong, don’t you think that it’s a great time to go shopping? I mean, given your comments on the international market, isn’t this the time to be a little more active?

Well, look the fact – obviously, it plays both ways. So, to the extent that there are assets outside the U.S., they are more than 15% cheaper than they were a few months ago because of the currency. Having said that, we have a – we now have more than 10 channels in 220 countries and we have a business that we think we can grow significantly over the next several years. So, we don’t want to buy anything that’s going to – that would slow us down. And so we have the advantage of having probably more synergy than anyone else. We have boots on the ground to make the assessment, but we are going to be disciplined, because I think we have a very good hand. We are way out front internationally. We are growing. And most of our competitors are not investing and walking away. So, we are getting a lot of growth just by doing what we are doing. So, I think that’s what you will see. If we can get good synergy and we can buy and grow faster, we will do it. Otherwise, there is no reason to stretch.

Yes. Just to elaborate on that from a purely financial perspective, we still very much hold the – any deal criteria has to have a low-teen un-levered IRR. And when we compare any allocation of capital to M&A, we compare it to the IRR we get on repurchasing our shares, which has an extremely high IRR, not only given where our stock is today, but also given our free cash per share growth profile. So, while you are right, the assets are cheaper in dollar terms, there still is very much to the hurdle around IRRs in comparison to share repurchases.

Great. And one last one, on Eurosport, what was the standalone growth in 2014 and how volatile will it be in 2015 and beyond given all your comments about investing and driving growth through sports rights?

Yes. In 2014, the business performed very well. It was kind of at or better than our deal expectations for the full year, which we only consolidated 7 months, but for the full year, revenues were up nicely and profits were up nicely as well. Part of the commentary around ‘15 is well we are going to be consolidating the full year. We do expect the margins on Eurosport standalone to go from high-teen to high single-digits, but one thing David talked about was it’s less relevant, I think today more than ever to look at Eurosport by itself, because the overall leverage we are getting across the whole international portfolio. So, I think as we talk about Eurosport, it’s got to be on the holistic view versus just Eurosport itself, because so much of the benefits we are deriving are outside the four walls of just Eurosport performance.

Great, thank you.

Thank you. The next question comes from the line of Todd Juenger from Sanford Bernstein. Please proceed.

Hi, thanks. I will try and keep these quick in the hour. First, on international advertising, listen hear all the good news about the share you are gaining with audiences, new networks, new distribution still posting double-digit ad revenue growth globally, ex-currency. I guess my question is for the year I think it was a 14% number, for the quarter, it was a 10% number. So, my question is sort of what’s the difference? What changed? How much of that is it Russia? Is it just overall demand sluggishness? Does that tie to macro or does it tie to something about the maturation of pay-TV? And then I do have a follow-up, I am sorry Andy, about guidance, which I will come back with next question.

I will hit it generally. A piece of that – a piece of that was Russia and a piece of it was you can take a look at our market share growth. Our market share growth in the fourth quarter was a little bit better than 10% whereas the rest of the year it was more like 13% or 14%. And so that is sort of a measure that we follow like a laser how many people – are we getting more people spending more time with our channels? Are market shares doing a little better now? And part of it also has to do with the marketplace. Aside from just Russia, we saw strength across Eastern and Western Europe. We saw a lot of strength in Latin America. And for first time in the fourth quarter, Asia was not double-digit, where it’s been, but it’s been mostly made up for the fact that Brazil has just been exploding. One of the things that we are seeing in Latin America is how important Brazil is to us. Advertising revenue, up almost 50% last year in Brazil and in the first quarter, we are seeing, even though it’s lapping, similar. So, the fact that it’s gotten to 30% penetration in Brazil, that’s kind of triggered the advertising marketplace to start spending more time there. So, I think we are losing – we lost Russia. We have picked up a lot in Brazil. And the rest of the marketplace is pretty strong with the exception of Asia.

And just to add to that, Todd, part of this is just the law of large numbers, right. We had almost $1.2 billion of total ad sales in 2013 international. In 2014, it’s almost $1.5 billion. And so we are still expecting that as we said in the guidance for that to be still in that low double-digit range throughout 2015, so the proof point is still there. We still very much have a larger share of audience and share of economics and we still see that momentum continuing in most of our markets with Russia and the Russia ad ban being a significant issue and one reason why, to your point, the growth is slowing a little bit.

Thank you. That’s very helpful. Pick up, Andy, again I am sorry on the guidance issue, I am just trying to square my math here as well. Really on the top line revenue guidance, which I think I heard is high single, low double-digit sort of constant currency, but then if I look at each of the line items of revenue, major line items, the only one that’s double-digit, I guess is international advertising. And I heard high singles for international distribution. You didn’t give specific U.S., but it sounds like that’s sort of low, maybe mid singles for U.S. So, I am trying to figure out how we get to high single, low double given those business unit line items. Obviously, some of that is Eurosport and even more the Hub. So, maybe you could help us if you take those out what the sort of underlying core revenue growth rate is ex those two pieces? Thanks.

Got it. Well, Todd, you are right. I mean, the commentary about high single, low doubles includes Eurosport, includes Family. And so there is a benefit of the consolidating more periods of time for those assets, but if you exclude those on a core basis, you really kind of at mid to high single on organic revenue. To your point, we said that advertising will be better than the fourth quarter results. So, call it in line, maybe a little lower than we had for the full year U.S. in 2014. We said we have seen acceleration of U.S. affiliate, because of the deals that we successfully have gotten done as well as the inclusion of Sony. And then for international, we said kind of high single affiliate and low double ad. So, all those together kind of gets you to that mid to high single organic, excluding Eurosport and Family.

Got it. Thank you, guys.

Thank you. The next question comes from the line of Alexia Quadrani from JPMorgan. Please proceed.

Hi, thank you. Just to follow-up on your comment about the investment spending in Eurosport, is that really going to be largely a 2015 event or do you think it’s something given the timing of some contracts that could go into ‘16 and beyond? And then I would just love your general comments, if you have any on the current measurement system and domestically how that maybe hampering your ratings and any color – any further color or decision, I think yesterday to drop the live same day?

Great. Let me handle the Nielsen piece. As you look around the world, it’s sad that you look at the U.S. as being on the lower end of antiquated measurement systems. It’s maybe the most robust advertising market in the world and the most efficient. And yet, the measurement is very weak. You go to markets like Norway and its cue tone based. So anybody that watches anything, whether you watch it in a bar, you watch it at your vacation house, whether you watch it on your iPad, it counts. And viewership in Norway is up 15%. Before they implemented last year this new system, it showed that viewership on television was down double-digit. And it was a huge swing. We are working with Nielsen, all the programmers are. The problem is it’s a monopoly here in the U.S. It is a real challenge. And there is no question that it’s under measuring, but it’s the system that we have. When you look at, for instance, how we do when you aggregate – one of the reasons we went to live plus three is our viewership is up dramatically. And there is just a lot of unmeasured here in the U.S. So, it is what it is. Outside the U.S., we do a little bit better. I think they will fix it over time, but it’s a problem.

And then, on Eurosport, Alexia, look we will be and continue to be extremely cautious about which sports rights we go after. And again, it’s all about a combination of both strengthening our pan-European, but also probably even more importantly the hyper local aspects of Eurosport and how we can get the benefits. So, yes, we are going to have increased content spend in ‘15. We will continue to have increased content spend in ‘16 and ‘17. It will moderate relative to what we see the opportunity being this year. But, again, I want to make sure everyone understands that we are going to do it in a very thoughtful, cautious and careful way. But we do think it’s an asset if we invest in will drive at a tremendous amount of long-term value for the entire international portfolio.

And it’s a playbook that we have been playing for a long time. It’s how we went from 5% of viewership with 14 channels here in the U.S. to almost 13% of viewership now when almost the majority of media companies have lost market share. We picked up hockey rights for not that expensive in Northern Europe. So, we know that we have this Eurosport channel that’s in 130 million homes, the only platform like it. We know we have an average of 10 traditional channels in every market, but we have two to three other sports channels that we are getting paid on that are in basic. And so when we buy the hockey rights, we now have a hockey – a regional hockey channel that we have launched in Sweden. And so – and it wasn’t very expensive. And we have seen the value of the regional sports networks here in the U.S., with the YES Network – with the YES Network being more valuable than the Yankees themselves. And so we see the playbook. The cost of a lot of this content when we could pick up Affinity sports is not that high. We already have the channels. We won’t have these, what we are calling regional sports networks in every country. But the ability to pick up rights and just flip a switch and have a pan-European Eurosport, our 10 channels and then, boom, we got a hockey channel. Now, we are going to distributors, we are going to advertisers, our incremental costs not that high. We think that could be a real accelerator for us.

Thank you very much.

Thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Good day.