"We see the group's domestic networks as most vulnerable to the challenges to traditional video bundles from new OTT services, and see limited scope for international networks to compensate in the near term," analysts said.
The fact that the core U.S. domestic networks have limited "must have" content will put pressure on Discovery's affiliate revenue growth, they added.
Other catalysts include ad hoc updates on advertising trends from media buyers, competitors and advertisers, and the company's affiliate agreement with Comcast (CMCSA), which is due for renewal in mid-2015.
The stock closed up 0.06% to $33.95 yesterday.
Separately, TheStreet Ratings team rates DISCOVERY COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISCOVERY COMMUNICATIONS INC (DISCA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: