Discovery in YouTube deal, days after going public

NEW YORK (Reuters) - Discovery Communications DISAD.O, in its first deal since becoming a public company, will create nine branded channels on the YouTube video website, featuring clips from the cable programmer's top TV shows, its chief executive said.

Under the deal, Discovery Communications will offer short clips from cable channels like Discovery Channel, Animal Planet, Planet Green, Science Channel and Military Channel starting this week, CEO David Zaslav said in an interview. The partnership will be officially announced on Wednesday.

The deal should broaden the cable programmer's audience base, Zaslav said, adding that it's part of a wider effort to "look hard at where people are consuming content on new platforms and try to create content that works there."

Instead of offering full-length shows or using clips purely to drive interest in the cable programs, Zaslav said, the company wanted to reach audiences that may only have interest in watching short clips on the Web. Content will come from existing shows as well as some original clips.

Zaslav declined to discuss the financial details of the arrangement with YouTube, but said deals with other video websites are possible.

"We're looking at everybody," he said.

The YouTube agreement comes just days after Discovery started trading as a public company, a move which simplified a complicated ownership structure involving John Malone's Discovery Holding Co. and Advance/Newhouse Communications.

Discovery's deal with Google Inc's (GOOG.O) YouTube also calls for the creation of international channels, featuring programing from the United Kingdom, Europe, Latin America and Asia. Those local channels will roll out over the coming months.

International growth is among the top priorities for Discovery, which currently reaches audiences in more than 170 countries. It has 17 international television brands, and offers programing in 35 languages.

Zaslav took the reins of the company in January 2007, moving from media conglomerate NBC Universal and has since been credited with cutting costs and shutting a chain of poorly performing retail stores.

In that time, Discovery bought new media outlets HowStuffWorks.com and Treehugger.com, both of which were cash deals. As a public company, it could potentially use stock for additional deals.

"As we look to grow over the next 10 years, going public provides us with currency," Zaslav said. "We have a lot of internal growth left, but it gives us a chance to be competitive and opportunistic with a currency when there are assets out there that make sense to us."

Zaslav said he would look at "any and all" deals in the content space, particularly when it comes to nonfiction. As for fiction, he said, that is less likely but not out of the question.

"If there are opportunities that aren't squarely in the non-fiction space, but play strongly to our audience, brands that we like, we will be looking at most things that are out there," he said.

(Reporting by Paul Thomasch; Editing by Derek Caney)