Scripps Networks Won't Renew Netflix Deal, CEO Says "We're Big Enough"
Kenneth Lowe and his team answer questions about digital distribution strategy and fallout from the AT&T-Time Warner deal.
Scripps Networks Interactive will not be renew a streaming deal with Netflix when it expires at year's end, COO Burton Jablin said Monday on the company's earnings conference call.
He explained that the company made the "strategic decision" because the arrangement does not provide the kind of dual revenue model that Scripps feels best monetizes its content.
Chairman, president and CEO Kenneth Lowe also highlighted the focus on dual revenue streams, meaning advertising and distribution revenue.
Scripps announced the Netflix streaming deal in late 2014 after a yearlong deal with Amazon.
Lowe on Monday also was asked about the AT&T-Time Warner acquisition, saying his takeaway from the deal was that "content is valuable."
Asked if he felt Scripps needed to get bigger, he said: "Our results speak for themselves. It's a question I think I have been getting for 20 some years. It’s about the quality of the brands" and ensuring the company owns channels that are "relevant" and "valuable" to distribution partners, whether they are six or 20 channels.
"We’re perfectly happy sitting here domestically with six brands that are performing very well," Lowe concluded. “Yeah, we’re big enough. It’s going to continue to be a consolidated world, but that’s been the case for the past 15 years. We have seen consolidation on the cable distribution side. It's just now there's getting to be some heft.”
Scripps on Monday also detailed that its recent deal with Tribune Media to extend their Food Network partnership will run for four years. Financial terms of the agreement were not disclosed.