Flying in the face of deals by other broadcaster and operators, Scripps Networks Interactive will not be renewing its streaming video-on-demand agreement with Netflix when it expires at the end of the year.
Speaking on Scripps Networks’s Q3 earnings call, COO Burton Jablin said the company, which has popular networks like Food Network in its stable, had “looked closely” at its digital strategy and decided that making its shows available for streaming on Netflix was not the best way to monetise its content.
Meanwhile, Scripps recently inked an expanded digital rights deal with AT&T to include the networks on the DIRECTV NOW and DIRECTV Freeview streaming services when they launch later this year.
That decision comes as ratings and advertising grew across five of the six US networks during the third quarter of 2016, despite competing coverage of the Olympics and the US election. HGTV saw its highest-rated third quarter ever in all key demographics.
"Scripps Networks Interactive delivered solid revenue growth at both our US and international business segments, helping drive a double-digit improvement in net income," said Kenneth Lowe, president, chairman and CEO. "Our successful strategy to focus on our differentiated lifestyle brands in the home, food and travel genres continues to pay off. Our popular networks are available on more platforms and reaching more new audiences than before, positioning the company for continued growth."
Travel Channel completed its fourth consecutive quarter of year-over-year ratings growth. Cooking Channel and DIY Network each delivered their best-rated quarters ever, while Great American Country saw its highest rated third quarter since 2007. Food Network continued to perform well with millennials, earning a top ten ranking for the quarter among ad-supported networks.
Scripps’ third quarter 2016 consolidated operating results showed that revenues had increased 3.5% during the quarter. Consolidated operating income declined 4.8%.
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