Scripps Networks Interactive said it 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’ earnings call with analysts Monday, COO Burton Jablin said that the company had looked closely at its SVOD strategy and determined that making its shows available for streaming on Netflix was not the best way to monetize its content.
Broadcast and cable networks have seen Netflix and other video streamers start to steal viewers, which reduces ratings. But doing business with SVOD companies like Netflix provides short-term revenues that can be an important component of earnings.
During the call, analysts asked if the new streaming strategy would be working closer with traditional distributors or possibly launching its own streaming services.
Scripps CEO Ken Lowe said that the company has decided it prefers a dual revenue stream model that includes both advertising and distribution revenue.
He added that the company had gained a lot of knowledge about monetizing its content by doing business with Netflix.
The company has expanded its digital sales team to take advantage of online streaming opportunities, Lowe added. “We don’t want to cut ourselves off from any opportunities,” he said.
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