Scripps Networks Tie-up with Amazon - Analyst Blog

By
A A A

Leading lifestyle media company, Scripps Networks Interactive Inc. ( SNI ) recently entered into a content licensing deal with Amazon.com Inc. ( AMZN ). Per the deal, past episodes of Scripps Networks' popular TV channels will be available on the online retailing giant's subscription-based video streaming service - Prime Instant Video.

The shows will be available at Scripps Networks' popular lifestyle TV channels such as HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel. The financial terms of the deal were kept confidential.

This is Scripps Networks' first online-only subscription distribution deal. But Scripps Networks already has another business tie-up with Amazon under which it sells branded books, cookware, furniture, accessories and other products through Amazon.com. Scripps Networks currently has a Zacks Rank #3 (Hold).


We see this deal as incrementally positive for Scripps Networks. The company's advertisement revenue from current shows will remain unaffected while it will earn additional revenue from its past shows. Additionally, there is a possibility that the viewers of its past TV shows on Amazon's Prime may in turn become viewers of its live TV shows, raising the ratings of these channels. Higher ratings may lead to an increase in affiliate fees and advertisement rates.

On the other side, Amazon is aggressively developing its online content portfolio for its subscription-based Prime Instant Video service. In this segment, Amazon directly competes with Netflix Inc. ( NFLX ). Prime Instant video currently holds a portfolio of over 38,000 movies and TV shows. Last month, Amazon successfully extended its non-exclusive licensing agreement with CBS Corp. ( CBS ) for some selected content of the latter to be available on Prime Instant video.



AMAZON.COM INC (AMZN): Free Stock Analysis Report

CBS CORP (CBS): Free Stock Analysis Report

NETFLIX INC (NFLX): Free Stock Analysis Report

SCRIPPS NETWRKS (SNI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AMZN , CBS , NFLX , SNI

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Don't Pay Up to Play REITs
Don't Pay Up to Play REITs          

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com