Leading lifestyle media company,
Scripps Networks Interactive Inc.
) recently entered into a content licensing deal with
). 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
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
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
). 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
) for some selected content of the latter to be available on
Prime Instant video.
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