The programmer “made the strategic decision not to extend our SVOD agreement with Netflix past the end of this year,” Scripps Networks Interactive COO Burton Jablin said on the company’s earnings call Monday. “In the end, it really is not the kind of dual-revenue model that best monetizes our content over the long term.”
CEO Kenneth Lowe also on the call indicated that SNI felt it was forgoing advertising dollars with the Netflix deal: “We have such compelling content for advertisers that we just don’t want to really cut ourselves off from any opportunity.” But, Lowe added, “we gained a lot of internal knowledge on the digital side and on the best way to monetize this content, including the further expansion and development of our digital sales team.”
Netflix declined to comment.
Netflix currently offers U.S. subs access to past seasons of Food Network’s “Diners, Drive-ins and Dives,” “Food Network Star,” “Cupcake Wars,” “Chopped” and “Cutthroat Kitchen” (pictured above); HGTV’s “House Hunters,” “Property Brothers,” “Flip or Flop,” “Fixer Upper” and “Love it or List It”; Travel Channel’s “Man v. Food” and “Expedition Unknown”; and DIY Network’s “Kitchen Crashers.”
SNI inked its pact with Netflix in the fall of 2014, after the programmer’s previous SVOD deal with Amazon Prime Video ended in March 2014.
Scripps Networks Interactive has been active in licensing its programming to over-the-top players, including AT&T’s soon-to-launch DirecTV Now, Dish Network’s Sling TV, Sony’s PlayStation Vue and Verizon’s G090.