The E.W. Scripps Company is preparing to penetrate live sports with its recently launched Scripps Sports division. It’s aiming to reel in audiences in a fragmented market as well as create a new model for leagues and teams that balances revenue and reach, according to Scripps President and CEO Adam Symson.
Speaking on Friday’s Q4 earnings call, Symson touted Scripps Sports is receiving a positive initial reception amid “an implosion of the RSN business model.”
Notable regional sports networks operator Diamond Sports, which owns nearly two dozen Bally Sports RSNs, is facing financial troubles and could potentially head into bankruptcy. On February 15, Diamond Sports failed to make a $140 million interest payment, opting instead for a 30-day grace period.
According to Symson, Scripps’ reach across over-the-air, pay TV and connected TV “has immense appeal for leagues looking to build new and consistent franchise viewing events across a national footprint.”
“If direct-to-consumer revenue is to be a material part of the future for leagues and teams, they’ll realize they’ll need a partner like Scripps with broad audience reach,” he added.
Launched in December, Scripps Sports is led by Brian Lawlor, formerly president of the company’s Local Media division. As Sports Business Journal reported, Scripps is teed up as bidder for local sports rights for leagues like MLB, NBA and NHL and it’s looking into some national sports rights that would be carried on the ION network.
With ION, Symson said Scripps not only controls the programming decisions but also the network’s affiliates.
“We have the ability to bring sports onto our platform on the weekends, in prime, in whatever way we think makes sense for both the league’s benefit and for our benefit,” he explained. So the leagues can obtain larger audiences, particularly younger viewers, and that in turn will benefit the company’s economics.
To be clear, Symson said Scripps isn’t “chasing sports” from an economics perspective. Rather, the company recognizes the value of live sports in drawing in and retaining audiences on linear TV.
“The leagues realize that going to a DTC only strategy isn’t necessarily going to serve them well in the long haul,” he added.
Scripps in the fourth quarter continued to bolster its streaming reach, recently inking new carriage agreements with YouTube TV and FuboTV. CTV revenue from Scripps Networks – including the ION, Bounce and Grit brands – grew by nearly 40% from 2021 to 2022.
As Scripps noted during Q3 earnings, Scripps Networks expects to generate over $100 million in CTV revenue this year.
Total company revenue increased 9.4% year-over-year to $681 million. By segment, Scripps Networks revenue slid 9.2% to $248 million, reflecting a soft national advertising market amid macroeconomic challenges. Revenue from Local Media jumped 24% year-over-year to $433 million, as the segment generated $106 million from political advertising.