Netflix (NASDAQ: NFLX) has been everyone’s darling, both subscribers and investors alike, ever since it began offering hugely successful original programming. But now it’s starting to look like the company needs to start paying a little more attention to its other shows.
Scripps has left the building.
It was announced today that the Scripps Network Interactive is not going to renew its partnership with Netflix. Scripps is the parent company of HGTV, Food Network, Travel Channel, DIY and the Cooking Channel. This means viewers are not going to have access to their enormously popular programs, such as “Property Brothers” and “Worst Cooks in America”. No new shows will be added previous shows are gone.
From what Scripps CEO Ken Lowe said in a later conference call, the contract with Netflix was too limiting. Scripps feels like it has more advertising opportunities outside of the Netflix partnership. If so, the company has a rosy future. Because, even with the Netflix agreement, Scripps managed to beat expectations in the earnings report announced yesterday.
The market for streaming platforms is getting ridiculously crowed these days, and it’s full of players with “Netflix for Niche” pitches. There’s Netflix for Indies, Netflix for Horror, Netflix for Comedy and more. Of course, none of them have anywhere near the market share that Netflix itself does. But some of them are teaming up with Netflix rivals such as Amazon and that begs the question:
Why isn’t Netflix snapping up some of these itself?
Original programming is wonderful, and Netflix has really beaten the odds on the success of its offerings. But some of these smaller niche products could be a cheaper way to grab eyeballs, and keep them from the competition. The situation isn’t dangerous yet, but it’s definitely worth doing something about. Soon.