Yesterday it was announced that Discovery had agreed to spend over $14 billion for Scripps Networks including HGTV, The Travel Channel, and The Food Network.
This understandably raised some concerns about the future of channels like HGTV on streaming services such as Sling TV, DIRECTV NOW, and PlayStation Vue. The good news is that Discovery is a far more cord-cutting friendly company than the other major bidder Viacom.
So let’s take a look at what Discovery’s buying Scripps could mean for cord cutters.
First, this won’t happen quickly.
Just because it has a deal to buy Scripps does not mean that will happen overnight. It is likely that this will still take months if not longer before the deal closes. There are legal issues to overcome and you don’t close a $14 billion deal overnight.
So no matter what happens you are likely looking at 2018 before it happens.
Second, contracts need to be honored.
Scripps is one of the more cord cutting-friendly networks with contracts with many different services. These contracts need to be honored or payouts need to be made.
So, again, don’t expect anything to change right away even after the deal closes.
Third, this likely is the start of a new streaming service.
There are multiple reports that Discovery plans to use the addition of Scripps Networks to create a new streaming service that is reported will cost $3 or $4 a month and will give subscribers access to Discovery content. We are currently not sure if this would be a live feed or just on-demand access.
Finally, Don’t Worry, Discovery Is Fairly Cord Cutting Friendly
OK, it may not be the most cord cutting-friendly service out there, but it is better than Viacom. Currently Discovery has deals with Hulu, PlayStation Vue, and DIRECTV NOW. So I expect Discovery to continue to be a fairly cord cutting-friendly network.
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