Friday, August 18, 2017

Network negotiations: combining content and attracting consumers

In a statement, Discovery revealed its content pipeline will be fuelled by the Scripps acquisition to grow in areas including Discovery’s Home and Health network in Latin America.

Analyst and Senior Director of Research at Parks Associates Brett Sappington pointed to the rising cost of content. He also said that advertising revenues would strengthen and that combining channels would create opportunities for new services.

He said: “The Discovery and Scripps merger is a direct result of these economics and consolidation among pay-TV providers.

“Controlling a larger share of popular networks gives the new Discovery and Scripps company more negotiating leverage against the pay-TV giants that have grown from operator consolidation.”

The opposing forces between pay-TV prices and retaining a strong customer base is a likely motivator for the firms’ merger.

From the article "Network negotiations: combining content and attracting consumers" by Alana Foster.

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