E.W. Scripps said it is anticipating that its local media division revenue will grow nearly 15% to $750 million in 2023 after completing carriage agreements covering 75% of its pay TV households.
More significantly, Scripps set its net distributions dollars--after network programming fees and other expenses--will up 40%.
Distribution and retransmission fee growth has been a major question mark for stock market analysts following the television business, but Scripps CEO Adam Symson said he’s pleased with the latest set of agreements, which bolster the case for a strong financial future for the broadcast business.
“In resetting rates for the vast majority of our pay TV subscriber base this year, we reached agreements that reflect the mutual benefit of our relationship with these important distribution partners,” Symson said. “In addition, we successfully negotiated to receive new distribution fees for television stations carrying local and regional sports.
Scripps was able to achieve its distribution revenue growth without having blackouts to cable and satellite subscribers, Symson added.
“Scripps is now capturing full value for its pay TV households, and the robust growth in our net distribution margin dollars and gross revenue is a testament to the durable economics of the linear TV marketplace at a time when most streaming services themselves are unprofitable,” he said.
Scripps has opportunities to further increase its distribution revenues as it adds local sports team games to some of its duopoly stations. The company recently signed deals with the NHL Golden Knights in Las Vegas and the Phoenix Coyotes.
“As we continue to sign new rights agreements in local markets, we fully expect to partner with distributors and garner distribution fees for the carriage of live sports,” Symson said.
Scripps has 5% of its footprint up for renewal in 2024 and about 20% in 2025.
