Capitalising on its momentum in OTT TV, Newsy, the national news network focused on millennial audiences, has launched a major expansion into the US cable and satellite marketplace, kicked off by The E.W. Scripps Company’s acquisition of carriage contracts from the Retirement Living Television (RLTV) cable network.
Scripps will take over RLTV’s carriage agreements for about 26 million subscribers and reprogramme the network with Newsy’s lineup of shows already available on major OTT services including YouTube TV and Sling TV. The transition from RLTV to Newsy will begin over the next few months, and Newsy expects to expand its reach to about 40 million cable and satellite subscribers by the end of 2018.
The acquisition’s purchase price is based on the number of subscribers that come under contract with the cable companies and convert to Newsy. The final purchase price could be up to $23 million.
“Newsy has already made a name for itself among millennial news consumers who rely on over-the- top television. Now we’ll be reaching Americans with cable and satellite service who are looking for a fresh approach to news coverage,” said Adam Symson, president and CEO of Scripps. “This expanded reach for our advertising business alongside carriage fees furthers our strategy to develop Newsy as a prominent multi-platform news network with dual revenue streams.”