Here’s a somewhat counter-intuitive move: Newsy, a millennial-focused OTT news property, is buying the pay-TV carriage agreements of Retirement Living Television covering around 26 million multichannel TV subscribers in order to get a position on the cable dial. The deal will cost Newsy’s owner E.W. Scripps approximately $23 million, or 93 cents per RLTV subscriber. Newsy also expects to get to 40 million pay-TV subscribers by the end of 2018.
The deal is predicated on developing Newsy into a “prominent multi-platform news network with dual revenue streams,” according to Scripps president and CEO Adam Symson. Newsy already has carriage deals with skinny bundles YouTube TV and Sling TV and clearly believes it can extend its audience reach and advertising potential by being available in multichannel bundles. Scripps also sees Newsy’s programming as helping pay-TV operators appeal to younger audiences.
Free, short-form mobile video news is becoming a hot area of focus for established media companies. The latest evidence is this morning's announcement by NBCUniversal News Group of a minority investment in NowThis News as part of a broader content development collaboration involving all of NBC's news brands.
The investment follows the December acquisition of leading short-form mobile video news creator Newsy by E.W. Scripps for $35 million. That deal followed the launch by the New York Times, in late November, of the "New York Times Minute," a 3 times per day 1 minute video compilation of 3 top news stories of the moment which itself came on top of many other new video offerings from the Times. Meanwhile, in late December News Corp. acquired Storyful for $25 million to accelerate the use of short user-generated video in its and others' reporting.
And all of these follow numerous clip-oriented video news initiatives by a wide range of established and earlier-stage news organizations across both general and vertical subject areas (e.g. sports, entertainment, travel, etc.).
Newsy, which creates short-form video news segments that are syndicated to major third-party online publishers, has been acquired by E.W. Scripps for $35 million in cash. According to the announcement, Scripps was attracted to Newsy for its approach to curating news, its national brand, potential to enhance content from Scripps' 17 local TV stations and the growth potential of online video. Newsy will operate as a wholly owned subsidiary in Columbia, MO.
I've been a big Newsy fan and recently met up with its CEO and founder Jim Spencer and VP of Marketing Alexandra Wharton. Newsy has a very interesting approach to creating original content, but not doing original reporting. That means it doesn't send reporters out to the field, but rather curates the best video and text news from multiple sources, writes its own scripts and creates its own graphics, capturing the essence of stories in under 2 minutes. All underlying sources are clearly identified and have links back to them.