Discovery Communications’ $14.6 billion acquisition of Scripps Networks
makes a lot of sense — for Discovery and Scripps. A combined Discovery/Scripps will likely shed a few networks in the process, which means less choice for viewers, and fewer buyers for content creators.
Discovery hasn’t yet announced its strategic plans for its new oversized stable of channels, but the company did say that merging the cable groups could provide a cost savings of $350 million.
Discovery and Scripps will create a bigger conglomerate as, ironically, distribution pipes get smaller. Cable groups have already started to shed channels, as the coming age of “skinny bundles” means there won’t be room for smaller networks in a streamlined age.
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“I think you’re going to see additional consolidation,” TBS
president Kevin Reilly
told reporters last week at the Television Critics Association press tour.