NEW YORK (TheStreet) -- Shares of Netflix (NFLX) were lower in late morning trading on Tuesday, after Scripps Network (SNI) turned down the chance to renew its partnership deal with the online streaming service. The partnership will conclude at the end of 2016.
"We assessed and analyzed the S-VOD [streaming video-on-demand] universe and have made the strategic decision not to extend our S-VOD agreement with Netflix past the end of this year," Scripps Network COO Burton Jablin said in a conference call on Monday. "In the end, it is really not the kind of dual revenue model that best monetizes our content over the long-term."
The parent company of HGTV, Food Network, the Cooking Channel and the Travel Channel is saying it can't make money off of the service, Fox Business' Liz Claman explained on Tuesday morning's "Varney & Company." Scripps Network saw its distribution revenue drop.
"That's a big blow, I think, to Netflix to have somebody say, 'Nope, we're not signing up with you anymore,'" she claimed.
Shares of Scripps Network were higher in late morning trading on Tuesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Netflix as a Hold with a ratings score of C+. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.