Scripps Sports: A Winning Play in the Cord-Cutting Era

In an age where cord-cutting reshapes media consumption, Scripps Sports (SSP) is positioning itself as a disruptor in the fragmented world of sports broadcasting. Its recent partnership with the Tampa Bay Lightning—expanding its localized over-the-air (OTA) plus streaming hybrid model—offers a compelling thesis for investors seeking a defensive yet growth-oriented play in the media sector. By marrying free OTA access with affordable, geographically tailored streaming, Scripps is not just adapting to the decline of traditional pay-TV; it is redefining how sports content reaches fans, all while unlocking scalable revenue streams. Let’s dissect why this strategy could make SSP an undervalued gem in today’s market.

The Cord-Cutting Tsunami and Scripps’ Niche

The shift from cable to streaming has left Regional Sports Networks (RSNs)—like AT&T SportsNet or Fox Sports—stranded. Their reliance on subscription models, often bundled with costly cable packages, no longer resonates with consumers who prioritize flexibility and affordability. Enter Scripps’ localized hybrid model: free OTA broadcasts paired with low-cost direct-to-consumer (D2C) streaming. For the Lightning’s audience, this means access to games without a cable subscription, via over-the-air channels like The Spot – Tampa Bay 66 or the Lightning app (presented by Spectrum).

This approach directly targets the 28% of U.S. households that cut the cord in 2024 (Parks Associates) and the 34% of sports fans who cite cost as a primary barrier to pay-TV (Deloitte). By democratizing access, Scripps not only expands its audience but also builds a loyal fan base primed for upsell opportunities—think premium content tiers or merchandise sales.

The Lightning Deal: A Blueprint for Scalability

The Lightning partnership exemplifies Scripps’ strategy. Key components include:1. Free OTA Dominance: Lightning games air on The Spot – Tampa Bay 66, ensuring broad reach without paywalls. This platform, combined with Scripps’ 61 local TV stations and ION’s national footprint, creates a distribution network covering 100% of U.S. households via OTA, cable, or streaming.2. Affordable D2C Streaming: The Lightning app, powered by ViewLift’s adaptive streaming tech, offers live games at under $1 per game—far cheaper than RSN bundles. By 2025, Scripps aims to expand this model to 70% of its sports content, aligning with its goal of a 40% boost in digital engagement.3. Content Synergy: Beyond games, the deal includes documentaries, behind-the-scenes features, and youth hockey programs. These deepen fan loyalty and provide evergreen content for syndication across platforms.

The financial upside is clear: $0.50 in revenue per fan per game (via ads and subscriptions) multiplied by millions of regional viewers could quickly scale margins. Compare this to traditional RSNs, which face stagnant subscriber growth and rising content costs.

First-Mover Advantages in NHL Markets

Scripps is not just betting on the Lightning—it’s leveraging a proven playbook in other NHL markets. Partnerships with the Florida Panthers (Panthers Plus app) and Vegas Golden Knights (KMCC-TV’s free OTA broadcasts) have already demonstrated demand. For instance, the Panthers’ D2C app saw a 22% user increase in its first year, despite limited regional rollout. Scaling these successes across 31 NHL markets could create a network effect, where Scripps’ content library and tech infrastructure become essential for teams seeking direct fan engagement.

Risks: Execution and Cost Pressures

Critics will cite risks: tech integration hurdles (ViewLift’s reliability), content costs (producing localized programming), and competition from streaming giants like Disney+ or Amazon Prime. Additionally, Scripps’ reliance on geographically exclusive rights could limit scalability if teams seek broader deals. However, these risks are mitigated by:- First-mover moats: Early partnerships lock in teams before competitors can replicate the model.- Cost efficiencies: OTA avoids pay-TV carriage fees, while ViewLift’s AI-driven analytics optimize ad sales and reduce production costs.- NHL’s support: The league prioritizes expanding fan access, making Scripps’ model a strategic ally.

The Investment Case: Defensive Growth at a Discount

Scripps trades at just 8.5x forward EV/EBITDA, a discount to peers like DISH (12.3x) and AMC Networks (10.8x). Yet its hybrid model addresses the $12B+ cord-cutting market (eMarketer) and taps into the NHL’s $5B annual revenue growth potential through streaming. With a 40% target increase in digital engagement and 25% uplift in sports advertising revenue by 2025, the stock could re-rate sharply as these metrics materialize.

Conclusion: Time to Take the Ice

Scripps’ Lightning partnership is more than a regional deal—it’s a blueprint for reinventing sports broadcasting. By capitalizing on cord-cutting trends with a hybrid model that combines accessibility, affordability, and innovation, SSP is well-positioned to capitalize on a $150B+ media industry shift. While risks remain, the first-mover advantage in NHL markets, synergies with existing partnerships, and undervalued stock metrics make this a compelling buy for investors seeking both growth and resilience in the media sector.

The numbers are on the ice—now’s the time to score.