Since the living isn’t that fine these days, time to do a rethink: Scripps Networks Interactive (NYSE: SNI), the parent of Food Network, among others, is closing down its Knoxville-based Fine Living Network, and morphing and rebranding it into an instructional cooking channel called, what else, Cooking Channel. The new channel will be launching by Q3 of 2010, it says. As a result of this closure, about 20 local jobs will be lost over the next 8-10 months, reports local Knoxville station WBIR, confirmed to us by the company, even though it also says more jobs will be created for the new channel.

The new Cooking Channel will be based in Chelsea Market in NYC, where Food Network is based as well. Cooking will incorporate some of the more popular FLN shows that relate to food and cooking. FLN’s distribution base is 55 million households, so Cooking Channel hopes to capitalize on that. On the digital side, it will launch with a VOD offering and an online and broadband platform. It expects to name a programming exec to head the channel soon.

Scripps is toeing a fine line of differentiation with Food: a 24-hour network that “caters to avid food lovers by focusing on food information and instructional cooking programming,” as opposed to “general entertainment fans…for food lovers” with Food Network. The analogy they are giving: HGTV and how that interplays with DIY Network. More info here.