Scripps Networks Interactive

by KATE BERNHARDT
Scripps Network Interactive Logo

Scripps Network Interactive Logo [1]

Headquarters

9721 Sherrill Boulevard

Knoxville, TN 37932

(865) 694-2700

http://www.scrippsnetworksinteractive.com [2]

Key Executives

A full list of SNI executives may be found here [3].

Company History

Founded as the successful newspaper company known as The Penny Press by E.W. Scripps in 1875, the company has turned into a leading network for lifestyle media. After launching HGTV in 1994 and the Food Network in 1997, the company evolved into what is now known as the Scripps Network Interactive. With platforms such as cable television, digital, mobile and publishing, SNI continues to expand their six main lifestyle brands: HGTV, Food Network, The Cooking Channel, Travel Channel, DIY Network and Great American Country [4].

Media Brands

As the first addition to SNI, Home and Home and Garden Television (HGTV) represents the ultimate binge-watching cable channel. According to recent reportings, HGTV dominates the market in holding the #1 most ad receptive audience in cable, #1 channel inspiring viewers to purchase and #1 channel in captivating one of the most upscale audiences in cable [5]. SNI President of National Ad Sales & Marketing Jon Steinlauf explained, “HGTV is arguably the hottest network in the country right now on year-to-year growth.” A new goal for HGTV is to expand their audience base beyond women. By inviting men into the network, they’re up 34% in viewership and have also added more male hosts to their shows, and made shows concentrate more on the financial aspects of projects. [6] As SNI prepares for fall, they’ve announced renewals of the popular shows House Hunters Renovation, Lakefront Bargain Hunt, Island Hunters and Tiny House Hunters [7].

 

Although critics remain skeptical as to whether the Food Network is remaining profitable, recent calculations have shown that viewership peaked over the past year in November with 8.5 million viewers, while now the channel is at a low with only 6 million viewers. The Food Network recently announced that Aarti Sequeria was signed to a new series: 10 Minute Meals with Aarti Sequeria [8].  In addition, the media brand is attempting to cater to more kids and families by renewing popular shows such as Chopped Teen, Guys Grocery Games Family Tournament, Rachael Ray’s Kids Cook Off and Kids Baking Championship [9].

 

In 2014, The Cooking Channel saw it’s best year yet, proving to be an up-and-coming brand at SNI. The brand saw a ratings increase of 17% among ages 25-54 [10]. Successful shows such as Mo Rocca’s My Grandmother’s Ravioli, Extra Virgin and Real Girl’s Kitchen only helped skyrocket The Cooking Channel to be a larger content generator to SNI. In February, The Cooking Channel acquired Avec Eric, a high-rated cooking show featuring world-renowned chef Eric Ripert [11].  In addition, the brand announced that the new cooking show with Tia Mowry, Tia Mowry at Home will debut on April 29th [12].

In an interest to generate more viewership, the DIY Network has renewed five popular series for the upcoming fall such as The Vanilla Ice Project, Kitchen Crashers, Barnwood Builders, Sledgehammer and Yard Crashers [13]. DIY Network also announced that performer, actor and comedian Jim Belushi will be coming to the network in his new show, Building Belushi. In the six-episode series, Belushi will be followed as he builds a riverfront retreat cabin in Oregon [14].

 

The Travel Channel proves to be less robust in content, as not as many new shows have debuted this year. The new series, Breaking Borders premiered March 15th, as journalists and food lovers sat down to gather all sides of a conflict for a real conversation at the dinner table [15]. The Travel Channel also announced their big network event and sweepstakes known as “The Trip” in January, where viewers could enter to win a trip to the islands of Oahu, Maui, Kuaui, Lanai and Hawaii [16].

 

Great American Country has experienced similar challenges to the Travel Channel, as the brand has somewhat stunted in producing new content. Premiered on January 17th, actress Betty White profiled Smartest Animals in America [17]. In addition, the brand introduced the show, A Very Barry Branson on February 5th in which Barry Williams (The Brady Bunch) revives a 1970s musical variety show [18].

SNI’s New Marketing Guru

After recently naming Jon Steinlauf as President of National Ad Sales & Marketing at SNI in February, the company is hoping to get a revamped marketing plan. Says former predecessor Jon Gigliotti, “Jon has been integral to establishing Scripps Networks’ lifestyle brands as essential for advertisers looking to reach an upscale audience…He inspires and motivates the incredible teams who work for him, and his leadership has been instrumental in helping the company deliver a series of $1 billion upfronts” [19]. Steinlauf explained that SNI has continued to maintain a great Return on Relationships, meaning the return a company gets on immersing brands inside content. SNI offers to sell marketers commercial that will run within the same three minute interval on all channels and websites. This tactic has allowed the company to increase 21% in net income from $109 million in 2013 to $132 million in 2014 [20]. In addition, revenues have increased by 2.3% to $699 million in the past year while ad revenues are only marginally rising by 0.7% to $454 million in the past year.

 

Global Expansion

The Scripps Network Interactive recently launched a plan to grow the U.S. based company into a  significantly more global network. After purchasing 53% ownership of the Polish content Producer, TVN, SNI amounted in $1.5 billion in cash and assumed debt [21]. From this expansion, the company is expecting international sales to make up 25% of the total revenue (representing an eight-fold increase from the previous year) [22]. Currently, Food Network and HGTV reach an estimated 200 million homes around the world and 180 countries worldwide. SNI reports that the acquisition of TVN only represented a “key pillar” in their strategy for global expansion [23].

 

In addition to European expansions, SNI also announced plans to expand their brands in Latin America. As of the beginning of April, Food Network was launched with DIRECTV reaching more than 6 million viewers across the region of Brazil [24]. Not only will the Food Network be broadcast in Standard Definition, but also in High Definition. Jim Samples, the President of Scripps Network International stated, “Expanding Food Network’s distribution in Latin America is a testament to Scripps Networks’ commitment to expanding the company’s regional footprint and to building scale for our international division.” [25] With stronger footholds in Europe and South America than ever before, SNI is now setting their sights on Asia in the hopes of increasing their presence in homes there.

 

Resources

Actress Tia Mowry Offers a Taste of Her Life in Cooking Channel’s ‘Tia Mowry at Home’ (accessed April 17th, 2015)

‘Building Belushi’ Newest Series to Expand DIY Network’s Celebrity Renovation Portfolio (accessed April 15th, 2015)

Cooking Channel enjoys its best ever year in 2014 (accessed April 15th, 2015)

Emmy Award-Winning Series ‘Avec Eric’ Joins Cooking Channel Lineup (accessed April 7th, 2015)

Food Network Stats (accessed April 15th, 2015)

HGTV and DIY Network to Premiere Eight New Shows This Fall (accessed April 15th, 2015)

History (accessed April 14th, 2015)

Is The Food Network Still Relevant? (accessed April 8th, 2015)

More Programmers Are Thinking Globally (accessed April 17th, 2015)

MKM Partners Reaffirms Neutral Rating for Scripps Network Interactive (accessed April 7th, 2015

Scripps Networks Expands Latin America Footprint (accessed April 7th, 2015)

Scripps Networks Interactive names Jon Steinlauf to top advertising sales position (accessed April 15th, 2015)

Scripps Networks Interactive’s (SNI) CEO Kenneth Lowe on Q2 2014 Results – Earnings Call Transcript (accessed April 7th, 2015)

Upfront Notebook: Scripps Adds Familiar Faces to Boost Brands (accessed April 15th)

03/19/2015: Scripps Network Interactive (accessed April 5th, 2015)

Scripps Networks Interactive

by Julie McCullough

9721 Sherrill Blvd, Knoxville, TN 37932

(865) 694-2700

Logo

courtesy of dish.com

Scripps Networks Interactive started in 1875 when E.W. Scripps founded The Penny Press and soon became one of the most successful newspaper publishing companies. The E.W. Scripps Company later evolved, acquiring local television stations. It was not until the company bought HGTV and the Food Network that it became Scripps Networks Interactive, the leading developer in lifestyle media. [1]

Today, Scripps Networks Interactive develops lifestyle media across the platforms of cable television, digital, mobile, and publishing. Home of HGTV, Food Network, The Cooking Channel, Travel Channel, DIY Network, and Great American Country, SNI reaches viewers all over the world with the goal of changing and improving everyday lifestyles.

Key Executives [2]

Kenneth W. Lowe – President and Chief Executive Officer 

Ken Lowe Headshot th

Henry Ahn- Executive Vice President, Content Distribution and Marketing
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Joseph G. Necastro- Chief Financial and Administrative Officer JoeSharper

Jim Samples- President, International

thmb-Samples-headshot

Lori A. Hickok- Executive Vice President, FinanceLori84_edited-1

Burton Jablin- President thmb-Leader-Burton-Jablin

Tamara Franklin- Executive Vice President, Digital thmb-leaders-franklin

 Right Here, Right Now

Cable

SNI’s 2014 Upfront event in NYC revealed 35 new primetime and daytime series for the fall seasons of Food Network and Cooking Channel [3]. Among the new shows were Food Network’s Bobby Flay Fit, The Big Tip, and Chopped Teens Tournament and Cooking Channel’s Proper Pub Food and Compete to Eat. The channels are showing trends of gravitating toward competition and travel shows that take the audience out of the traditional home/kitchen. DIY Network and HGTV also premiered many new series and specials this fall. Among the lineup for DIY were The William Shatner Project, documenting renovations to the famous Star Trek actor’s house, The Property Brothers at Home, and Amish RENOgades, featuring Amish craftsmen as they travel outside of their community and learn to navigate the modern world and work on home improvement projects. 
HGTV series this fall included Lakefront Bargain Hunt, A Hero’s welcome, White House Christmas, and Half-Price Paradise.  [4]

dishscrippsb

courtesy of scrippsnetworksinteractive.com

In September 2014, Dish Network obtained the rights to deliver live and on-demand content from all six of SNI’s cable networks on their over-the-top internet service, “Dish Anywhere”. The pact allows dish subs to access authenticated Scripps Networks programming over any Internet connection, on devices including connected TVs, PCs, smartphones, tablets and video game consoles.[5] At the 2014 Bank of America Merrill Lynch Media, Communications and Entertainment Conference in September, President Burton Jablin and Chief Financial and Administrative Officer Joseph NeCastro stressed the OTT deal as a way to increase distribution for their up-and-coming networks, Cooking Channel and DIY Network, while giving their live viewers (which make up about 90% of total viewership) more opportunities to view their high-quality content, and appealing to a wider audience of millennials and cord-nevers. [6]

Also in September, Scripps announced the expansion of HGTV into Singapore. The global expansion of SNI’s content signifies the universality of the network’s themes. The expansion to Singapore will include localized original short-form content exclusively for the launch of HGTV in Asia based on the popular series Extreme Homes. Jim Samples, president of Scripps Networks International, commented, “The launch of HGTV across Asia-Pacific signifies the first time HGTV has launched as a premiere 24/7 channel destination focused on home and lifestyle programming outside North America, including the Caribbean. This is a testament to how successful Scripps Networks’ high quality lifestyle content has performed around the world, and we see great potential for this channel offering to drive value for audiences, affiliate and advertising partners alike.” [7]

Publishing/ Digital

At its first ever Newfront presentation in April 2014, Scripps showcased an array of web series produced for its lifestyle video platform ulive, as well as websites for SNI television channels like HGTV, DIY Network, Food Network, Cooking Channel, and Travel Channel. Many web series are designed as companions of SNI’s cable series. For example, “Star Salvation” runs on FoodNetwork.com parallel to season 10 of the TV series Food Network Star, giving eliminated finalists the opportunity to get back on the TV show. SNI’s strong focus on online content, as well as its presence at the 2014 Newfront presentations, signifies the company’s strong adaptability in today’s digital age. [8]

revrun-vanillaice-hed-2014

Vanilla Ice and Rev Run at 2014 Newfront (courtesy of adweek.com)

On Nov 17, 2014, SNI announced a cross-platform content partnership with Hearst Magazines to support the launch of the Citi Double Cash Card. Food Network and HGTV released seasonal holiday content in late November that connect across the holiday issues of Food Network Magazine, HGTV Magazine, food network.com, and HGTV.com. These holiday-inspired recipes, entertaining ideas, and DIY (do-it-yourself) projects were made to show consumers the two ways to earn cash back with the Citi Double Cash Card. [9]

Financials

SNI’s 2014 Upfront concluded selling just under 50% of inventory, hitting $1 billion in sales. There have been recent shifts toward scatter advertising. Scripps networks are very attractive to advertisers, as they have non-violent, popular, family-friendly content targeted to an upscale audience. There is also a higher demand for convergent buys, in which SNI packages TV ad space with corresponding digital content to appeal to a wider and more diverse audience. [6]

In October 2014, Scripps began offering its employees voluntary buyouts as a way to cut costs. “Each department will address its specific budget targets as they see fit. However, it is likely that this effort to bring costs in line with revenue will include the elimination of activities, projects and positions. We plan to announce any project and/or job eliminations resulting from this budget process by the end of the year,” said CEO Kenneth Lowe [10].

In better news, Scripps Network Interactive’s new cable and digital programming received very positive feedback from advertisers. The 2014 third-quarter earnings results shows that sales increased 4.5% to reach $644 million. “These solid third-quarter operating results demonstrate our unique competitive advantage, and our ability to create long-term value for shareholders in a changing marketplace,” Kenneth Lowe said in a press release accompanying the results [11]. TV station revenue has grown 22% since the third quarter of 2013, up $21.8 million for a total of $121 million. The company as a whole reported consolidated revenue of $208 million, an increase of 9.5%, or $18.1 million, from the year-earlier quarter. [12]

Looking forward, SNI has a promising financial future from ad revenues from both cable and digital. Bucking the trend of television in general, Food Network has lowered its median age in the last two years, due to much stronger growth in the 18-49 demo. At the Bank of America Merrill Lynch Conference, Burton Jablin and Joseph NeCastro outlined SNI’s plan of increasing viewership by expanding the Travel Channel, expanding their international brand, keeping Food Network and HGTV a healthy priority, and increasing distribution for Cooking Channel and DIY Network. [6]

7143764109_182bf66d0e_b.jpg_display

courtesy of unpluggedtv.com

 

References:

[1] Scripps Networks Interactive- History (accessed October 24, 2014)

[2] Scripps Networks Interactive- Leaders (accessed October 24, 2014)

[3] Eater- Food Network and Cooking Channel Announce 35 New Shows for 2014 (accessed November 27, 2014)

[4]- Scripps Network Interactive- HGTV and DIY Network to Premiere 8 New Shows This Fall (accessed November 30, 2014)

[5] Variety- Dish Adds Food Network, HGTV and Other Scripps Cable Nets to Internet TV Lineup (accessed November 28, 2014)

[6]- Scripps Networks Interactive, Inc. at Bank of America Merrill Lynch Media, Communications and Entertainment Conference (accessed November 28, 2014)

[7]- Scripps Networks Interactive- SNI To Launch HGTV In Singapore on Starhub (accessed November 30, 2014)

[8] VideoInk- Scripps Networks Spotlights Programming for ulive and TV Network Sites (accessed November 28, 2014)

[9] MarketWatch- Scripps Networks Interactive and Hearst Magazines Create Original Cross-Platform Content Partnership to Support the Launch of the Citi® Double Cash Card (accessed November 28, 2014)

[10] BroadcastingCable.com- Scripps Networks Offering Buyouts to Cut Costs (accessed November 30, 2014)

[11] BroadcastingCable.com- Scripps Networks Net Up 2% in Third Quarter (accessed November 25, 2014)

[12]- TvNewsCheck.com- Scripps 3Q TV Station Revenue Grows 22% (accessed November 28, 2014)

Scripps Networks Interactive

By Alexa Sternschein
scripps-networks-interactive-inc-logo

This photo is curtesy of wkrb13 (1)

Scripps Network Interactive is a cable network that specializes in life-style oriented content.  They’re main brands include HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel, and Great American Country.  They’re company is based on delivering content and products related to the home and food.  The shows that are aired are all about inspiring their viewers to live a better lifestyle, whether it’s through home improvement or new recipes try to here and there.  If you click on the image below, it will lead you to Scripps Networks Interactive’s 2013 upfront video. (2)

Poster-LG-SNI-Sizzle

 

 

Key Executives (3)

           Ken Lowe Headshot th                                                        Joe NeCastro Headshot th

         Kenneth W. Lowe                                                   Joseph G. Necastro

      Chairman of the Board,                                             Chief Financial and

President and Chief Executive Officer                            Administrative Officer

           Burton Jablin                                                        Thmb-Leader-Henry-Ahn

          Burton Jablon                                                              Henry Ahn

           President,                                                          Executive Vice President

       Scripps Network                               Corporate Controller and Emerging Business CFO

History 

Scripps Network Interactive was founded in 1878 by Edward W. Scripps.  It started as a newspaper publishing company after he founded The Penny Press in Cleveland.  During the post-war era it started to build its reputation as a leading local television operator.  HGTV was the first television network to be developed by Scripps Network Interactive.  After that the Food Network, DIY Network, and Fine Living Network.  Scripps also added Great American Country and the Travel Channel to its portfolio later on.

 In 2007 the company split into two publicly traded companies.  One side focused on the growing national television lifestyle brands and global Internet services.  The other side focused on relevant, innovative and enduring local media business. (4)

Financials

Revenue:  $594 Million

Operating Income: $219 Million

Costs of services before Interest, Taxes, Depreciation, and Amortization: $163 Million

The figures above are the 2013 first quarter results.  The company is currently in its third quarter but the second quarter results have not been made public yet.  Compared to 2012, there was a major increase for all three categories in the first quarter of 2013.  Revenue increased 11% from $535 million in 2012 to $594 million in 2013.  Operating income increased 2.4% from $214 million in 2012 to $219 million in 2013.  Costs of services before interest, taxes, depreciation, and amortization unfortunately also increased by 18.8% from $137 million in 2012 to $167 million in 2013.  Overall Scripps Networks Interactive is showing great improvement from 2012 to 2013. (5)

Networks

logo_brand_hgtv

HGTV consists of home and lifestyle programming.  It was the first brand to be part of the Scripps Networks Interactive portfolio and it was created in 1994.(6)  Most of the shows on HGTV are about home decorating such as 24 Hour Design, 25 Biggest Renovating Mistakes, and Behind the Build: HGTV Dream Home.  With the holidays around the corner, they are also doing a lot of holiday specials, such as Celebrity Holiday Homes and 25 Great Holiday Ideas.(7) 

logo_brand_food

Food Network consists of new, interesting, and creative ways to approach food.  It is not only “how to” cooking shows, there are also competitions and travel shows.  It keeps food relevant.  Food Network was introduced in 1997. (6)  You can find shows such as Diners, Drive Ins, and Dives, Chopped, and 30 Minute Meals. (8)

logo_brand_diy

DIY Network consists of Home Improvement shows.  These are the shows you watch when you want to learn how to get your hands dirty and really improve your house yourself and not just decorate it.  DIY Network was added to the Scripps Network Interactive portfolio in  1999. (6)  Some of the shows that you will find on this channel are House Crashers and I Hate My Bath. (9)

logo_brand_cooking

The Cooking Channel is sort of an extension of Food Network.  Food Network is a network that consists or television programming and websites.  The Cooking Channel is the actual channel that provides the Food Network Programming. (6)

logo_brand_gac

Great American Country celebrates American culture through music, food, family, home and travel.  It was added to the Scripps Networks Interactive portfolio in 2004.(6)  Some of it’s shows are Top 20 Country Countdown, Celebrity Motor Homes, and Made in America. (10)

logo_brand_travel

The Travel Channel consists of programming exclusively devoted to travel entertainment.  It helps people explore the world without leaving their couch, but it also helps them plan a trip if they want to get out there and explore.  Scripps acquired the Travel Channel in 2009. (6)  It consists of shows such as Bizarre Foods, Baggage Battles, and The Dead Files. (11)

What’s Happening Now

Scripps Networks Interactive has accomplished many things in 2013 and has a lot coming up in the year 2014.  According to the CEO, Kenneth Lowe, the lifestyle programming that is offered by Scripps Networks Interactive is very similar to sports because it is usually viewed live.  Scripps emphasizes immediacy and because of this most of the advertising is C3 advertising.  However, lately there has been a large viewing through DVR on Sunday nights, so there might be a slight shift to C7 advertising.  “So, I think it’s good for the industry … that we’re moving to C7 for sure,” said Lowe. (12)

In order to keep up with the large live viewership of the Scripps audience, Scripps Networks Interactive has recently released a new lifestyle video site and distribution platform called ulive.  Ulive will provide videos from each Scripps brand along with over 70 original series. (13)  Ulive is almost like another brand added to the Scripps portfolio that offers all the old existing shows along with new shows and series.  Because of the holiday season, a lot of the new shows on ulive are holiday specials such as Holiday Hangups. (14)

In other news, Scripps Networks Interactive was recently in the midst of making a deal with Chellomedia BV.  The two parties unfortunately could not agree on a deal and Chellomedia was sold to AMC Inc instead.  The thought process behind this attempted deal was that Scripps is trying to “bring in the minority interests of both Food Network and Travel Channel.”  The company is still in the process of deciding what to do with its cash reserves for now. (15)

Expanding Their Borders

Scripps Networks International has just recently launched Food Network and the Travel channel in Croatia.  Programming will be available through two channels owned by Vipnet. The two channels will be available in standard definition.  Travel Channel is fully localized and Food Network will be fully localized by 2014. (16)  Scripps Networks International is currently available in 170 countries around the globe.  Scripps also owns 50% interest in UKTV. (17)

New President

Scripps Networks Interactive’s president of it’s operating division, John Lansing, is retiring.  After nine years with the company, Lansing is finally stepping down and Burton Jablin, the president of the home category division, will be stepping up and taking his place.  Alongside him will be Kathleen Finch, senior vice president and general manager of HGTV and DIY Network.  Finch and Jablin will be splitting Lansing’s original role in the company. (18)

Post-Thanksgiving Live!

With Thanksgiving around the corner, all of the Scripps networks are doing holiday specials.  Food Network in particular is taking part in holiday fun.  Food Network is conducting a Google+ Hangout on Saturday, November 23rd at 2pm.  It will be an interactive, Thanksgiving themed “hangout” with chefs such as Bobby Flay, Giada De Laurentiis, Alton Brown, and Ina Garten and they will discuss post-Thanksgiving leftovers and food advice.  It can be viewed at FoodNetwork.com/ThanksgivingHangout. (19)

Sources

  1. WKRB13
  2. Scripps Networks Interactive Company
  3. Scripps Networks Interactive Leaders
  4. Scripps Networks Interactive History
  5. Financials
  6. Scripps Networks Interactive Our Brands
  7. HGTV
  8. Food Network
  9. DIY Network
  10. Great American Country
  11. Travel Channel
  12. James, S. B. (n.d.). Scripps CEO: Like sports, lifestyle programming best watched live.
  13. Cabanilla, I. R. (n.d.). Scripps Networks unveils online video site. SNL Kagan.Ulive
  14. Ulive
  15. James, S. B. (n.d.). Scripps CFO: We would not pay what Chellomedia was asking. SNL Kagan.
  16. Cabanilla, I. R. (n.d.). Scripps launches Food Network, Travel Channel in Croatia. SNL Kagan.
  17. http://scfp.mobmedia.com/category2.aspx?code=04
  18. Ilas, M. (n.d.). Scripps Networks television unit loses president, names replacement. SNL Kagan.
  19. Food Network Thanksgiving Live 
  20. Scripps Networks Interactive