Tag Archives: Kenneth Lowe

Scripps Interactive

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By Ryan Lannum & Aaron Sortal
[1] Scripps Interactive Network Logo

[1] Scripps Interactive Network Logo

Brief History [1]

Scripps Networks Interactive began in 1878 when Edward W. Scripps founded The Penny Press in Cleveland, Ohio. Jump forward a 100 years and Scripps Networks Interactive began buying and building cable television systems, making it one of America’s largest cable operators, which was later sold to Comcast. In the 1990s, Scripps Network Interactive began building their media network. After the purchase of Cinetel Productions, a Knoxville-based cable creator, it launched HGTV in 1994.

[1] Source: WBIR-TV 10 Knoxville / Scripps Network Interactive

After the launch of HGTV, Scripps Networks started more lifestyle networks including: Food Network (1997), DIY Network (1999), Fine Living Network (2002), Great American Country (2004), and Travel Channel (2009). The organization describes itself as a “niche broadband [of] channels that extend the core brands’ presence on the Internet with advertiser-supported, on-demand content” (Scripps Networks Interactive).

In 2007, the board of directors decided to split The E.W. Scripps Company into two publicly-traded companies. One of the organizations would concentrate on national television lifestyle brands and the other focus on innovative and enduring local media businesses.

Financials

screen-shot-2016-11-29-at-10-26-06-pm

Stock er-er the last 5 years [2]

Scripps Networks Interactive, Inc. has done very well financially the last few years.  At the end of 2015, Scripps’ revenue totaled $3.02 billion, with a total net income of $606.83 million [2].  This is a great increase from the previous years, as its 2014 net income totaled 545.28 million, and its 2013 net income totaled $505.07 million.  Their total net incomes are increasing at a steady rate, and will likely continue in the coming years.  While their stock price is lower than it was five years ago, it being at $70.06 now and 76.50 then, it has increased greatly in the past year, with the price being only $59.04 in November of 2015.

In the fall of 2016, Scripps Networks reported a 6.6 percent increase in advertising revenues, which totaled to a $477.5 million in advertising revenue during the quarter [3]. This jump in advertising revenue also added to five of the six networks having a ratings boost.  Focusing on ads that connect to the demographics that watch their channels resulted in tremendous success both in viewership and in revenue. The need for advertising revenue caused a major problem when it came to a subscription video on demand service deal with Netflix.

Netflix Deal Not Renewed for a New Season

Netflix Logo

Netflix Desktop [4]

During the fall of 2016, Burton Jablin, Scripps Networks Interactive’s COO, announced the organization would not be renewing its digital distribution deal with Netflix on the company’s quarterly earnings conference call [5]. This isn’t the first-time Scripps Networks Interactive has ended a subscription video on demand deal with a media distributor [6]. In February 2013, Scripps Networks Interactive had a deal with Amazon. That deal ended in March 2014. This prompted the Netflix and Scripps Networks Interactive deal that ended this past November. According to a Variety.com article, Scripps Networks could have lost about $11 million of licensing revenue from Amazon [6]. Unlike the deal with Amazon, the CEO of Scripps Networks Interactive, Kenneth Lowe, commented on the company’s decision to leave Netflix. Lowe stated that a major reason for leaving Netflix was the loss of advertising dollars [7], which brought-in roughly $445 million dollars in revenue during the last quarter [3]. Jablin said in a Variety.com article: “In the end, it really is not the kind of dual-revenue model that best monetizes our content over the long term” (Spangler). [8] Over the past couple of months, Netflix has removed content from its database because the company wanted to create room for its original content. All of Scripps Network’s shows will not be removed until the end of the year [7]. Some of the shows that are being removed are: “Cupcake Wars,” “Chopped,” and “Man v. Food.”

AT&T Long-Term Distribution Agreement

http://www.csc.com/global_alliances/alliances/112505-at_t

AT&T Logo [9]

In September of 2016, Scripps Interactive reached a deal with AT&T, in which they agreed for a continuation of distribution of Scripps Networks for DIRECTV [10].  This deal will be made for multiple years, ensuring that DIRECTV will continue its widespread distribution of the Scripps Network channels.  They also agreed to include Scripps Networks on DIRECTV’s streaming service, DIRECTV NOW.  Programs on channels such as HGTV, Food Network, Travel Channel, DIY Network, Great American Country, and Cooking Channel are included to be distributed through this deal.

As DIRECTV has over 20 percent of the market share of cable providers in the US, this deal will assist in allowing Scripps Networks’ programs to be distributed to as many people as possible [11].  DIRECTV is also expected to grow in market share in the next decade, so this deal will continue the great relationship Scripps has with AT&T.  With DIRECTV NOW launching at the end of November, it will also allow people whom prefer to stream their content the chance to view Scripps Network shows [12].  The portability of DIRECTV NOW will allow its customers to view Scripps Network shows at anywhere at any time, which will increase the flexibility and make it more likely that the shows will be viewed a lot more often than before.  DIRECTV NOW is also a lot cheaper alternative to established cable packages, so the low cost may also bring in a lot more viewers, in which can increase Scripps’ revenue and exposure.

DirecTV NOW Informational Video [13]

Pluto TV Financing

[14]

Pluto TV Logo [14]

Pluto TV is a television platform launched in 2014, which is solely internet-based [14].  They play content from over 75 different partners, including NBC, Bloomberg, Sky News, and Paramount Pictures [15].  The format is basically the same as a television network, as the programs are played in different time slots, as opposed to letting the viewer decide what they want to watch whenever they want to watch it.

In October of 2016, Scripps Networks participated in a $30 financing round, which was led by ProSiebenSat.1.  With this participation, this will allow Pluto TV to air a great amount of Scripps’ content, giving more exposure and potential revenue as a result.  Pluto TV is also available for free, so even people without cable can have access to Scripps’ content.  With this plus the AT&T deal involving DIRECTV NOW, it can definitely be shown that Scripps Networks is investing a lot of money into online streaming services, as they can see the market for internet-based content is growing every year.  If regular cable tv ends up being less popular and streaming services become the most used service to access television, Scripps will be ahead of the change and be able to retain and potentially gain a lot of revenue for the future.

Pluto TV Advertisement[16]

Sources

[1] Scripps Networks Interactive. “ History.” History | Scripps Networks Interactive, www.scrippsnetworksinteractive.com/our-company/history/.

[2] “SNI Income Statement – YahooFinance.” Yahoo! Finance, Yahoo!, finance.yahoo.com/quote/SNI/financials?p=SNI.

[3] Littleton, Cynthia. “HGTV, Advertising Gains Power Scripps Networks Interactive’s Q3 Earnings.” Variety, 7 Nov. 2016, variety.com/2016/tv/news/scripps-networks-interactive-q3-hgtv-travel-channel-1201911392/. [3] Littleton, Cynthia. “HGTV, Advertising Gains Power Scripps Networks Interactive’s Q3 Earnings.” Variety, 7 Nov. 2016, variety.com/2016/tv/news/scripps-networks-interactive-q3-hgtv-travel-channel-1201911392/.

[4] Sebastian. “How to Watch Netflix While Abroad .” TigerVPN Blog, 4 May 2016, blog.tigervpn.com/howtowatchnetflixwhileabroad/.

[5] Szalai, Georg. “Scripps Networks Won’t Renew Netflix Deal, CEO Says ‘We’Re Big Enough.’” The Hollywood Reporter, 7 Nov. 2016, www.hollywoodreporter.com/news/scripps-networks-wont-renew-netflix-deal-ceo-says-were-big-944709.

[6] Spangler, Todd. “Amazon Drops Discovery and Scripps Shows, with Scripps the Bigger Loser.” Variety, 26 Mar. 2014, variety.com/2014/digital/news/amazon-drops-discovery-and-scripps-shows-with-scripps-the-bigger-loser-1201147369/.

[7] Faulkner, Trisha. “Netflix Loses Scripps Networks Interactive Contract: Say Goodbye To HGTV, Food Network, Travel Channel, And More.” The Inquisitr News, 12 Nov. 2016, www.inquisitr.com/3709928/netflix-loses-scripps-networks-interactive-contract/.

[8] Spangler, Todd. “Netflix Losing Food Network, HGTV, Travel Channel Shows at End of 2016.” Variety, 9 Nov. 2016, variety.com/2016/digital/news/netflix-scripps-food-network-hgtv-travel-channel-shows-1201913874/.

[9] “AT&T.” Computer Sciences Corporation, CSC, www.csc.com/global_alliances/alliances/112505-at_t.

[10] “Scripps Networks Interactive, AT&T Sign Long-Term Multi-Platform Distribution Agreement.” Nasdaq GlobeNewswire , GlobeNewswire, 22 Sept. 2016, globenewswire.com/news-release/2016/09/22/873822/0/en/Scripps-Networks-Interactive-AT-T-Sign-Long-Term-Multi-Platform-Distribution-Agreement.html.

[11] Munson, Ben. “Top 9 Cable, Satellite and Telco Pay-TV Operators in Q1: Ranking Comcast to TWC to Charter to Cablevision.” FierceCable, 11 May 2016, www.fiercecable.com/special-report/top-9-cable-satellite-and-telco-pay-tv-operators-q1-ranking-comcast-to-twc-to.

[12] Rogowsky, Mark. “Is DirecTV Now The Video Service Cord Cutters Have Been Waiting For?” Forbes, Forbes Magazine, 29 Nov. 2016, www.forbes.com/sites/markrogowsky/2016/11/29/is-directv-now-the-video-service-cord-cutters-have-been-waiting-for/#7781ae8330ef.

[13] CNET. “DirecTV Now Offers 100 Channels of Live TV Starting at $35 a Month.” YouTube, YouTube, 28 Nov. 2016, www.youtube.com/watch?v=040r9p0oijk.

[14] “What Is Pluto Tv?” Pluto TV, Pluto TV, corporate.pluto.tv/.

[15] Pham, Alex. “Pluto TV Lands $30M Financing From Scripps Networks And ProSiebenSat.1.” Forbes, Forbes Magazine, 12 Oct. 2016, www.forbes.com/sites/alexpham/2016/10/12/pluto-tv-lands-30-million-financing-from-scripps-networks-and-prosiebensat-1/#16d668db4e3f.

[16] PlutoTV. “Pluto.TV: Watch What’s Possible.” YouTube, Pluto TV, 31 Mar. 2014, www.youtube.com/watch?v=atNBbc6ofiE.

Scripps Networks Interactive

Posted on by 
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

Posted on by 
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
Henry84

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

Posted on by 
by Ryan Kauffman

Scripps Networks Interactive

Scripps logo

   Photo Courtesy of Logowiki.com [i]

Contact Information [ii]                                                                                                                                     

9721 Sherrill Blvd, Knoxville, TN 37932

(865) 694-2700

http://www.scrippsnetworksinteractive.com

About Scripps Networks Interactive:

Scripps Networks dates back all the way to 1878, when Edward Scripps founded the Penny Press in Cleveland. It was established as one of the leading post-war newspapers, which began to run local television stations. Scripps began to establish its large cable network ultimately becoming one of the biggest cable operators in the country, until it sold many of its assets to Comcast.[iii]

A leader in technology innovation, Scripps Network took advantage of investment opportunities and acquired Cintel Productions, and soon afterwards they announced the launch of HGTV. This program was met with such great success, that Scripps continued with more programming, which led to The Food Network (’97), The DIY Network (’99), The Fine Living Network (’02), Great American Country (’04), and The Travel Channel (’09). These six networks and there incredible online counterparts are a large part of what makes Scripps Networks such a powerful, innovative, and internationally recognized company.[iv]

Key Executives

Ken Lowe Headshot

Kenneth Lowe – CEO

Joe Necastro

Joseph Necastro – CFO

Burton Jablin

Burton Jablin – President

Photos courtesy of www.scrippsnetworksinteractive.com  [v]

Financials:

Though net income from operations is down .1% this quarter, we are up 3.2% from the beginning of the year at $ 548,759,000, and while this quarter has taken a slight dip, stocks are up in value, and revenue should increase as a result of recent expansion into foreign markets. With an extremely high operating revenue of $1,362,878,000, Scripps can afford to venture into other markets and stay at the forefront of media technology. [vi]                                                   

What’s Happening Now

HGTV Singapore                                                                                                                   Set to launch on December 4th is the Singapore division of HGTV. With one of the highest percentages of home owners, Singapore will provide an interesting new market for SNI, as it will be the first channel in Asia that has a strictly home and lifestyle focus. This partnership with Starhub TV has already created quite a lot of buzz among Singaporeans, who have been able to share “Home Moments” on Facebook, which started back in October. [vii]

SNI Singapore

                Photo courtesy of www.scrippsnetworksinteractive.com[viii]

HGTV will launch with a strong line-up including Property Brothers, Kitchen Cousins, and The High Low Project; however, SNI will holdfast to its commitment of providing locally specialized content as well. Network Executives have noticed a trend in the market of an increased interest in high quality lifestyle content, and Asia is a fantastic market to break into before spreading even further globally.[ix]

amishrenogades

 Photo courtesy of jumatv.com [x]

Amish RENOgade                                                                                                         Scripps Network has been very busy recently, premiering several new shows this fall season and three just this month alone, including Amish RENOgades, starring several memorable characters from the show Vanilla Ice Goes Amish. These members of the Amish community will set out across the county to remodel homes as they go, learning to tackle life outside the Amish community.[xi] The show aired a little over a week ago, and as boston.com says, “it is magic”. The show seamlessly blends lovable character in unfamiliar situations with traditional DIY network content. Watching Amish craftsmen Albert Miller and Robert Schlabach traverse across the country renovating homes, while navigating drive-thrus and social media, all while on camera, provide a truly unique experience.[xii] While only several episodes have aired so far, comments are very positive about the show thus far.[xiii]

Prop brothers

 Photo courtesy of hgtv.com [xiv]

Property Brothers at Home                                                                                                  Also airing within the past week is a spin off of HGTV’s record breaking show, The Property Brothers, which features brothers Drew and Jonathon Scott flipping homes across the country. These siblings knocked it out of the park with their hit show, with over 19 million people tuning in last season, which made it a cable powerhouse. Scripps Network tries to reach a wide array of demographics which can sometimes be difficult. Not surprisingly, The Property Brothers audience is made up 70% by women between 25 and 54. [xv] This is one of many reasons, that their show is so successful, and crucial to SNI. That is why this season, SNI is premiering “Property Brothers at Home”, which will feature Drew and Johnathon Scott renovating their Las Vegas home. This wil be the fourth show headed by the Scott Brother’s, which is why “The Property Brothers at Home” will be so successful. The viewers want a more in depth look into HGTV’s favorite duo, and now it’s here. [xvi]

Other News

vue

  Photo courtesy of engadget.com [xviii]

Playstation Vue                                                                               Sony has announced the Playstation Vue, which will allow players to access around 75 channels on their Playstation 4. Sony describes it as a “web-based television service allows users to access live TV and on-demand content without a cable or satellite service”. SNI has partnered with this program, which will get the brand in front of a younger and wider demographic, and keep the company at the forefront of technology.[xvii]

ulive

  Photo courtesy of www.thevideoink.com [xix]

Ulive                                                                  Scripps Networks launched Ulive several years ago as an online video platform, which contains lifestyle content that accents it’s channels. It has increased in popularity over the years, with some sources saying it reaches over 500,000 new viewers per month. Recently however Jeff Meyer and Lisa Owens, the two faces of Ulive have recently left the company. Though the circumstances are unclear, it is confirmed that they will no longer be working on the project. Tamara Franklin, Executive Vice President of Digital will now be heading the site. This change up will be monitored closely over the coming months. [xx]

Coming Soon

ree dr

 Photo courtesy of reedrummond.com [xxii]

The Pioneer Woman                                                            In the midst of the Holiday Season, many of the lifestyle networks viewership is greatly increased, and Scripps Network is going taking advantage of this opportunity with several Holiday specials premiering soon. A series of Food Network Stars will have Holiday specials, one of them being “The Pioneer Woman: Cowboy Christmas Special” hosted by
Ree Drummond, who will give viewers an inside look into her life on the ranch at home. Ree has millions of fans, which hopefully will lead to a very successful premiere.[xxi]

white house christmas

  Photo Courtesy of hgtv.com [xxv]

Other specials incluse “Outrageous Christmas”, “Holiday Feast with Kelis”, and “Rev Run’s Happy Holidays” all of which will premiere throughout the month of December.[xxiii] While these celebrities are causing a lot of hype for Scripps this Holiday Season, the most buzz is surrounding “White House Christmas”, a special which is set to air on December 14th. The hostess, Genevieve Gorder will give viewers an inside look on how the most famous house in America gets ready for Christmas.[xxiv]

[i] Scripps Networks Interactive Logo. Retrieved 28 November 2014                                   [ii] Scripps Networks Interactive Contact Information. Retrieved 28 November 2014             [iii] SNI Founding. Retrieved 28 November 2014                                                                   [iv] SNI History (Part 2). Retrieved 28 November 2014                                                         [v] SNI Executives. Retrieved 28 November 2014                                                                 [vi] SNI Financials. Retrieved 28 November 2014                                                                 [vii] HGTV Singapore (Part 1). Retrieved 28 November 2014                                                 [viii] SNI in Singapore Photo.Retrieved 28 November 2014                                                   [ix] HGTV Singapore (Part 2). Retrieved 28 November 2014                                                 [x] Amish RENOgades Photo. Retrieved 28 November 2014                                               [xi] Amish RENOgades Overview. Retrieved 28 November 2014                                           [xii] Amish RENOgades Details. Retrieved 28 November 2014                                             [xiii] Amish RENOgades Comments. Retrieved 28 November 2014                                     [xiv] Property Brother at Home Photo. Retrieved 29 November 2014                                   [xv] Property Brothers Stats. Retrieved 29 November 2014                                                 [xvi] Property Brothers at Home. Retrieved 29 November 2014                                           [xvii] Playstation Vue Overview. Retrieved 29 November 2014                                             [xviii] Playstation Vue Photo. Retrieved 29 November 2014                                                   [xix] Ulive Photo. Retrieved 29 November 2014                                                                   [xx] Ulive Overview. Retrieved 29 November 2014                                                               [xxi] Pioneer Woman: Cowboy Christmas Special. Retrieved 29 November 2014                 [xxii] Ree Drummond Photo. Retrieved 29 November 2014                                                 [xxiii] Other Holiday Specials. Retrieved 29 November 2014                                                 [xxiv] White House Christmas. Retrieved 29 November 2014                                               [xxv] White House Christmas Photo. Retrieved 29 November 2014

 

 

Scripps Networks Interactive

Posted on by 
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