By Alexa Sternschein
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)
Key Executives (3)
Kenneth W. Lowe Joseph G. Necastro
Chairman of the Board, Chief Financial and
President and Chief Executive Officer Administrative Officer
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
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)
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)
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)
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)
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)
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
- WKRB13
- Scripps Networks Interactive Company
- Scripps Networks Interactive Leaders
- Scripps Networks Interactive History
- Financials
- Scripps Networks Interactive Our Brands
- HGTV
- Food Network
- DIY Network
- Great American Country
- Travel Channel
- James, S. B. (n.d.). Scripps CEO: Like sports, lifestyle programming best watched live.
- Cabanilla, I. R. (n.d.). Scripps Networks unveils online video site. SNL Kagan.Ulive
- Ulive
- James, S. B. (n.d.). Scripps CFO: We would not pay what Chellomedia was asking. SNL Kagan.
- Cabanilla, I. R. (n.d.). Scripps launches Food Network, Travel Channel in Croatia. SNL Kagan.
- http://scfp.mobmedia.com/category2.aspx?code=04
- Ilas, M. (n.d.). Scripps Networks television unit loses president, names replacement. SNL Kagan.
- Food Network Thanksgiving Live
- Scripps Networks Interactive