{"id":28383,"date":"2016-10-16T18:10:28","date_gmt":"2016-10-16T22:10:28","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=28383"},"modified":"2016-11-30T10:17:19","modified_gmt":"2016-11-30T15:17:19","slug":"scripps-interactive-2","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2016\/10\/16\/scripps-interactive-2\/","title":{"rendered":"Scripps Interactive"},"content":{"rendered":"
By Ryan Lannum & Aaron Sortal<\/pre>\n
\"[1]<\/a>
[1]<\/a> Scripps Interactive Network Logo<\/p><\/div>\n
Brief History [1]<\/a><\/h1>\n
Scripps\u00a0Networks Interactive began in 1878 when Edward W. Scripps founded The Penny Press <\/em>in Cleveland, Ohio. Jump forward a 100 years and Scripps Networks Interactive began buying and building cable television systems, making it one of America\u2019s largest cable operators, which was later sold to Comcast. In the 1990s, Scripps Network\u00a0Interactive began building their media network. After the purchase of Cinetel Productions, a Knoxville-based cable creator, it launched HGTV in 1994.<\/p>\n
\nhttp:\/\/www.scrippsnetworksinteractive.com\/our-company\/Videos\/WBIR-HomeGrown-021213.mp4<\/a><\/video><\/div>\n
[1]<\/a> Source: WBIR-TV 10 Knoxville \/ Scripps Network\u00a0Interactive<\/p>\n
After the launch of HGTV, Scripps Networks\u00a0started more lifestyle networks including: Food\u00a0Network<\/a> (1997), DIY Network<\/a> (1999), Fine Living Network<\/a> (2002), Great American Country <\/a>(2004), and Travel Channel<\/a> (2009). The organization describes itself as a \u201cniche broadband [of] channels that extend the core brands’ presence on the Internet with advertiser-supported, on-demand content\u201d (Scripps\u00a0Networks\u00a0Interactive).<\/p>\n
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.<\/p>\n
Financials<\/b><\/h1>\n
\"screen-shot-2016-11-29-at-10-26-06-pm\"<\/a>
Stock er-er the last 5 years [2]<\/a><\/p><\/div>Scripps Networks Interactive, Inc. has done very well financially the last few years. \u00a0At the end of 2015, Scripps\u2019 revenue totaled $3.02 billion, with a total net income of $606.83 million [2]<\/a>. \u00a0This 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. \u00a0Their total net incomes are increasing at a steady rate, and will likely continue in the coming years. \u00a0While 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.<\/p>\n
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]<\/a>. This jump in advertising revenue also added to five of the six networks having a ratings boost. \u00a0Focusing 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.<\/p>\n
Netflix Deal Not Renewed for a New Season<\/h1>\n
\"Netflix<\/a>
Netflix Desktop [4]<\/a><\/p><\/div>During the fall of 2016, Burton Jablin, Scripps Networks Interactive\u2019s COO, announced the organization would not be renewing its digital distribution deal with Netflix<\/a> on the company\u2019s quarterly earnings conference call [5]<\/a>. This isn\u2019t the first-time Scripps\u00a0Networks Interactive has ended a\u00a0subscription video on demand deal\u00a0with a media distributor [6]<\/a>. In February 2013, Scripps Networks Interactive\u00a0had a deal with Amazon. That deal ended in March 2014. This prompted the Netflix and Scripps Networks Interactive\u00a0deal that ended this past November. According to a Variety.com<\/a> article, Scripps Networks could have lost about $11 million of licensing revenue from Amazon [6]<\/a>. Unlike the deal with Amazon, the CEO of Scripps Networks Interactive, Kenneth Lowe, commented on the company\u2019s decision to leave Netflix. Lowe stated that a major reason for leaving Netflix was the loss of advertising dollars [7]<\/a>, which brought-in roughly $445 million dollars in revenue during the last quarter [3]<\/a>. Jablin said in a Variety.com article: \u201cIn the end, it really is not the kind of dual-revenue model that best monetizes our content over the long term\u201d (Spangler). [8]<\/a> 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\u00a0shows will not be removed until the end of the year [7]<\/a>. Some of the shows that are being removed are: “Cupcake Wars<\/a>,\u201d \u201cChopped<\/a>,\u201d and \u201cMan v. Food<\/a>.”<\/p>\n
AT&T Long-Term Distribution Agreement<\/b><\/h1>\n
\"http:\/\/www.csc.com\/global_alliances\/alliances\/112505-at_t\"
AT&T Logo\u00a0[9]<\/a><\/p><\/div>In September of 2016, Scripps Interactive reached a deal with AT&T<\/a>, in which they agreed for a continuation of distribution of Scripps Networks for DIRECTV<\/a> [10]<\/a>. \u00a0This deal will be made for multiple years, ensuring that DIRECTV will continue its widespread distribution of the Scripps Network channels. \u00a0They also agreed to include Scripps Networks on DIRECTV\u2019s streaming service, DIRECTV NOW. \u00a0Programs on channels such as HGTV<\/a>, Food Network<\/a>, Travel Channel<\/a>, DIY Network<\/a>, Great American Country<\/a>, and Cooking Channel<\/a> are included to be distributed through this deal.<\/p>\n
As DIRECTV has over 20 percent of the market share of cable providers in the US, this deal will assist in allowing Scripps Networks\u2019 programs to be distributed to as many people as possible [11]<\/a>. \u00a0DIRECTV 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. \u00a0With 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]<\/a>. \u00a0The 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. \u00a0DIRECTV 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\u2019 revenue and exposure.<\/p>\n