Scripps Networks Interactive Inc.SNI

Morningstar Rating

Stock Research and Analysis

by Michael Corty, CFA

Scripps Networks Interactive has carved out an economic moat in food and shelter programming which generates impressive profitability. However, emerging alternatives for consuming content outside of subscription television could chip away at the firm’s Read more

Bulls Say

The niche focus of the company's cable TV brands and Web sites targets specialized audiences that are attractive to advertisers, with products related to the food and home categories.

Viewership ratings at its popular Food Network and HGTV network achieved record-high levels during 2009. This higher audience helps boost advertising revenue for the networks.

We think the strategic fit of its acquisition of Travel Channel makes sense, as it adds travel to its food and home lifestyle categories.

Bears Say

Shopzilla is directly exposed to flagging consumer spending trends and lacks a sustainable competitive advantage.

Food Network and HGTV’s audience ratings have increased as "stay at home" programming has been popular. Consumer preferences could shift away from this category and hurt Scripps' two most profitable networks.

Larger cable networks that offer more broad-based content have noticed the success of Scripps' lifestyle networks, and could offer similar programming to cut into its viewership. Bravo Network's Top Chef is one example. Read more

Strategy

Scripps acquired a 65% stake in Travel Channel in December 2009, demonstrating that it remains focused on the lifestyle category. Looking to capitalize on the growing interest in the food category, Scripps Read more

Management

Kenneth W. Lowe served as E.W. Scripps' CEO since 2000 and added the chairman title when Scripps was spun-off in July 2008. We prefer to see the chairman and CEO titles separated, as we think having the same person holding both titles raises board accountability Read more

Profile

Scripps Networks Interactive was spun off from E.W. Scripps in July 2008. Its two flagship networks, Food Network and HGTV, reach almost 100 million subscribers with basic Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Static in the Comcast-NBC Universal Deal
Watch more