Scripps Networks Interactive, Inc.
Scripps Networks Interactive is a leading lifestyle content and interactive services
company with respected, high-profile television and interactive brands. Our businesses
engage audiences and efficiently serve advertisers by delivering entertaining
and highly useful content that focuses on specifically defined topics of interest.
We manage our operations through two reportable operating segments: (I) Lifestyle
Media (formerly Scripps Networks), which includes Home and Garden Television
(“HGTV”), Food Network, DIY Network (“DIY”), Fine Living
Network (“FLN”), Great American Country (“GAC”), a minority
interest in Fox-BRV Southern Sports Holdings LLC, and SN Digital which includes
Web sites that that are associated with the aforementioned television brands
and other Internet-based businesses serving food or shelter related categories
such as RecipeZaar.com, HGTVPro.com and FrontDoor.com; and (II) Interactive
Services (formerly Scripps Interactive Media), which includes online comparison
shopping and consumer information services, Shopzilla, BizRate and uSwitch.
Our Lifestyle Media segment earns revenue principally from advertising sales,
affiliate fees and ancillary sales, including the sale and licensing of consumer
products. Revenues from the Interactive Services segment are generated primarily
from referral fees and commissions paid by merchants and service providers for
online leads generated by the company’s comparison shopping Web sites.
Revenues from the Lifestyle Media segment accounted for 82 percent, 82 percent
and 80 percent of our consolidated revenues for 2008, 2007 and 2006, respectively,
and revenues from the Interactive Services segment accounted for 18 percent,
18 percent and 20 percent of our consolidated revenues for those periods, respectively.
We seek to engage audiences that are highly desirable to advertisers with entertaining
and informative lifestyle content that is produced for television, the Internet
and any other media platforms consumers choose. We intend to expand and enhance
our Lifestyle Media brands through the creation of popular new programming and
content, the use of new distribution platforms, such as mobile phones and video-on-
demand, and the licensing and sale of branded consumer products. We are particularly
focused on the internal development and acquisition of interactive, digital
media brands that are related to the lifestyle content categories popularized
by our television networks and associated Internet enterprises. At our Interactive
Services businesses, we aggregate large audiences on the Internet by organizing
searchable and highly useful consumer information. We intend to enhance our
Interactive Services businesses by improving the overall search comprehensiveness
and usefulness of our Web sites, diversifying sources of revenue, increasing
the volume of user-generated consumer information and entering new geographic
markets.