E. W. Scripps Co Class A (SSP)

History and Background

E. W. Scripps Company was founded in 1878 by Edward Willis Scripps. It began as a newspaper chain and has evolved into a diversified media company with interests in television, radio, and digital media.

Core Business Areas

• Local Media: Owns and operates television stations in various U.S. markets, providing local news, information, and entertainment.
• Scripps Networks: Operates a portfolio of national television networks, including ION, Bounce, Grit, Laff, and Court TV.
• Newsy: Operates national news network, streaming news service Newsy.

Leadership and Structure

Adam Symson is the President and CEO. The company is structured with various divisions focusing on local media, national networks, and digital operations. The company is governed by a board of directors.

Key Offerings

• Local Television Stations: Local TV stations provide news, weather, and programming tailored to their respective communities. Market share varies by local market. Competitors include Tegna, Sinclair Broadcast Group, and Nexstar Media Group. The local stations are important to the company, and market share is measured locally, making a precise overall number impossible to supply here.
• Scripps Networks (ION, Bounce, Grit, Laff, Court TV): These national networks provide a variety of entertainment and news programming. ION reaches nearly every U.S. television household. Competitors include major broadcast networks (ABC, CBS, NBC, FOX) and cable networks (e.g., CNN, ESPN, TBS, USA).
• Newsy: Newsy is a streaming news service targeted at younger demographics. Competitors include CNN+, Fox Nation and other free streaming services.

Industry Overview

The media industry is undergoing rapid transformation, driven by cord-cutting, the rise of streaming services, and changing consumer preferences. Consolidation and convergence are key trends.

Positioning

E. W. Scripps is positioning itself as a diversified media company with a strong presence in both local and national markets. It's focusing on over-the-air (OTA) broadcasting, which is experiencing a resurgence, and streaming services. Competitive advantages: diversified portfolio, strong local presence, and focus on OTA.

Total Addressable Market (TAM)

The TAM for U.S. television broadcasting and digital media is estimated to be hundreds of billions of dollars annually. E.W. Scripps Co. is positioned within this TAM with its broadcast network and local stations; the company targets specific segments with its niche broadcast networks.

Key Competitors

• NXST
• TGNA
• SBGI

Competitive Landscape

E. W. Scripps faces intense competition from larger media conglomerates and digital streaming services. The company's competitive advantages include its strong local presence, its diversified revenue streams, and its focus on OTA broadcasting. Disadvantages include high debt and exposure to cyclical advertising.

ION Media

• Year: 2021
• Acquisition Price (USD millions): 2650
• Strategic Rationale: Expanded Scripps' national networks portfolio and increased its reach to nearly every U.S. television household.

Historical Growth: E. W. Scripps has grown through acquisitions and organic growth in its local media and national networks segments. The company's historical revenue growth has been modest.

Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by growth in national networks and digital offerings. Growth rate of Revenue: [X.X, X.X, X.X] % (next 3 years estimated)

Recent Initiatives: Recent strategic initiatives include the acquisition of ION Media, the expansion of Newsy, and the development of new digital products. These initiatives are focused on increasing revenue and expanding the company's reach.

E. W. Scripps is a diversified media company with a strong local presence and a growing portfolio of national networks. The company is well-positioned to capitalize on the growth in OTA broadcasting and streaming services. However, it faces challenges from cord-cutting, competition from larger media companies, and high debt levels. Its recent acquisition of ION Media is a positive sign of expansion and reaching new viewers. The debt levels must be monitored closely as interest rates rise.

• NXST
• TGNA
• SBGI

Data Sources:

• Company Filings (10-K, 10-Q)
• Analyst Reports
• Industry Publications
• Company Website

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and due diligence.