Ken Lowe has a lot to talk about — cable networks, newspapers, broadband channels. We’ll stick with the digital side; for all the details, the webcast is here. . Lowe said he was a little surprised during the cable upfront by “the amount of money we were able to pick up this year versus last year that were pure dollars to hgtv.com, foodnetworktv.com.” I think it’s safe to say a lot of people have been surprised by how much broadband ground Scripps has covered in the last year, including its purchase of Shopzilla.
Content ownership: Much of Scripps’ multi-platform agility stems from a decision made long ago because of his experience with local television. “You really are only in control of destiny if you own your content. We set out early on with that strategic position and I think now we own about 98 percent of our content. … it’s given us the ability to leverage VOD, to leverage broadband, to use this content on platforms presenting themselves now like mobile, like international. (Scripps’ programming is licensed in 110-plus countries.) This has been a real opportunity for us, especially as we move beyond just linear cable networks to content that’s going to be delivered on so many devices and platforms.”
Broadband still speculative: Scripps has been rolling out niche broadband channels that individually may not draw a large audience but Lowe says a collection of those assets can be sold that way. “I wish we could launch more broadband channels today. Every broadband channel we’ve launched is oversold. You can say, ‘gee, what are the rates and what’s the economic model’ but the point is there’s sufficient interest in a kitchen-design channel, in a decorating channel. I use channel because historically that’s how we describe these. Advertisers are shifting ad dollars that way … over time I think this could become a significant part of our business but it’s speculative at this point.”
Building traffic: “We thought we could enhance the Shopzilla brand … It also plays in to our strategy of moving more assets to an internet-based business. … Right now if you add up the uniques that shop at home brings, that our cable networks bring, that our newspapers bring, (that Shopzilla brings) we’re 26-27 million uniques a month. That figure will continue to grow. That puts us in the top 15, 16, 17 of all media companies and we’ve leapfrogged quite a few of our competitors. ” Lowe admits that not all uniques are equal when it comes to monetizing; for instance, Shopzilla is more efficient that the organic Scripps sites in that regard.
Shopzilla’s impact across Scripps: “The other aspect is what we’re learning from Shopzilla. The management of keyword searches has really, really helped us to better understand how to maximize the Food Network web site, the Home and Garden web site. In addition to buying a very sturdy standalone business in Shopzilla, we bought, we think, the best technology in specialized search and the brain power that goes with it.” Lowe says they’ll be spreading that technology across the company, specifying local search via the newspaper sites. Also, over time the company hopes to be able to leverage Shopizlla’s traffic into its existing businesses and to continue to expand its use outside the company. (Viacom just announced it will use Shopzilla on its CBS station sites; Shopzilla powers AOL”s comparison service.)
Local search/newspapers: Lowe touted the recent hiring of online newspaper whiz Rob Curley by the Naples Daily News to upgrade its digital offerings. ” If you look at a local marketplace, over time, newspapers, if we do it smartly, should end up being the local information utility. That’s what we’re trying to do now by starting web businesses that are over and above just the local newspaper. … he’s building this incredibly robust web site that we think will be the local information ‘utility’ for years to come.”
Subscriber content
?
Subscriber content comes from Gigaom Research, bridging the gap between breaking news and long-tail research. Visit any of our reports to learn more and subscribe.
Advertisement
Advertisement
Advertisement
Comments have been disabled for this post