The E.W. Scripps Company (SSP): Business Model Canvas [11-2024 Updated]

The E.W. Scripps Company (SSP) is a powerhouse in the media landscape, leveraging a robust business model canvas to navigate the evolving world of broadcasting and digital content. With strategic partnerships and a diverse array of customer segments, Scripps delivers compelling news and entertainment while maximizing revenue through innovative channels. Discover how this company successfully balances cost structures and revenue streams to maintain its competitive edge in the industry.

The E.W. Scripps Company (SSP) - Business Model: Key Partnerships

Collaborations with Major Broadcast Networks (ABC, NBC, CBS, FOX)

The E.W. Scripps Company has established strategic partnerships with major broadcast networks to enhance its content offerings and distribution capabilities. These collaborations allow SSP to leverage shared resources and audience reach. For example, in 2024, Scripps reported a significant increase in operating revenues driven by political advertising, which is often facilitated through these partnerships.

Agreements with Multi-Channel Video Programming Distributors (MVPDs)

SSP has agreements with various MVPDs, which are crucial for distributing its broadcast content. As of September 30, 2024, distribution revenue was reported at $593.9 million, reflecting a year-over-year increase of 3.9%. These agreements help ensure that Scripps' content reaches diverse audiences across multiple platforms.

Partnerships with Advertising Agencies and Local Businesses

Advertising partnerships are a key component of SSP's business model. In the third quarter of 2024, core advertising revenues totaled $315.8 million, while political advertising revenues surged to $131.4 million, up from $9.1 million in the same quarter of 2023. Collaborations with local businesses and advertising agencies are essential for maximizing advertising opportunities, especially during election cycles.

Strategic Alliances with Digital Content Platforms

SSP has formed strategic alliances with digital content platforms to expand its digital footprint. This includes partnerships that facilitate content sharing and distribution across online platforms. The integration of digital content strategies has allowed SSP to adapt to changing consumer behaviors, contributing to its overall revenue growth. For instance, total operating revenues increased by 14.1% in the third quarter of 2024 compared to the same period in 2023, largely driven by political advertising.

Partnership Type	Description	2024 Financial Impact (in millions)
Major Broadcast Networks	Collaboration for content and audience reach	Increase in advertising revenue due to partnerships
MVPDs	Agreements for content distribution	$593.9 million in distribution revenue
Advertising Agencies	Local business partnerships for advertising	$315.8 million in core advertising revenue
Digital Content Platforms	Alliances for expanded digital distribution	14.1% increase in total operating revenues

The E.W. Scripps Company (SSP) - Business Model: Key Activities

Broadcasting local and national news and entertainment content

The E.W. Scripps Company operates over 60 local television stations, which include 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates, and four FOX affiliates. The primary focus of these stations is news programming, supported by a mix of locally produced shows, syndicated content, and sporting events. In the third quarter of 2024, total operating revenues from local media increased by $92.5 million, or 26%, compared to the same period in 2023, reaching approximately $445.6 million.

Selling advertising across multiple platforms (TV, digital, social media)

Advertising sales remain a cornerstone of Scripps' revenue model. In the first nine months of 2024, core advertising revenue was recorded at $986.1 million, a decrease from $1.061 billion in 2023. However, political advertising revenue surged to $176.9 million in 2024, up from $16.5 million in the same period in 2023, reflecting the impact of the election cycle.

Revenue Source	2024 Revenue (in thousands)	2023 Revenue (in thousands)	Change (%)
Core Advertising	986,141	1,061,868	-7.1%
Political Advertising	176,850	16,501	967.2%
Distribution Revenue	593,931	571,320	3.9%
Total Operating Revenues	1,781,393	1,677,143	6.2%

Managing retransmission consent agreements

Scripps engages in retransmission consent agreements with cable and satellite providers, allowing these companies to distribute Scripps' content. In the nine months ending September 30, 2024, distribution revenues saw a slight increase of 3.9%, totaling $593.9 million compared to $571.3 million in 2023. This revenue stream is critical as it compensates Scripps for the use of its broadcasting content.

Developing and maintaining digital and streaming services

Digital and streaming services are increasingly vital for Scripps' business model. The company has invested in enhancing its digital platforms, which include live streaming of local news and programming. The overall local media revenues, which include digital services, increased by 26.2% year-over-year in the third quarter of 2024. Scripps' focus on digital content is aimed at capturing younger audiences and adapting to changing media consumption patterns.

The E.W. Scripps Company (SSP) - Business Model: Key Resources

Extensive portfolio of over 60 local television stations

The E.W. Scripps Company operates a robust portfolio of more than 60 local television stations across the United States. This includes 18 ABC affiliates, 11 NBC affiliates, 9 CBS affiliates, and 4 FOX affiliates, alongside 11 independent stations and 10 low-power stations. In 2024, the Local Media segment reported operating revenues of $1.163 billion, reflecting a 14.4% increase compared to the previous year.

Station Type	Count
ABC Affiliates	18
NBC Affiliates	11
CBS Affiliates	9
FOX Affiliates	4
Independent Stations	11
Low Power Stations	10

National networks including Scripps News and Court TV

The E.W. Scripps Company also operates national networks such as Scripps News and Court TV. These networks contribute significantly to the company’s overall media presence and advertising revenue. In the first nine months of 2024, Scripps Networks reported a segment profit of $129.5 million, despite facing a revenue decline of 6.5% year-over-year.

Experienced workforce in media production and sales

Scripps boasts a skilled workforce with expertise in media production, sales, and broadcasting. Employee compensation and benefits totaled $324 million for the first nine months of 2024, demonstrating the company's commitment to retaining top talent in the industry. The workforce is critical in managing the operations of both local stations and national networks, ensuring high-quality content delivery and effective sales strategies.

Technology infrastructure for digital broadcasting and streaming

The company has invested heavily in technology infrastructure to support digital broadcasting and streaming capabilities. As of September 30, 2024, Scripps reported capital expenditures of approximately $58.9 million, which includes investments in technology to enhance digital content delivery. This infrastructure is essential for adapting to the evolving media landscape, where digital viewership continues to rise.

Financial Metrics	Amount (in millions)
Operating Revenues (Local Media)	$1,163.3
Segment Profit (Scripps Networks)	$129.5
Employee Compensation & Benefits	$324.1
Capital Expenditures	$58.9

The E.W. Scripps Company (SSP) - Business Model: Value Propositions

Free, ad-supported television accessible via multiple platforms

The E.W. Scripps Company offers a range of free, ad-supported television services, allowing viewers to access content without subscription fees. This model caters to a growing audience seeking cost-effective entertainment options. As of 2024, Scripps' revenue from advertising reached approximately $1.16 billion for the nine months ended September 30, 2024, a significant component of their total operating revenues of $1.78 billion during the same period .

Diverse programming catering to various demographics

Scripps provides a wide array of programming, targeting multiple demographic segments. This diversity includes local news, entertainment, and sports programming. For instance, political advertising revenue surged to $176.9 million for the nine months ended September 30, 2024, compared to $16.5 million in the same period the previous year, highlighting the company’s adaptability to current events and viewer interests .

The company has also secured sports rights agreements for leagues such as the Women's National Basketball Association (WNBA) and the National Women's Soccer League (NWSL), which began airing in 2024 .

Strong local presence with community-focused news coverage

Scripps emphasizes local news coverage, enhancing its community engagement and relevance. The company operates over 60 local television stations, providing tailored news content that resonates with regional audiences. This local focus helps Scripps differentiate itself from national competitors and build loyal viewership .

Innovative products like Tablo for enhanced viewing experiences

Through innovative services like Tablo, Scripps enhances viewer experiences by offering advanced digital solutions for content consumption. Tablo provides users with the ability to access and record live television broadcasts, integrating seamlessly with Scripps' content offerings. This product aligns with the trend of increasing consumer demand for flexibility in viewing options .

Value Proposition	Description	Key Metrics
Free, ad-supported television	Accessible content without subscription fees	Advertising revenue: $1.16 billion (9 months 2024)
Diverse programming	Catering to various demographics and interests	Political ad revenue: $176.9 million (9 months 2024)
Strong local presence	Community-focused news coverage through local stations	Over 60 local television stations
Innovative products	Enhanced viewing experiences through digital solutions	Tablo product integration with Scripps content

The E.W. Scripps Company (SSP) - Business Model: Customer Relationships

Engagement through local programming and news

The E.W. Scripps Company operates over 60 local television stations, which are integral to its customer engagement strategy. In the third quarter of 2024, total local media revenues increased by $92.5 million or 26% compared to the same period in 2023, driven by local programming and news offerings. During the first nine months of 2024, local media revenues rose by $146 million or 14%. The focus on local content aims to foster community involvement and viewer loyalty, resulting in increased advertising revenues.

Direct sales approach with local businesses for advertising

Scripps employs a direct sales approach to generate advertising revenue from local businesses. In the third quarter of 2024, core advertising revenues decreased by $13.0 million or 9.2% as compared to the previous year, attributed to the displacement from political advertising. However, political advertising surged, contributing an increase of $116 million in the same quarter. Overall, the total operating revenues from local media reached $445.6 million, with direct sales efforts continuing to be a critical revenue stream.

Digital interaction via social media and online platforms

Scripps enhances customer relationships through digital platforms, leveraging social media to engage audiences. In 2024, the company reported a digital revenue increase alongside traditional advertising, indicating a successful integration of online and offline strategies. The total operating revenues for the Scripps Networks segment, which include digital interactions, amounted to $201.7 million in the third quarter, although this represented a decrease of 6.4% from the previous year. Nevertheless, Scripps continues to focus on expanding its digital footprint to attract younger demographics and enhance engagement.

Feedback mechanisms to improve content and services

The E.W. Scripps Company actively implements feedback mechanisms to refine its content and services. This includes viewer surveys, social media interactions, and audience analytics to gauge satisfaction and preferences. The company’s strategy emphasizes adaptability based on viewer feedback, which is crucial for maintaining relevance in a competitive media landscape. In 2024, Scripps anticipates leveraging this feedback to enhance programming and advertising effectiveness, contributing to overall revenue growth.

Metric	Q3 2024	Q3 2023	Change (%)
Total Local Media Revenues	$445.6 million	$353.1 million	26%
Core Advertising Revenues	$315.8 million	$346.0 million	-9.2%
Political Advertising Revenues	$131.4 million	$9.1 million	1,344%
Digital Revenue (Scripps Networks)	$201.7 million	$215.4 million	-6.4%

The E.W. Scripps Company (SSP) - Business Model: Channels

Over-the-air broadcast television

The E.W. Scripps Company operates over 60 local television stations across the United States, which include major affiliates of ABC, NBC, CBS, and FOX. In the third quarter of 2024, the Local Media segment reported revenues of $445.6 million, a 26.2% increase compared to $353.1 million in the same period in 2023. The total operating revenues for the Local Media segment for the first nine months of 2024 reached $1.16 billion, up 14.4% from $1.02 billion in 2023.

Cable and satellite distribution

Scripps generates significant revenue from cable and satellite distribution. In the third quarter of 2024, distribution revenues amounted to $191.8 million, which represented a decrease of 5.7% compared to $203.9 million in the same quarter of 2023. However, for the first nine months of 2024, distribution revenues increased to $593.9 million, up 3.9% from $571.3 million in the same period in 2023. The company completed renewal negotiations covering approximately 75% of its subscriber households.

Digital platforms including websites and mobile apps

Scripps has developed a robust digital footprint through its websites and mobile applications, which complement its traditional broadcasting. In the first nine months of 2024, total operating revenues reached $1.78 billion, with digital platforms contributing to this growth. The company has focused on enhancing its digital content and advertising capabilities to engage audiences across these platforms.

Connected TV and streaming services

The company has expanded its presence in connected TV and streaming services, reaching nearly every U.S. television home. In the third quarter of 2024, the Scripps Networks segment reported total operating revenues of $201.7 million, a decline of 6.4% compared to $215.4 million in the previous year. The total operating revenues for the first nine months of 2024 for this segment were $619.7 million, down 6.5% from $663.1 million in 2023.

Channel Type	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	9M 2024 Revenue (in millions)	9M 2023 Revenue (in millions)
Over-the-air broadcast television	445.6	353.1	1,163.3	1,017.2
Cable and satellite distribution	191.8	203.9	593.9	571.3
Digital platforms	Included in total revenue	Included in total revenue	1,781.4	1,677.1
Connected TV and streaming services	201.7	215.4	619.7	663.1

The E.W. Scripps Company (SSP) - Business Model: Customer Segments

Local households seeking news and entertainment

The E.W. Scripps Company serves local households primarily through its extensive portfolio of over 60 local television stations. As of September 30, 2024, the Local Media segment reported operating revenues of $445.6 million for the third quarter, reflecting a 26.2% increase compared to the same period in 2023.

Local households are drawn to Scripps for their news programming, which remains a major focus. The company’s local news broadcasts are designed to address community-specific issues and events, enhancing viewer engagement and loyalty.

National advertisers looking to reach broad audiences

National advertisers utilize Scripps' platforms to access broad audiences across various demographics. In the third quarter of 2024, Scripps reported core advertising revenues of $315.8 million, down 8.7% from the previous year, primarily due to competitive pressures and market dynamics.

National advertisers benefit from Scripps’ reach, particularly through its national networks like Scripps News and other entertainment channels that reach nearly every U.S. television home. The advertising strategies are tailored to maximize impressions and engagement across diverse audience segments.

Political organizations for campaign advertising

Political organizations represent a significant customer segment for The E.W. Scripps Company. In the third quarter of 2024, political advertising revenues soared to $131.4 million, a substantial increase from $9.1 million in the same quarter of 2023, highlighting the impact of the election cycle.

This surge in political advertising revenue is indicative of the heightened demand during election years, with Scripps providing critical advertising spots that are vital for campaign visibility and voter outreach. The company effectively capitalizes on this demand by optimizing its advertising inventory to accommodate political ads during peak seasons.

Businesses requiring local advertising solutions

Businesses seeking local advertising solutions form another key customer segment for Scripps. The Local Media segment's distribution revenues were reported at $191.8 million in the third quarter of 2024, compared to $203.9 million in the same quarter of 2023, reflecting a 5.7% decline.

Local businesses leverage Scripps’ platforms to reach targeted audiences within their communities. The company’s advertising services are tailored to meet the specific needs of these businesses, offering various options for local ad placements that enhance visibility and drive customer engagement.

Customer Segment	Revenue (Q3 2024)	Change from Q3 2023	Key Focus Areas
Local Households	$445.6 million	+26.2%	Local news and community programming
National Advertisers	$315.8 million	-8.7%	Broad audience reach and targeted advertising
Political Organizations	$131.4 million	+1,340%	Campaign visibility and voter outreach
Local Businesses	$191.8 million	-5.7%	Targeted local advertising solutions

The E.W. Scripps Company (SSP) - Business Model: Cost Structure

Programming and Content Acquisition Costs

For the third quarter of 2024, programming expenses amounted to $87.7 million, a decrease of 4.1% compared to $91.5 million in the same period of 2023. For the first nine months of 2024, programming costs increased to $275.3 million, up 2.1% from $269.5 million in 2023. The increase in programming costs during the year was primarily due to contracts for sports rights which added approximately $22.8 million in expenses for the first nine months of 2024.

Operational Expenses for Broadcasting and Distribution

Operational expenses for broadcasting and distribution totaled $317.5 million in the third quarter of 2024, showing a slight decrease from $321.2 million in the same period of 2023. Year-to-date operational expenses reached $973.1 million compared to $946.5 million for the first nine months of 2023.

Sales and Marketing Expenditures

Sales and marketing expenditures in the third quarter of 2024 were $154.8 million, an increase of 4.7% from $147.8 million in the prior year. For the first nine months, these expenses totaled $452.0 million, slightly up from $449.0 million in the corresponding period of 2023. The rise in expenditures was largely driven by increased political advertising activities.

Administrative Costs Related to Corporate Functions

Administrative costs, which include corporate functions, amounted to $20.9 million in the third quarter of 2024, marginally increasing from $20.8 million in 2023. For the year-to-date period, administrative costs totaled $64.2 million, down from $67.5 million in 2023.

Cost Type	Q3 2024 ($ in millions)	Q3 2023 ($ in millions)	YTD 2024 ($ in millions)	YTD 2023 ($ in millions)
Programming Costs	87.7	91.5	275.3	269.5
Operational Expenses	317.5	321.2	973.1	946.5
Sales and Marketing	154.8	147.8	452.0	449.0
Administrative Costs	20.9	20.8	64.2	67.5

The E.W. Scripps Company (SSP) - Business Model: Revenue Streams

Advertising revenues from local and national clients

The E.W. Scripps Company generates significant revenue from advertising, which includes local, national, and political advertising. In the third quarter of 2024, the company's core advertising revenue was approximately $315.8 million, a decline of 9.2% compared to $346 million in the same period of 2023. Year-to-date, core advertising revenue for the first nine months of 2024 was reported at $986.1 million, down from $1.061 billion in 2023, marking a decrease of 6.5%.

Retransmission fees from MVPDs

Retransmission fees are a critical revenue stream for Scripps, sourced from Multi-Video Programming Distributors (MVPDs) such as cable and satellite providers. For the third quarter of 2024, retransmission revenue reached approximately $191.8 million, a decrease from $203.9 million in the prior year, reflecting a 5.7% decline. However, year-to-date retransmission revenues were $593.9 million, an increase from $571.3 million in 2023, showing a 3.9% growth.

Digital advertising through online platforms

Digital advertising is increasingly becoming a vital part of Scripps' revenue model. The company reported digital advertising revenue of approximately $7.3 million in the third quarter of 2024, marginally decreasing from $7.5 million in the same quarter of 2023. For the first nine months of 2024, digital advertising revenue totaled $24.5 million, compared to $27.5 million in 2023, indicating a decline of 10.1%.

Revenue from special programming and events

Scripps also generates revenue through special programming, events, and other initiatives. In the third quarter of 2024, this revenue segment brought in approximately $4.6 million, reflecting a year-over-year increase of 21.3% from $3.8 million in 2023. Year-to-date, special programming and events revenue was $11.8 million, up from $11.1 million in the previous year, marking a 6.4% increase.

Revenue Stream	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Year-to-Date 2024 Revenue (in millions)	Year-to-Date 2023 Revenue (in millions)
Core Advertising	$315.8	$346.0	$986.1	$1,061.9
Retransmission Fees	$191.8	$203.9	$593.9	$571.3
Digital Advertising	$7.3	$7.5	$24.5	$27.5
Special Programming & Events	$4.6	$3.8	$11.8	$11.1
Total Revenue	$619.5	$561.2	$1,616.3	$1,671.8

Updated on 16 Nov 2024

Resources:

1. The E.W. Scripps Company (SSP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The E.W. Scripps Company (SSP)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View The E.W. Scripps Company (SSP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.