E.W. Scripps SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Mergers and acquisitions of small media houses: E. W. Scripps has been frequently acquiring small media houses and bringing them under its roof. In September 2019, it has acquired 8 Television stations from the Nexstar Media Group which were divested in seven different markets. This acquisition extends Scripps local TV station’s footprint to 60 stations in 42 different markets and catapults the Company as the fourth largest independent broadcaster of the nation. Collectively, Scripps has added 27 television station to its portfolio in 2019. Riding high on these acquisitions, Scripps is expecting strong growth of its free cash flow to the tune of about $225 million to $250 million in fiscal 2020.

2. Developing cutting-edge digital audio infrastructure technology: E. W. Scripps always strives to develop their technological capabilities to provide better customer experiences. Providing cutting-edge digital audio infrastructure technology has been one of its strategies. Aligned with this goal, Scripps has acquired the $150 million worth digital company, Triton. Triton is a Los-Angeles based digital company that analyses digital audio audiences and builds infrastructure for companies to deliver digital audio content. Triton is said to be the global leader in digital audio technology and measurement services powering streaming music and podcasting for many of the big guns in the audio industry, including Pandora, Spotify, NPR, iHeart, Entercom, Cumulus, Prisa (Spain), Mediacorp (Singapore) and Karnaval (Turkey). The estimated growth for the global digital audio marketplace is $14.8 billion in 2022, according to Statista, riding high on more and more consumers increasingly turning towards streaming audio services. The industry growth sits pretty on the ubiquity of smartphones, the growing cult of connected cars and the staggering growth of smart speakers in homes. Triton's infrastructure and ad-serving solutions deliver live and on-demand audio streams and insert advertisements into those streams. According to Scripps President and CEO Adam Symson, "Triton positions Scripps well to expand its role in the fast-growing global digital audio marketplace. Triton's efficient business model, multiple growing revenue streams, competitive advantages and expanding international footprint made this an attractive opportunity."

3. Presence in markets with strong political advertising spending potential: E. W. Scripps has expanded widely across the nation. It has its TV stations in the expected Presidential swing states of Arizona, Florida, Michigan, Nevada, Wisconsin and Virginia. In 2018, the political ads market was very promising and delivered $303 million for Scripps. One of its subsidiary Newsy, has been contributing to the OTT services and has achieved great success. Fiscal 2020, being a busy political year, Newsy has partnered with the political Ad team of Scripps, based in Washington DC. This partnership packs in great potential for plump earnings through advertisements.

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Threats

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Political

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Economic

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Social

1. Strong increase in viewership of local TV for authentic news amidst the pandemic: In the midst of the lockdown due to the outbreak of COVID19 pandemic, many Americans are forced to stay at home. Due to this massive change in the lifestyle, the local TV broadcasting viewership has witnessed a sudden surge. The Television Bureau of Advertising (TVB) released the analysis and statistics, comparing the month of march 2019 with that of 2020. The comparison study shows live viewership hike by about 50% among adults aged 35+. This increase is very beneficial for the media and TV industry, helping boost their revenue. Leading players such as E. W. Scripps holds a portfolio of well-known 60-stations in local media with 31% U.S. household reach, making it one of the largest local broadcasters of the nation which is all slated to squarely benefit from the trend.

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Technological

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Legal

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Environmental

1. Proactively involved in lightening the Company’s environmental impact: Scripps is highly concerned about its carbon footprint and have been taking continuous measures to lighten it. Scripps has a low carbon footprint. Media companies are the major users of lightings. They are also looking forward to transition the lighting system for their buildings and their video production studios to LED lights. This American broadcasting company has been running regular energy audits to optimize its energy and increase efficiency. Scripps has also implemented cellular-based backpacks to transmit video signals to local television stations. The Company runs various recycling campaigns at several of their operating locations.

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