Profile: Scripps Networks Interactive, Inc. (SNI)

Scripps Networks Interactive, Inc. (SNI) is a lifestyle content and interactive services company with television and interactive brands. The Company’s businesses engage audiences and serves advertisers by delivering content that focuses on specifically defined topics of interest. The Company manages its operations through two operating segments: Lifestyle Media and Interactive Services. Lifestyle Media (formerly Scripps Networks) 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 Websites that are associated with the television brands and other Internet-based businesses serving food or shelter related categories, such as RecipeZaar.com, HGTVPro.com and FrontDoor.com. Interactive Services (formerly Scripps Interactive Media) includes online comparison shopping and consumer information services, Shopzilla, BizRate and uSwitch.

Lifestyle Media

The Company’s Lifestyle Media business segment includes five national television networks and SN Digital, its portfolio of related interactive lifestyle brands. The segment generates revenue principally from the sale of advertising time on national television networks and interactive media platforms and from affiliate fees paid by cable television operators, direct-to-home satellite services and other distributors that carry its network programming. SNI’s Lifestyle Media segment also earns revenue from the licensing of its content to third parties, primarily in international markets, and the licensing of its brands for consumer products, such as videos, books, kitchenware and tools.

SN Digital consists of multiple Websites, including its five network-branded Websites, FoodNetwork.com, HGTV.com, DIYNetwork.com, FineLiving.com and GACTV.com. In addition to serving as the home Websites for the segment’s television programming networks, the Websites provide informational and instructional content on specific topics within their lifestyle content categories. SN Digital also consists of other digital services, including HGTVPro.com, which appeals to construction professionals and advanced do-it-yourself enthusiasts; RecipeZaar.com, a recipe-sharing social networking Website, and FrontDoor.com, a local real estate search and consumer information site that features home listings and videos.

HGTV and Food Network and their targeted food and shelter programming categories appeal to women viewers with higher incomes in the 18 to 49 age range. HGTV television programming and Internet content commands an audience interested specifically in home and shelter-related topics. Programming highlights during the year ended December 31, 2008, included HGTV Design Star, House Hunters and My First Place. Food Network programming and Internet content attracts audiences interested in food-related topics. Food Network is available in 98 million United States television households and its programming can be seen internationally in 149 countries and territories.

DIY is a television network and Website dedicated to presenting entertaining and informational programming and content across a range of do-it-yourself categories, including home building; home improvement; automotive restoration and repair; crafts; gardening, and landscaping, hobbies and woodworking. FLN is a television programming service in the United States, which provides entertaining and informative content to viewers who are interested in quality lifestyle experiences. The Company owns approximately 94% of FLN.

GAC is distributed in the United States via cable and direct satellite television services. Its network reaches approximately 56 million households with programming, musical performances and live concerts. The network operates a companion Website, GACTV.com. HGTVPro.com is a video interactive service delivered via the Internet, which appeals to professional builders, remodelers and contractors. FrontDoor.com is an online real estate listing service that provides localized information on homes in neighborhoods and communities across the United States.

Interactive Services

SNI’s Interactive Services segment includes Internet-based businesses that provide online shopping for consumers by aggregating, organizing, ranking and displaying consumer information. Consumers who use the Company’s Interactive Services Websites are presented with search results generated from databases of information on a range of products and services that are offered for sale on the Internet by third-party retailers and service providers. Its Interactive Services businesses operate principally in the United States, the United Kingdom, France and Germany.

The Interactive Services segment derives the largest percentage of its revenue from direct referral fees paid by online merchants and service providers (advertisers) that enter into contractual agreements allowing them to place text-based, linked advertisements on the segment’s Websites. The referral fees paid by advertisers are based on a cost-per-click pricing structure, which means that advertisers pay only when consumers click on their linked ads. The Interactive Services segment also derives revenue from contractual advertising agreements with general search engines. In addition to referral fees from linked ads and advertising links sponsored by general search engines, the segment’s Websites also derive revenue from switching fees earned in the United Kingdom for brokering purchase transactions between consumers and service providers.

Shopzilla is a network of online search and comparison shopping services that help consumers find and compare prices of millions of products that are offered for sale by thousands of retail merchants via the Internet. Shopzilla network brands include Shopzilla.com, BizRate.com and LowPriceShopper.com in the United States; Shopzilla.co.uk and BizRate.co.uk in the United Kingdom; Shopzilla.fr and PrixMoinsCher.fr in France, and Shopzilla.de and SparDeinGeld.de in Germany.

uSwitch operates two Websites: uSwitch.com and buy.co.uk in the United Kingdom to enable consumers to shop for and compare prices on a range of home services, including gas, electricity, water, car insurance, home telephone, digital television, broadband, credit cards, personal loans and secured loans. uSwitch derives revenue primarily from fees paid by service providers for consumer leads that are delivered via the Internet and converted into actual sales.