• Ad Age, Tuesday, June 6, 2006 10:45 AM

Scripps Network, a unit of E.W. Scripps Co., is a good example of how a media company should diversify its revenue stream. Long before ancillary broadband video channels were the norm for offline content provider companies, Scripps unveiled online versions of its HGTV and Food Network brands. According to Ad Age, Scripps' online business has been profitable since 2003, and ranks third in overall sales--behind cable networks HGTV and Food Network, but ahead of DIY Network and Fine Living. Interactive revenue grew 600 percent in '05, and similar growth is projected this year. Online video sales have been particularly robust, jumping 150 percent year over year in '05. Scripps was one of the early pioneers of crossover cable and Web site deals, which made it easy for advertisers to try Scripps Web properties. To drive traffic to its sites, the company built an e-mail newsletter business that now sends more than 52 million e-mail newsletters each month.

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