Scripps CEO address cost cuts that impacted Scripps News, Bounce

The E. W. Scripps Company’s decision to purchase the Ion network three years ago has put a financial strain on the broadcaster that informed executives to make a number of tough decisions, including the winding down of Scripps News, the company’s chief executive affirmed this week.

In a note sent to Scripps employees on Tuesday, CEO Adam Symson said the choice to stop transmitting Scripps News over the air in November and a similar decision to sell the multicast network Bounce TV were the result of the company taking on added debt to acquire Ion coupled with ongoing headwind in the television advertising market.

“Improving the company’s financial performance and reducing our debt are the top priorities at the moment so that we can continue to execute our mission on firm financial footing,” Symson wrote in the note, a copy of which was obtained and reviewed by The Desk.

He acknowledged that decisions to sell Bounce and wind down Scripps News “are difficult to make and painful for the impacted employees as well as those who continue on with Scripps.”

“Still, I believe they are the right things to do for the long-term health of the company,” Symson affirmed.

Symson outlined a four-element plan to put the company back on the right financial track.

First, he said the company needs to “aggressively improve” its financial performance. That responsibility will fall on the newly-formed Transformation Office, led by Scripps Chief Administrative Officer Laura Tomlin, which will “identify new areas for process improvement, efficiency and revenue growth, including through technology.”

Second, Scripps needs to utilize its existing assets to its fullest potential, including its broadcast spectrum. Symson said the emergence of ATSC 3.0 — which also goes by the consumer brand NextGen TV — allows it to utilize existing bandwidth for new opportunities, including data transmission businesses that “sit alongside” traditional television signals, and the company is actively pursuing those opportunities.

Symson also noted that the company’s acquisition of Tablo opens the door for data-driven businesses. Tablo offers hardware and software that allows consumers to watch and record over-the-air broadcast TV on their smart TV devices, phones and tablets; Scripps recently launched a version of the device that includes dozens of free, ad-supported streaming TV (FAST) channels.

Symson said the Tablo platform unlocks additional advertising opportunities, as well as a “way to market all of our broadcast channels and FAST networks” directly to viewers. He did not elaborate on how Tablo can utilize data from opt-in devices to further drive the company’s business, but other TV hardware makers like LG and Vizio have robust advertising and data businesses that include selling home screen inventory and viewership data to third parties.

Scripps might do the same, Symson hinted, noting that the company is “bullish on Tablo as a data platform” in his third point, which said the company needs to transform its indirect relationship with consumers into a direct one.

“Linear television’s ability to reach large swaths of consumers is one of our greatest assets, yet it’s also abundantly clear that the advertising industry is moving toward advertising solutions with more direct connection to the audience, informed by data,” Symson said. In addition to Tablo, he said the company is “putting a lot of attention on the greater use of data and technology to enhance the value of our advertising inventory on cable, satellite and over the air.”

Last, Symson said Scripps needs to “cultivate a high-performing culture,” grounded in the elements of courage, compassion, curiosity and community.

“The purpose of this email is to make clear where we are going as a company, how we’re making decisions, what you should expect of Scripps and how you can help in driving this mission-focused company forward,” Symson wrote.

Sports was mentioned just once in the note, but Symson has clearly prioritized sports programming as a way to make his company stand out from the pack. Over the past few years, Scripps has spent a significant amount of money targeting local and national sports rights, clinching telecast agreements with the Women’s National Basketball Association (WNBA) and National Women’s Soccer League (NWSL) for its Ion network and grabbing local rights to games played by the Vegas Golden Knights and other sports teams.

Read the full email sent by Symson to employees below…

Colleagues:

Recently, we have announced difficult decisions about winding down Scripps News’ over-the-air product and our intent to sell Bounce that have impacted some of our colleagues and left many of you with questions about the future direction of the company. Today, I want to share why we made those decisions in the context of our new strategic plan.

During 2024, our leadership team developed the company’s latest three-year strategic plan, which will take us through 2027. This plan takes into account where we are today as a company – our mission, financial position, brands and businesses, current consumer trends, opportunities and threats. I believe it is important to share more about this plan, so you understand why we have made and are making certain decisions.

Our three-year strategic plan is rooted in improving our financial picture and positioning the company to grow. As you know, the 2021 acquisition of ION required us to borrow a significant amount of money. It was the right decision at the time – allowing us to transform the company by building a powerful national networks business in a way that diversified our sources of revenue. However, that debt, coupled with a national advertising recession, has created financial strain and put pressure on our stock price.

Improving the company’s financial performance and reducing our debt are the top priorities at the moment so that we can continue to execute our mission on firm financial footing. This is among the reasons we announced our intent to sell Bounce. And without a viable path to significant revenue growth, it’s also why I made the difficult decision to wind down Scripps News’ over-the-air programming. Decisions like these are difficult to make and painful for the impacted employees as well as those who continue on with Scripps. Still, I believe they are the right things to do for the long-term health of the company.

These are the four objectives that make up our three-year strategic plan:

Objective No.1: Aggressively improve the company’s financial performance

Achieving this objective is required ahead of any other ambitions we may have. Here, “financial performance” is shorthand for growing revenue and maintaining appropriate expenses while we prioritize the paydown of our debt. We are intentional about using the word “aggressively.” It signals our intent to do this proactively. This objective also is the reason for the creation of our Transformation Office, led by Laura Tomlin, which is designed to identify new areas for process improvement, efficiency and revenue growth, including through technology.

Objective No. 2: Maximize the value of our distribution assets

Scripps’ over-the-air broadcast, pay television, connected TV and digital distribution represents a formidable platform for reaching consumers. As audiences continue to fragment, each of these platforms is in its own life stage that calls for unique strategies to maximize its value to Scripps. Our distribution team works closely with local, networks and Scripps Sports leaders to ensure we maintain our reach, grow our revenue opportunity and mitigate risk.

Today, we use our broadcast spectrum exclusively for our television business, but that bandwidth has additional revenue potential through a more advanced broadcast standard known as ATSC 3.0. To capture this opportunity and build a business for the future, we’re working to create new data transmission businesses that sit alongside television. Finally, Tablo provides significant new opportunity to serve as an advertising and data platform, not to mention a way to market all of our broadcast channels and FAST networks.

Objective No. 3: Transform the business from having an indirect to a direct relationship with consumers

Linear television’s ability to reach large swaths of consumers is one of our greatest assets. Yet it’s also abundantly clear that the advertising industry is moving toward advertising solutions with more direct connection to the audience – informed by data. That’s why we are setting ambitious goals to embrace that shift.

You can already see this in action through the work we’ve done to grow our connected TV revenue in the last few years. This also is the reason we’re bullish on Tablo as a data platform. And it’s why we’ll be putting a lot of attention on the greater use of data and technology to enhance the value of our advertising inventory on cable, satellite and over the air.

Objective No. 4: Cultivate a high-performing culture

We can’t achieve the above objectives in this plan without you. We know a company culture that supports performance starts with strategic clarity and requires continued candor. And it’s grounded in our values: courage, compassion, curiosity and community. The purpose of this email is to make clear where we are going as a company, how we’re making decisions, what you should expect of Scripps and how you can help in driving this mission-focused company forward.

Over the next several months, you will hear more about this plan and what it means to you and your teams. You’ll see how we prioritize projects and initiatives that will achieve this plan. My commitment to you is to communicate the company’s decisions and how they align with our strategic plan.

Adam Symson (he/him)
President and CEO

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