Home and Garden Television (HGTV), a wholly owned subsidiary of Scripps Network Interactive Inc. (SNI - Analyst Report), has formed a multi-year partnership with interactive channel retailer HSN Inc. (HSNI - Snapshot Report). This will bring a show – HGTV HOME Outdoor Living– on HSN from Mar 19, 2013.
The new cross brand initiative will showcase HGTV’s outdoor products on HSN’s outdoor living category. The products include outdoor equipment, plants, lighting, garden tools, water accessories and other outdoor solutions.
The partnership will include original content that will be available online and on air. Additionally, a celebrity designer of HGTV, will advice the HSN viewers on outdoor lifestyle products, which will include HGTV Home’s branded items.
HSN, which will benefit from HGTV’s innovative contents and great products, intends to expand the HGTV HOME Outdoor Living branded products within additional categories. The two companies also plan to collaborate in the future that will allow them to share content across their digital platforms.
Home is one of the leaders in the programming category for SNI and HGTV. The channel provides home enthusiasts with high-quality products and home transformational videos that will allow them to enhance home exterior.
HGTV reported a healthy financial report where revenues jumped 5.1% in the fourth quarter of 2012. However, declining viewership remains a major concern for HGTV which accounts for a reduced advertising revenue of SNI.
With spring round the corner, more number of people is expected to resort to gardening, enhancing the audience base of the channel. We believe, the partnership will lead to increased viewership of HGTV, which in turn will improve the advertisement earning capacity of the company.
SNI currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some other stocks in the Lifestyle Media space are Nexstar Broadcasting Group (NXST - Snapshot Report) and Liberty Global Inc. (LBTYA - Analyst Report). Both Nexstar and Liberty currently has a Zacks Rank #2 (Buy).