A Deep Dive into Digital UNDERSTANDING THE OPPORTUNITY J u n e 2 9 / / 2016 Safe Harbor/Disclosures This presentation contains forward-looking statements that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions are intended to identify forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in The E.W. Scripps Company’s yearly financial statements on Form 10-K for the period ended Dec. 31, 2015, as filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statements to reflect events or circumstances after the date the statement is made. 2 Rich Boehne Welcome PRESIDENT, CHAIRMAN & CEO Rebuilding Scripps For Growth Complete Buy Newsy separation of Divest Launch original Scripps “Peanuts” programming Buy Networks and unit, two Buy two Granite Cracked access shows Interactive licensing stations Buy Stitcher 2008 2010 2012 2014 2016 ECONOMIC CRISIS 2007 2009 2011 2013 2015 Combine digital Propose spin off Close Denver Terminate Scripps Spin/combine operations; of cable newspaper, Howard News newspapers with networks to announce Journal reset investment and Service; Launch board expenses salesforce overbuild D.C. National Merge Journal Investigative Unit Broadcast Acquire four operations into McGraw Hill Scripps TV stations Buy Midroll 4 A Coast-to-Coast Portfolio of Television, Radio and Digital Brands Boise, ID KIVI Colorado Springs, CO Green Bay-Appleton, WI Detroit jrn.com/kivitv KZCS Omaha, NE WGBA/WACY WXYZ/ WMYD Radio, 4 FM aztecacolorado.com KMTV Milwaukee jrn.com/nbc26 wxyz.com/tv20detroit jrn.com/kmtv WTMJ Lansing, MI Radio Twin Falls, ID jrn.com/tmj4 WSYM 4 FM, 1 AM KSAW-LD Radio Jrn.com/fox47news Buffalo ksawtv.com 1 FM 1 AM WKBW wkbw.com Denver KMGH, KZCO, KZFC Cleveland thedenverchannel.com WEWS aztecacolorado.com newsnet5.com Baltimore WMAR abc2news.com Las Vegas KTNV Scripps Washington jrn.com/ktnv News Bureau & Political Sales Office Bakersfield, CA KERO Cincinnati KZKC Indianapolis WCPO turnto23.com wcpo.com azteca42.com WRTV theindychannel.com San Diego KGTV Knoxville, TN KZSD Radio 10news.com Nashville 4 FM aztecasd.com WTVF jrn.com/newschannel5 Phoenix Tucson Wichita, KS Tulsa, OK KNXV West Palm Beach KGUN Radio KJRH abc15.com WPTV KWBA 4 FM, 1 AM kjrh.com Kansas City, MO Springfield, MO wptv.com jrn.com/kgun9 Radio KSHB, KMCI Radio 4 FM, 1 AM thecwtucson.com 4 FM, 1 AM kshb.com Radio 3 FM, 1 AM 38thespot.com Tampa WFTS Ft. Myers – Naples abcactionnews.com WFTX jrn.com/fox4now 5 Largest TV Markets TV Markets Radio Markets Digital Brands Incredibly high barriers to entry Multiple revenue streams Why We Local/national advertising blend Love The Predictable revenue: long-term retransmission Broadcast contracts Television Business Predictable expenses: long-term network contracts Opportunity to play strong role in ecosystem development Strong local, trusted brands 6 From Analog Presses And Towers To The Digital Grid SCRIPPS’ DAILY AUDIENCE REACH ACROSS ALL PLATFORMS Newsy website, TV local news mobile and OTT viewers users 1,800,000 2,200,000 Radio station listeners 450,000 Cracked video views Local market 1,800,000 digital users 120,000 Midroll and Stitcher listens 4,900,000 7 Scripps Is Building Both Local Digital Brands and Highly Scalable National Businesses By millennials for millennials Terrific content for an OTT news audience $35 million, January 2014 NATIONAL Nearly 60 million (and growing) Americans listen to podcasts Multiple revenue streams LOCAL $50 million, July 2015 Strong brand loyalty Satire and humor video lends itself to OTT $39 million, April 2016 Revenue split, pro forma for full-year Cracked acquisition 8 Adam Symson CHIEF DIGITAL OFFICER What Does “Digital” Mean? THEN NOW 10 1. Digital technology and the ensuing fragmentation have changed the way we spend our time and the choices we have 5 Trends 2. Mobility takes media everywhere That Guide 3. We’re watching more video but through Scripps’ new platforms Strategy 4. On-demand audio is a growing marketplace 5. Advertising is predictably experiencing the same shifts 11 Digital Has Changed The Way We Spend Time; The Choices We Have AVERAGE TIME SPENT PER DAY WITH MAJOR MEDIA BY U.S. ADULTS, 2016 Note: ages 18+; time spent with each medium includes all time spent with that medium, regardless of multitasking; for example, 1 hour of multitasking on desktop/laptop while watching TV is counted as 1 hour for TV and 1 hour for desktop/laptop *includes all internet activities on desktop and laptop computers **excludes digital Source: eMarketer, April 2016 12 The Behavior Is More Pronounced By Generation WEEKLY TIME SPENT WITH SELECT MEDIA/DEVICES AMONG U.S. CONSUMERS, BY AGE, Q4 2015 50 40 Live TV & DVR/timeshifted TV AM/FM radio 30 Digitally HOURS Connected Devices 20 10 0 18-24 25-34 35-49 50-64 65+ TOTAL Source: Nielsen, “The Total Audience Report: Q4 2015,” March 24, 2016 13 Mobility Takes Media Everywhere 98% 95% 100% 90% 83% 80% 70% 60% 56% 50% USAGE 40% 30% 20% 14% 14% PERCENTAGE OF POPULATION POPULATION OF PERCENTAGE 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 TV (TRADITIONAL) SMART PHONE TABLETS Estimates used for 2016 Source: Nielsen, among total population 14 We’re Watching More Mobile Devices Video But Through (0:29) New Platforms AVERAGE TIME SPENT PER DAY WITH VIDEO BY U.S. ADULTS, 2016 Desktop/Laptop (0:25) Note: ages 18+; time spent with each medium includes all time spent Other Connected with that medium, regardless of multitasking; for example, 1 hour for Devices** TV and 1 hour for desktop/laptop *excludes digital (0:14) **includes game consoles, connected TVs or OTT devices Source: eMarketer, April 2016 15 Digital Audio Is A Growing Marketplace 76% 71% SMARTPHONE OWNERSHIP 61% 53% 44% 57% 53% 47% 31% 45% 39% 34% 2011 2012 2013 2014 2015 2016E MONTHLY ONLINE AUDIO LISTENING Relationship between monthly online listening and smartphone ownership. Source: Infinite Dial 2016 from Edison Research 16 57 Million Americans Listen To Podcasts And Those Who Do, Listen A Lot PERCENTAGE OF AMERICANS WHO LISTEN NUMBER OF PODCASTS TO PODCASTS MONTHLY LISTENED TO IN THE LAST WEEK 11+ 21% 8% 17% 15% 6-10 14% 12% 12% 12% 11% 13% 9% 1-3 4-5 58% 2008 2009 2010 2011 2012 2013 2014 2015 2016E 21% Infinite Dial 2016 from Edison Research 17 Share of Total Media Ad Spending 2008 2016 2020 Advertising Is Predictably Experiencing The Same Shifts eMarketer, April 2015 Estimates used for 2016, 2020 18 The Changing Ad Landscape: Programmatic 101 REAL-TIME MARKETPLACE Programmatic SUPPLY DEMAND The $22 billion digital programmatic marketplace more efficiently matches supply and demand. 19 Broadcasters Employ a Variety of Strategies Beyond Local to Capture Digital Opportunity Digital As Agencies Ad Tech Engaging Pure and and Content Extension Marketing Infrastructure Brands of TV Services 20 Scripps is Building Engaging Local and National Content Brands Our Local Market Business Portfolio Our National Digital Content Brand Portfolio 55 PERCENT OF THE DIGITAL DIVISION REVENUE 45 PERCENT OF THE DIGITAL DIVISION REVENUE 21 The Digital Consumption Continuum Ranges from Easy Entry Points to Higher Barriers of Entry OVER-THE-TOP BARRIER TO ENTRY SOCIAL MOBILE WEB 22 Questions? 23 Laura Tomlin VP, DIGITAL BUSINESS OPERATIONS Content on Locally Branded Websites is Closely Tied to the Broadcast Business Scripps provides locally branded news content and information across 27 television and radio markets on multiple digital platforms. 25 Scripps Serves the Combined TV/Digital Audience with Quality Journalism; Unique Digital Content In Las Vegas, KTNV’s Digital Audience is Younger and More Affluent Than TV KTNV-TV News KTNV.com (6-7 a.m., 6-7 p.m. or 11 p.m.) (visited in past seven days) Median Age 58 Median Age 39 Median Income $49,305 Median Income $64,170 College Grad 19% College Grad 18% Kids at home 16% Kids at home 42% Own home 58% Own home 53% March 2015 - April 2016 Scarborough 27 Scripps’ Local Digital Brands Deliver Advertisers a Large-Scale, Highly Engaged Audience 288 25 33 10+ million million million million PAGE VIEWS AVERAGE VIDEOS VIEWED SOCIAL (Q1 2016) VISITORS/MONTH (Q1 2016) FOLLOWERS (Q1 2016) 28 Distribution of Local Content on a Variety of Platforms Is Key to Audience, Revenue Growth 40% of our traffic is referred by Facebook 29 The Local Business Is Monetized in Three Main Ways LOCAL DIRECT PROGRAMMATIC DIRECT-FROM-CONSUMER SALES REVENUE REVENUE STREAMS 30 The Membership Model Lets Us Use Data to Connect the Community TOP-NOTCH JOURNALISM REWARDS AND DISCOUNTS ACCESS TO COMMUNITY OFF-LINE EVENTS 31 Scripps’ Local Digital Business Is on a Path To Return To Profitability April 2015 JOURNAL STATIONS IN SSP EXPECTING 20% YEAR-OVER-YEAR REVENUE GROWTH NEWSPAPERS OUT 32 Questions? 33 The Over-The-Top Video Marketplace: An Overview Adam Symson 34 What is OTT Video? The delivery of video to the audience using only the internet OTT Video is viewed across any internet-connected consumer electronic platform. 35 OTT Is a Complicated Ecosystem That Is Likely To Eventually Consolidate HARDWARE CONTENT BRANDS GOING DIRECT PREMIUM SUBSCRIPTION VIDEO MULTI CHANNEL OVPDS 36 Digital Video and OTT: How Big Is This? 213 51% MILLION AMERICANS OF AMERICANS CONSUME ARE WATCHING DIGITAL VIDEO DIGITAL TV US Digital Video Viewers and Penetration, TV vs.