The escapist appeal of looking at other people’s beautiful homes turned Home & Garden Television into the third most-watched cable network in 2016, ahead of CNN and behind only Fox News and ESPN. Riding HGTV’s reality shows, parent company Scripps Networks Interactive Inc. has seen its shares rise more than 30 percent this year, outperforming bigger rivals like Walt Disney Co., 21st Century Fox Inc. and Viacom Inc.
HGTV’s formula is relentlessly consistent: a shabby house gets a makeover, and a happy couple moves in. A variation on the theme — house-flipping for fun and profit — works too. The network has aired 23 different flipping shows over the past few years. Today “Flip or Flop” and “Masters of Flip” run in prime time.
In the cable industry, though, success is relative. Like other networks, HGTV has lost nearly 4 million subscribers in the past two years, though ESPN lost about 6 million in that time. In a note last month titled “As Good As It Gets?” Michael Nathanson, an analyst at MoffettNathanson LLC, predicted viewership at HGTV has peaked and advised clients to sell Scripps shares. “I just worry that ratings at cable networks are volatile,” he said in an interview.
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