SCI FI Case Study

Identifying Growth Platforms and Innovating the Business

The Challenge

The SCI FI Channel, a 14 year-old niche cable TV channel broadly distributed in 88M U.S. homes, was seeking to dramatically expand its frame of reference by becoming a “category killer” that enjoys the economic and synergy advantages of profitable, high growth revenue streams from multiple sources in diverse businesses. While growth opportunities existed from increasing appeal of the science-fiction genre, challenges came from limiting associations of the “science-fiction” name and the unpredictable nature of the media industry which was undergoing massive change.

Our Solution

The challenge was addressed through an innovation process guided by an expanded definition of the brand, clarity of a younger, more upscale target consumer, and an approach that combined creative and analytical problem solving techniques with market/opportunity sizing. Through development and consumer research, we uncovered that the brand was more extendible than originally believed, specifically in the forms of digital entertainment and immersive experiences versus hard consumer products. This insight, in addition to identifying high-growth industries, illuminated the highest potential opportunities from which to explore and develop further.

After rigorous development and analyses of several innovative ideas and attractive industries, the growth platforms of gaming, mobile, and home were identified as the most promising for the business and brand. Specifically, it was recommended that SCI FI redefine itself as a new type of entertainment company with operations in gaming and new media, and over time integrating those capabilities throughout the organization.

Results

SCI FI executive leadership incorporated the team's recommendations along with key financial metrics into their 2007 plan and began exploring licensing opportunities and acquisition targets in the identified growth areas: SCI FI digital gaming; a mobile storefront which includes ringtones and wallpapers; SCI FI Digisodes; and creation of “SCI FI Anime” for a new children’s programming block.

As a result, SCI FI finished 2007 as the fourth-highest-rated cable network among viewers 25-54; Increased ad revenue to $276.98 million, up from $268.5 million in 2006; And SciFi.com is a growing asset, averaging 3.4 million unique visitors per month.