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  • September 2020
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Chip and Joanna Gaines' Magnolia Network

By: Anita Elberse and Julia McNicholas
  • Format:Print
  • | Language:English
  • | Pages:28
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Abstract

Chip and Joanna Gaines, who have shot to fame as stars of the hit television show Fixer Upper, are preparing to launch their own television network. It is April 2019, a year since the home-renovation show Fixer Upper’s fifth season on cable channel HGTV ended, and more than one-and-a-half years since the husband-and-wife duo announced that season would be their last. At the time, entertainment company Discovery Inc. was in the process of acquiring, in a $12-billion deal, Scripps Networks Interactive, HGTV’s parent company. Now, hoping to find a way to bring the duo back, Discovery’s chief executive officer David Zaslav has proposed setting up a joint venture between Discovery and the Gaineses. Under the deal, the latter will receive an ownership stake as well as certain guaranteed payments, be given creative control over the ‘DIY Network’ which they plan to rebrand as ‘Magnolia Network,’ and have a sizable programming budget at their disposal. Meanwhile, the two entrepreneurs are also running a thriving set of other businesses under their ‘Magnolia’ brand, that covers retail and hospitality—including their ‘Magnolia Market at the Silos’ complex and ‘Magnolia Table’ restaurant in Waco, Texas—as well as brand partnerships, books, and a magazine. Is launching Magnolia Network the right move for Chip and Joanna Gaines—and for Discovery? And what can both parties do to ensure the new network will be a success?

Keywords

Entertainment; Television; Superstars; Innovation; Creative Industries; Talent; General Management; Celebrities; Television Entertainment; Entrepreneurship; Joint Ventures; Innovation And Invention; Marketing; Strategy; Entertainment And Recreation Industry; Media And Broadcasting Industry

Citation

Elberse, Anita, and Julia McNicholas. "Chip and Joanna Gaines' Magnolia Network." Harvard Business School Case 521-044, September 2020.
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Anita Elberse

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