Friday, January 30, 2009

ShopNBC Takes the Plunge

ShopNBC has been slipping and sliding into home shopping heaven for quite some time now. You can imagine that in these current economic times that the number aren't getting any better. They just released their preliminary fourth-quarter results and the Christmas shopping season wasn't kind to ShopNBC. Revenue was down 35% compared to the same period in 2007. They have a cash flow deficit of $15 million and an estimated net loss of about $40 million. They also weren't able to find a buyer for their auction--not even on Value Pay.

Here's a transcript of the Value Vision conference call where they try their very best to put a vermeil coating on their horrible numbers.

They claim, among other things, that they had reduced return rates, lower average selling price, and lower operating costs (i.e. they recently laid off a bunch of employees). But there wasn't enough vermeil to stop the stocks from falling sharply over the bad news.

ShopNBC is also trying to take a page from the number one home shopping channel, QVC, by taking some of their people. Keith Stewart, was promoted to CEO, Darlene Daggett was added as a consultant, ad Randy Ronning is joining the board--all of whom are QVC alum,


But the real news wasn't included in any of these reports. Rumor has it that ShopNBC is taking the tiger by the tail by joining up with the always entertaining Wayne Scot Lukas. I can't verify it, but I hope this is true. Can you imagine WSL and Charla together??? I mean the entertainment value alone. Praise the Lord and pass the plate twice!

Allegedly, Wayne Scot Lukas sent out an email to his fans leaking the news. I don't know if this email is the real deal is not, but it certainly appears to be authentic. What do you think? Check it out here.

12 comments:

  1. If WSL is their "premiere" stylist, what happens to Pamela McCoy?????

    ReplyDelete
  2. Anonymous said...
    "If WSL is their "premiere" stylist, what happens to Pamela McCoy?????"

    Wasn't she the one caught stealing designs from a QVC vendor?

    ReplyDelete
  3. ShopNBC´s new CEO Keith Stewart was VP of QVC Germany until 2004. Under his "reign" QVC was market leader within a few years. I think he knows what to do. So I guess I will buy some ValueVision stocks and get rich in a few years ;-)

    ReplyDelete
  4. The real news is that ShopNBC appears to be renegotiating its distribution at rates that finally make sense. If you would care to dig, you would learn that ShopNBC has paid far more for cable distibution than Q or H did when they were similar size the past 10 years. (I estimate that S would have been consistently profitable the past 10 years if it had paid reasonable rates for distribution; dig further and you will see that NBC benefitted at ShopNBC's expense to the tune of $300M the past 10 years; it is called the Olympic premium)

    If you want to do your readers a service, start identifying ways they can watch Q or H or S without paying for cable. Q, H, S etc subsidize cable/satellite to the tune of $500M/year. Why should the homeshopnets continue to pay when 30%+ of their sales (and growing) is done over the Internet?

    Q,H & S share price have been completely decimated in the current market (all losing up to 97% of value at the low); contrast that to Amazon which has lost 57% at its low. Amazon is not on TV...yet...but it does provide video from its site.

    Anyway, would be curious if your readers would look at boxee.tv; hulu etc and maybe determine to cancel their cable subscription when they realize thay can get all that video via their broadband subscription.....and that video can be delivered to their TV screen. That day is here (with some headaches) and fast approaching (with no headaches).

    ReplyDelete
  5. Ingo is right! Years ago, when Barry Diller was head of QVC, I bought their stocks at $23 a share. I sold them a few years later (when Diller left) at $72 a share.

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  6. To Whom Ever Watches Shopnbc,

    I am a Shopnbc viewer for many years. I am so sorry to hear that Bill is gone from Shopnbc. He is a very professional Host. He has so many fans here in NJ!

    Missy Miner should have been gone since her trial on Shopnbc. In my opinion, she does not speak clearly and moves her mouth like Madam the puppet. Professional???? One time I called in to speak about a product and she literally dismissed me off the call after I waited a very long time to get through. And I was genuine and sincere. She was very disrespectful. Poor customer service. So sad. Who cares that she has a degree in STONES. It's not like she's an MD saving lives or something.

    Melissa Miner will say anything to get a sale. These are economic times and I don't understand why her husband and her are still employed. Shopnbc should have at least LAID off one. Including Pamela McCoy. Her jackets are so stiff like her Rubber Lips. I must have returned two. Trying to give her a break. What a waste of HARD-earned money.

    Again, how very sad.

    Warm Regards,
    Lana Richards from NJ

    PS It's cheaper to go shopping at the local mall instead of getting RIPPED at Shopnbc. At least their PRICES don't GO UP AND DOWN ALL THE TIME like Missy Miner's mouth. And then they wonder why the economy is the way it is.
    xo

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  7. Why has ShopNBC using Charla for electronics, when she's so terrific with jewelry? She hasn't hosted any of the Tuscon shows.

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  8. http://www.shopnbc.com/SearchM/Default.aspx?page=LIST&category=Apparel%20%26%20Accessories|t330&prop=LUKASTYLE|1513&catprop=1513&storeid=1&FamilyID=A17615&cm_re=BC-_-Apparel%20%26%20Accessories-_-LUKASTYLE


    its true enjoy,...

    ReplyDelete
  9. Online Coupons, Coupon Codes, Promotional Codes for Discount Shopping at www.deals365.us

    ReplyDelete

If your forbidden love is home shopping and you love all the latest dirt, then come on in ... Queen Bea is holding court!

You can also email me at homeshoppingqueen@gmail.com

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