Who Needs CNN When You've Got QVC!

QVC is getting political--selling Obama and McCain shirts, caps, and buttons--and some customers don't feel that it's appropriate.

My initial reaction was "Who cares?" I mean, if they are selling merchandise from both major parties then you can't say that they are taking sides, right? Unless you support one of the third-party candidates, it seems fair enough on the surface.

Then I got to thinking it was a bit of a slippery slope. Selling political memorabilia from elections past is far different than selling merchandise in the heat of an election, especially considering we have such a sharply divided electorate (just take a gander at some of the explosive arguments on the message boards!)

Another sticking point? The sales pitch itself. Anything beyond discussing the style and quality of the item will quickly venture into dangerous territory. Even the camera shots have to be carefully monitored--can't have twice as much air time for candidate A's shirt than candidate B's shirt. Equal time, you know.

I watched some of the presentation video on the Q's website and both the host, Dan Hughes, and vendor seemed stiff and uncomfortable. They had to begin the segment with an explanation that they aren't being political and that they ordered the same number for both … yadda yadda yadda. Dan worried about having both shirts in the shot at all times and which hand he held them in, generally just walking on brittle egg shells the entire time. They were even afraid to say anything about the current administration. It all basically boiled down to a get-out-the-vote spiel

Then they took calls!!!

I think these callers were threatened to within an inch of their lives not to say anything that could possibly be construed as divisive. How uncomfortable to watch.

I checked HSN and ShopNBC and didn't see any Obama or McCain merchandise. I hope it stays that way until after the election. I have my own rather strong political views this election, but I do realize that there is a time and a place for these things and, trust me, QVC ain't the place!

Tales from a Couple of Home Shopping Boobs

QVC Music Comes Out of the Closet

Recently, QVC has been ramping up their music offerings--everything from Alabama, to the Goo-Goo Dolls (who would have ever thought they would be on the Q!!!), to Clay Aiken (aren't you glad he finally came out? it was loooooooooong overdue).

Yes, I know, QVC was doing music years ago--they even tried to launch their own record label--but that was a totally different animal. It was like those late-night infomercials with Dick Clark and some Time-Life collection of Great Love Songs of the Fifties. Not exactly cutting edge!

The music industry has been changing rapidly, and mostly for the better. A handful of labels, corporate-owned radio stations, and MTV/VH1 shoved whatever slop they wanted to make down everyone’s throats for years. What choice did we have? Sure, there was a bit of an indie market (i.e. college radio), but not enough to change the musical landscape much.

Then came the ability to download music from the Internet, iPods, social networking sites like MySpace, satellite radio … and all of a sudden a whole new universe of music opens up. Like going from black-and-white TV to color, the difference is startling.

Instead of adjusting their business model, most of “the suits” railed against these changes every step of the way—suing college kids for sharing music, as if they were the ones responsible for the changing tide.

Today, musicians no longer need a traditional record deal, but what they do need is promotion in order to break through. Promotion costs money.

QVC, and other home shopping channels, find themselves in a unique position. They can provide a platform for musicians to be heard by millions of people. Not only will they sell units while on the air, they are essentially getting an hour-long commercial on basic cable.

If the Q plays their cards right, I think that they could become a major force in the music industry.

Right now, they are only selling CDs because they think that there is a void in the selling of the physical product. Maybe. But they need to be looking forward, not back. Think about the instant gratification of hearing an artist playing on QVC and then immediately downloading the album from their website.

But why would you go to the Q’s website and not iTunes or some other place? Maybe it’s a better price or you get an extra song or two or maybe they have it before anyone else does.

Because of their platform, QVC could showcase unsigned or little-known talent. They could have an hour of fresh new artists. Of course, some would catch on and do well and others would not, but that’s what would make it interesting.

Home shopping channels love to find and sell the latest and greatest from inventive entrepreneurs. They just need to apply their own model of promoting “new discoveries” to the music industry.

Wieners for the Wealthy

Is that Gazelle exercise machine just too much work? Has it become more of a coat hanger than a calorie burner?

Tony Little understands.

You might not be able to actually exercise, but anyone can eat a hot dog, right?

Tony Little and his pony tail said,

"We are marketing my Tony Little's Body By Bison burgers and hot dogs on the Home Shopping Network and, frankly, we're having trouble keeping them in stock. They're the most incredible burgers and hot dogs you ever tasted, and they're lower in fat than chicken! Now you can eat hot dogs! Who doesn't love hot dogs? But usually you can't eat them because they're the worst things in the world for you. Now you can."

Ken Hoffman at Chron.com tried them and here's what he had to say,

"Each dog packs 160 calories, while a regular supermarket dog has 240 calories. Bison dogs have 12 grams of fat; regular ones have almost twice that. And bison dogs have about 50 percent more protein. When it comes to food, I'm not a stickler for statistics. I'm a flavor guy. And I'm a big hot dog guy. I actually wait for Dollar Dog Night at Minute Maid Park. Bison dogs do taste different. Not gamey, which I was afraid of, but different. By the time I was done with my pack of 10 dogs, I liked them. I'm not sure I'll ditch my Ball Parks or Oscar Mayer's for them, though."

Tasty! Healthy! Hot dog of champions!

Perfect, right?

Only if you are willing to shell out $59.95 for 20 Jumbo Bison Hot Dog + $12.95 shipping. Let me break this down: that's $3.65 per wiener--not counting the bun and toppings!

Joan Rivers Gagged by AOL for Nazi Remarks

Here's the article from Page Six of the New York Post:

JOAN and Melissa Rivers are livid over AOL's censorship of them. The duo did their comedic routine for myhollywood.com on Sunday for the Emmys, and AOL was supposed to link to a chunk of it. But their segment was booted when AOL suits thought it was too offensive.

In the routine, Joan cited the trend of men with "hair from the Third Reich. Tom Hanks - does that scream Nazi Germany? And . . . Julia Louis-Dreyfus - luckily she waxed her mustache. I know one of her neighbors, and if she leaves it for two or three weeks she looks just like Hitler . . . Heidi Klum? Super Nazi!"

Joan also referred to Eva Longoria-Parker as "Eva Longoria Porker" and ridiculed Oprah's big "ass."

Joan told us, "I was shocked that the suits at AOL have no humor . . . But that's OK. I've been gagged more times than Linda Lovelace. AOL is like Holocaust deniers. They want us to believe 6 million Jews spent World War II in Boca and Anne Frank was in an attic for two years looking for Christmas ornaments." AOL didn't return our e-mails.

What I have always loved about Joan (and other comedians) is their inability to censor themselves. Was she funny? offensive? just being honest? saying what everyone else is thinking, but too scared to say out loud? down right nasty?

Joan is the woman who is probably single-handedly responsible for inventing the "Red Carpet" fashion runway as we know it today. I think people forget that getting skewered is part of the deal. In fact, some celebs try very, very, very hard to get panned in hopes of some free publicity. If that doesn't work, they might resort to accidentally forgetting to wear underwear (and nobody wants that!)

Watch for yourself ... (BTW, this is probably NSFW):

Pass the Bon-Bons: Peg Bundy Designs for HSN

Yes, you too can channel your inner Peg Bundy with HSN's stylish Today's Special: Destination Style™ New York by Pat Field Printed Tee or Tunic.

All I can say to this is hell to the no!

Does HSN and Patricia Fields think that their core demographic consists of prostitutes, strippers, and trailer trash???

Honestly, who can get away with wearing something like this? I'm sure I could wear it to the office or my son's soccer game ... maybe the PTA meeting? Only in Harper Valley, baby!

Is Susan Lucci too Thin to Spin?

HSN Queen , Erica Kane Susan Lucci, putting on her dancing shoes last night on Dancing with the Stars.

She looked hot in the red dress and big hair, but the performance left the judges a little cold ... Carrie Ann Inaba even advised Susan to put on some weight because she looked "frail."

I have to agree, but I also know that the moment she puts on a pound, she will be crucified by the tabloids. What do you think??? Check it out for yourself ...

Dave King is Booming!

Dave King, ousted QVC host, is now the host of Boomer-Living.com website. I've never seen a website have a host before! Basically, he explains each section of the website in short videos.

Not sure if he is part owner of the site or was just hired to do the videos ... either way, go Dave!

Check it out here!


This is the video of Dave that is posted on his Bio Page:




Dave King Bio:

From the time he performed in his first elementary school program, Dave has heard these three words – "You're a natural!," and for the past 20 years, Dave has proven that fact by captivating audiences from coast to coast in virtually every performance medium available – especially television.

As an actor, Dave appeared in several hit television programs including The Cosby Show, Law and Order, Kate and Allie, and Hack. Dave also had contract roles on two soap operas. On All My Children, Dave was the heart-breaking Mike Gordon, the center of a love triangle between Mimi and Derek. On Another World, he was the tough-talking chief of detectives, Billy Cooper. In addition to national series television, Dave also appeared in dozens of commercials and did well over a hundred voice-overs. His true love, however, is being a Host/Anchor.

Dave began his career as a Host/Anchor, working for HBO Entertainment News. He followed that with a stint as the host of Nine Broadcast Plaza on WWOR in New York. For the past 13 years, Dave was one of the top Program Hosts on the number one electronic retailer in the world – QVC. Dave has interviewed superstars in the world of music, television, motion pictures, industry, and sports – a list that includes Diana Ross, Lionel Ritchie, Donald Trump, Suze Orman, Barry Bonds, Shania Twain, Tony Robbins, Neil Diamond, Larry King, Vanessa Williams and Joan Rivers. Dave has logged more than 9800 hours of live television! Live - no cue cards, no teleprompter, no second takes. That's more than Jay Leno and David Letterman combined!

Dave holds a Bachelor of Science degree from Penn State University, where he played Free Safety for the legendary Joe Paterno. He has three children, Dylan, his older son, Devin his younger son, and Demi, his daughter.

In addition to his many broadcast duties, Dave works extensively with The NFL, The Philadelphia Eagles and is a member of the Board of Directors for The Juvenile Diabetes Research Foundation.

Grab Your Pitchfork! Rosie on HSN!

Wow!

I tried to defend Rosie here, and boy did I hear about it! I thought that what I had to say was rather even-handed. Apparently, I was mistaken.

I still stand by my words.

There are evil people in the world--people who ruthlessly prey on the weakest and most innocent among us--worthy of spite, anger, tar, feathers, and pitchforks, but Rosie simply isn't one of them.

She isn't evil.

She's an opinionated loudmouth comedian/talk show host.

Agree with her politics or not ... think she's funny or not ... think she should just shut the hell up or keep talking ... she's not the enemy.

All of the proceeds--all of them--from her Crafty U book are being donated to her children's charity, For All Kids. She chose to create her own charity organization instead of donating to another so that she could personally cover the administrative costs of running the organization so that anyone who donated would know that all their money was being used to help and not just to raise more money.

That isn't evil.

I'm not saying you should like her or watch her or even donate to her causes, but there are worse people in the world to use energy and resources fighting against.

I watched her on HSN (see the videos below) and didn't see or hear anything terrible. But don't take my word for it. Watch and judge for yourself ... or don't.


Rosie selling her book:




Rosie selling her DVD:

Mary-Anne is Just Plain Dumb

ContrarianProfits.com advises buying HSN stock at or under $12 because of a fictional lady named Mary-Anne. Here's what they had to say about Miss Mary-Anne:

Her name is Mary-Ann and she is an addict.

Her addiction? The Home Shopping Network (HSNi) owned and operated by HSN, Inc.

Mary-Ann (actually NOT her real name) tells me that she can’t help it… the convincing chatter by charming hosts, the phoned-in testimonials, the seemingly reasonable prices, the “limited number available” push, and the countdown clock – it just wins her over every time.

Is it just me or does this sound condescending? Basically the writer is advising investors to buy this stock not because HSN has improved (which it has), but because its customer base is just plain dumb.

Maybe--just maybe--HSN was forced to get better products, brands, spokespeople, and advertising campaigns because their customers demanded it. And--just maybe--HSN's new direction and responsiveness to their customers would be a better reason to recommend the stock.

Just a thought.

But I've purchased from HSN, so what do I know?

$200K QVC Fraud ... It's a Zoo Out Here!

According to InYork.com, A suburban Philadelphia travel agent is charged with stealing nearly $200,000 in tour payments and spending the money on clothes and QVC purchases.

Officials in Montgomery County say most of Frances Balshan's victims were senior citizens interested in an African safari.

The 66-year-old Balshan of Abington ran World Travel Vignettes, which linked customers with a tour being organized by the St. Louis Zoo.

District Attorney Risa Ferman says Balshan collected $197,000, but forwarded only $10,000 to the zoo.

Balshan is charged with felony theft and fraud. She defended her reputation to reporters on Monday and says the allegations are a result of a misunderstanding.

The safari went on as planned, thanks to funding from a nonprofit that supports the zoo.

This happens all the time. It seems like every week there's another fraud involving someone stealing money or credit cards and using it to buy mountains of products from a home shopping network. Doesn't QVC notice when a customer has spent almost $200,000? Doesn't that raise a red flag?

Not to mention that poor zoo.

Martha + QVC = It's a Good Thing

According to Everyday-Houseblend.blogspot.com, Martha Stewart will have her own craft hour on QVC Friday, September 26th at 9 am.

But will Martha be there?

Probably not.

Martha Stewart Living crafts expert Hannah Milman will demonstrate the newest offerings from the new line of Halloween and Christmas products on QVC. During Martha Stewart Crafts, learn how to use Martha’s signature tools, glitter, embellishments, adhesives, paper, and holiday decorations to complete many different projects from paper crafting to seasonal decor.

Milman will demonstrate the new Martha Stewart Crafts custom-kitted products, include the Cutting Tool Kit, Halloween Punch Kit, Christmas Ribbon Storage Kit, Food Packaging and Glitter Stamp Craft Kit, which were created especially for the cable shopping channel.

I have loved Martha and her high-falutin ways for years. I have strived to carve my Halloween pumpkins to her impossibly high standards of snooty perfection. I have switched to whole peppercorns--only freshly grated pepper touches my souffles. I have tried to grow my own herbs and bake my own bread from scratch ... but no more! If she can't show up to sell her own items then I will no longer feel the need to hold myself to her high standards.

I have issues with celebrities hawking their wares on home shopping and not bothering to even show up to do it. If you are selling on QVC then it is by definition not below you.

I want Martha!!!!

ValCom Merges with America's Auction Network

I'm going to have to do a little research since I'm not terribly familiar with either company, but it looks like AAN might be positioning itself to be one of the home shopping big players.

What I can say right now is that AAN needs a major website design overhaul--it's got cheese written all over it.

According to MarketWatch.com, Media tech company, ValCom, Inc., will merge with America's Auction Network, "one of the world's largest independent auction houses and one of the fastest growing shopping networks with the most diverse niche product lines from art, antiques, coins, collectibles, jewelry, gems and real estate -- even meteorites from outer space. Shows and auctions are available to 40-million plus U.S. households via MOS Cable Systems, Broadcast Stations and are simulcast on the World Wide Web."

"The merger with AANTV and ValCom looks like a marriage made in heaven," says Jeremiah Hartman, Director/President of the American Auction Network. "With our 30+ years in merchandising and marketing, 22 of those years in the home shopping venue and ValCom's extensive management of networks, media, communications, and production experience the last 25 years, we expect revenues to increase to over $250-million in the next four years."

Did ValCom know that ShopNBC is for sale???

Holiday Sales Slump Strategy is Full of Hot Air

With the economy tanking, those usual fourth quarter holiday sales might not be as strong this year (to say the least).

What's the game plan? Lower prices? More Easy/Flex/Value Pay? More product for the money? Free shipping?

Nah! Who needs that?

Apparently, the angle is that it's cheaper than all the gas you'd use up driving to the store to shop.

According to SeattleTimes.com, mass merchants and warehouse clubs should be the strongest performers this year. TNS Retail Forward, of Columbus, Ohio, said "nonstore retailers," including home-shopping television merchants and online and mail-order stores, could have above-average sales gains as consumers look for ways to cut back on shopping trips to save gas.

I know gas ain't cheap, but seriously??? If the shipping were free then I would go for this argument, but shipping just keeps going up--way more than the cost to drive to the store, especially if you are ordering more then one item.

And, actually, the mall is on my way home from work.

They need to suck it up and offer impossible-to-resist bargains to get those holiday sales up. And please, please, please do NOT encourage the hosts to take a harder sell approach.

Ho-Ho-Ho!!!

Scrapping Round Up

The scrappers are all abuzz on the web today! It's a scrappers paradise on the Q.

I went through a scrapping phase and I loooooove to scrapbook. Love it! The problem was that it took over my life. It became this all-consuming obsession for me. I had to stop cold turkey. I still have my supplies tucked safely away and I hope to one day scrap again (oh yes, I will scrap again!), but for now, I have to keep a safe distance.

For those of you who have more self control, here's a round up of many of the players ... (I'm not looking!)

Lisa Bearnson: I was so touched by all your "Dream Come True" comments. I laughed and cried and read everything from perfume, to potty training, to hugs and kisses, and even starting your own Family Home Evening. Thanks for sharing your hearts with me.

Scrapbook Obsession: So I guess, so far, the rumors of CK relocating to HSN are not true. They do indeed have a QVC day coming up. Above is the TSV (Today’s Special Value) and it comes in 2 color ways (color ways…impressive huh?…I picked that up from watching QVC…). You can order it now if you don’t want to miss out, or can’t watch when it airs. Lisa Bearnson shows this and other QVC items on her BLOG, and HERE is the link to the TSV on the Creating Keepsakes site.

Renee Pearson: Yep...I'm already here in Pennsylvania. I came in tonight so I could get one good night's sleep before my first appearance at midnight on Tuesday morning. Yes! I did say midnight. And that's not the half of it. I have a one-hour show to do from 3-4am. Yikes! Needless to say I'll be a basket case by the afternoon appearances.

Tim Holtz: hey bloggers! i have some exciting news to share! join me on tuesday - september 23rd for my debut on QVC! that's right, can you believe it? i have 3 kits i'll be selling on QVC at amazing deals so you won't want to miss it. i am thrilled beyond words for this opportunity and i hope you share it with me. the show is called "paper crafting with the pros"

Anna Griffin: I’m off to QVC today for my last craft hour of the year! I’ve got a show made up of entirely NEW products. The best of them all is our new Craft Storage line that you are going to love!

King George Gets Personal

I have a love-hate relationship with QVC CEO "King" George that is closely tied to my general love-hate relationship with QVC. They are, hands down, the best home shopping network; however, that has never stopped them from being clueless, inept, and--at times--completely underhanded.

King George seems to have a good handle on the current problems and a good vision for the future of home shopping networks in general. It'll be interesting to see if he can weather the current economic storm while staying at the QVC helm or if he'll just bail ship.

This article from the New York Times made me kinda sorta like him a little more (not that he's completely off the hook with me!)

See what you think:

WHEN I was a teenager, I spent summers working in construction with my father, a carpenter. We lived in a suburb of Seattle. It quickly became apparent that I would need to attend college and get a desk job because I’d never earn a living with my hands. I had no natural skill in that area.

I got a job at McKinsey & Company after graduating from Northwestern University with a degree in economics. I thought I’d spend a couple of years there to round out my education, but I stayed for 16 and rose to senior partner.

One of my clients was May Department Stores, the parent company of such stores as Lord & Taylor and Filene’s. I had the good fortune to work with May’s C.E.O., David Farrell, a leader in the industry, for 15 years.

Consulting teaches you how to dissect a problem, but that’s just the beginning. You learn that change takes time and it’s not just about the elegance of the solution. It’s also about the ability to motivate people and rally them around a cause.

One day a friend of a friend suggested I talk to Michael Dell about working with him. I agreed more out of curiosity than anything else and was blown away by the company and his vision. As much as I loved McKinsey, I left in 2001 to join Dell. I wanted a new challenge. My kids thought it was funny because I rarely used a computer. For two months I worked as Michael’s executive assistant and learned about the company and the industry. Then I became chief marketing officer and later took on additional responsibility as general manager of Dell’s consumer business.

It was a difficult time in the industry, right after the dot-com crash, but it was energizing. It was also my first opportunity to run a business. The challenges of direct marketing computers were a stretch and a learning experience.

My career has been wildly unplanned. I thought I’d be at Dell a long time, but when I had been there five years I got a call from an executive search firm asking if I’d be interested in talking to the folks at QVC.

I said, “No thanks, I’m happy doing what I’m doing.” The person was persistent and said I should at least meet with the C.E.O., Doug Briggs, who was retiring. I did, and found I had a completely false image of QVC. I thought home shopping was a dated idea and not nearly as exciting or fresh as technology. I discovered it was an amazing platform, and its best days were yet to come. I joined QVC in 2005.

People stumble on us when they’re flipping the TV channels. They might see Bobbi Brown selling her line of makeup, or a remote broadcast from Texas Stadium with Roger Staubach talking about his experiences there. Typically viewers don’t buy right away; they need to come back a few times and get over their skepticism about what we do.

Writing is one of my passions. Every Monday I e-mail our staff and try to inspire them. I discuss what I’m excited about in our business, or I share what I’m worried about or what I’m struggling with personally. I talk about my family and my personal life. I found that if you can tell an engaging story and relate it to work, it may stick with people and have some impact over time. Recently I wrote about my 11-year-old son who miscommunicated with a hair stylist. The woman shaved my son’s head instead of just giving him a trim, as he had requested. He was traumatized, locked himself in his room for a few hours and wore a baseball cap until his hair grew back.

I used the anecdote to discuss our responsibility regarding customer service, whether it involves an employee packing boxes in Florence, S.C., or someone answering the phones in Chesapeake, Va. When people realize we all have similar struggles, it creates a higher level of engagement and a connection.

Heads Up! Gemstones on the Loose!

Click here to enter the Jewelry Television Gemstones on the Loose Sweepstakes.

The prizes look awesome for any shiny object junkie like yours truly. :-)

Take a look and then enter, chickadees!

Hope in These Hard Days ... of Our Lives

If you're a soap opera junkie and need a little Hope, here's your chance! Kristian Alfonso (AKA Hope Brady) is touring the country to promote her fashion and jewelry line.

Here's the tour schedule according to SoapOperaFan.com:

* On Friday, September 19 and Saturday, September 20, Kristian will be at her booth at Sunfest if you would like a chance to meet her. However, Kristian’s jewelry will be available for purchase throughout the entire festival. The event will take place at Inlet Pier, Ocean City Maryland.

* On October 28 (5 AM, 9 AM, 10 AM, 5 PM) and October 29 (6 AM), Kristian will be appearing on the Home Shopping Network for the release of her Hope Faith Miracles clothing line. For a sneak peek at some of the clothing and jewelry pieces that will be available, please e-mail SNEAK PEAK to customerservice@hopefaithmiracles.com.


* On Friday, November 7 and Saturday, November 8, Kristian will be at her booth as she takes part in the Mistletoe Market: Mississippi Trade Mart. This event will benefit the Junior League of Mississippi. The Mistletoe Marketplace takes place at 1200 Mississippi St, Jackson Mississippi.

Also, according to Kristian's webisite, you can bid on an autographed pair of her Hope Faith Miricles jeans here (for the love of all that's holy, I seriously hope that they aren't in her size ... I would have to use them as a sock puppet!) Proceeds from the auction benefit Clothes Off Our Back’s charities.

Keep checking her website for more dates and times! And don't even pretend to not care about the Bo and Hope getting hitched again ... again ... whatever!

Rosie the Riviter!

According to Rosie's website, she will be the latest celebrity peddling her wares on HSN (aren't they all these days????)

Along with the Rosie O'Donnell Show Season One DVD, she'll be selling her latest book, Crafty U, a crafting book for kids that has gotten great reviews on Amazon. Rosie is an avid crafter--remember back during her old show when she was obsessed with decoupage? While she personally uses crafting as a way to relax, with the new book, she wants to inspire families to spend more time together crafting using mostly found objects and lots of creativity.

Ok, so here's the meat of the whole thing: some people hate Rosie with a fiery passion and therefor are absolutely horrified that HSN would dare let her on the air.

I don't agree.

Rosie is rather ... shall I say ... outspoken about many hot-button political issues, so I'm not saying that you need to agree with her opinions or even agree with the way she goes about expressing them (usually very loudly!!!)

From what I've seen of Rosie over the years, she is a basically kind-hearted person who feels passionately about protecting and helping children. She has admitted to fighting personal demons from childhood and has been in therapy for years to address her problems.

My point is that although she might go about things the wrong way, her heart is usually in the right place, which is more than I can say about many of the people she fights with. Besides, sometimes things just need to be shaken up a bit!

If nothing else, she'll probably make for some great entertainment. In all the fuss about her politics, people forget how funny she can be.

Although, I must admit, with the political firestorm going on right now, it'll be interesting to see how long she can bite her tongue (not one of her better talents!)

So all this talk of boycotting Rosie or HSN is completely stupid. Get over yourselves. No one is perfect and she would probably be the first one to admit that.

Check her out 9/21- HSN 12PM, 6PM, and 11PM EST.

ShopNBC Sinks as Wall Street Wavers

Home Shopping Channels aren't immune to the collapse of Wall Street ... sorry, small adjustment on Wall Street (whatever!)

ShopNBC has been in the toilet for years, but after a string of stupid decisions, they have finally decided to sell the company. The problem? Who would want to buy the struggling shopping channel???

Do you think QVC or HSN should buy in this kind of economic time? Of course, QVC owns quite a bit of HSN already, so that would be quite the home shopping monopoly--like getting all the railroads in Monopoly!

According to TradingMarkets.com, ValueVision Media Inc., the long-troubled operator of the ShopNBC cable TV channel and website, said Thursday that it is considering selling the company.

The move comes less than a month after the Eden Prairie company felt the wrath of shareholders because of the firing of its CEO and depressed quarterly earnings. ValueVision has struggled with slow sales and a high rate of product returns, and its ShopNBC cable channel ranks third, far behind competitors QVC and HSN.

CEO John Buck said Thursday that ValueVision would not necessarily be sold, and that other possibilities included a partnership, acquisition or private equity investment.

But others said an outcome other than a sale was unlikely.

"I think the takeaway here is that the company is exploring a sale," said Bob Evans, an analyst at Craig-Hallum Capital Group in Minneapolis. "I'm not surprised. I had thought it might happen earlier."

The 1,100-employee company has 800 workers in Eden Prairie, where it has five TV studios, website operations and a warehouse fulfillment center in addition to its corporate offices.

Investors' anxieties were raised last month -- with some calling for the company to be sold -- when it switched CEOs for the second time this year, ousting Rene Aiu after just five months on the job.

At the same time, ValueVision reported that second-quarter sales had fallen by 25 percent and that losses had tripled from a year ago.

Buck said the company, which hasn't posted an annual profit since 2001, was pressured by its public stockholders to consider its options. Public shareholders own 70 percent of the company; the other 30 percent is owned by General Electric and NBC Universal.

"They have a right to be upset, and we were sensitive to it," Buck said. "But I don't think we waited too long to look around at our options."

The move to hire an investment banker had been debated by the board over the past few months "given the current market value of the company and the need to find a way to significantly increase it," he said.

At Thursday's closing price of $2.38 per share, up a little more than 6 percent, the company's market capitalization was just less than $80 million. The stock rose 2 cents more in after-hours trading.

ShopNBC might be attractive to another company, because its assets exceed its market value, Buck said.

"Our balance sheet is debt-free, we've got $75 million to $80 million in cash, we've got a Boston TV station that's worth $34 million and we've got our Eden Prairie headquarters and distribution center," he said.

The most frequently mentioned potential deals involve QVC and HSN, as well as some private investment companies. But Buck said the company had not been approached by any of them.

Asked whether a competitor might want to buy ShopNBC to shut it down -- thus eliminating a player from the shopping-channel market -- Buck said, "I don't think that is a realistic possibility."

One of ShopNBC's problems is its position at the high end of the market. Its merchandise, primarily jewelry, attracts a smaller group of potential customers than rivals QVC and HSN. ShopNBC's average selling price is in the $200 range (the firm says it sells "little luxuries and fashion must-haves"), while its rivals have average selling prices in the $40 to $60 range.

That positioning proved to be a problem when the national economy declined.

"Higher-end retailers are hit harder," Buck said.

ShopNBC also pays a higher percentage of its revenue in fees to cable and satellite TV companies. ShopNBC pays about 18 percent of revenue to its cable and satellite partners for distribution of its channel, compared with about 5 percent for QVC and about 9 percent for HSN, Buck said. But he said ShopNBC's decision to offer higher-cost merchandise was not dictated by its higher distribution costs.

QVC and HSN both have greater reach with their cable and satellite TV channels, which are available in about 90 million homes compared with 70 million for ShopNBC, Buck said.

ValueVision said a committee of outside directors would review the firm's strategic alternatives; committee members will include George Vandeman, who will serve as chairman, Robert Korkowski and a third outside director to be named to the board. Piper Jaffray has been hired as a financial adviser.

Buck said he expected that ShopNBC will know within 90 days "what's out there in the market, what the interest level is." Even though ShopNBC is in the midst of renegotiating about 65 percent of its cable and satellite TV distribution deals, with a deadline of Dec. 31, that will not affect the review of its future, he said.

Just in Case You Decide to Run for President ...

... QVC and Diamonique want to help you show off your patriotism with their Epiphany Platinum Clad Diamonique American Flag Lapel Pin!!!

Or, perhaps, you'd rather put some lipstick on a pig with the QVC Cloisonne Set of Two Little Pink Pig Enamel Trinket Boxes.

See, chickadees! Home shopping is totally relevant to the current level of political discourse. I don't know if this bodes worse for politics or home shopping.

Rumors Of My Demise Have Been Greatly Exaggerated

Stay tuned ... more to come! :-)