SOURCE: ShopNBC

ShopNBC

October 19, 2009 09:00 ET

ShopNBC Successfully Completes Cable and Satellite Negotiations

MINNEAPOLIS, MN--(Marketwire - October 19, 2009) - ShopNBC (NASDAQ: VVTV), the premium lifestyle brand in electronic retailing, today announced it has successfully completed negotiations with its cable and satellite providers pertaining to the carriage agreements that had expired at the end of the calendar year 2008. Of the 73 million households in ShopNBC's distribution footprint today, these carriage agreements consisted of approximately 65% of these homes.

Throughout these negotiations the company stated it successfully preserved 100% of its distribution footprint, realized a cost savings of $24 million in fiscal 2009, and improved the network's channel positions in many markets. As part of these negotiations, the company successfully secured dual illumination at no additional cost in many critical markets. This technique allows ShopNBC programming to be broadcast on two different channels on one system, and the company stated it has already seen meaningful productivity increases in those markets.

"I am very pleased with our efforts to successfully conclude all of our carriage agreements that were up for renewal in the last year," said Keith Stewart, ShopNBC's President and CEO. "This accomplishment is a major milestone for the company in its turnaround, as significant cost savings were achieved while we maintained our national footprint. I am also optimistic about our ability to increase our sales productivity per home across the board in these households."

Added Steward, "We have strategically signed short-term distribution agreements because the digital world of today is very different from the analog world of yesterday. Going forward, we see an opportunity to continue to reduce our costs and further improve our channel positioning."

About ShopNBC

ShopNBC is a multi-channel electronic retailer operating with a premium lifestyle brand. The shopping network reaches 73 million homes in the United States via cable and satellite television: DISH Network channels 134 and 228; DIRECTV channel 316. Programming is also streamed live on the web at http://www.ShopNBC.TV. Its companion Internet site, http://www.ShopNBC.com, is recognized as a top e-commerce site with compelling product videos. ShopNBC is owned and operated by ValueVision Media (NASDAQ: VVTV).

Forward-Looking Information

This release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer spending and debt levels; interest rates; competitive pressures on sales, pricing and gross profit margins; the level of cable distribution for the Company's programming and the fees associated therewith; the success of the Company's e-commerce and rebranding initiatives; the performance of its equity investments; the success of its strategic alliances and relationships; the ability of the Company to manage its operating expenses successfully; risks associated with acquisitions; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting the Company's operations; and the ability of the Company to obtain and retain key executives and employees. More detailed information about those factors is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact Information

  • Contacts:

    Investor Relations
    Frank Elsenbast
    Chief Financial Officer
    952-943-6262

    Media Relations
    Anthony Giombetti
    612-308-1190