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Cable Technology Feature Article

October 20, 2009

ShopNBC Completes Cable and Satellite Negotiations

By Anil Sharma, TMCnet Contributor

ShopNBC, a lifestyle brand in electronic retailing, has completed negotiations with its cable and satellite providers pertaining to the carriage agreements that had expired at the end of the calendar year 2008. 

According to ShopNBC officials, of the 73 million households in the company’s distribution footprint today, these carriage agreements consisted of approximately 65 percent of these homes. 

Throughout negotiations, the company 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, ShopNBC officials said.

This technique allows ShopNBC programming to be broadcast on two different channels on one system, and the company has already seen meaningful productivity increases in those markets. 

Keith Stewart, president and CEO ShopNBC, said that this accomplishment is a major milestone for the company in its turnaround, as significant cost savings were achieved while it maintained national footprint. 

“I am also optimistic about our ability to increase our sales productivity per home across the board in these households,” Steward said.

The company has 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,” Steward said.

Anil Sharma is a contributing editor for TMCnet. To read more of Anil’s articles, please visit his columnist page.

Edited by Kelly McGuire