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ShopNBC Successfully Completes Cable and Satellite Negotiations
MINNEAPOLIS, MN, Oct 19, 2009 (MARKETWIRE via COMTEX) --
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.
Contacts:
Investor Relations
Frank Elsenbast
Chief Financial Officer
952-943-6262
Media Relations
Anthony Giombetti
612-308-1190
SOURCE: ShopNBC
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