QVC Laying off workers

[jal41]

http://www.11alive.com/news/local/story.aspx?storyid=123519&catid=40

QVC is laying off 900 workers...but will hire 200 more workers for a net loss of 700 workers.

Sounds like the beginning of the end of the home shopping networks. Internet + Bad Economy + Outdated business model = Problems.

 

[Nate Wesley]

QVC is laying off 900 workers...but will hire 200 more workers for a net loss of 700 workers.

Sounds like the beginning of the end of the home shopping networks. Internet + Bad Economy + Outdated business model = Problems.

I doubt it's the 'end' for QVC, HSN, and perhaps ShopNBC. I predict what we'll actually see is a widened programming focus beyond just TV shopping. I wouldn't be surprised if the three started adding movies or re-purposed TV programming. The channels are all still profitable, I think. (Wouldn't they have to be with merchandise sales AND basic cable subscription fees?)

 

[MarkL]

QVC is laying off 900 workers...but will hire 200 more workers for a net loss of 700 workers.

Sounds like the beginning of the end of the home shopping networks. Internet + Bad Economy + Outdated business model = Problems.

The channels are all still profitable, I think. (Wouldn't they have to be with merchandise sales AND basic cable subscription fees?)

Are you sure these networks get basic cable subscription fees? Aren't they the ones who pay cable operators to carry them?

 

[dhett]

I don't know about QVC, but I know HSN and ShopNBC are not necessarily on cable. Both are commonly carried OTA on LPTV stations, as is JTV - Jewelry Television.

Something I heard recently makes a lot of sense - in tough economic times, shoppers don't necessarily stop shopping, but they focus on value more. That's why Walmart is expected to do well in the coming months. If the shopping channels can offer value to the consumer, i.e., a decent-quality product at a good price, they'll stay in business.

 

[MarcB]

JTV has had a long-term relationship with ZGS Television. They've been buying the overnight hours for years on several of their LPTV Telemundo Affiliates including WRDM/50 in Hartford, WDMR/51 in Springfield, and WRIW/50 in Providence. The problem with this came in 2004. Virtually all of Telemundo's coverage of the Olympics was during the overnight hours so people in Hartford, Springfield, and Providence were out of luck.

COX Cable in Connecticut Runs JTV 24/7 on DIGITAL CHANNEL 71 which is one of their 4 Leased Access Channels. Up until December 07 this was on Expanded Basic Channel 67.

 

[Nate Wesley]

QVC is laying off 900 workers...but will hire 200 more workers for a net loss of 700 workers.

Sounds like the beginning of the end of the home shopping networks. Internet + Bad Economy + Outdated business model = Problems.

The channels are all still profitable, I think. (Wouldn't they have to be with merchandise sales AND basic cable subscription fees?)

Are you sure these networks get basic cable subscription fees? Aren't they the ones who pay cable operators to carry them?

I honestly don't know, I just figured they got money like most cable channels and terrestrial stations did. Or at least, got some of their money back.

Now, someone mentioned HSN--I did know that in many metros, their cable presence is either paid for or mandated through terrestrial must carry (both as Class A LPTVs and full-power stations). I just imagined that there was another reason that it enjoyed near-universal adoption on basic cable/satellite tiers--through heritage, cheap subscription fees, or as MarkL mentioned, cold hard cash.