ShopNBC will be getting a new name and a new look. And that may not be such a bad thing for the home shopping cable network that has been trying for almost a decade to claw its way back to profitability .
ShopNBC getting a new name
Company is taking its time rolling out the still-undisclosed name, after past lesson.
May 20, 2010 at 2:52AM
NBC plans to sell its nearly 20 percent stake in the Eden Prairie-based company, whose corporate name is ValueVision Media Inc.
CEO Keith Stewart said in a first-quarter earnings call Wednesday that TV retailing is no longer a part of NBC's long-term strategy. NBC, which is being bought by Comcast, had been the largest stockholder, with about 6.5 million shares.
Stewart said a consultant already has come up with a "short list of names" for the network and the new look will roll out gradually. It will start this summer with social media, then move to the website and finally take it to the TV channel by February.
As for the slow emergence of the new name, Stewart said the company "learned from the past" after ValueVision burst onto the scene as ShopNBC in 2001.
"Customers puked all over the idea," Stewart said. "Sales were crimped for a few months. It's a long lesson we've learned many times over: Never take hard turns when dealing with the customer."
NBC Universal and GE Equity bought a stake in the home shopping network in 1999, and signed a licensing agreement in 2001. That agreement expires May 1, 2011.
The rebranding comes at a key point for ShopNBC, which Stewart said in an interview is "right at the inflection point of profitability."
ShopNBC reported a net loss of $11 million in the first quarter, or 34 cents a share, shaving down last year's $15 million loss.
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