Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, May 5, 1995 TAG: 9505050086
SECTION: BUSINESS PAGE: A-11 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
The home shopping pioneer, based in St. Petersburg, Fla., with an order-filling warehouse in Salem, Va., said it hopes the consolidation will eliminate inefficiency and duplication and help it focus on improving sales, which have fallen behind those of its main rival, QVC Inc.
Home Shopping's sales rose 7.6 percent to $1.13 billion in 1994, but that trailed QVC's total of $1.39 billion. QVC is based in West Chester, Pa.
Growth in the industry overall has slowed in recent years.
Starting June 5, Home Shopping Network will combine its HSC1 and HSC2 networks into a single channel reaching about 65 million of the 95 million homes with TVs across the country.
Home Shopping launched its first Home Shopping Club channel nationally in 1985 and added the second channel in 1986. One channel was carried mostly on cable TV systems while the other was carried on broadcast TV stations.
``In HSN's early days, it was important to program separately for cable channels and broadcast TV stations. But in today's environment, separate operations are needless and inefficient,'' said Gerald F. Hogan, president and chief executive of HSN.
The channels offer basically the same merchandise, but unusual efforts often were required to coordinate timing for showcasing the products.
Home Shopping plans to make it easier for viewers to find what they want. It also plans to offer a more regular schedule of themed programs, such as a sports show or a kitchen program, said spokewoman Louise Cleary.
Home Shopping will put its third shopping channel, Spree, on the channel being vacated, Cleary said.
by CNB