Home Shopping Network 2008 Annual Report Download - page 11

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8
retailers), ranging from large department stores to specialty shops, electronic retailers, direct marketing retailers,
mail order and catalog companies, infomercial retailers, wholesale clubs and discount retailers. In addition, the HSN
television network competes for access to customers and audience share with other conventional forms of
entertainment and content. The price and availability of programming for pay television systems affect the
availability of distribution for HSN television programming and the compensation that must be paid to pay
television operators for related carriage and competition for channel capacity and placement continues to increase.
Principal competitive factors for HSNi brands and businesses include (i) brand recognition, (ii) value, quality and
selection of merchandise, (iii) customer experience, including customer service and reliability of fulfillment and
delivery services and (iv) convenience and accessibility of sales channels.
Employees
As of March 1, 2009, HSNi employed approximately 5,137 full-time employees and approximately 836
part-time employees. No HSNi employees are represented by unions or other similar organizations and HSNi
considers its relations with its employees to be good.
Available Information
We are subject to the reporting requirements under the Exchange Act. As a result, we are filing annual
reports, quarterly reports, proxy statements and other documents with the U.S. Securities and Exchange Commission
("SEC") under the Exchange Act. The public may read and copy any materials that we file with the SEC at the
SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. The public may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Also, the SEC
maintains a website that contains reports, proxy and information statements, and other information regarding issuers,
including the Company, that file electronically with the SEC. The public can obtain any documents that we file with
the SEC at http://www.sec.gov.
Our website is located at http://www.hsni.com. We make available free of charge, on or through the
website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably
practicable after electronically filing such reports with the SEC.
Our Code of Business Conduct and Ethics, which applies to all employees, including executive officers and
senior financial officers and directors, is also available on our website at http://www.hsni.com/governance.cfm. The
code of conduct complies with Item 406 of SEC Regulation S-K and the rules of The Nasdaq Global Select Market.
Any changes to the code of conduct that affect the provisions required by Item 406 of Regulation S-K, and any
waivers of the code of conduct for our executive officers, directors or senior financial officers, will also be disclosed
on our website.
Information contained on our website is not a part of this Annual Report or any other report filed with the
SEC.
ITEM 1A. RISK FACTORS
Risks Related to Our Business
Deteriorating macroeconomic conditions have negatively impacted our business and further weakening
of the macroeconomic conditions may have additional negative impacts on our business.
Retailers generally are particularly sensitive to adverse global economic and business conditions, in
particular to the extent they result in a loss of consumer confidence, rising unemployment and decreases in
consumer spending, particularly discretionary spending. In 2008, we began to experience weakness across business
segments in connection with the deteriorating macroeconomic conditions. This deterioration accelerated in the
fourth quarter of 2008 and we believe that the current recessionary environment will persist throughout 2009 and
possibly beyond. We are not able to predict the timing of any recovery. If macroeconomic conditions continue to
worsen, our business could be adversely affected. When macroeconomic conditions do improve, there can be no