Home Shopping Network 2008 Annual Report Download - page 5

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2
History
HSNi’s predecessor company began broadcasting television home shopping programming from its studios
in St. Petersburg, Florida in 1981, and by 1985, was broadcasting this programming through a national network of
cable and local television stations 24 hours a day, seven days a week. The company continued to broaden its
national distribution network through a combination of cable, satellite and broadcast systems, and as of December
31, 2008, the HSN television network reached approximately 91.9 million homes in the United States.
The company acquired Improvements, a catalog featuring thousands of innovative home, patio and outdoor
products, in June 2001, and significantly grew its catalogs business through the acquisition of the Cornerstone
Brands portfolio of leading print catalogs and related websites in April 2005.
The company began conducting business online in 1994 and formally launched HSN.com, the online
shopping portal for the HSN television network, in 1999.
On November 5, 2007, IAC/InterActiveCorp (“IAC”) announced that its Board of Directors approved a
plan to separate IAC into five publicly traded companies, identifying HSN and Cornerstone, collectively, as one of
those five companies. In this Annual Report, we refer to the separation transaction as the "spin-off." In anticipation
of the spin-off, HSNi was incorporated as a Delaware corporation in May 2008. Effective August 20, 2008, HSNi
completed the spin-off and HSNi's shares began trading on The Nasdaq Global Select Market under the symbol
"HSNI." Since completion of the spin-off, HSNi now consists of HSN and Cornerstone, the principal businesses
that formerly comprised most of IAC's Retailing segment.
What We Do
HSNi markets and sells a wide range of third party and private label merchandise directly to consumers
through HSN, which includes the HSN television network and its related website, HSN.com, as well as through
Cornerstone Brands portfolio of catalogs and related websites.
HSNi is committed to providing an evolving variety and mix of quality products at reasonable prices and
brands that resonate with its customers. Products offered through HSN include electronics and housewares, jewelry,
beauty, apparel, health, home fashions, accessories, vitamins/supplements and other products. Featured products
include HSN-branded (or private label) products and third party-branded products, some of which are produced
exclusively for HSN, as well as merchandise generally available through other retailers. The Cornerstone Brands
primarily offer home and outdoor furnishings and casual and leisure apparel with the majority produced exclusively
for Cornerstone.
HSN
Overview
HSN includes the HSN television network and its related website, HSN.com. The HSN television
network broadcasts live, customer interactive television home shopping programming 24 hours a day, seven days
a week. This programming is intended to promote sales and customer loyalty through a combination of product
quality, value and selection, coupled with product information and entertainment. Programming is divided into
separately televised segments, each of which has a host who presents and conveys information regarding featured
products, sometimes with the assistance of a representative from the product vendor. HSN.com is a business-to-
consumer internet commerce site that sells all of the merchandise offered on the HSN television network,
together with complementary products and select merchandise sold exclusively on HSN.com. The HSN strategy
continues to focus on defining a clear and differentiated brand and creating an identity for itself as a lifestyle,
editorial, programmed commerce network that provides great products with innovative and engaging
presentation.