HSN, Inc. (NASDAQ:HSNI)

oracle1969 (< 20) Submitted: 12/5/2010 10:22:07 PM

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I keep hearing that the company is great, and Liberty might .......

I compare this possible merger between HSN and QVC similar to the fight between Blockbuster Video and Hollowod Video over Movie Gallery. The business model for all three was being overtaken by technolgy.

Both HSN and QVC's business model time is about to expire. Consumer behavior is fundamentally changing, and it starts with the young people who don’t see the need for cable.

Cable unbundling is already starting, especially among the millennial audience. Many are cutting the cord, and moving to an on-demand ala-carte world, enabled by new types of devices and services.

In five years we’ll be installing apps from our favorite content providers that work across big-screen TVs (via Roku, Boxee, Syabas, or some sort of embedded TV client), our computers, tablets and smart phones.

Currently, short term sales/profits may increase, but I believe HSN is not bringing in new customers. They’re just selling more stuff to existing customers.

As traditional cable declines, so will HSN; (1) unless HSN demonstrates that the average age of customer is decreasing not increasing, (2) growth of customers that ONLY use online devices overtakes traditional live broadcasting sales (3) and overall increase of new customers.