NEW YORK -- Home Shopping Network, the St. Petersburg, Fla.-based electronic retailer, is diversifying.
This summer, the company will introduce a new network called Television Shopping Mall. The "mall" will have room for 35 individual retailers, manufacturers and catalogers who will buy air time and support services from HSN.
"We're filling the role of a shopping mall developer and giving tenants all the things they need to function operationally," said Gerald Hogan, president and chief executive officer of HSN.
That includes sets, hosts and order taking.
Some retailers have found the economics of selling to home shopping networks difficult because of the double markups. Hogan said that by selling air time, rather than taking a cut of sales, retailers will be able to make a profit on TSM.
The new network will feature moderate to upscale products including household items, hardware, apparel, food, lifestyle goods and electronic equipment.
"It should be relatively broad-based, with the kind of retailers you'd find in a shopping mall anywhere in the United States," Hogan said, declining to name any potential participants.
TSM will run on Home Shopping Spree, a channel that carries programming similar to HSN, but reaches fewer homes.
It will initially reach 3 million homes via cable, with a goal of reaching 30 million cable homes in the next five years. In addition, 20 million broadcast TV households will receive TSM.
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