CVN

"Eventually, the ordering system was replaced, and sales grew. But we were still not up to par with the Home Shopping Network. And over in Philadelphia, a fellow by the name of Joseph Segel was doing a much more elegant job of selling merchandise on a network call QVC. Joe was a polished businessperson who had founded the Franklin Mint, which ran sophisticated ads in magazines to sell commemorative coins, medallions, figurines, and other collectibles. He, too, had seen HSN and launched QVC as the Saks Fifth Avenue to HSN’s Walmart. QVC’s hosts were smoother, and its merchandise comprised of more high-margin products. So TCI took an equity stake in QVC, along with Comcast and others. Literally dozens of companies announced new shopping networks, far too many for the market to support. And the market quickly thinned out. The Fashion Channel, in which TCI owned a stake, would go bankrupt and be folded into CVN. Many retailers saw the vision, but few could make it work in time. Still, there was opportunity for the right player."

"QVC under Joe Segel, a seasoned merchant, with backing from Comcast, had outperformed CVN on margins, operational efficiency, and product quality. So, in July 1989, after conversations with Comcast chairman Ralph Roberts, his son Brian, and vice chairman Julian Brodsky, we struck a deal to sell our Cable Value Network to QVC, even though CVN was the much bigger network. Roberts really wanted to retain effective control, and it was clear Joe Segel was his person. I knew we’d make more money as an investor, not an operator. Sometimes it helps to know what you’re good at and what you’re not."