Yesterday, QVC Inc., a leading TV and e-commerce retailer, launched a new social shopping platform called “toGather”. QVC is a wholly owned subsidiary of Liberty Interactive Corp. . Using this platform, users can track popular products and can exchange views with other members of the site. toGather will provide an integrated shopping cart, a full product catalogue and trusted recommendations from an active user community.
We believe that TV home shopping business will continue to flourish in the near future. The QVC segment of the company has successfully transformed itself into a powerful global brand, which may boost Liberty Interactive’s revenues in the double-digits. Management expects its online sales to constitute more than 50% of the total revenue in the U.S. by 2014. Growing adoption of high-end smartphones in the U.S. is the main revenue driver.
Moreover, Liberty Interactive currently holds about 22% of the equity and 57% of the total votes of all classes of common stock of TripAdvisor Inc. (TRIP - Free Report) . TripAdvisor is the world’s largest travel site, which allows users to post reviews on airlines, hotels and vacation resorts worldwide.
On Aug 2013, Liberty Interactive launched a broadcast channel called “QVC PLUS”. This new channel currently airs all the live broadcasts (TV shows) of the existing QVC channel at a delay of three hours. Management plans to introduce some special programming in the QVC PLUS channel in the future in order to broaden QVC’s offerings.
QVC PLUS is currently available to DIRECTV customers. Moreover, QVC has entered into carriage deals with Time Warner Cable Inc. and Bright House Networks.
Currently, Liberty Interactive holds a Zacks Rank #3 (Hold).