18(a) Mission/Purpose QVC is one of the largest multimedia retailers in the world. Broadcasting live 24 hours a day, 364 days a year, QVC markets and sells a wide variety of consumer products in the U.S. and several foreign countries primarily through live televised shopping programs and via the... Read more
QVC is one of the largest multimedia retailers in the world. Broadcasting live 24 hours a day, 364 days a year, QVC markets and sells a wide variety of consumer products in the U.S. and several foreign countries primarily through live televised shopping programs and via the Internet through its U.S. and international websites. Due to its global operations, QVC is recognized worldwide for the quality of the products and services offered in connection with the QVC trademark. In 2011, QVC's net revenue totaled approximately $8.3 billion, which resulted in net income of more than $1.1 billion.
QVC programming is divided into segments that are televised live with a host who presents the merchandise, sometimes with the assistance of a guest who is knowledgeable about the merchandise, and conveys product information to QVC's viewers. Broadcasting around the globe, QVC's shopping program reaches millions of consumers each day. In the United States, QVC's shopping program is telecast live 24 hours a day to approximately 100 million homes. Outside of the United States, QVC's shopping network reaches approximately 24 million households in the United Kingdom and the Republic of Ireland; approximately 40 million households throughout Germany and Austria; approximately 26 million households in Japan; and approximately 20 million households in Italy. Moreover, QVC's global reach continues to grow. For example, QVC recently announced plans to expand into China.
QVC's websites offer a complement to televised shopping by allowing consumers to purchase a wide assortment of goods that were previously offered on the QVC television programs, as well as other items that are available from QVC only via its websites. QVC.com ranked above the standard of excellence in Internet retailer customer satisfaction according to the Forsee 2011 Holiday E-Retail Satisfaction Index. In the seven year history of the index, QVC.com has consistently ranked as a top 5 Internet retailer in terms of customer service, which is a leading indicator of increased consumer spending, loyalty, and positive word-of-mouth recommendations. For the fourth year in a row, QVC secured a top ten spot in the NRF Foundation/American Express Customers' Choice survey. The survey gauges consumer attitudes toward retailers' customer service, promotes best practices in customer service and recognizes retailers providing excellent customer service. In April 2011, as well as the July 2011 Consumer Reports Magazine and the Consumer Reports Buying Guide 2011, Consumer Reports readers named QVC sixth Best Website for Computer Retailers.
For the year ended December 31, 2011, approximately 37% of QVC's U.S. revenue and approximately 31% of QVC's total revenue was generated from sales of merchandise ordered through its various websites and mobile applications. QVC expects that Internet sales will continue to grow in the coming years. Recognizing the vast potential of the .QVC gTLD as a trusted namespace and its ability to enhance QVC's brand and its already robust e-commerce platform, QVC has decided to file this application and bring the .QVC gTLD to market. To this end, the intended mission and purpose of the .QVC gTLD is to serve as a trusted and intuitive namespace for consumers to view QVC products, services, and information, interact with peers regarding QVC offerings, and purchase authentic QVC products and services at trusted and secure sites.
QVC is still analyzing potential options for the type of second-level domain names that it will use within the .QVC gTLD in order to best develop a namespace that will foster an intuitive, trusted, safe and marketable environment for Internet users and consumers that will provide them with authoritative content and up-to-date brand information. To achieve this goal of a secure and trusted environment, QVC will operate the .QVC gTLD as a closed single-registrant registry to ensure that all second-level domain names in the gTLD will be controlled by QVC and its affiliates. ×