Liberty Media Discusses its China Opportunity (L)

Liberty Media (ticker: L) is a holding company that owns interests in electronic retailing, media, communications, and entertainment businesses worldwide. Its businesses include QVC, Encore, Starz, and interests in IAC/InterActiveCorp (ticker: IACI), Expedia (ticker: EXPE), and News Corporation (ticker: NWS). The company operates through two segments, QVC and Starz Entertainment Group. QVC sells consumer products primarily through televised shopping programs on the QVC networks and via the Internet. Starz provides premium programming distributed by cable operators, direct-to-home satellite providers, and other distributors throughout the United States. The following is an extract from management's Q4 2005 earnings call with analysts yesterday:

Mathew Harrigan, Jankow Partners

And then I guess my follow up was… you talked about the .com component on QVC domestically. Could you talk about your efforts to expand that component in your overseas markets as well?

Bill Costello, COO, CFO and President of International Operations, QVC

.....our strategy with regard to .com sales internationally is the exact same strategy as we have here in the US; to make it one transparent shopping experience for our customers. And, also I should point this out: it doesn’t have an impact on the revenue, but it certainly does enhance the customer’s shopping experience where they can track the orders, they can talk to the host, they can see the program guide, they can get more information about a variety of products. And you know as we go forward, I think we’re on the Road Show, Mike is thinking about other opportunities for us on .com and as time goes on we’ll be prepared to share that in more detail with you.

Mathew Harrigan, Jankow Partners

And when you look at the scale logistics going into incremental markets, I mean you said before it’s really tough to go into markets even the size of The Netherlands, even with the EEC supposedly a common market. Is that still your thinking in terms of just concentrating on the markets you have and going to China or could we see some new announcements?

Greg Maffei, President and Chief Executive Officer

Well we’re certainly going to be opportunistic, but I think you’re absolutely right in referring to my previous remarks. As I mentioned before, there is only six countries with more than 10 million multi-channel homes and we happen to be in four of the six, the other two happen to be China, and India. And you know we really think China is going to be a great market for us down the road; although now it’s a little too premature. Should digital terrestrial continue to expand out, we will be looking at those markets. I mean, again, very opportunistic but really haven’t changed that much from where we were at the last analysts meeting in terms of guidance and future international potential.

Full Liberty Media conference call transcript.

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