Shop at Home Network - Background

Background

The technical difficulties caused by the hills and valleys of East Tennessee and prohibitive cost-per-mile across the vast expanses of the rural flatlands west of the Mississippi had created a pent up demand for television programing. Homeowners many of whom had no access to cable and a minimal number of off-air television channels were looking for a way to receive some of the same programs their urban cousins had access to. Since Overholt and a few others in the Knoxville area were in the process of pioneering the satellite to home backyard dish concept it was logical to search for the programming to go along with it. The first shopping channel (Home Shopping Network) had just appeared out of Florida and this was Tennessee's response! The ability to reach this entertainment starved market was important to the fledgling experiment and this markets appreciation and monetary encouragement was key to SAH's progress. The beginnings of today's satellite television as an industry began by providing the dish and electronics to receive the signals from satellites in space that coincidentally was the same way that HBO and other entertainment was distributed to cable systems across the country. The Knoxville group that Overholt approached had formed the "Satellite TV Awareness Association" (STAA) a local trade organization that's purpose was to inform citizens and elected representatives to Congress of the issues surrounding the "business" of the new industry. The cable lobby had portrayed back yard dish owners as pirates and accused them of stealing their programming. The STAA (Overholt was a member) and others made it public that offers had been made to the programmers to pay for the product being received but most programmers had refused the "offer to pay". The STAA sought assistance from their elected representatives, of which Al Gore was one, for a fair solution to the problem. Gore was conducting local town hall meetings and had a sympathetic ear for this ground roots movement from his constituents. A few months later when the STAA decided to bring the issues to dish owners they used the same satellite signal to do so. From a rented studio in Nashville they hired a local MC to host a panel of "experts" in the field to answer questions and propose solutions to the dish industries problems. Gore was unable to attend in person but had pledged his support and participated in the event via telephone.

In 1987 the company was taken public as Shop At Home (NASDAQ-SATH) because the stock symbol SAH was already registered. The IPO was a success and "Shop At Home" was born.

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