QVC Bails on Jewelry; Liberty Media Suffers

QVC made its name hawking cubic zirconium. Now the cable home-shopping network, prize holding of John Malone, the media tycoon who controls Liberty Media(LIMDB Quote), has shifted away from jewelry (whether the diamonds in them are fake or not) and toward things like electronics and kitchen tools.

The company says it's reacting to recession-weary consumers who are now more apt to buy lower-priced items, when they're buying anything at all.

There's only one problem with the strategy, and it's fairly obvious: Jewelry has higher profit margins. ...