123 TV

About 123 TV

1-2-3.tv GmbH operates as a multichannel auction house, distinguishing itself within the German and Austrian home shopping market. Founded in March 2004 by Andreas Büchelhofer and Henning Schnepper, the company launched its broadcast operations on October 1, 2004. The venture reached a significant milestone by achieving break-even in 2009 and reported a record revenue of 100 million euros in 2010. After its seed funding in May 2004, the company was eventually sold to Arcus Capital in 2016. It later became part of iMedia Brands in a 2021 acquisition valued at $93 million and was subsequently taken over by the Irish True Social Limited, a company associated with entrepreneur Manoj Bhargava, in 2023.

The core of 1-2-3.tv's business is its unique reverse auction model, where the price of a product progressively drops until the inventory is sold out. All participants in the auction then purchase the item at the final, lowest price. This creates an engaging, gamified shopping experience for consumers. The company generates revenue through the direct sale of these goods, which include a mix of name-brand overstocks, special-purchase items, and its own private-label products across categories like jewelry, DIY, fashion, and lifestyle goods. This multichannel strategy leverages live television broadcasts, which run for 20 hours daily, alongside a robust online presence through its website, recently rebranded as 123.live, where customers can stream auctions live and make fixed-price purchases. This digital channel accounted for 27% of the business as of 2019, with plans to grow it to 50%.

Broadcasting via satellite and cable, 1-2-3.tv reaches over 35 million households in Germany and Austria. The company has successfully cultivated a loyal customer base, with the average customer making 34 purchases annually as of 2019. While initially targeting a male-skewed demographic with products like power tools, the company has since broadened its focus to include more lifestyle and soft-goods categories to attract a wider audience. The combination of live TV's emotional presentation and the interactive nature of online participation positions 1-2-3.tv as a distinct player in the retail landscape.