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Posts tagged as “Discovery Communications”

Oprah Winfrey's OWN Solidifies Profits with Higher Ratings and Ad Revenues

(Photo by Evan Agostini/Invision/AP, File)
(Photo by Evan Agostini/Invision/AP, File)

LOS ANGELES (AP) — The Oprah Winfrey Network (OWN) is in the black for the first time since its rocky start two-and-a-half years ago. More than 30 new advertisers are joining original heavyweight sponsors Procter & Gamble and General Electric, and are paying higher rates as the channel has found its programming and distribution footing.  Headlines about profitability and audience growth have replaced the drumbeat of speculation that her ambitious venture with Discovery Communications might end up a costly flop and an uncharacteristic failure for Winfrey.
Now, Winfrey says, “rewarding” is the word for her experience at OWN, both as the chairwoman and CEO shaping the channel and as a viewer lodestone who hosts several series including “Oprah’s Next Chapter” and “Oprah’s Lifeclass.”
“I no longer have such fear and anxiety about it. I really have more confidence in my decisions,” Winfrey said. “In the beginning, I was in a lot of meetings where people said, ‘You don’t understand cable.’ … I’d say, ‘But I do understand the audience. Aren’t people the same?’”
The answer is yes, says Winfrey, who’s enjoying a career renaissance with OWN’s turnaround and her return to big-screen acting in “Lee Daniels’ The Butler,” No. 1 at the box office for two weeks with more than $50 million in tickets sales.
Her confidence in OWN also is backed up by numbers.  For the year to date, viewership is up 22 percent among the target audience of adult women and 23 percent among all viewers compared to last year, according to Nielsen Co. In the third quarter, prime-time viewership among women 25 to 54 and total viewers each are up more than 60 percent compared to 2012.  For August, OWN drew a channel-high 536,000 prime-time viewers, a fraction of the millions that watched Winfrey’s talk show but respectable for a developing cable channel.

Oprah Winfrey's OWN Channel Finally Set To Make Profit

Oprah WinfreyLast Tuesday afternoon, Oprah Winfrey called the co-presidents of her cable channel OWN with some jump-on-the-couch-with-joy news. “Lance wants to talk,” she said, referring to Lance Armstrong, whom she had been courting for a confessional interview about his long-denied use of performance-enhancing drugs.

Ms. Winfrey conferred with the co-presidents, Erik Logan and Sheri Salata, about booking a trip to Mr. Armstrong’s hometown, Austin, Tex., reserving airtime for Thursday night and announcing the “get” to the press.

What no one said on the call was that this interview — maybe Ms. Winfrey’s biggest since her 1993 sit-down with Michael Jackson — could be a turning point for OWN, which has been low-rated since its birth two years ago.

Another turning point — perhaps even bigger — came this month when OWN started to pocket substantial per-subscriber fees from some of the biggest cable and satellite operators in the country.

Some of these deals were made before OWN even had its premiere. The operators agreed to pay just a penny or two per subscriber a month until January 2013, and then start paying nearly 20 cents a month on average, according to people with direct knowledge of the deals who asked for anonymity because the details were confidential. The fees increase over a span of several years.

Multiply those dimes and quarters across most of the 83 million homes in which OWN is available (but not all — at least one deal is still pending) and the value for Ms. Winfrey and Discovery Communications is plain. Discovery, OWN’s other owner, has said that the channel will turn a profit for the first time in the second half of 2013. Discovery has invested more than $400 million to date.