Posted on 02/16/2012 12:23:00 PM PST by jimbo123
Discovery Communications (DISCA) Q4 2011 Earnings Call February 16, 2012 8:30 AM ET
Operator
Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2011 Discovery Communications, Incorporated Earnings Conference Call.
-snip-
Richard Greenfield - BTIG, LLC, Research Division
A couple of questions. The first one, David, you definitely sounded more upbeat about OWN, but this is a channel that's had pretty constant management of people over the last couple of years, and I think consumers are still struggling to even know the channel that OWN is actually on. I was just wondering from just an agreement standpoint what are your rights actually to terminate the joint venture and actually use that channel position in some other way, meaning could you turn Oprah into a digital channel -- an online network and repurpose the actual channel position?
(Excerpt) Read more at seekingalpha.com ...
Almost from the day that her cable channel debuted, I’ve been predicting here on FR that Oprah will be back on broadcast TV by 2015 at the latest.
The reason is readily apparent. Virtually no one watches OWN and Discovery is losing millions on the channel. As you might expect, Ms. Winfrey has very little of her own money in the venture.She wan’t prepared to lose a chunk of her $3 billion fortune in a venture that was doomed to failure.
Here’s the scenario that will unfold over the next year or so; Discovery will voice support while quietly starting a search for other investors or a new buyer. When they don’t materialize, there will be a loud and messy public break-up, followed by the channel going dark. After that, Winfrey will annnounce her return to broadcast TV, with a less lucrative contract than her last one.
OWN was damage control. They took a failing network they owned all of (Discovery Health) with a failing network they only owned half of. Once they grow something big enough they’ll bail and replace.
Oprah did not put any of her own money into OWN. In exchange for Discovery covering the costs, Oprah committed to pitching and securing multi-year advertising commitments from advertisers such as Procter and Gamble.
Now P&G is laying off nearly 2,000 marketing employees to help pay for the $100 million dollars in advertising that they wasted by giving it to Oprah and OWN.
Any word if Deadliest Catch or Whale wars coming back
If so tell me
I seen that Oprah channel it sucks
I used to watch Discovery Health. I never watch OWN. I would like to see rating comparisons between Discovery Health and OWN.
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