Kagan: OWN Losses Could Climb to $143 Million

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OWN could saddle Oprah Winfrey and Discovery Communications with a $142.9 million loss this year, according to a report from SNL Kagan.

Kagan analyst Derek Baine says OWN faces a number of problems. They include bad press that could make advertisers impatient and having to renew carriage deals with cable operators in 2012 and 2013 unless ratings move up quickly. "Discovery could end up negotiating carriage agreements for OWN again starting at the end of this year. Its hope for license fees of 20 cents to 25 cents per sub may now be unrealistic."

Discovery spokesman David Leavy responded to the report saying it was "riddled with inaccuracies and bad information." Leavy added that "The venture is on more solid ground with more business momentum than ever before."
Read more at B&C here.

Jon Lafayette
Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.