Oprah Winfrey's Network Predicted to Lose $142.9 Million in 2012


Oprah Winfrey's Network Predicted to Lose $142.9 Million in 2012


The network's co-owner Discovery, however, remains confident about the future of OWN, and claims that the analyst report is inaccurate.

Oprah Winfrey's OWN could record a higher loss this year, so it's predicted by SNL Kagan analyst Derek Baine. According to the senior analyst at the research firm, the network is likely to lose $142.9 million in 2012 after losing $107 million in 2011.

In a research note, Baine additionally reports that the network's co-owner Discovery could take a write-down on its joint venture with Winfrey. "We believe that there may be a significant write-down at OWN in the first quarter from both programming costs for shows that are not working as well as severance costs for those being laid off," he writes.

Baine also notes that OWN may face difficulty in getting advertisers as explaining, "With all of the bad press that the channel is getting, advertisers may tire of playing the waiting game for shows to catch an audience." Meanwhile, the cancellation of "The Rosie Show" is believed to end hopes that OWN could gain more viewers this year.

However, a spokesperson for Discovery says that the analyst report is "riddled with inaccuracies and bad information." He also insists that the network is "on more solid ground and has more business momentum than ever before," before adding, "We are superbly confident in the future of OWN and the long-term value creation we're building."

OWN has shown signs of troubles when it announced the layoffs of 30 employees as part of a restructuring and budget adjustment. The network's CEO and chief creative officer Winfrey admitted, "The economics of a start-up cable network just don't work with the cost structure that was in place."

© AceShowbiz.com


MORE FROM NEWS

Leave a Comment

Required fields are marked with *

   

TODAY'S HEADLINES

  1. Matt Damon and Jimmy Kimmel Go to Couples Therapy Again. Does It Work This Time?
  2. Rihanna Warns Fans Not to Play Pokemon Go at Her Concert as Beyonce and Adele Face Same Issue
  3. 'The Walking Dead' Was Supposed to End in Alexandria, but It Has Changed
  4. Iggy Azalea Sparks Butt Implant Rumors With Instagram Photo. What Expert Says?
  5. Karl Urban Debuts His 'Thor: Ragnarok' Look. See His Newly Shaved Head
  6. Meet the Ravagers From 'Guardians of the Galaxy Vol. 2'
  7. Jeremy Renner's Ex Claims He Refuses to Pay Child Support
  8. Disney Plans 'Han Solo' Trilogy With Alden Ehrenreich
  9. 'Sesame Street' Fires Three Longtime Cast Members
  10. Secretly Married? See Miley Cyrus' New Band on Her Ring Finger

CELEBS PHOTO