Researcher Puts Hefty Price Tag on OWN Losses for This Year Bloomberg
Oprah Winfrey’s struggling cable network can look forward to a hefty loss for 2012, according to a prominent media research firm.
Bloomberg reports that researcher SNL Kagan says OWN may lose as much as $142.9 million this year as it struggles to boost ratings. The network most likely lost $107 million on a cash-flow basis last year, according to the SNL Kagan report.
Discovery, which is a partner in the venture, reported a $35 million loss on equity investments last year, which partially reflected its OWN stake as well as other holdings, the story notes.
As previously reported, OWN cut 30 employees this week as the network continues to struggle with ratings, while Discovery reportedly has already invested more than $300 million in programming and marketing costs.
Discovery disputed SNL Kagan's report, according to the story, with a representative calling it "riddled with inaccuracies and bad information."
"The venture is on more solid ground with more business momentum than ever before,” the rep said, according to the piece. “We remain confident in the future of OWN, and the long-term value we are building.”
SNL Kagan said OWN may not be able to achieve expected carriage rates when negotiations with cable operators start up later this year, according to the story.