Oprah Winfrey’s Cable Gamble
(Businessweek) — Slapping Oprah Winfrey’s name on something usually makes that thing a success. As it prepares to flip the switch on the Oprah Winfrey Network cable channel on Jan. 1, Discovery Communications (DISCA) is betting that streak will hold. “This channel will have her name on it,” says Christina Norman, the former MTV president who is now OWN’s chief executive officer. She says the channel could be profitable within three years. “It’s something that [Oprah] doesn’t want to be anything but great.” Still, the network, which Oprah’s holding company Harpo will own jointly with Discovery, is not a sure bet. Some cable and satellite operators are resisting Discovery’s demands for fees triple what they are paying for Discovery Health, the channel being converted to OWN.
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