Discovery CEO David Zaslav wants Wall Street to ignore the “noise” about financial losses at his OWN joint venture with Oprah Winfrey. “We have a long way to go,” he told analysts this morning, but adds that “despite what you read, we’re making real progress” — forecasting that cash flow will break even in the second half of 2013. The company won’t say exactly how much the venture is losing. It acknowledges, though, that OWN accounted for most of the $50M in “other” costs that Discovery reported for Q1. (Susquehanna Financial Group analyst Vasily Karasyov estimates that Discovery took a $30M hit to shutter Rosie O’Donnell’s talk show.) Discovery has to report 100% of OWN’s losses because they outweigh the equity inthe channel. But “2012 funding will be less than 2011,” Zaslav says, now that OWN “has taken significant steps that will help the network improve its financial position.” The channel cut costs and employees.

Zaslav’s more upbeat about OWN’s growth opportunities. Beginning next year several pay TV providers including Comcast will pay significantly higher fees for the channel (Zaslav won’t say how much) than they pay now or paid for OWN’s predecessor, Discovery Health. He also sees ad sales improving as the audience grows. Zaslav says OWN reaches 85M pay TV subscribers, up from 80M. With about 15M viewers a week, it has become the 27th-highest-rated network for women — up from last year when it was just among the top 45 targeting that audience. OWN doesn’t have to “morph to find dramatic ratings increases.” As a result, he says, it’s now attracting “blue chip advertisers.” He adds that Discovery is “a long-term driven company…What we see gives us a lot of confidence.” Investors don’t seem so certain: Discovery shares are down 3.4% in early trading.

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The losses at Oprah Winfrey’s stumbling cable channel are approaching a staggering $330 million.

And now industry insiders are predicting the Oprah Winfrey Network will not be able to survive another year if it does not find a hit show and make a dramatic turnaround.

Discovery, which partnered 50-50 with Winfrey to launch the network and has been underwriting its costs, has invested nearly $600 million in it since 2008, according to an extensive report in Businessweek magazine.

But since it started on the air in January 2011, “OWN may have lost as much as $330 million,” the magazine reports.

The magazine quotes one Wall Street media analyst calling the channel the most “successful failure in television today.”

David Zaslav, the chief executive officer of Discovery Communications who talked Oprah into the idea of OWN, is famously impatient with money-losing operations within his company.

He closed a channel Discovery operated with the New York Times in 2008 and just last month killed Planet Green, an eco channel.

Zaslav has one of the biggest salaries in cable TV — $42 million in 2010 — and raised eyebrows when he bought Conan O’Brien’s Central Park West apartment two years ago as a second home for a reported $25 million.

“I really can’t see Zaslav losing this kind of money for much longer,” one longtime business associate said last week.

Winfrey appeared before advertisers two weeks ago to, in effect, ask for more time.

“I am in the climb of my life,” she told them. “I am climbing Kilimanjaro.”

Though Winfrey herself has relatively little money invested in the channel, her image as the most successful TV star of her generation is on the line.

E-mails to OWN and Oprah’s production company, Harpo, were not returned yesterday.

Oprah was spotted arranging a random act of kindness to a homeless man.

Just the other night, Oprah Winfrey was enjoying dinner at Beverly Hills hotspot Scarpetta when a passerby notified her of a homeless man’s situation.

Right after she was heard telling four OWN execs, “I wish I could green light everything,” the stranger came up and asked if she could afford the homeless man a bowl of soup.

Eddie, the man of the hour, then introduced himself to Oprah. And that’s when she made sure to take care of him!

She was heard saying:

Please, can we get him some money, get him a meal. God bless you, Eddie.

One of Oprah’s companions handed Eddie cash and treated him to a nice meal. Hopefully he enjoyed a hot bath and a comfy warm bed too.  He was said to be extremely grateful to Oprah.

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Actress and comedienne, Kim Coles, lands a new gig on Oprah’s OWN network’s new game show, “ARE YOU NORMAL, AMERICA?”   Kim will be one of two hosts on the show.  The second host will be  Barry Poznick from“Are You Smarter Than a Fifth Grader?”   The  game show will answer questions by using highly scientific and revealing polls.  The show will have a man on the streets of America polling individuals of diverse backgrounds.  The polled individuals will view real life situations that are shot in the field.  There will be in-studio demonstrations that depict situations like: have you ever peeked at your boyfriend’s emails;  done your household chores naked; or do you and your spouse sleep in separate bedrooms?

Each episode will feature contestants who will win big money in their quest to learn if they’re normal or not.  Produced by Harpo Studios with Zoo Productions. Executive producers are Jill Van Lokeren and Jon Sinclair from Harpo Studios, as well as Barry Poznick and John Stevens from Zoo Productions (producers of “Are You Smarter Than a Fifth Grader?”).

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The struggling OWN: Oprah Winfrey Network has laid off 30 employees today as it is restructuring its operations in Los Angeles and New York.  The responsibilities handled by the eliminated positions will be redistributed among remaining OWN executives as well as employees of OWN’s owners, Discovery Communications and Harpo Studios. “It is difficult to make tough business decisions that affect people’s lives,” said Oprah Winfrey, OWN’s CEO and chief creative officer, “but the economics of a start-up cable network just don’t work with the cost structure that was in place.  As CEO, I have a responsibility to chart the course for long-term success for the network.  To wholly achieve that long-term success, this was a necessary next step.”

Departing as part of the layoffs is OWN SVP production Julie Stern. Additionally, OWN COO John MacDonald went to management a few months ago to let them know he was not planning to renew his contract.  He was asked to stay on to help with the transition, which he agreed to and will stay through May. In light of MacDonald’s pending departure, Neal Kirsch, CFO of Discovery’s U.S. networks, will be moving to OWN in the role of chief operating officer and chief financial officer, reporting  to OWN presidents Erik Logan and Sheri Salata. In addition, following the recent exit of SVP Business and Legal Affairs Alan Saxe, Tina Perry, VP, business and legal affairs, OWN, will now oversee the department and partner with Lee Bartlett, EVP, global production management, business and legal affairs, Discovery. Michelle Holt, VP, production, OWN, will now oversee production management, replacing Stern; and Ian Parmiter, SVP, marketing, Discovery Ad Sales, will oversee integrated marketing for OWN. “We have been on the air for 15 months, and since September we have gained momentum in ratings and viewership,” Logan said. “Restructuring our business will allow us to build a solid foundation for long-term growth.” After a disappointing start, OWN has posted modest ratings gains in the past few months, culminating with the record 3.5 million viewership for Winfrey’s interview with Whitney Houston’s daughter earlier this month.

The layoffs come on the heels of OWN’s decision on Friday to cancel the Rosie O’Donnell talk show, which also will likely lead to departures. (About 30 crew members working on the show were already laid off when it was scaled back to a smaller venue in January, along with 5-6 staffers who left with Page Hurwitz when she departed as executive producer in December.) The cuts also follow the latest high-profile OWN executive exits of EVP of production and development Lisa Erspamer, one of Winfrey’s closest and most trusted executives, and Saxe.

Do you think that Oprah decision to move to a cable network instead of a free TV channel is what has her network in a downward spiral?  She was on and popping before.  Sure her ratings were declining for her show, but we are talking about an entire network.  Do you think that she would be having these problems had she stayed on a free television provider?

 

 

Oprah Winfrey, marking the 25th and final season of “The Oprah Winfrey Show,” has given Westport’s Save the Children $1.5 million to rebuild a primary school in Zimbabwe.

The charity said Friday’s episode of the program featured an hour titled “Oprah’s All-Time Favorite Guest Revealed!” which updated viewers on the lives of some of the program’s most memorable guests.

“During the show, Oprah also revealed that her favorite guest of all-time is Tererai Trent, a woman from the village of Zvipani in Zimbabwe,” the charity said in a news release.

“Tererai touched the lives of millions when she first appeared on the program in 2009, sharing her passion for an education, and a lifelong dream to go to school.”

Save the Children said her new dream was to re-build the Matau Primary School in her home village in Zimbabwe.

Winfrey wanted to give Trent the surprise of a lifetime, and during her appearance on the program, it was announced that The Oprah Winfrey Foundation would donate a $1.5 million grant to Save the Children to re-build the Matau Primary School, the charity said.

With the $1.5 million grant, Save the Children said it will begin construction on new classrooms, latrines, a preschool playground, a school administration building and teachers’ houses in the next few months.

It said it also will supply locally-made desks, chairs, books, toys and other learning materials for students and preschoolers.

“Tererai is an inspiration to all of us,” said Charles MacCormack, president and CEO of Save the Children. “She is proof that you can come from a small village and still dream big because education has the power to transform lives.

“Save the Children is grateful to Oprah for this contribution which will allow thousands of Zimbabwean children who aspire to be the next Tererai to learn, grow and succeed in school and life.”

In addition to The Oprah Winfrey Foundation donation, people can help support the Matau Primary School Project by visiting SavetheChildren.org.

Oprah’s finale show’s celebrity turnout seemed more like an awards gala than a talk show segment.  Everyone showed to give Oprah what seems to be the most endearing sendoff I have ever seen.  The celebrities that were there included: Beyonce, Madonna, Aretha Franklin, Tom Cruise, Michael Jordan, Maria Shriver, Tyler Perry, Will & Jada, Gayle, Stedman, Usher, John Legend, Diane Sawyer, Jerry Seinfeld, Maya Angelou and more.

You know you have done an excellent job in life when you receive this much love and support from your friends.  It just does not get better  than this.  What makes it even more special was the fact that she had no clue who would be there.  It was all a surprise set up by her productions crew.  They called it “Surprise Oprah! A Farewell Spectacular.  There are still a lot more surprises that have yet to be revealed.  There was plenty of entertainment in the building as well.

Beyonce performed her new song, Run the World (Girls); Usher sings Oh Happy Day; Stevie Wonder and Jamie Fox serenade; Aretha and Patty Labelle sang; as well as more performances and speeches.  The pics certainly speak for themselves.  Enjoy!!

Snip of Beyonce’ surprise performance

So far I’ve heard that Will & Jada will be there; as well as Beyonce’ and Madonna.  The Beyonce’ and Madonna leak came earlier this morning.  I hear they’re both in Chicago as we speak and preparing for taping.  After I heard I went over the Beyoncefan site and it’s buzzing over there too, but they say Taylor Swift with no mention of Madonna, so who really knows?  Maybe they all will be there.

CHICAGO (AP) – Thousands of Oprah Winfrey fans are expected to pack Chicago’s United Center on Tuesday for a star-studded double-taping of her talk show as it approaches its finale. The guest lineup for “Surprise Oprah! A Farewell Spectacular” is a secret, but Winfrey’s producers have promised the biggest names in Hollywood. The celebrity response “has been a resounding ‘yes,’” executive producer Sheri Salata said. “Celebrities from film, television and music feel a deep appreciation for the support they have received from Oprah and the show over the years,” Salata said. “Oprah will be very touched by that gratitude.” Tuesday’s taping will air May 23 and 24, before Winfrey’s final show on May 25. The content of the final episode of “The Oprah Winfrey Show” is still under wraps. Winfrey announced in November 2009 that she would end her popular talk show after 25 years. “Oprah is in great spirits, energized and taking in every last bit of these final days,” said Salata, who figures prominently on “Season 25: Oprah Behind the Scenes.” The show follows the final season Winfrey’s talk show and airs on her new cable network. “The producers are a little teary-eyed — it’s hard to say goodbye,” Salata said. Harpo Productions received more than 154,000 ticket requests for seats to Tuesday’s event. Tickets were free and distributed to fans through a lottery. The United Center is home to the Chicago Bulls and Chicago Blackhawks with a seating capacity of more than 20,000. It is just blocks from Winfrey’s long-time studios. It isn’t the first time Winfrey has staged a blockbuster event in Chicago. The crowd was estimated at 21,000 when Winfrey closed down Chicago’s Michigan Avenue in September 2009 to film her 24th season premiere.

 

There is also another person who is requesting a stay in her jury duties to attend an Oprah tapping.  This is really kinda funny.

Source: Associated Press

Nice gesture. They didn’t have to give them anything right? I hope the lady that ditched jury duty was there that day.

I took the liberty of looking up the video of Toni appearing on The View. In the clip she explains her bankruptcy. I wish Toni would relax a bit more about it all. The entire country was in financial turmoil and it’s so understandable. Don’t we all know someone that lost their job within the past 2 years? I still think that damn Madoff helped to send the country in financial ruins, but I digress.