Take the survey!

celebrity brandcasting

OWN Goal: Oprah and Discovery Poised for Lance Armstrong Boost as Ratings, Fees Soar

Posted by Sheila Shayon on January 18, 2013 07:54 PM

As Lance Armstrong’s personal brand and fortune hits the skids, Oprah Winfrey’s OWN and partner Discovery Communications are reaping the benefits.

The question is to what extent the interview with the disgraced cyclist will serve as a turning point for her eponymous network, which launched on Jan. 1, 2011.

Discovery has invested more than $400 million in OWN, and says the channel will turn a profit for the first time in the second half of 2013.

OWN is turning a corner on per-subscriber fees from some of the biggest U.S. cable and satellite operators, with a reach of 83 million homes and the contractual ability to boost those subscriber fees two years post-launch now kicking in.

So is OWN finally ready for prime time, and will the Armstrong exclusive enhance the network's performance?

Winfrey’s Q Score slipped from 31 in 2010 among adult women to 22 in 2012, but hopes are high that the Armstrong interview will finally put OWN where Discovery hoped it would be from the start. “They see a lot more to do, but they think they’re on the right track now,” Paul Maxwell of MediaBiz told The New York Times.

"OWN only truly works when she's on it. When Oprah does what she does. And on Thursday, she did Lance," The Hollywood Reporter's TV critic Tim Goodman commented.

Discovery — which has a history with Armstrong as a title sponsor of his cycling team, although OWN says the cyclist wasn't paid for the OWN TV special — is leveraging the "worldwide exclusive" interview with Armstong, which attracted 4.3 million viewers the first night, for all it's worth.

It raised advertising rates and has aired ads for other OWN programs — along with Internet and print ads — to ensure audience tune-in. Yet it failed to capitalize on the live-streaming video of the two-art special on Oprah.com and on OWN's Facebook page because it didn't have video ad insertion in place for the programming event. A huge missed opportunity, as part one of the two-night special attracted 600,000 online streams with viewers live streaming from 190 countries, also dominating social media throughout the programming event.

"Oprah and Lance Armstrong: The Worldwide Exclusive" reportedly charged about $100,000 for a two-spot ad buy, with advertisers "getting a spot in both nights of the special,” Ad Age reports. Ad Age estimated that's about 40% to 50% more than advertisers would have paid for that much time during other major interviews or specials on the network — a premium for OWN, but still less than top cable shows typically command.

The TV special will also be simulcast in over 100 countries across Western Europe, Latin America and Asia-Pacific on Discovery Channel, TLC, DMAX and Home&Health, with additional international markets airing both episodes over the weekend.

“We’ve always said to ourselves, ‘Slow and steady, slow and steady,’ ” OWN co-president Erik Logan told The Times. The Armstrong exclusive "showcases the No. 1 asset this network has over everybody else — and that's Oprah Winfrey."

OWN has steadily captured a significant share of African-American women put off by youth-centric programming on competitors like BET. OWN's audience is roughly one-third black.

The network recently inked a deal with Tyler Perry, the creative force behind "Madea's Family Reunion" and TBS’  "Tyler Perry's House of Payne.”

"Oprah's Next Chapter," the series that puts Oprah back in her daytime guise (which viewers love) as celeb interviewer and breezy chum to the famous, remains the key driver for ratings, although "Iyanla: Fix My Life" and "Welcome to Sweetie Pies" have held their own.

"The initial expectations for this network turned out to be unrealistic," said Brad Adgate, analyst for Horizon Media. "Oprah wasn't on camera. The shows weren't all that good. The network got raked over the coals. People thought the network would be doing a million viewers (on average) and it's doing a third of that." 

The interview could boost OWN’s reach to 20 million subscribers, and possilbly, "they'll be calling their cable operators and saying, 'How come I'm not getting this?'" added Adgate.

Winfrey faulted OWN for “launching when we really weren’t ready to launch,” while she was still busy hosting her daytime talk show. But in October, she changed her tune on ABC’s "Good Morning America," commenting, “We have made the pivot.”

Now, arguably, OWN has turned that corner. The question is how Winfrey and Discovery leverage it going forward.

Comments

Kelly Gee United States says:

Armstrong will no doubt be shown to have lied throughout this so-called confessional interview, and Winfrey could have done a MUCH better job grilling him on the basics that any trained journalist (which she's not -- she's a lifestyle guru) would have asked. I don't think this PR stunt establishes OWN as a credible media outlet, or puts Brand Oprah back on the map. The whole thing's being treated by the tweeting/streaming/Facebooking public like the circus and the car (sorry: bike) crash it is.

January 18, 2013 09:08 PM #

Doprah United States says:

Interesting that Katie Couric scored the Manti Te'o interview, not Oprah.

abcnews.go.com/.../story?id=18264401

January 20, 2013 07:21 PM #

Sam Emm United Kingdom says:

If you want to read a class act worth celebrating in cycling, read this about a cyclist who refused to dope:

www.guardian.co.uk/.../nicole-cooke-retirement-statement

January 18, 2013 10:22 PM #

Dzi Hong Kong S.A.R. says:

In one of the clips of Lance winning a tour, he was shown to be sponsored by the Discovery channel. Is that why he agreed to do it with OWN?

January 19, 2013 05:27 AM #

Shirley Brady United States says:

You're right, Armstrong's relationship with Discovery dates back to its sponsorship of his cycling team, but he and OWN say no money exchanged hands for the TV interview.

January 19, 2013 08:39 AM #

snubne prstene United States says:

whoah this blog is excellent i love reading your posts. Keep up the good work! You know, many people are hunting around for this information, you can help them greatly.

January 24, 2013 12:11 PM #

Comments are closed

elsewhere on brandchannel

1 2 3 4 5 6 7 8 9
brandcameo2014 Product Placement Awards
Apple loses its crown to a new #1
Coca-ColaIt's the Journey That Matters:
Coca-Cola Opens Up With Story-Based Web Refresh
debateJoin the Debate
Is product placement a waste of money?
Arthur Chinski and Joshua Mizrahi
Model Behavior? Brands Beware
U.S. Legal Changes Impact Use of Brand Ambassadors
paperCorporate Citizenship in Canada
Fresh thinking from Interbrand
Sheryl Connelly
Sheryl Connelly

Meet Ford's Resident Futurist
MetaluxuryMeta-Luxury
Brands and the pursuit of excellence

Advertisements