Winfrey network struggles increase

Los Angeles Times

LOS ANGELES

Things may get darker before they get brighter at OWN, the cable network launched by Oprah Winfrey and Discovery Communications.

Winfrey and Discovery — the cable programming giant that is Winfrey’s sugar daddy on OWN and has already pumped over $300 million into the struggling start-up — have in the last several days announced a round of layoffs, a new executive structure and the cancellation of the pricey and low-rated talk show starring Rosie O’Donnell.

Now a top media analyst casts more clouds on OWN.

In a report released Wednesday, analyst Derek Baine of influential consulting firm SNL Kagan projected that OWN could lose $142.9 million in 2012.

Baine’s report comes just days after OWN canceled O’Donnell’s talk show and announced it was cutting 20 percent of the network’s staff.

“OWN’s staff reduction and the cancellation of ‘The Rosie Show’ are clear signs that the network is struggling,” Baine wrote.

David Leavy, Discovery senior executive vice president, said the report is riddled with inaccuracies.

He said Discovery had no plans of bailing on OWN, adding the company remains “confident in the future of OWN.”