Oprah’s Network Finding Its Stride

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Aug. 21 (Bloomberg) – Horizon Media’s Brad Adgate and Bloomberg’s Andy Fixmer discuss the Oprah Winfrey Network’s cable comeback and how OWN is finally profitable. They speak with Sara Eisen and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Here to talk about it, our guests join us from los angeles.

Own seems to have found their footing.

You have crunched some of the numbers.

What do they tell us?

Women 25-54, even higher for african american women, that is a top-tier network.

As john mentioned, the deal with tyler perry really took them over the top.

What is the magic there when you look at tyler perry's programs.

What is he able to do for the oprah winfrey network that she was not doing before you go he has his own name.

He has more likes on facebook than oprah winfrey, if you can believe that.

He brings a certain amount of cachet to the network that was not there before.

Given what brad described as the demographic, mostly female viewership, who are the advertisers for the network?

The audience is predominantly female, the average age is a little over 50. this is a good market for advertisers.

You could ask anybody, any other network with a big audience like that, oxygen, lifetime, tlc.

In the broadcast space, abc has made a good business targeting women in this group.

It is also oprah's philosophy, be your best self.

That is her slogan, but it fits well if you are an advertiser and you want to be part of that conversation.

It is definitely drawing specific advertisers fitting in with that.

There are a lot of packaged goods, things like kellogg's and procter & gamble and nestle and johnson & johnson.

It is in line with the target audience, women 25-54. the company has just started to go in the black.

They are just starting to make money.

Discovery channel invested $500 million.

How long will it take before they attract more advertising dollars and it becomes a legitimate profit machine?

I think in a few years.

Alex rodriguez would be a great type of interview.

Quick she had the lance armstrong interview.

And lindsay lohan.

Those type of shows , she has some good shows.

She has one about a soul food network.

Go into the relationship a little bit more with discovery, how much they have invested, and what sort of leverage that gives a network like own.

Having discovery has been crucial for own.

The discovery ceo brought the idea to oprah and said let's rebrand this.

Let's make this about you, your brand, and your programming.

That was crucial to get into all those households.

It is tough to launch a cable channel or nearly impossible.

She launched into almost 80 million homes, and that is a really sizable audience.

Discovery has had to invest quite a bit of money into the network, about $500 million.

That takes time to payback.

But they are on the right track.

Own is now profitable and is working toward paying back some of those loans.

It is going to take several years before they are at the point where they have paid that back and are on the road.

What do the people running own need to do in the next 24 months?

If you can put on original content -- they are headed the right way.

Once you build on that, you can charge advertisers more.

The retransmission fees are up.

This text has been automatically generated. It may not be 100% accurate.

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