Oprahs OWN Network is racking up quite a bill, according to Discovery Communications set an exact $100 million limit. They now reveal the network launches in 2011 and is already over budget.
Discovery Communications has said that the $100 million it set aside to launch Oprah Winfrey's OWN cable network in January isn't going to cut it anymore.So far, Discovery has "spent $75 million . . . on investment in the Oprah Winfrey Network," Brad Singer, Discovery Communications Inc. CFO, said yesterday during the company's quarterly earnings conference call.That's three-quarters of the contractual "maximum of $100 million that we're obligated to," he said.
With each delay of OWN's launch — from 2009 to mid-2010 to January 2011 — Discovery has had to crunch some numbers and figure out a whole new cost plan."We're in the process of revising that contract," Singer said. "[The budget] likely will go up . . . the cost to launch the network, it will be higher than we had originally contemplated."
He declined to specify what the new anticipated total cost will be. Still, Discovery is content with OWN, which it owns 50/50 with Winfrey.