CEO At Oprah Network Departs, As Queen of Talk Readies More Involved Role

Christina Norman is Out, Peter Liguori Steps in on Interim Basis

Discovery Communications moved to assert itself further over the Oprah Winfrey Network Friday by replacing its current CEO, former MTV executive Christina Norman, with Peter Liguori, its chief operating officer.

Discovery has made a big bet on OWN, gambling that TV viewers might be in the market for more of Ms. Winfrey's inspirational chit-chat and celebrity interviews. After investing $189 million, the company said in February it would sweeten that pot with another $50 million, a nod to the necessity of original programming to woo more viewers to OWN's air. More recently, Discovery CEO David Zaslav said the company would make a further investment in programming, though he did not offer a specific amount.

Yet ratings at the fledgling outlet, aimed at espousing Ms. Winfrey's brand of living life to its fullest, have disappointed, and OWN has struggled to find a breakout hit and a dedicated audience in its first few months. During the first quarter of 2011, the network ranked No. 45 among all cable networks in total viewers and adults 18 to 49, trailing mid-tier competitors like WeTV and Oxygen as well as Lifetime and Lifetime Movie Network. OWN's Sunday-night programming lineup has showed signs of life through the network's top-rated program, "Season 25: Oprah Behind The Scenes," and 6-part reality series "The Judds," which finished its first season last Sunday with 502,000 total viewers.


At present, OWN's top-rated program is a behind-the-scenes look at the last season of Ms. Winfrey's talk show, a signal that viewers may not be as rabidly interested in content that does not feature the popular talk-show host. Her syndicated daytime talk show is slated to end later this month, whereupon she is expected to take up more responsibility at the cable outlet.

OWN is preparing to launch a new version of comedienne Rosie O'Donnell's daytime talk show, as well as series featuring Sarah Ferguson and Shania Twain. Another highly-anticipated series, "Oprah's Next Chapter," will debut in early 2012 and is expected to follow Ms. Winfrey on a series of international excursions with occasional celebrity guests.

Mr. Liguori is expected to remain interim CEO through at least the fall, with Ms. Winfrey expected to take on a more hands-on role after the last episode of her syndicated daytime talk show tapes this month.

Ms. Norman's departure is the latest in a long string of executive departures from the network, including original general manager Robin Schwartz, former programming chief Jamila Hunter, digital chief Robert Tercek and chief marketing officer Liz Dolan. The churn does not lend an air of stability to the joint-venture between Discovery and Ms. Wifnrey's Harpo production company, but it is in keeping with the way the popular talk-show host has launched other ventures, such as O Magazine.

The decision to replace Ms. Norman was made by OWN's board over the last few weeks, a spokeswoman for the channel said. A Discovery Communications spokeswoman declined to comment, referring an inquiry to OWN.

"This is a natural point of transition," Ms. Winfrey said in a statement, "and I am confident that Peter, as an integral part of the launch of OWN, will be a terrific partner for me going forward. He is one of the smartest, most creative executives in media, and I look forward to his leadership as we build our development slate." She and Mr. Liguori will "work together to recruit a permanent CEO for OWN's next phase of growth" over the rest of 2011, she said.

In a statement, Ms. Norman did not specify what she will do next.

Jay-Z on Oprah Presents "Master Class"

PROCTOR & GAMBLE SPEND $100M OPRAH: "IS IT WORTH IT"

On the face of it, $100 million is nothing to Procter & Gamble. The consumer-products giant spent $2.7 billion last year on traditional media and web-based banner ads, according to Kantar Media. So why should anyone care if Oprah Winfrey's fledgling cable network got a taste of a couple of Tide, Crest and Pampers-created pennies?

Procter & Gamble has agreed to advertise on the still-to-be-launched Oprah Winfrey Network, the Discovery Communications experiment that aims to find out if a cable channel centered around a popular media personality has what it takes to make a sustainable media business. People familiar with the pact valued it at $100 million or slightly more. The agreement lasts for three years and also encompasses the ability for P&G to purchase integration of its marketing messages into OWN programs, these people said.

A P&G spokeswoman confirmed the company has struck an ad pact with OWN, but declined to comment on specific details. An OWN spokeswoman also declined to comment on deal specifics. The ad pact was first reported by The Wall Street Journal.

The deal seems small for P&G but is a relative bonanza for OWN, particularly because the channel doesn't launch until early next year. How many fledgling cable networks secure upfront deals before the broadcast marketplace even opens? And getting an advertising seal of approval from Procter & Gamble, the nation's biggest advertiser in 2009, often sparks the attention of other marketers, which feel they ought to be where P&G sees an opportunity. P&G spent approximately $1.35 billion on broadcast and cable TV advertising in 2009, according to Nielsen Monitor-Plus. In cable, the consumer-products giant spent most heavily on Lifetime, MTV and USA.

But for Procter, the early buy could also help it wring decent marketplace concessions for a relatively small ad outlay. Advertisers who get in early at new media outlets often are able to secure lower-than-normal prices that continue as the media property ages and, perhaps, begins to command higher rates from latecomers. P&G may also earn early looks at new shows and have a better pick of potential integration opportunities before other marketers come crowding around.

About OWN :: Oprah Winfrey Network

OWN's mission is to create multiple platforms for women, men and their families with a purpose and a passion: to celebrate life, to inspire and entertain, empowering viewers around the world to live their best lives, and by doing so, lift the lives of those around them in ever-widening circles.

In addition to providing her talent, and personal commitment, Winfrey will have full editorial control over the joint venture and will be responsible for OWN's programming, branding and creative vision.

Winfrey will serve as Chairman of The Oprah Winfrey Network, LLC and the venture will be 50/50 owned by Discovery and Harpo. This is a cashless transaction and The Oprah Winfrey Network, LLC will be an independent company.

Ms. Winfrey's planned cable network is already attracting a lot of attention. At a presentation made to advertisers in early April, the talk-show host promised a programming slate aimed at inspiring viewers to improve themselves and their lives. Ms. Winfrey is set to appear in at least two reality programs that will follow her last season at her broadcast-TV talk show and as she travels the world.

Other shows will feature experts who have come to prominence on her daytime series, or pull at the heartstrings. One program, "Kidnapped by the Kids," shows parents forced to scale back on workaholic tendencies in order to spend time with family.

"It's not just another cable launch," said Andrew Donchin, director of investment at Aegis Group's Carat. "There's some pizazz to it. It has a pretty decent shot at being something special."