Zaslav: OWN Will Break Even in 2013

Record upfront predicted

By Jon Lafayette -- Broadcasting & Cable, 5/8/2012 9:05:17 AM

Discovery Communications CEO David Zaslav says he expects OWN, the company's troubled joint venture with Oprah Winfrey, to reach cash flow breakeven in the second half of 2013.

Losses associated with OWN cut into Discovery's first quarter earnings announced Tuesday. Discovery has poured more than $300 million into getting the channel off the ground.

During the company's earnings call with analysts Tuesday morning, Zaslav said that with Oprah appearing on the channel more often and failing shows cancelled, ratings are rising. Costs have been cut and new distribution agreements with cable operators including Comcast calling for "meaningful" subscriber fees, kicking in beginning in 2013, "we remain confident in the growth potential of this network."

He said that "we anticipate funding to OWN in 2012 will be less than 2011," and added that "we expect to achieve cash-flow breakeven in the second half of 2013."

Zaslav also said that recent indicators point to a record upfront for Discovery.