Oprah Winfrey (17:35)
It's April 2009 in a Chicago conference room, a little over a year after Oprah Winfrey announced own her joint venture with Warner Brothers Discovery. With a shake of her head, Oprah refills her glass of water. Across the gleaming table from her sits David Zaslav, the 49 year old CEO of Discovery Communications. Oprah is feeling frustrated and is beginning to wonder whether the Oprah Winfrey Network will ever get off the ground. The global recession has thrown all their plans into doubt, and both partners in the new network are starting to question the other's commitment to the project. Well, to be honest with you, David, I feel we're going in circles. Meeting after meeting, I get shown all these promo materials about how OWN could be this or could be that. But I'm tired of talking about what it could be. I want it to actually do something. Well, Oprah, with all due respect, that would be easier if you were fully committed yourself. Well, I am committed. You're half in, half out right now. If you want this to succeed, we need more than 50% of you. Your heart's in this network, but we've only got you contracted for 35 hours of original programming a year. Well, you know, I have to finish my commitment to the Oprah Winfrey Show. Of course, of course, and we understand that, but there's only a year or so left on your contract. Have you put any thought into bringing the show over to OWN once your current deal ends? It would help tremendously with ad sales. I think that would feel like a step backwards. Like we don't have any fresh ideas, just a 25 year old talk show. I mean, I love my show, of course, but it's on its last legs. Oprah, to this day, you are consistently pulling in 40 million viewers a week. From where I'm sitting, those last legs still look pretty strong. It's had its day. I want to look to the future. Well, I hate to paint a depressing picture here, but there may not be a future for OWN without your show. The recession is just killing market budgets. It's an issue across the industry. We're simply not getting the advertisers we anticipated. They don't believe our subscriber projections. Without established shows, they want sure bets. And the Oprah Winfrey show is the surest of sure bets. In the fall of 2009, the premiere of the Oprah Winfrey Network was pushed back indefinitely. Industry insiders began to suspect that the new channel was doomed. But then Oprah Winfrey decided to make a clear commitment. She named one of her most trusted producers at Harpo Productions as the new chief creative officer at OM it was intended as a signal that Oprah's future lay with a new network. But it did nothing to answer the big question that what Oprah was going to do with the Oprah Winfrey Show. For the Premiere of the 24th season of Oprah Winfrey's talk show, she and her staff planned something spectacular. They got the city of Chicago to shut down Michigan Avenue for a performance by the musical group the Black Eyed Peas. But what Oprah did Not know was that her producers had a surprise in store for her, too. As the Black Eyed Peas took the stage and began to sing, the 20,000 fans in the streets stood completely still, almost looking bored. Oprah was confused. But then one woman started dancing. Then ten more, a hundred more. And then all of a sudden, the entire crowd burst out in a choreographed dance. Oprah notoriously hated surprises because they were out of her control. But she was thrilled with this flash mob. The idea of all these Chicagoans coming out to do something for her brought tears to her eyes. Especially because Oprah knew something the rest of them didn't. That the opportunity for moments like this was passing. One month later, on November 20, 2009, Oprah announced that she would be ending the Oprah Winfrey show after its 25th season. The last thing Oprah wanted was to overstay her welcome on TV and have her audience feel like her best days were behind her. But her announcement was more than a farewell. It was an invitation to viewers to join Oprah for the next stage of her journey on the Oprah Winfrey Network. Now that the future of the talk show had been resolved, Oprah committed wholeheartedly to the new channel. And she negotiated a new contract with Discovery to reflect that. Much to David Zaslav's disappointment, it did not include recreating the Oprah Winfrey Show. But Oprah did agree to increase the hours of original content she'd produced from the original 35 to 70 hours. Every year, she would start new shows like Oprah's Next Chapter, in which she would travel around the world and conduct interviews to be shown in prime time. She also agreed to make appearances on other programming like youe Own Show, a reality competition hoping to discover the next Oprah Wininfrey. Still, with 24 hours a day to fill, that left plenty of slots in the schedule. So Oprah took the opportunity to introduce more spiritual content. She had tried that once before on the Oprah Winfrey show, and it hadn't quite worked. But that didn't dissuade her from trying again. She still had faith in the transformative power of spiritual awakening. And as the ultimate goal of the new channel was to reflect Oprah's personality, she made sure spiritual programming received prime placement and schedules. So with this new plan established, the Oprah Winfrey Network got an official premiere date on January 1, 2011. It would go live to around 80 million households across the United States. But before Oprah gave the network her full attention, she wanted to give her talk show a proper send off. In May of 2011, Oprah hosted the final episodes of the Oprah Winfrey Show. First, there was a star studded event at the home of the Chicago Bulls basketball team. More than 20,000 adoring fans filled the arena to say goodbye to Oprah, and a host of celebrities joined her on stage, including Will Smith, Michael Jordan, Beyonce, Madonna, and Tom Hanks. But the most special guest of all was a figure from Oprah's past. As a teenage runaway, Oprah had been given a hundred dollar bill by the music legend Aretha Franklin. Now, decades later, they stood together on stage and Oprah listened as Aretha sang Amazing Grace, a tribute to everything she had achieved since she was that scared young woman in Milwaukee. But as spectacular as that celebration was, Oprah knew her real goodbye wouldn't come in front of tens of thousands of people at a basketball arena. It would come in the same place. It all began in a television studio. The next day, Oprah was back at Harpo to tape the finale of her show. It was a far more subdued affair than the party the night before. Just her and her audience, whether at home or in the studio, saying goodbye to each other. Over the course of 25 seasons, Oprah had produced more than 4,500 episodes of the Oprah Winfrey show, and she bowed out, still wearing the daytime crown. In its final season, her show averaged about 6 million viewers a day, making Oprah the most popular talk show host on air. After such an emotionally exhausting moment, many people would have taken a break. But Oprah didn't have time to pause and reflect. She had to immediately shift her focus from the Oprah Winfrey show to the Oprah Winfrey Network. Because the new channel had not gotten off to a good start. Oprah had tried to manage expectations, warning industry analysts that they should judge the channel's success over three to five years. But it was hard to ignore the fact that OWN debuted to only 500,000 viewers, a far cry from the tens of millions who had tuned into Oprah's talk show every week. Discovery had put over a quarter of a billion dollars into programming for own, and executives there had quickly grown concerned about the lack of return on that investment. Oprah herself couldn't help feeling disappointed, too. She had assumed that a far larger proportion of her audience would follow her to the network, where they could access Oprah's ever popular Live youe best life message 24 hours a day. But what Oprah had not realized was that her audience didn't want to consume her programming all day, every day. They had been happy for her to be on Channel 7 at 4pm for one hour every weekday. That had been a habit that they could build their life around. But when Oprah was on all the time, it was somehow harder for them to make any time. Getting her audience to move over to a paid cable channel was clearly going to be harder than Oprah had anticipated. But she rolled up her sleeves and got to work. Two months after wrapping the Oprah Winfrey show, she took on the role of OWN's chief executive. She was determined to turn the struggling network around and tried experimenting with various new shows and formats. She hosted interviews with philosophers and life coaches on the weekly Super Soul Sunday. And she helped launch a new talk show hosted by the actress and comedian Rosie O'Donnell. But nothing seemed to stick. After a year of disappointing ratings, the network was averaging just 264,000 viewers in prime time, and its annual losses were approaching half a billion dollars in modern money. Oprah didn't dare admit it to anyone else, but privately, she was panicking. After 25 years of being number one, she was not used to experiencing such failure. But she was not about to let OWN fall apart. So she continued to try to find innovative new ways to draw an audience. Soon, she decided on a radical departure for the channel. OWN would expand into scripted programming. In October 2012, Oprah signed the actor director Tyler Perry to develop several new television dramas for the channel. And just over six months later, his first primetime shows for OWN hit the air. The original sitcom Love Thy Neighbor and soap opera the Haves and the have Nots quickly won audiences of over three and a half million viewers. Viewers. Those ratings were as high as any recorded by the channel before. But crucially, they were also reliable. People kept tuning in to watch week after week. That steady performance was what advertisers were looking for. And by the end of 2013, the Oprah Winfrey Network was turning a profit. Oprah may have been able to breathe a sigh of relief, but now she faced another decision. During her decades on television, Oprah Winfrey had never positioned herself as a broadcaster solely for black women. She had sought a more universal appeal, and she hadn't envisioned her television network being any different. But without her necessarily intending it, OWN was resonating most strongly with black audiences, especially women in the important 25 to 54 age demographic. This presented Oprah with a choice. She could keep testing out new material to see if she could recapture the attention of a broad market, or she could lean into the niche market. She had found Oprah chose the latter, realizing that OWN had finally found its voice, and she was happy to let that voice ring out loud and clear. She had now not only conquered daytime talk, she had proven her critics wrong about her TV network as well. But it was still no time for complacency. Television was changing once again. On Demand Entertainment, streaming over the Internet, was about to upend the industry and present Oprah with one last world to conquer.