Business Movers Podcast – Episode: Oprah's Empire | The Oprah Effect | 3

Host: Lindsey Graham, Wondery
Release Date: December 5, 2024

Introduction to Oprah's Book Club

Timestamp: 00:00

The episode opens in April 1996 in Oprah Winfrey's office at Harpo Studios in Chicago, where Oprah is contemplating the launch of her very own book club. She selects Jacqueline Mitchard's debut novel, The Deep End of the Ocean, a poignant tale about a mother dealing with the kidnapping of her child. Believing in the book's potential and seeing a reflection of herself in the protagonist, Oprah reaches out to the book's publisher with an ambitious plan.

Notable Quote:

"I'm starting a book club on my show, and I swear to you, it's going to be the biggest book club in the world." – Oprah Winfrey [02:15]

Despite the publisher's initial skepticism about printing 100,000 copies, the overwhelming response from Oprah's audience forces the publisher to drastically increase the print run, setting the stage for what would be known as the "Oprah Effect."

The Oprah Effect and Its Power

Oprah's book club not only boosted book sales but also demonstrated her significant influence across various industries. Her ability to propel obscure products and books to massive success underscored her role as a trendsetter and a powerful business mover. However, this unparalleled influence also made her a target, as seen in the ensuing legal battles that tested her credibility and resilience.

The 1996 Dangerous Foods Controversy

Timestamp: 10:30

In April 1996, Oprah airs an episode titled "Dangerous Foods," focusing on beef amidst concerns about mad cow disease (bovine spongiform encephalopathy or BSE) spreading to the United States. Oprah interviews Howard Lyman from the U.S. Humane Society, who raises alarming questions about the safety of beef and criticizes the practice of feeding cattle high-protein supplements made from other cows, labeling it as "cannibalism."

Notable Quote:

"We're doing something to an animal that was never intended to be done... once symptoms start presenting themselves, you'll die within a year." – Howard Lyman [12:45]

The episode, however, malfunctions as the opposing viewpoint from the National Cattlemen's Beef Association is edited out, leading to widespread panic and a significant drop in cattle prices—dubbed the "Oprah Crash." The backlash from the cattle industry forces them to pull substantial advertising and threaten legal action, accusing Oprah of making untruthful statements.

Legal Battle and Triumph

Faced with a $12 million libel lawsuit from Texas ranchers, Oprah consults with Phil McGraw (later known as Dr. Phil), who advises her to fight the case to prevent future lawsuits. Opting to stand her ground, Oprah relocates her show's production to Amarillo, Texas, to manage the legal proceedings while continuing her show.

Her legal strategy hinges on defending free speech, arguing that her role as a talk show host differs from that of a news reporter. After an 18-month legal battle, the jury rules in Oprah's favor, reinforcing her stance on free speech and solidifying her reputation as a resilient and principled leader.

Notable Quote:

"Free speech not only lives, it rocks." – Oprah Winfrey [45:30]

This victory not only safeguards her show's future but also reinforces her ability to connect with and influence the public, even in the face of formidable opposition.

Facing Competition and Reinventing the Show

Timestamp: 28:00

By the late 1990s, Oprah's empire begins to face challenges as new talk shows like Jerry Springer's gain popularity with sensational and titillating content. Watching an episode of Jerry Springer horrifies Oprah, who fears that her own show might lose its essence in the race for ratings.

Notable Quote:

"I want to help change lives for the better, not tear them apart." – Oprah Winfrey [30:20]

Determined to maintain her show's positive impact, Oprah rebrands it as "Change Your Life Television," incorporating themes of empowerment, spirituality, and self-help. This pivot initially results in a dip in ratings, leading to concerns among network executives. However, recognizing the need for adjustment, Oprah scales back the overt spiritual messaging, refocusing on empowerment and authenticity. This strategic recalibration restores her show's dominance, reclaiming the top spot by spring 1999.

Expansion into New Media Ventures

Timestamp: 40:15

As the media landscape evolves with the rise of cable TV and the burgeoning internet, Oprah identifies the necessity to diversify her business interests to sustain her empire into the new millennium. This vision leads her to partner with Geraldine Laborn to launch a new cable network aimed at women, centered around intent and service. The result is Oxygen, which launches on February 1, 2000. Despite initial struggles with inconsistent programming and audience engagement, Oprah remains steadfast, viewing Oxygen as a long-term investment.

Simultaneously, Oprah pursues her venture into publishing by negotiating with major publishing houses to launch O, The Oprah Magazine. Overcoming internal challenges and tight deadlines, with crucial support from her trusted editor Gayle King, the magazine debuts in April 2000. Contrary to predictions of failure amidst a struggling publishing industry, the magazine becomes an instant success, selling over a million copies in its first issue and eventually surpassing major competitors with a paid circulation of 2.5 million within a year.

Notable Quote:

"The magazine wasn't just named after Oprah. Her photo was on the cover of every issue... she had been rewarded with yet another hit." – Narrator [75:50]

Achieving Billionaire Status and Future Ambitions

Timestamp: 55:00

With the success of her magazine and other ventures, Oprah's net worth soars, and in 2003, Forbes declares her the first black woman billionaire achieved without taking her company public. Her commitment to authenticity and control over her brand proves instrumental in maintaining her reputation and financial success.

As Oprah approaches her third decade of hosting her talk show, she faces declining ratings and increasing competition. In a bold move, she decides to end the Oprah Winfrey Show to focus on expanding her media empire further. Her next venture involves a second attempt at building her own television network, signaling a new chapter in her illustrious career.

Notable Quote:

"Oprah's business interests seemed to be constantly expanding... But Oprah's next move would be her most daring yet." – Narrator [90:30]

Conclusion and Teaser for Next Episode

The episode concludes by highlighting Oprah's strategic risk-taking and unwavering commitment to her values, which have been crucial in building and sustaining her vast empire. As the media landscape continues to shift, Oprah's ability to adapt and innovate positions her to thrive despite emerging challenges.

Teaser:

"In the next episode, Oprah says goodbye to the Oprah Winfrey Show and focuses on her next big venture... her second attempt at building her own television network."

Key Takeaways

• Oprah Effect: Oprah's influence extends beyond television, significantly impacting book sales, product markets, and industry trends.
• Resilience and Integrity: Her legal victory in Texas underscores her commitment to free speech and her willingness to defend her platform against powerful opposition.
• Adaptability: Faced with changing audience preferences and competition, Oprah successfully reinvented her show, maintaining its relevance and popularity.
• Diversification: Oprah's strategic expansion into cable networks and publishing demonstrates her foresight in evolving her business empire to adapt to new media landscapes.
• Authenticity: Maintaining control over her brand and remaining true to her values has been pivotal in Oprah's sustained success and reputation.

Notable Quotes for Reference:

1. Oprah Winfrey:

   "I'm starting a book club on my show, and I swear to you, it's going to be the biggest book club in the world." [02:15]

2. Howard Lyman:

   "We're doing something to an animal that was never intended to be done... once symptoms start presenting themselves, you'll die within a year." [12:45]

3. Oprah Winfrey:

   "Free speech not only lives, it rocks." [45:30]

4. Oprah Winfrey:

   "I want to help change lives for the better, not tear them apart." [30:20]

5. Narrator:

   "Oprah's business interests seemed to be constantly expanding... But Oprah's next move would be her most daring yet." [90:30]

Further Recommendations:

For listeners interested in delving deeper into Oprah Winfrey's journey and the intricacies of her business empire, consider exploring biographies such as:

• Lifeline Biographies: Oprah Winfrey, Global Media Leader by Katherine Krohn
• Making Oprah by WBEZ Chicago

Produced by:
Lindsey Graham, Wondery
Editing by Mohammed Shazib
Sound Design by Gabriel Gould
Music by Lindsey Graham
Written and Researched by Alex Burns
Executive Producers: William Simpson (Airship), Erin O'Flaherty, Jenny Lauer Beckman, Marshall Louie (Wondering)

Note: This summary excludes advertisements, intros, outros, and non-content sections to focus solely on the substantive narrative of Oprah Winfrey's business endeavors and challenges as presented in the episode.