'Oprah & Friends' Exclusive Radio Channel to Launch On XM (1 Viewer)

[Ronald Epstein]

'Oprah & Friends' Exclusive Radio Channel to Launch On XM Satellite Radio

New Channel to Feature Diverse Daily Programming from Popular 'Oprah' Personalities as well as Original Weekly Reality Radio Program with Oprah Winfrey and Gayle King
Feb 09, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Harpo Radio, Inc. and XM Satellite Radio, the nation's leading satellite radio company with more than 6 million subscribers, today announced an exclusive, three-year agreement to launch "Oprah & Friends," a satellite radio channel on XM. "Oprah & Friends" will debut in September 2006 and will feature a broad range of original programming from Harpo Radio, Inc., including regular segments hosted by popular personalities from "The Oprah Winfrey Show" and O, The Oprah Magazine and an exclusive original weekly reality radio show with Oprah Winfrey and Gayle King. The channel will be broadcast from a new state-of-the-art XM studio at Harpo Studios in Chicago.

(LOGO: http://www.newscom.com/cgi-bin/prnh/20000724/XMSATLOGO )

The "Oprah & Friends" channel will feature original daily programming on a variety of topics including nutrition, fitness, health, self improvement, home, and current events from popular "Oprah" personalities, including Bob Greene, Dr. Mehmet Oz, Dr. Robin Smith, Marianne Williamson, Nate Berkus, and Gayle King.

"Together with my friends, we look forward to creating programming that will entertain, inform and inspire our listening audience on XM," said Oprah Winfrey.

"Oprah Winfrey is a prolific force in our culture whose unprecedented achievements in television, film, publishing and philanthropy will bring an amazing radio experience to the XM nation of subscribers. We are proud to welcome Oprah and her talented team to the XM family," said Hugh Panero, President and Chief Executive Officer, XM Satellite Radio. "'Oprah & Friends' is a testament to XM's unwavering commitment to provide our diverse subscriber base with the kind of smart, high-quality programming that makes a difference in their lives."

"Today's announcement with XM marks an exciting new chapter in the evolution of Harpo's media portfolio," said Tim Bennett, President, Harpo Productions, Inc. "'Oprah & Friends' will not only complement our existing television, print, film, cable and online properties but will provide new opportunities to extend our brand to XM's millions of listeners."

About Harpo

Harpo Productions, Inc. produces the number one rated, award-winning "The Oprah Winfrey Show," creates and develops original TV programming, and operates Oprah.com a premier women's lifestyle website. Harpo Print, LLC and Hearst Magazines publish the monthly O, The Oprah Magazine and quarterly O at Home publications. Harpo Films, Inc. produces feature films as well as top-rated telefilms under the "Oprah Winfrey Presents" banner. Harpo, Inc. produces the original cable series "Oprah After the Show," which airs on the Oxygen Network. Harpo Radio, Inc. will produce the content for "Oprah & Friends" on XM Satellite Radio, which will debut in September 2006.

About XM Satellite Radio

XM (Nasdaq: XMSR) is America's number one satellite radio company with more than 6 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City, the Country Music Hall of Fame in Nashville, Toronto and Montreal, XM's 2006 lineup includes 160 digital channels of choice from coast to coast: the most commercial-free music, premier sports, talk, comedy, children's and entertainment programming; and the most advanced traffic and weather information.

XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan and Volkswagen/Audi, is available in more than 130 different vehicle models for 2006. XM's industry-leading products are available at consumer electronics retailers nationwide. For more information about XM hardware, programming and partnerships, please visit http://www.xmradio.com .

Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-Q filed with the Securities and Exchange Commission on 11-7-05. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

SOURCE XM Satellite Radio

 

[Joe McCabe]

This is HUGE for XM, and a much wiser use of money than the ridiculous Stern deal on Sirius.
The way this breaks down, XM only needs to add 145,000 subs over 3 years, to break even on Oprah.

Considering her power with her fanbase...I'd say that won't be much of a problem.

And with a much larger fanbase than Stern, she will bring TONS of subs to XM...her fans are cult like.

 

[Ronald Epstein]

Joe,

I wish I could be as optimistic as you.

I think this is a great deal for XM, but
when it comes to electronics and "gadgets"
I always seem to think satellite radio as
being a "guy" thing.

I could be very wrong about this, but I
would tend to believe that the demographics
of satellite radio probably point more towards
the male gender than female.

The one thing that will greatly help is Oprah's
promotion of XM on her television show.

 

[WillG]

She will get some when she starts giving them away to all the audience members on her show.

 

[Joe McCabe]

I don't know about that Ron, I remember reading awhile back that when Oprah does her "cool things she likes/gadget show" around the holidays, that all the items featured sell like crazy.
The story in particular was about a Sharper Image corkscrew that was around $100 at the time.

I think when she does the show, and features the Roady, Pioneer Inno, Myfi..whatever, her audience will respond.
When she talks about "this weekend on my XM Show, we'll interview so and so", her audience will want to hear it.

I'm not an Oprah fan...I'll never listen to her channel, but I think her power with her fanbase is unmatched in the entertainment industry.

I'm predicting HUGE sales for XM this coming holiday season.

 

[Ronald Epstein]

Joe,

Good points.

 

[Joe McCabe]

Hey Ron....it's already beginning...

Oprah Begins The Promotion

 

[Ernie Estrella]

BUt How much will Oprah really be a part of her channel? Will it be like Ellen or Martha? What can Oprah offer to a radio crowd exclusively that they can't get with her show? Her Oxygen channel is not lighting fires, nor is her magazine. Her money is in her TV show, and that's where I imagine she will continue to put her attention to.

How many mom's will sit in their car when they can watch the show? I don't think this deal will bring in many people. Reasonable money was put down, but I think that's because they're not expecting much to come of it. It's a name, and the mentioning of XM on Oprah's TV show is like XM spending for advertising which will pay dividends but not for Oprah.

 

[Joe McCabe]

As I stated earlier....Oprah has proven time and time again, that she has STRONG power with her fans spending habits.
If you watched that video, you'd see. She is telling them to go get XM, because for the first time, they'll be able to call in and talk to the experts that have become common place on her show. That's how she's going to promote this channel..and with her showbiz friends, the possibilites are limitless as to the potential for special shows and such on her channel.

On her annual Christmas gadget show...she'll show the housewives the Pioneer Inno...tell them how she has one, and how amazing it is. And they'll have to have one. It's just that simple.

Oprah can basically dictate what books will be huge on the New York Times best seller list...how many other people out there do you know that have that kind of consumer power?

And no, Oprah/Ellen vs Martha, is NOT a "push" as I saw you post in another thread. Martha Stewart has been nothing but a failure since being released from prison.
Oprah Winfrey is still at the top of her game with a HUGE daily viewing audience.

I see alot of Sirius subscribers trying their best to downplay this signing, but I think it's amazingly silly to try to downplay the power Oprah Winfrey has with her fanbase.

And again, this deal further illustrates how ridiculous the Stern deal was. Oprah's audience is larger than Stern's, and certainly has proven itself more responsive to her purchase suggestions. And XM's deal with her was incredibly wise as far as a break even mark goes.

Sirius paying Stern, what totals now 679 Million dollars, is just absurd.
It's like an article I read recently about Rush Limbaugh being approached by the Sat companies...Rush's daily audience is around 24 Million...FAR exceeding Stern, even during his best years. Sirius is immediately out of the game, because how do you make Rush an offer *without* having to hand him part of the company, in the face of the Stern deal?

So basically, one of two things happened here...either Oprah is smart, and just recognizes that XM is the more stable, and technologically superior company, and chose them...OR, Sirius no longer has the money to put out on programming, because of how much they're paying Stern. Because we've certainly seen how far they are willing to go with the checkbook in the past.
You mean to tell me when they paid 30 Million for Martha Stewart to bake on the radio, that they'd let Oprah Winfrey slip out of their hands, if they had any other choice about it?

I'm standing by what I've said earlier..come this Christmas, you're gonna see massive amounts of XM radios selling. Just as Stern did with Sirius since October 2004, Oprah will spend alot of time promoting her upcoming channel on XM..only her audience has proven itself at the cash registers time and time again.

 

[Chris]

I think you're way overplaying Oprah. Seriously. I relayed this in the thread in the SIRIUS forum. I do beleive Oprah will have an impact, but let's go through it..

Oprah herself will be doing a 30 minute, once a week program on her network for 39 weeks out of the year.

There will be other shows from people she has to go on Oprah radio.

My example is this: Oxygen. How well does Oxygen do? According to the Advertiser's buyer guide, of all cable networks, it is 163rd in total subscribers. Give you a comparison: a re-run of South Park on Comedy Central nets 1831% higher viewer numbers then the highest rated program on Oxygen.

Oprah is incredibly talented, and I do believe she will attract people. I think a lot of things attract people to the different services.

There are people who will buy for lots of reasons; NHL, NASCAR, NFL, NBA, Stern, O&A, Gay Radio, Dr. Lara, FoxNews, Bubba, whatever.

People buy into Satellite Radio, though, largely based on what they perceive of as the value of the content. If Oprah were to say that she would host a radio show, I'd say it's will be a very interesting thing. But she's not doing that. And while I picture it upping subscriptions, I just can't picture it being a giant boom.

Your example with Rush is dead on though.. although I seriously doubt he will ever leave Terrestrial radio, it undermines the entire point in his mind of his show (to reach and influence the masses) plus, Rush's revenue stream right now is ungodly; neither Satellite company can match what his market value in terrestrial is at this moment.. But if Rush did leap, whether you like him or not, it would be a devestating blow to the other network. That is largely because: Rush has a SHOW, a RADIO show, and a large RADIO audience. People who love Oprah tend to be able to watch her on TV and aren't as worried about radio repeats or listening to Oprah while they drive around town Check her demographics. She is dominant.. but not in the group and age demographic that is the key subscription audience.

You can be huge in one medium and just unable do the other. I'll believe her radio power when I see it. I'm not saying this will be a Leonard Part VI affair, but let's remember: just because you have incredible juice on TV (though just one show, as said in reference to her power with Oxygen) doesn't mean it translates to common coin everywhere.

Moreover, what is up with the deal of XM fans or SIRI fans needing to take it out and bash the other "oh, it's over for you!" Hell, both DISH & DirectTV have their own installed base, and I rarely run into feuds and fights between those who have either/or. Both services can - and by my outlook, probably will - survive and be fine. And the fact that they are different helps market both

 

[Chris]

Yeah, I looked it up just for the jist:

Last year, Limbaugh earned $45M for the year in a flat rate.

And a total income estimated at around 1 1/2 that counting book ancillaries, etc.

So there is no way he would accept a 5year, 500M, he'd lose money. His program makes that for him and then some, counting book sales, sales to his website, etc. Since he also owns all of his own content, which he resales via Podcast etc. plus he owns all studio rights, the estimated worth is somewhere around $1.6B, according to his attorney.

Either XM or SIRI, based on past deals, would have to triple that to get him.

In other words: Rush is probably the only name no one can make a play for.

On the other hand, Jim Rome is openly talking about considering satellite.

 

[Joe McCabe]

Oprah WILL be on her network..she's doing a weekly show with Gail King.

My cable company doesn't offer Oxygen, so I don't really know much about it, or what kind of programming it offers. But, this to me, is a different situation. For one, you aren't buying XM, and only getting Oprah..but let's look at that for a moment. If there were only two cable companies out there to choose from, and one offered Oxygen and the other didn't, where do you think the Oprah audience would go?

The satellite radio movement is afoot, and she's a very big name in entertainment, with a huge fanbase, that can't be denied.
She's going to be a big factor here, with a demographic that otherwise wouldn't care about the platform. She'll convince them daily on her TV show, that they need to have XM radio.

And for me, it's not really a "My XM can beat your Sirius", but for the past few days, I've seen alot of Sirius fans trying to equate Oprah to a non issue, calling it a "desperation move" (which makes NO sense by the way) and trying to suggest that Oprah will have no impact whatsoever.

As I said earlier in this thread..I'm not an Oprah fan..I'll never listen to the channel, but I know what she is, and I've seen what she can do with her fans.

 

[Chris]

Joe-

I think we agree more then we disagree. I think Oprah is a great move for XM because it gets them mentions in the news, she will mention their product, and it will sell units.

I don't doubt that at all.

I have seen in other areas were people are posting "oh, it's over for SIRI" My only implication is this: XM paid out $55M, which even some XM fans will say may be a bit to high. While she will bring an audience, I don't think she musters a monumental audience.

More then that, I don't think she brings an audience that says "I will drop SIRI for XM" I think she brings potentially new subscribers in for XM. And, actually, as the industry for satellite radio grows as a whole, that's fine.

XM could end up with 30M+ customers; SIRI with 25M+ or whatever. But there is plenty (and I mean plenty) of growth market out there for both of them

 

[Joe McCabe]

Yeah, I agree with what you've said, Chris.

Although, I don't think XM paid too much for Oprah.
Only needing to bring in 145,000 subs over 3 years to break even on Oprah seems like an easy task, and something that I expect to be exceeded this holiday shopping season alone.

I just see the Oprah thing, as an example of how Sirius should be spending their money...not $679 Million for ANY one person.

And I don't want to see Sirius gone, because we all know what happens in a market without competition.

 

[mattCR]

I think the $679M for Stern though is being bandied around wrong. He received a budget alotment for $500M, with part of that being in Stock. His stock was able to be optioned because he hit performance triggers in his contract, and the stock was worth more then estimated, so he made more.

But the $500M contract also provides the salaries for all of those under him, including those like Bubba the Love Sponge, etc. and the content for the two networks.

Am I wrong on this?

I've looked at both stocks lately, and right now, I think XM looks to be the better stock to hold, but I think the number on Stern is not the way it is made out to be.

 

[Ernie Estrella]

MattCR you are correct. A lot of that money that is 500 million is being put into the programming of the two networks and eventually three. Bringing in the guests, the staff, and a custom studio, and then dish it out for 5 years, you can see where that money is going to go. A bulk of it I'm sure is kept by Stern but the pressure is for Stern to entertain with 2-3 channels so Howawrd will put a lot of that back into the channels and programming and staff.

 

[Ernie Estrella]

Joe:

If Oprah's such a big draw, then let's imagine that women will sign up hoping to hear Oprah whenever they want and they get her for only 30 minutes a week out of a possibly 10,080 (7 Days 24 hours)? I don't believe she's given the rights to her old shows either.

That's hardly a presence on a channel that is on 7 days a week, 24 hours a day. As opposed to Stern being live for 1200 minutes (5 hours, Mon-Thursday) per week. And add to that an occasional Friday show. So you can actually hear Howard live 10%-15% of the week's possible airtime. Not to mention he's got replays for the west coast and night cap.

So if 30 minutes of actual Oprah time (And there better not be any commercials) costs 55 million, to get a similar type of output from Oprah (5 hour show, 5 days a week) would cost way over a 500 million. Again, Oprah's bread and butter comes from an hour long TV show, and that's going to be the well she goes to in the end. Sounds to me that Sirius got their money's worth with Stern over the 5 years.

Sure they might get them to sign up but they'll be disappointed if their reasons in signing up is the big O.