Oprah Winfrey – The Story of an Entrepreneur
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THE OPRAH/HARPO EMPIRE contd...‘O'was
reportedly the most successful startup in the magazine industry. In 2001,
its revenues amounted to over $140 million. According to Cathleen Black
(Black), President, Hearst Magazines, most successful magazines took nearly
five years to become as profitable as ‘O'did in only two years. Analysts
noted that though the market was down and many magazines had posted losses
in 2001, ‘O's advertising revenues increased by 43% over its revenues in
2000. ‘O's paid-up circulation amounted to an estimated 2.5 million copies,
which was more than that of leading magazines such as Vogue or Martha
Stewart Living. ‘O'targeted the premium segment, which had an average
income of $63,000 and patronized premium brands such as Lexus, Coach and
Donna Karan (which were key advertisers for ‘O').
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Oprah described ‘O'as a personal growth manual and
took an active part in the content development of the magazine. Analysts
remarked that ‘O'was a reflection of Oprah's personality. The success
of ‘O'was primarily attributed to Oprah's popularity. Commenting on the
high revenues earned by the magazine in terms of advertising revenue
Black said, “Advertisers have unanimously responded to the powerful
presence of Oprah. The magazine is a new voice for a new time – a
lifestyle magazine with heart and soul.” |
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However, Oprah's talk show continued to be her biggest
success, generating revenues of over $ 300 million annually. The show was
aired in over 107 countries in the world and was watched by 26 million
people in the US itself. It remained the number one talk show in the daytime
slot for 16 years, despite competition from over 50 rivals. According to Bob
Iger (Iger), President, Walt Disney, the Oprah show contributed
significantly to the company's profits (Walt Disney's ABC Network syndicated
‘The Oprah Winfrey Show'in many major markets). The show appealed primarily
to women in the age group of 30 to 50 years. Since most of the audience was
from the middle class, the show attracted huge advertising revenues from
companies such as Wal-Mart, Procter & Gamble and Sears.
OPRAH – THE ENTREPRENUER
Despite the fact that she was the owner of a huge business empire, Orpah
reportedly did not even know how to read a balance sheet and did not follow
any corporate models. She had declined offers from many companies such as
AT&T, Intel and Ralph Lauren to be on their boards, stating that ‘she did
not understand what she would do on their boards.'Oprah was once reported
to have hoarded $50 million in cash, which she called her personal ‘bag-lady
fund,'as she was afraid of investing in the stock market, being totally
ignorant about it.
Interestingly, she did not like being referred to as a businesswoman.
Commenting on her ‘ignorance'of doing business the ‘usual'way, she said,
“If I called a strategic-planning meeting, there would be dead silence, and
then people would fall out of their chairs laughing.”
More...
OPRAH – SERVING THE PEOPLE
THE OTHER SIDE OF OPRAH?
THE SHOW GOES ON
QUESTIONS FOR DISCUSSION
EXHIBIT I AWARDS WON BY OPRAH
EXHIBIT II FAVORITE TV PERSONALITIES – RANKS
ADDITIONAL READINGS & REFERENCES
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