• by Wayne Friedman , Staff Writer, January 6, 2011

Sure, Facebook might be worth $50 billion -- that's easy to figure out. But the more interesting news is that someone dared to take a change on somewhat older media and proved -- after only a few days -- to be successful: The new Oprah Winfrey Network, OWN, will be profitable this year -- actually getting into a "positive" cash flow.

Discovery Communications, co-owner of the network with Winfrey, was thinking it would be more like 2012 or 2013 before OWN would turn a buck. So this news is somewhat surprising, since traditional TV start-ups seemingly have to spend a long time paying their dues before hitting the big money.

Digital business may scoff at all of this: Groupon turned down Google's $6 billion deal. You might now wonder whether Google's 2006 $1.6 billion for YouTube looks like some bargain-basement deal.

Big-time established cable networks can be valued in the $3 billion to $10 billion range -- but all that comes after years -- usually decades -- of operation. Digital business can blow by these numbers in just a couple of years.

For Winfrey, this looks like the perfect dream move. Already sitting atop a billion-dollar empire, Winfrey's name is apparently still magic. Some critics might not believe it, noting that the network's current aspirational programming doesn't show life as it really exists -- that consumers need some raw, rough-and-tumble content for them to tune in.

Turns out that isn't the case. Viewership already puts the network into the top 20 networks in some cases, and at higher levels for specific older women demographics -- Winfrey's big followers.

Procter & Gamble, already a big advertising supporter of Winfrey's still-running syndicated daytime show, made a good $100 million multi-year sponsorship bet with the new network. OWN seems to have hit the right combination -- even with all those machinations of many executive changes before its launch.

I can't think of one cable network that has ridden to stardom before via a big personality/brand name. The usual path is a concept/theme play -- a young male-targeted network, a sports network, a music network, a home decorating arts network, etc.

It helps that OWN hit the ground running in the midst of one of the strongest TV advertising markets in a few years.

Quick profitability isn't for every traditional TV business these days. But some find the right formula, with the right name -- and, most importantly, an instant identity.