Fighting for Air.

Geraldine Laybourne plans to shake up the women's entertainment space with a hybrid cable-Internet media play

Lately, Lifetime, the $3 billion women's cable network, has been overshadowed by the buzz surrounding a new cable station--one that has yet to broadcast a single program. It doesn't hurt that the new network is the brainchild of one of the most powerful women in entertainment, who's charging out of the gate preaching "convergence"--that long-awaited day when the Web and TV fuse in a holy alliance of content and commerce.

That woman is Geraldine Laybourne, whose credits include helping to build Nickelodeon into a kids' programming powerhouse and overseeing Lifetime as president of Disney/ABC Cable Networks. Now, she's readying Oxygen, the first cable network to challenge the queen of the women's space on cable TV.

Laybourne bristles when people compare Oxygen to Lifetime--sure, both target women, but that's where the similarities end. Oxygen Media currently runs a hub of women's Web sites (www.oxygen.com) amassing more than 55 million page views monthly. Its 24-hour cable channel, set to launch on February 2--02/02, get it?--plans to provide a breath of fresh air, if you will, in a market glutted by soaps, victim-of-the-week movies, sensationalist talk shows, and other programming that traditional media types think women want. "Oxygen is a thinking woman's network," says Laybourne. "On-line and on cable you're going to see everything from animation to tips about starting your own business."

Oxygen's lineup includes a personal finance series called "Ka-Ching," and "Tribes," a teen news/talk program covering dating, style, and, of course, cyberspace. The common thread: real women speaking directly to other real women about real issues.

Yet Lifetime is no slouch. Ranking 6th in prime time among basic cable networks, the 15-year-old network is attracting more of the coveted women's 18-to-49 demographic than ever, reports Nielsen Media Research. Net ad revenues and cash flow for Lifetime, which runs 50/50 original programming and recycled network TV fare, are triple the industry average, according to Paul Kagan Associates.

The company is now set to transform itself under the watch of Carole Black, who was named CEO in February 1999. Coming off a successful five-year stint with NBC's flagship Los Angeles TV station, Black's challenge is to bring Lifetime's s lead position to the forefront in the new Internet medium. "Our strength lies in the fact that television is the most powerful medium that has ever existed, and we're in 75 million homes," says Black. "We have the power--when we decide to unleash it--to really drive viewers to the Net and to drive them back to television."

In a nod to convergence, Lifetime is among a number of networks that have signed on to use "enhanced broadcasting" technology from Wink Communications that allows viewers to use their remotes to click on TV screen icons for more information about a program or ad.

Lifetime is also seeking synergies with its sister businesses. Hearst Corp., which owns 50 percent of Lifetime, also owns Cosmopolitan, Redbook and Marie Claire magazines--affording ample opportunity for you-build-my-brand-I'll-build-yours synergy. What's more, Hearst has a strategic relationship with Women.com, one of the leading Internet networks for women, which could create a powerful cross-media play. "They are distributed in 75 million homes, and we are the largest women's Web site," says Women.com CEO Marlene McDaniel. "I think we could help each other."

Laybourne, in turn, has lined up some marquee-level content partners (CarseyWerner-Mandabach Productions and Oprah Winfrey's Harpo Entertainment) and investors like Paul Allen, who ponied up $100 million to back her vision. Oxygen is expected to spend $400 million on programming alone over its first five years.

But Laybourne's biggest success to date may be her packaging of Oxygen as the future of new media, even before it had a product to show off. "They've done a masterful job of press and PR, taking a new cable channel and positioning it as much, much more," says Bruce Leichtman, director of media strategy for The Yankee Group. "They've probably gotten more attention than any new cable channel ever."

While Lifetime scrambles to organize its Web presence, for Oxygen the biggest battle ahead is matching Lifetime's 75 million-home reach. Laybourne hopes to launch with at least 10 million homes covered. AT&T Broadband & Internet Services has agreed to put Oxygen in 7 million cable-wired homes by 2002, with 3 million lined up for the February launch. A recent deal with MediaOne will add another 1 million homes at launch, with 3 to 4 million more by 2003.

More may follow. "To be ever-competitive with satellite, what cable operators are going to find is that they have to make room for it," says Tom Eagan, a cable analyst at PaineWebber. "The satellite firms have 200-channel capacity, and will do anything they can to get more customers."

In the meantime, Laybourne is focusing on maximizing the potential of her dual--but integrated--businesses. "We're launching a brand, not just a cable station," she says. "We knew when we started this venture that we needed to leverage the strength of both mediums. Neither is in a secondary position. Our Internet and television producers sit in the same room. This isn't about an adjunct. They're both getting created together."

It won't surprise media insiders if Laybourne's ideas click; after all, she built Nickelodeon by launching programs that didn't talk down to kids. With that track record, Lifetime may soon find Oxygen nipping at its heels.