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Media Companies Recent Headlines Time Warner to Block Netflix from HBO Films Bloomberg Netflix's drive to offer its subscribers movies from the big Hollywood studios may hit a wall with HBO. Time Warner's pay-television channel says it is unlikely to make a deal with Netflix. By building a market for online delivery, Netflix is "clearly taking aim at HBO." Nielsen Expects to Raise $2 Billion In IPO Reuters Nielsen plans to raise up to $2.01 billion through an initial public offering, more than the $1.75 billion it was originally aiming for. The world's largest television and consumer measurement company was taken private in a $10 billion deal in 2006 by six private equity firms. News Corp Mulls News App Business Model WebProNews News Corp. is said to be considering the development of a for-pay app-only news publication. The media giant could invest up to $40 million in the venture. However, it may be a while before tablet devices are in everyone's hands or even reach the status of mobile phones. Time Warner HQ Tackles Bed Bug Problem Dow Jones Time Warner says it has tackled a small outbreak of bed bugs at the media giant's headquarters in New York City. The bed bugs were only found in a "small part" of Time Warner's corporate offices. "The problem was treated by professionals and is no longer an issue." Disney Accused of Spying on Website Users CNET A new lawsuit alleges that several well-known websites -- including those owned by Disney, Warner Bros. Records and Demand Media -- broke the law by secretly tracking the online movements of their users, including children. Users "were followed without their knowledge." News Corp Plans National Digital 'Newspaper' Los Angeles Times News Corp. plans to launch a national digital news offering to be distributed as paid content for tablet computers such as Apple's iPad and mobile phones. The publication will offer short, snappy stories and operate under the auspices of the company's New York Post. Comcast, Verizon Look to Tablet Computers Wall Street Journal Comcast, Verizon, Time Warner Cable and other major subscription-television providers are developing tablet-computer apps that offer TV shows and movies to their subscribers. "We're essentially putting cable TV on any device that can function as a TV in the home." Big Media Silent on Google-Verizon Proposal New York Times Big media companies like Comcast and News Corp. are silent on a proposal by Google and Verizon that critics say could let Internet access providers chip away at openness -- perhaps because they stand to gain from a less open Internet. Barry Diller calls the proposal "a sham." News Corp's MySpace Redo Eyes Facebook Associated Press MySpace is unveiling a revamped home page that looks a little like its more popular rival, Facebook. MySpace head Mike Jones says the change is in preparation for a major overhaul coming this fall that aims to make the social network more relevant to 13- to 34-year-olds. CBS' TV.com Service Mirrors Foursquare Hollywood Reporter CBS' digital division is testing TV.com Relay, a service that transplants Foursquare's user check-ins and badge rewards from brick-and-mortar venues to television shows. Users can check in on a particular program and make new friends chatting about favorite shows. Viacom Appeals YouTube Copyright Ruling Bloomberg Viacom is appealing a court ruling that YouTube didn't infringe the media giant's copyrights. The ruling is "fundamentally flawed." MTV's owner sued Google's video-sharing website for $1 billion in 2007 for unauthorized use of clips from programs such as "The Daily Show." Murdoch's BSkyB Bid Growing More Costly Bloomberg Rupert Murdoch's bid for the rest of BSkyB has become $700 million more expensive after the pound's 6% gain against the dollar. The bid for control of the U.K. pay-TV operator is now valued at $12.2 billion. The increase could limit News Corp.'s ability to raise its offer. Murdoch Claims to Own 'Sky' in 'Skype' Name Independent Rupert Murdoch's BSkyB is fighting a legal battle with Skype, claiming it owns the "Sky" in the "Skype" name. As the Internet telecommunications pioneer plans to go public, Skype reveals that its applications "in respect of the Skype name are being opposed by BSkyB." Disney Declines to Address Talk of ABC Sale Los Angeles Times ESPN's World Cup soccer coverage and hit films like "Toy Story 3" helped buoy Disney's bottom line in the third quarter. But CEO Bob Iger declines to address questions about whether he is weighing a potential sale of ABC. "I don't have anything new to add," he says. Comcast Spends Multimillions on NBC Takeover Philadelphia Inquirer Comcast is spending tens of millions of dollars on lawyers, accountants, lobbyists and bankers to gain approval of its $30 billion takeover of NBC Universal. The uncertainty surround the deal is taking a toll, as the cable giant returns modest gains to shareholders. News Corp Eyes Sequels to Cameron's 'Avatar' Hollywood Reporter Deals for an "Avatar" sequel -- or two -- are being worked on, says creator James Cameron. He is currently focused on finishing his "Avatar" novel. News Corp. chief Rupert Murdoch has said that his company's Fox studio is eyeing a continuation of the top-grossing film. Media to Outpace U.S. Economy Through 2014 Bloomberg Spending on media and communications will increase faster than the U.S. economy through 2014 as consumers recover from the recession and shift more attention to the Internet and mobile devices, says a new forecast from private-equity firm Veronis Suhler Stevenson. Netflix, Epix Enter Deal for Streaming Movies AllThingsD Startup pay-TV channel Epix is entering a deal to give Netflix exclusive online rights to films from its three equity partners -- Viacom's Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer. The deal may make Netflix more competitive with cable television. Comcast, Blockbuster to Test DVDs-By-Mail Dow Jones Comcast and Blockbuster are testing a DVDs-by-mail service that gives the nation's largest cable provider's subscribers discounts to the movie-rental giant's movies and television shows. The test is seen helping cash-strapped Blockbuster tout its stores and services. AT&T to Expand TV Service to Mobile Devices Bloomberg AT&T is expanding its U-verse television service to let customers watch some television shows on Apple's iPhone and BlackBerry Torch mobile devices. Only customers with higher-priced U-verse packages will be able to watch the programs on a smartphone. News Corp Pulls Back from China TV Market Reuters News Corp. plans to sell control of its three Chinese television channels to a fund backed by Shanghai Media Group. The move could mark the beginning of a wind down for News Corp. in China's tightly controlled media market, which has proved frustrating to Western media. Comcast: FCC Readies Net Neutrality Trap New York Post The Federal Communication Commission is said to be zeroing in on making Comcast promise it would never slow certain types of Internet traffic as a possible condition of the cable giant's pending acquisition of NBC Universal. The issue is one of "growing importance." Viacom, Google Team Up for 'Fred' Movie AllThingsD Lucas Cruikshank, a Nebraska teenager better known to nearly 2 million YouTube viewers as "Fred," is getting his own TV movie on Nickelodeon. The kids' cable channel is owned by Viacom, which is continuing to fight with YouTube owner Google over a copyright lawsuit. News Corp Looks to Sell Off Interests in Mobile New Media Age News Corp. confirms it is trying to offload its mobile businesses, collectively known as Fox Mobile Group, after stating it is a loss-making venture. The planned sell-off includes the ringtone outfit Jamba, which News Corp. bought for an estimated $388 million in 2008. Viacom: Advertisers Scramble for MTV's 'Jersey' Los Angeles Times Viacom CEO Philippe Dauman says last week's return of MTV's "Jersey Shore" for a second season will be a big boost to the company's bottom line. "There were some issues when 'Jersey Shore's' first season launched. Now we have advertisers scrambling to get on it." Media Moguls Pledge to Give Away Fortunes Reuters Mike Bloomberg, Barry Diller and Ted Turner are among the billionaires pledging to give away at least 50% of their wealth to charity in a campaign led by Warren Buffett and Bill Gates. The Giving Pledge effort aims to persuade billionaires to give away most of their fortunes. Hollywood: Kids Willing to Pay for Content Hollywood Reporter Optimism is spreading in Hollywood regarding a willingness to pay for digital content among young consumers. Youthful attitudes toward downloading unlicensed content is said to be "significantly" improving. Youngsters are "paying for content instead of stealing it." Media Bounce Back on Ads Despite Outlook Reuters Media conglomerates including News Corp. Time Warner and CBS are posting strong quarterly results, riding a recovery in advertising sales and several quarters of cost cuts. The results are sending media shares higher even as analysts pointed to an uncertain economic outlook. Murdoch Warns of Fragile Western Economy Sydney Morning Herald Rupert Murdoch says the Apple iPad is a "real game changer" in media and could bring young people back to reading newspapers. Also, the U.K. Times paywall is still in "very early days." Regarding the world economy: "I can't help but think it's fragile in the western world." News Corp Not Giving Up on MySpace Yet AllThingsD Rupert Murdoch is reaffirming his company's interest in overhauling MySpace, even though the social network is still losing money. "We will see it out for some time yet." Mobile, though, is another story. News Corp. is looking to sell its Jamba mobile phone content provider. Viacom Profit Boosted by MTV's 'Jersey Shore' Bloomberg Viacom is reporting an increase of profit of 52% as cable-television advertising sales climbs. Cable-TV ad sales are increasing after viewership bounced back earlier in the year at Viacom's flagship MTV network, with programs like the hit reality show "Jersey Shore." Time Warner to Buy 'Real Housewives' Studio Telegraph Warner Bros. plans to buy the British television production firm Shed Media, maker of such programs as "Supernanny," for around 100 million pounds to boost its presence in the key U.K. market. Shed Media U.S. productions include "Real Housewives of New York City." Time Warner: Advertising is Coming Back CNNMoney Time Warner is posting a better-than-expected quarterly profit on a surge in revenue -- its highest rate of increase in two years. "Demand is coming back" in advertising, analysts say. Nonetheless, revenue at Time Warner's Time Inc. publishing division is virtually unchanged. CBS to Sell TV Stations, Launch Websites RBR CBS boss Les Moonves says he is interested in selling some of the company's smaller-market radio and television stations. Meanwhile, CBS plans to boost its local media business online, launching destination websites that will "leverage the power" of company assets. Viacom Plans 3-D Motion Picture of Bieber Associated Press Viacom's Paramount Pictures and MTV Films are signing Justin Bieber to appear in a feature film about his life and career. The yet-to-be-titled motion picture, set for release in early 2011, will feature 3-D footage from the 16-year-old pop star's concert tour. Murdoch Sees New Online Business Model Australian Rupert Murdoch predicts Apple will sell more than 40 million iPads by 2012 as he outlines plans to put content on more tablet devices. Also, News Corp.'s paid content strategy will be a success, he says. "We are witnessing the start of a new business model for the Internet." News Corp Cuts Exec Pay as Stock Struggles Bloomberg News Corp. is shifting compensation for top execs, including chief Rupert Murdoch, to more performance-based bonuses as its stock trails the market. News Corp.'s stock has dropped 16% in the past five years. COO Chase Carey is seeing his annual salary cut in half. Viacom Sells Xfire Service as Staffers Depart CNET Viacom-owned game chat and discovery service Xfire is being sold to Titan Gaming for an undisclosed amount. An Xfire staffer is posting a note online saying that "most of the team is leaving." Xfire was originally sold to Viacom in 2006 for $102 million. Time Warner Backs Ad Optimization Startup BtoB Time Warner Investments is among the new backers of AdMeld, which provides tools for publishers to analyze the performance of their display ad inventory appearing in ad networks and exchanges. The new investment brings AdMeld's total financing to $30 million. Comcast-NBC Merger Conditions Are Urged Associated Press Rep. Rick Boucher, D-Va., head of the House Commerce subcommittee on communications, wants U.S. regulators to attach conditions on Comcast's takeover of NBC Universal. Among them: Comcast should be barred from moving free online programming to TV Everywhere. News Corp Eyes Bids for Texas Sports Teams Dallas Morning News News Corp. is said to be interested in bidding on the Texas Rangers baseball team. The media giant also is among the bidders for the Texas Stars hockey team. Most Stars games are seen on Fox Sports Southwest. Fox Sports "would like control over the product." Viacom Kills 'Anchorman' Over Foreign Forces Wall Street Journal Viacom's Paramount Pictures canceled the planned sequel to the hit 2004 film "Anchorman," fearing the comedy's uniquely American brand of humor wouldn't play internationally. "The economics of the business have changed," says "Anchorman" director Adam McKay. Time Warner's Turner to Open Office in Dubai National Turner Broadcasting System, parent of CNN and Cartoon Network, plans to open an office in Dubai this year and may start a production center as it aims to boost production of Arabic-language content. The company also will launch a Cartoon Network Arabic channel. Disney's ABC Family Guy 'Super-Unprepared' USA Today Paul Lee, head of the ABC Family cable network, is being named programming chief for ABC. The former BBC exec takes over for Steve McPherson, who exited last week. Lee says he is "super-unprepared" to discuss strategy, but has no plans for immediate changes. NBC Chief Hopeful as Comcast Buyout Nears Wall Street Journal Comcast is rumored to be considering replacing NBC Universal CEO Jeff Zucker when it wins U.S. approval to take over the media company. "Nobody is entitled to any job," Zucker admits. However, he believes that "things are going incredibly well, and I'm excited to continue." Big Media: Are the 'Rah-Rah Days' All Gone? Reuters Time Warner, Viacom, News Corp. and other media giants are expected to report revenue increases over the next two weeks. However, media companies are unlikely return to their former valuations, analysts say. "It is not clear if we will ever have the rah-rah days again." News Corp Plans Digital News Game Changer CNBC / FT News Corp. is developing a subscription digital news venture that is to be available via devices like the Apple iPad. Also: A subscription news aggregation service is due to launch later this year with content from the New York Post, Dow Jones and external news partners. Disney Sells Miramax to Tutor Investor Group Los Angeles Times Disney plans to sell Miramax Films to an investor group led by Los Angeles construction magnate Ron Tutor for more than $660 million, putting the future of the movie company behind "Pulp Fiction" and "Shakespeare in Love" into the hands of a Hollywood outsider. CBS Staffer Alleges Abuse by Chief Redstone Daily Beast Karen O'Rourke Zatorski, CBS VP of corporate relations, claims that chief Sumner Redstone verbally abused her and displayed a violent temper. Though Zatorski has not yet filed a lawsuit, she has lodged a complaint with CBS, which is investigating the matter. News Corp Creates Social Network for Games VentureBeat News Corp.'s IGN website for game fans is creating MyIGN, a social network for gamers. Although its corporate sibling is MySpace, IGN developed the social network in-house. "We created it because gamers are not currently served by social networks." Murdoch's BSkyB Acquires HBO TV Catalogue Guardian Rupert Murdoch's BSkyB is buying the rights to the entire programming catalogue of Time Warner's HBO, which includes a huge range of American shows, from "The Sopranos" to "True Blood." The deal also gives the British satellite-TV firm access to forthcoming HBO shows. Viacom-CBS Chief Facing Another Firestorm Daily Beast / Post Sumner Redstone reportedly forced CBS' Showtime cable network, which he controls, to put a "young, unqualified brunette" on the payroll. The "erratic" Redstone may impact Viacom and CBS stocks. Also: A former employee is threatening to sue for harassment CBS Boss Moonves is Fodder for 'The Talk' Entertainment Weekly Julie Chen, wife of CBS boss Les Moonves, will star on three CBS shows: hosting "Big Brother," anchoring "The Early Show" and now co-hosting "The Talk." Chen is expected to chat about her relationship with Moonves on the new "The View"-like daytime talk show. Disney Acquires Playdom in $763 Million Deal New York Times Disney is becoming Hollywood's leader in the social game business by acquiring Playdom in a deal worth some $763.2 million. Playdom is a tech startup that makes simple online games and is growing by exploiting rapidly expanding social networks like Facebook. Comcast Profit Slips on NBC Universal Costs Reuters Comcast is reporting a nearly 9% decline in quarterly profit as it absorbs expenses related to its highly anticipated acquisition of NBC Universal. The No. 1 U.S. cable operator hopes to close the deal for a majority stake in NBC Universal by late this year. Media, Tech Titans Top Best-Paid CEOs Wall Street Journal Oracle's Larry Ellison tops a list of the best-paid execs of public companies during the past decade, receiving $1.84 billion, according to an analysis of CEO pay. Coming in at No. 2 is IAC/InterActive's Barry Diller, at $1.14 billion. "I'm not defensive about it," Diller says. Time Warner Studio Sets $1 Billion Record Deadline Warner Bros. has become the only film studio in history to surpass $1 billion at the domestic box office for 10 years in a row, the company says. The studio passed the billion-dollar mark on the heels of the current "blockbuster success" of Christopher Nolan's "Inception." Viacom Chief Gave Stock to Rock Singer Hollywood Reporter Viacom chief Sumner Redstone gave the lead singer of the girl band Electric Barbarellas some of his own company stock as a personal gift, according to a regulatory filing. Heather Naylor, the 29-year-old singer, sold about $100,000 worth of Viacom stock in March. Time Warner Exec's Parody Site Jabs Media Associated Press John Perry, a business development exec for Time Warner's Warner Bros., is the creator of the fictional Manka Bros. Studios -- "the world's largest media company." Perry's parody website skewers the media business, with its "all sorts of bad decisions." News Corp to Relaunch 'Younger' MySpace AFP News Corp. plans to relaunch MySpace, the social network that has been eclipsed by Facebook. The site will "go younger, go youthful," says News Corp. digital head Jon Miller, and put a premium on "creativity and self-expression; a little more rock and roll." Viacom Chief's Girl-Band is a Go at MTV Hollywood Reporter An MTV reality show about an aspiring girl band favored by Viacom chief Sumner Redstone remains in development despite objections by some at the network. Redstone associates admit that his voice-mail flap makes them wonder if the 87-year-old mogul is "losing his grip." Disney in Talks to Buy Social Game Startup Los Angeles Times Disney is in discussions to acquire Playdom, one of the largest makers of online social games, in which people play games together on social networks such as Facebook. The main sticking point is price -- discussed amounts ranging from $400 million to $750 million. Liberty Media Shutters Indie Film Studio Los Angeles Times Overture Films, the 3-year-old independent movie studio owned by John Malone's Liberty Media, is shutting down after failing to fetch an adequate price from interested buyers. The studio's marketing and distribution operations will be taken over by Relativity Media. Tribune Aims to Leave Bankruptcy, Old Ways Wall Street Journal CEO Randy Michaels wants to remake Tribune -- reducing duplication in newspaper reporting, launching a local TV newscast that has no anchors. "There's too much infrastructure," he says. Michaels adds: "I don't believe the economics of a paywall are going to work." Media Stocks With Big Upside Indentified TheStreet Some big-media stocks are poised to be blockbusters. Analysts are "increasingly optimistic" about Time Warner. And a possible sale of Disney's ABC would be "positive," with proceeds from a transaction likely going to video games, "the fastest growing segment in media." Media Holdouts: Some Refuse to Go Online Economist As media companies scramble to create iPad apps or fret about online paywalls, a few "analogue holdouts" -- Discovery, the Beatles, Harry Potter -- still refuse to distribute digitally. But holding back content, some observers say, "is not the best strategy for combating piracy." Media Tablets to Sell 11 Million This Year InformationWeek Some 11 million media tablets are expected to ship by year end, according to ABI Research. The firm is revising its earlier forecast of 4 million shipments "based both on the broader availability of the Apple iPad and on the delayed introduction of competing products." 'Old Media' Has Paying Users in Congress AOL News U.S. elected representatives spend $1.2 million a month on news subscriptions. The New York Times is favored over the Washington Post; The Week magazine has more subscribers than Time; Politco, the agenda-setting political newspaper, is "surprisingly missing." Viacom Responds to Chief Redstone Gaffe PR Week Viacom's corporate communications team says it aims to minimize the fallout of chief Sumner Redstone's voice-mail gaffe by "making sure people appreciate Mr. Redstone's accomplishments." The new season of MTV's "Jersey Shore" may "take the spotlight" off the "oops moment." Comcast May Be Forced to Sell NBC Stations Bloomberg Comcast may have to sell some NBC television stations or agree to have independent arbitration settle pricing disputes to get U.S. government approval for buying NBC Universal, analysts say. Comcast's power in key markets is "absolutely going to be a major concern." News Corp Unit Settles Brangelina Lawsuit Bloomberg Brad Pitt and Angelina Jolie have settled a lawsuit against News Corp. U.K. newspaper News of the World over stories that said the couple planned to separate. News Corp. admits the stories were false and agrees to pay undisclosed damages to the couple's charity. Viacom 'Shocked' Over Redstone Phone Flap New York Post In the aftermath of Viacom chief Sumner Redstone's voice-mail controversy, company insiders are said to be "shocked" that the supposed object of the media bigwig's attention, songstress Heather Naylor, was showered with stock options when she was an assistant at MTV. Comcast-NBC to Be Fourth Largest in Media New York Post Comcast, General Electric and NBC Universal claim in a filing with the Federal Communications Commission that their new joint venture entity won't dominate the television market, saying it will rank fourth among media companies in terms of advertising and affiliate revenue. CBS Discusses Ending Couric 'Experiment' New York CBS is said to have considered buying out the remainder of Katie Couric's contract as anchor of the network's troubled evening-news broadcast and putting in someone new this fall. NBC CEO Jeff Zucker reportedly would "welcome Couric's return when she is available." News Corp Ex Chernin Backs iPad 'Magazine' AllThingsD A new "social magazine" for the Apple iPad called Flipboard is securing $10.5 million in funding from the likes of the investment company of former News Corp. exec Peter Chernin. Flipboard pulls in data from Twitter and Facebook to make a personalized "magazine." Jobs Tops Google Chiefs in 'Media Power' WorldScreen Apple chief Steve Jobs comes in at the No. 1 position on the MediaGuardian 100 annual list of the most powerful people in media, bumping Google's Sergey Brin and Larry Page down to No. 2. Jobs is credited for changing media consumption with the new iPad device. Murdoch Brings 'Idol' Concept to Newspaper Sun Rupert Murdoch's British tabloid the Sun is launching an "American Idol"-like contest for aspiring writers. Youngsters age 16 to 21 can compete in the "Column Idol" contest to have a one-shot column published in the Sun. Participants don't need "any journalism experience." Redstone on 'Witch Hunt' Over Leak at MTV Daily Beast Viacom chief Sumner Redstone is said to have phoned a reporter with the Daily Beast seeking the identity of the anonymous source behind the story of his supposed fondness for an all-girl rock band. Redstone says that he thinks the source is a "young male" exec at MTV. Media, Marketing M&A Positioned to 'Heat Up' Advertising Age Eager buyers and full private-equity coffers are said to be stirring merger-and-acquisition interest in media and marketing services. "The deal volume and transaction volume might actually increase in the second half," says John Prunier of investment bank Petsky Prunier. Internet Media Leads Mergers, Acquisitions Radio Ink Internet media was the highest-volume segment of the media industry in terms of mergers and acquisitions in the first half of 2010, according to Berkery Noyes Investment Bankers. Google was, perhaps unsurprisingly, the most active buyer, with 11 acquisitions. Media, Tech Giants Preparing Digital Format Bloomberg Microsoft, Sony, Viacom and more than 50 other companies are close to approving an online service, called UltraViolet, where consumers can buy and access movies and television shows through smartphones, tablet computers, game consoles and other platforms. DVD, Blu-ray U.S. Sales Continue to Decline Los Angeles Times U.S. home entertainment revenue dropped 3.3% in the first half of the year to $8.8 billion, says a report from the Digital Entertainment Group. Sales of the "Avatar" DVD were a rare "bright spot." Digital download gains failed to make up for the continuing drop in DVD sales. Disney Slams Time Warner with New Website Wall Street Journal Disney has started a website, I Have Choices, slamming Time Warner Cable over the company's tactics in renegotiating a contract to carry ESPN, the Disney Channel and some ABC stations. Time Warner Cable insists: "Customers don't seem to be that concerned." Murdoch in Venture for Arabic News Channel National Saudi Prince Alwaleed plans to launch a 24-hour Arabic-language news channel in partnership with Rupert Murdoch's Fox network. The channel will be an "alternative" to the likes of Al Jazeera. Both Murdoch and Prince Alwaleed hold stakes in each other's companies. Media M&A 'Heating Up' in Mobile, Online Folio After the media market largely dried up last year, 2010 is proving to be much more active, according to industry investment bankers Jordan, Edmiston Group. Mobile media and technology sector transactions are up 188%; b-to-c online media deals are jumping 64%. Viacom's MTV Networks in Video Ad Deal ClickZ MTV is entering a deal with Warner Music that will give the Viacom unit rights to sell advertising around thousands of music videos. MTV exec Van Toffler says the deal "offers advertisers one-stop shopping for the most comprehensive source of music programming." News Corp: Will People Pay for Web News? New Media Age People are happy to pay for quality journalism -- but not online, according to a new survey by YouGov. Some 83% of people say they won't pay for online content at all. The survey comes as News Corp. erects online paywalls for its Times newspapers in London. Disney Opens Interactive-Tech Disney Store Los Angeles Business Disney is opening the first of its revamped Disney Store locations in Montebello, Calif. The outlet is heavily reliant on interactive technology. Among the features is an interactive castle, which has a "magic mirror" in which a Disney princess appears to tell a children's story. Hearst Preps for Digital Future with Hires Wall Street Journal CEO Frank Bennack Jr. is said to be impatient to shake up Hearst and prepare for a digital future, naming new and younger heads for the company's newspaper, entertainment and now its magazine businesses in the past two years. "We want to go faster," he says. News Corp Loses Faith in Beliefnet, Sells Site Hollywood Reporter News Corp. is selling Beliefnet, a spirituality website it purchased three years ago, for an undisclosed amount to BN Media, an entity that includes the investors behind an online service for nonprofits. The site says it is taking "the difficult step of cutting a number of jobs." Murdoch Global Assets Facing Heat, Disposal WaPo / Dow Jones Farsi1, a satellite television station in Iran co-owned by Rupert Murdoch, is upsetting the Islamic republic's clerics and state TV execs for airing "corrupt Western culture." Also: Murdoch is being forced to dispose of his Fiji Times newspaper as Fiji cracks down on local media. News Corp, Disney Eye Immigration Reform Associated Press The CEOs of several major corporations, including Disney and News Corp., are joining New York mayor Michael Bloomberg to form a coalition advocating for immigration reform. "It's critical for continued economic growth," says Disney chief Bob Iger. Media Moguls Top Salary List of NYC Execs Crain's New York Tim Armstrong, Philippe Dauman, Mel Karmazin and Les Moonves are among the media bosses that top a new ranking of New York City's 100 best-paid execs. But one investor advisor describes the link between pay and performance at their companies as "horrible." Big Media Lose $1.5B on Social Networking Guardian The media industry has now lost $1.5 billion on investments in the social networking craze after AOL sold Bebo last week for a fraction of the price it paid for the business two years ago. Investments by media companies in MySpace and other sites have "soured." Murdoch Predicts Millions of Tablet Devices BusinessWeek Within five years there will be "hundreds of millions" of Apple iPad-like devices in the world, predicts News Corp. chief Rupert Murdoch, speaking at the New York Forum. "This is a huge new market." Such devices will have the ability "to present all forms of media to all people." Traditional Media Sites Losing to Web Rivals min Traffic to traditional media websites (up 5% in 2009) is not growing as fast as their web-only counterparts (up 10%), according to a study by Wetpaint. Among the reasons cited: Endemic web companies are "faster" at embracing new content discovery techniques. Media Merger Talk Heating Up for Summer Hollywood Reporter Recent deals suggest a renewed willingness of big media players to explore mergers and acquisitions. Investment bank Allen & Co.'s annual media mogul gathering in Sun Valley, Idaho, kicking off just after the Fourth of July, is expected to heat up summer deal speculation. 'Mad Men,' James Bond Studios Mull Merger Los Angeles Times Lions Gate, the embattled studio under siege from dissident investor Carl Icahn, is said to be holding merger talks with beleaguered Metro-Goldwyn-Mayer. A merger would result in a powerful independent studio with a library of thousands of movies and television shows. Liberty Spin-Offs May Signal Urge to Merge New York Post Wall Street is expecting Liberty Media chief John Malone to go shopping soon, and this time sources believe HSN is in the cross hairs. Some analysts believe Malone's plan is to merge QVC with its rival HSN, something he tried unsuccessfully to accomplish back in 2007. Comcast-NBC Universal Merger Draws Critics Los Angeles Times The proposed Comcast-NBC Universal merger is being heavily criticized by media rivals Bloomberg, DirecTV and Dish Network, as well as some consumer advocacy groups. The groups are filing comments with the Federal Communications Commission to block the deal. Tribune Rival Aims to Block License Transfer Wall Street Journal Neil Ellis, the owner of the Manchester Journal Inquirer, a small Connecticut newspaper, is trying to prevent Tribune from obtaining licenses the media giant needs to operate two television stations it owns in the Hartford area, where it also publishes the Hartford Courant. Disney's New Franchise: 'Phineas and Ferb' Los Angeles Times Disney is giving its offbeat "Phineas and Ferb" cartoon the full marketing treatment, with a new line of merchandise and a movie in the works. "Within the next 18 months, this will be one of the biggest properties we've ever had," says Disney Channel exec Gary Marsh. FCC: Do Media Ownership Limits Make Sense? Associated Press As the U.S. Federal Communications Commission kicks off its latest review of media ownership rules, the agency faces calls by media owners to pare the limits because traditional media are no longer the almighty players that they were. "These rules need to fall away." Time Warner Eyes Bid for UK's Shed Media BBC News Time Warner is in talks to buy the British television production firm Shed Media, behind shows such as "Supernanny." Time Warner wants to add Shed to its London-based production business following successful global rollout of some of its U.S. shows, such as "Gossip Girl." CBS, Reliance to Launch Indian TV Channels Times of India CBS plans to enter a joint venture with India's Reliance Broadcast Network to launch television channels in India. The venture will initially broadcast English language entertainment channels and will explore Hindi and regional language channels in the next phase. Murdoch May Bundle BSkyB, Times Website Int'l Herald Tribune What is Rupert Murdoch's plan for his proposed takeover of BSkyB? As his Times of London newspaper starts charging for its website, bundling the service with a satellite television subscription might lure consumers, analysts say. "There must be ways of linking the two businesses." NBC Affiliates to Support Sale to Comcast Wall Street Journal Independent NBC stations expect to support Comcast's proposed takeover of NBC Universal after the cable giant agrees to measures intended to protect their interests. Conditions include not to bypass local stations by taking the NBC signal straight to cable. Liberty Media to Split Off Capital and Starz Reuters Liberty Media, the media firm controlled by John Malone, plans to spin-off two units, investment arm Liberty Capital and pay television and Hollywood studio unit Liberty Starz. The split will help the company to "better pursue strategic objectives, including acquisitions." Media CFOs Say Digital Will Eventually Deliver Hollywood Reporter A report on digital media says businesses tied to the Internet and mobile-device distribution eventually will throw off impressive revenue despite slow progress so far. Ernst & Young surveyed CFOs from 75 media and entertainment companies on the subject. Diller: Google Nearing 'Absolute Dictatorship' Bloomberg Barry Diller, chairman and CEO of IAC/InterActiveCorp, says that his Ask.com search site is overshadowed by market leader Google, and that he would be "up for consolidation" if he found the right partner. "Google is getting to a point of absolute dictatorship." FCC Advances Google-Backed Broadband Plan Bloomberg The Federal Communications Commission is advancing a plan supported by Google, eBay and Amazon to regulate Internet service providers over the opposition of carriers led by AT&T. "We are not talking, even remotely, about regulating the Internet," says commissioner Michael Copps. Time Warner: Tech Giants Eye TV Everywhere MediaPost Microsoft and Google are working on the interface for the Time Warner-led TV Everywhere project, says Time Warner CEO Jeff Bewkes. With TV Everywhere due to arrive in 50 million homes by next year, the only question is "which search function you want to use." Sony Chief Stringer 'Overpaid' at $4.5 Million Bloomberg Sony chief Howard Stringer was paid $4.5 million in salary last year as Japanese regulators start forcing employers to disclose compensation packages. "It doesn't make sense to get paid this much while your company is losing money," says one Tokyo investor. News Corp: Sky Sports News Goes Pay-Only Financial Times News Corp.'s strategy to extract maximum revenue from its content continues as the company reveals plans to make its U.K. sports news channel only available to pay-TV customers. Sky Sports News has been accessible to U.K. viewers for the past eight years on Freeview. Murdoch Summer Party Lures Prime Minister Guardian The "rich and powerful" showed up at Rupert Murdoch's summer party for his British newspaper publishing arm. U.K. prime minister David Cameron "drank bubbly from a tall champagne glass while journalists gossiped about Rupert's new super-short Action Man-style haircut." New York City Aims to Help Media Sector Wall Street Journal The Polytechnic Institute of New York University, Columbia University and the City of New York plan to open a lab that aims to stimulate the local media industry. The NYC Media Lab is the latest step by the Bloomberg administration to boost the city's media sector. Sony Plans 3-D, Motion-Controlled Games MSNBC Video game enthusiasts will soon be able to play a host of games that are not only motion controlled but also displayed in eye-popping 3-D, Sony execs say. New technologies in the PlayStation 3 games will offer fans "the closest thing to being in the game itself." News Corp: James Murdoch at Epicenter Evening Standard BSkyB boss James Murdoch's hold on News Corp. could be strengthened with a company takeover of the U.K. satellite television provider. "Suddenly, the empire looks a lot more streamlined -- with James at its epicenter. He has come an awful long way, very quickly." Comcast's Web-Slowdown Accord OK'd Bloomberg Comcast has won final approval of a $16 million settlement of consumers' claims that it delayed some file transfers over its high-speed Internet service. The accord is said to be the first to have an Internet service provider paying to resolve so-called data-bias charges. Viacom: Redbox Helps Us 'Make Money' Los Angeles Times Paramount Pictures plans to provide its movies to the Redbox $1-per-night kiosk rental service on the same day they go on sale. The Viacom studio is making the move after experimenting with delays of DVDs to Redbox. "There hasn't been a cannibalization of sales." CBS Boss Les Moonves Has Digital Fears Hollywood Reporter The advertising market is back, but it is still not where it was, says CBS boss Les Moonves. His biggest fear, he adds, is that viewers will watch the hit show "CSI" online without the firm getting fully paid for it. Also: "We are not looking for any major acquisitions." News Corp: Higher Offer May Win BSkyB Telegraph BSkyB is rejecting a proposal by 39% owner News Corp. to buy the rest of the U.K. satellite broadcaster with a $11.5 billion offer that it says "deeply undervalues" the company. However, BSkyB says that a takeover by the media giant might be possible with a higher bid. Hollywood Box-Office Futures Trading OK'd Los Angeles Times Despite opposition from Hollywood studios, U.S. regulators are approving an investment vehicle that will allow traders to bet on the ticket sales that a movie generates during its opening weekend. Studios fear the practice could hurt how movies perform in theaters. Disney to Swim Among New-Media 'Fish' Hollywood Reporter Disney CEO Bob Iger says he sees a clear migration of consumers to digital media. Therefore, "we have to be where the fish are." In describing the Disney deals for the iPhone and other digital ventures, Iger admits his team had to "put our current business at some risk." Murdoch in Bold Digital Journalism Moves Hollywood Reporter News Corp. is unveiling multiple digital media initiatives, including the acquisition of Hearst's Skiff e-reading platform and an investment in Steven Brill and Gordon Crovitz's Journalism Online venture. Also, Jon Housman is being named head of digital journalism initiatives. News Corp, Disney Seek World Cup Wins Reuters News Corp. and Disney are making big bets on the growing popularity of soccer in the United States, thanks in part to a more diverse population. Disney's ABC and ESPN have the U.S. rights to live coverage; News Corp. is offering a new Fox Soccer Plus premium channel. Disney Staffer Allowed Bail on Fraud Charge Reuters Former Disney employee Bonnie Hoxie, charged in an insider trading scheme with her boyfriend, is being allowed to go free on $50,000 bail in New York. "It's early in the case," her lawyer says. "The allegations are just allegations. They're subject to verification." Viacom to Pay Dividend Amid Ad Rebound Bloomberg Viacom will start paying a dividend for the first time and buy back as much as $4 billion in stock as the advertising market recovers. It is the first time the company will pay a dividend to investors since chief Sumner Redstone split Viacom and CBS at the beginning of 2006. Media's Future is Now Available on Video I Want Media A video of "The Future of Media: 2010," a panel discussion from I Want Media, is now available. The Internet Week forum features commentary from media execs at Google, Yahoo and AOL, as well as web publishers Dan Abrams, Arianna Huffington and Jonathan Geller. Media: U.S. Forecast for Slow Growth Financial Times China will overtake Japan as the world's second largest media market by 2015 while the United States will confront the slowest growing media market in the world, according to PwC's newly released forecast. Digital media will expand to one-third of all media spending. Sony Takes Crackle Video Site Worldwide New Media Age Sony Pictures Entertainment is launching its multi-platform video portal Crackle in the U.K., featuring ad-funded short- and long-form television shows and movies. Crackle, which first launched in the U.S. in 2007, is being "replicating around the world," Sony says. Comcast-NBC Universal Merger Attacked Los Angeles Times Criticisms and charges flew during a field hearing held Monday by the House Judiciary Committee in Los Angeles to review the proposed Comcast-NBC Universal merger. Rep. Maxine Waters of Los Angeles dropped a bomb by hinting that Comcast had tried to buy her support. Viacom Issues Gag Order on Employees Village Voice Viacom send a letter to employees on Friday detailing company rules governing staffers' personal blogs, outside jobs and talking to the press. Employees of MTV, BET and Paramount Pictures "may not criticize, ridicule or make any negative statement concerning Viacom." Comcast-NBC: Heat From Ex-FCC Chief? Los Angeles Times Comcast's proposed takeover of NBC Universal will be probed in a hearing Monday in Los Angeles. Among those possibly testifying: Kevin Martin, former chairman of the Federal Communications Commission, whose appearance could be damaging to the deal. Viacom Boss May Drive Out MTV's McGrath Daily Beast Viacom chief Sumner Redstone is said to be forcing MTV to produce a reality show about the Electric Barbarellas, a "sexy but talentless" all-girl band. Tensions are so heated that sources say it could lead to CEO Judy McGrath leaving MTV, either by resignation or firing. Producer: Big Media is Devaluing Content Los Angeles Times Big media's rush to exploit new media platforms could ultimately end up cheapening content, says veteran television producer Marshall Herskovitz. The networks are "devaluing content" by throwing TV shows online. "The advertising model for new media isn't there." Disney: Too Early to Write Off New Media Dow Jones Disney CEO Bob Iger says it is too early to discount the ability of media companies to drive revenue from emerging new media platforms, like the online video site Hulu. There is "value" in being on new platforms first, he says, adding that it makes brands more relevant. Comcast-NBC Universal Hearing on Monday Los Angeles Times The witness list for the House Judiciary Committee's hearing to be held Monday in Los Angeles about the Comcast-NBC Universal deal is likely to include a mix of industry execs and academics, many of whom will raise concerns about the combination of the two giants. Media Executives Gush Over Apple iPad Wall Street Journal Unprovoked testimonials for the Apple iPad flowed freely from media leaders at the All Things Digital conference. Rupert Murdoch describes Apple's Steve Jobs as the best CEO in America. "The iPad is a beautiful, beautiful device. All of the media in the world can go on it." Nielsen Files to Raise $1.75 Billion in IPO Bloomberg Nielsen, the television-audience rating company, is filing to raise as much as $1.75 billion in a U.S. initial public offering. The market-research company is going public four years after it was acquired by a group of six leveraged buyout firms for $10.2 billion. Disney to Sell Movie Tickets via Facebook New York Times Disney has created what it believes is a first-of-its-kind app allowing Facebook users to buy tickets to "Toy Story 3" without leaving the social networking site and while, at the same time, prodding their friends to come along. The app could transform how Hollywood sells movie tickets. Time Warner Cable: A 'Pirate Sanctuary' Ars Technica Lawyers suing thousands of peer-to-peer users are unhappy with Time Warner Cable's unwillingness to process subscriber subpoenas in a timely manner. Time Warner Cable appears to be seeking to "garner public support and possibly gain more subscribers." NBC Boss Zucker Eyes $30M+ Exit Deal New York Post General Electric is said to have finalized details of Jeff Zucker's exit deal from NBC Universal. Zucker will leave "a couple of months" after Comcast closes its agreement to acquire a 51% stake in the media giant with an exit package of "roughly $30 million to $40 million." Icahn Promises Proxy Fight for Lions Gate Los Angeles Times Delivering on his threat to seize control of Lions Gate, Carl Icahn says he will launch a proxy war against the studio. The activist investor, currently the company's second-largest shareholder, has been waging a battle against studio management for more than a year. Vivendi Former CEO Messier in Big Mess BBC News Jean-Marie Messier, the former CEO of French media giant Vivendi Universal, is appearing in court today on fraud charges. Prosecutors claim he misled the stock market, manipulated share prices and misused company money. Messier faces up to five years in prison. Time Warner to Reinvent Under Bewkes Financial Times Time Warner is set to report the highest earnings growth of its industry peers and to return more capital to shareholders than any large U.S. media company. CEO Jeff Bewkes doesn't hide his disdain for deal-driven empire-building. "We're trying to make money," he says. Comcast Poised to Recreate Time Warner Barron's With its planned acquisition of NBC Universal, Comcast is "essentially recreating" the old Time Warner, which just got rid of both AOL and its cable arm, says BTIG analyst Richard Greenfield. NBC could "distract management" from its focus on the core cable business. Media Stocks Hope for Summer Recovery Hollywood Reporter Media conglomerate stocks are tumbling off the 52-week highs they set in the past two months, but most are entering the summer season slightly ahead of their 2009 closes. Time Warner is up more than its peers; News Corp. shares are running behind their 2009 finish. CBS to Form TV Joint Venture in India Economic Times CBS is forming a joint venture with India's Reliance Media World to launch a network of English and Hindi TV channels. The venture, which will start operations in January, will launch movie channels as well as regional entertainment channels, but won't enter the news space. Media Devices Eyed to Help Rescue Industry IDG News "Old media" seeing their revenue imperiled by the Internet's freewheeling ways are finding hope in the Apple iPad and other new media-friendly devices. The iPad may be the first of "tens of millions" portable media-consumption devices due out in the coming years. Time Warner CEO: Digital Is Good for Media Hollywood Reporter Overall, Time Warner's businesses are not hurting badly from piracy, according to CEO Jeff Bewkes. "Film and TV and magazines aren't the music business." TW's pure content focus is helping on the financial front as "content is going up" in the digital age, he argues. Viacom Names Dooley Second in Command Bloomberg Viacom is promoting CFO Thomas Dooley to the new post of COO, making him second in command behind CEO Philippe Dauman. Dooley will help set strategic priorities for the owner of MTV and Paramount Pictures. He will continue as CFO until a successor is found. Disney Seen Unlikely to Find Buyer for ABC Reuters Wall Street has long seen sense in Disney selling or spinning off ABC, the low-rated TV network and the one piece that does not seem to fit well with the entire entertainment empire. But the problem is finding a buyer, analysts say. "ABC would be very hard to divest." News Corp to Sell Beliefnet, Digital Assets AllThingsD Beliefnet, the spirituality site bought by News Corp. in late 2007, is being shopped around for sale, according to several sources. The media giant is also said to be considering selling off Jamba/Jamster, a mobile content provider now called Fox Mobile Group. Time Warner Says No Time Inc Sale This Year Dow Jones Time Warner is ruling out a sale of the company's magazine unit, Time Inc., in 2010 as the recovering economy promises to provide clues about the future of the business. When asked about the prospect of a Time Inc. sale, CEO Jeff Bewkes says: "Not this year." Disney's 'Alice' Rakes In $1 Billion Worldwide AP Disney says its remake of "Alice in Wonderland," by director Tim Burton, hit $1 billion in box office receipts worldwide. The movie ranks as the third most popular film that is not a sequel, after "Titanic" and "Avatar." The 3-D movie had the biggest March opening in history. Time Warner's 'Sex' to Best Disney's 'Prince' LA Times Disney's big-screen video game adaptation "Prince of Persia," starring Jake Gyllenhaal, isn't expected to open in first or even second place over the lucrative Memorial Day holiday weekend. "Sex and the City 2," the romantic comedy sequel, is forecast to rule the box office. Yahoo, eBay: End Viacom's YouTube Lawsuit Bloomberg Yahoo, eBay, Facebook and IAC/InterActiveCorp are urging a judge to dismiss Viacom's copyright-infringement lawsuit against Google's YouTube video-sharing site. The four Internet companies say Viacom's suit could "retard the development of the Internet and e-commerce." Viacom, CBS Not for Sale, Redstone Says Reuters CBS chief Sumner Redstone says he has no interest in selling the network or its sibling company, Viacom. "I will never, N-E-V-E-R, sell Viacom or CBS." Speculation is heating up that broadcasters are ripe for acquisition in light of Comcast's planned takeover of NBC. Big Media to Apple: We Want Adobe Flash NY Post Time Warner, NBC Universal and other large media companies are said to have told Apple they won't retool their extensive video libraries to accommodate the iPad, arguing that such a reformatting would be expensive and not worth it because Flash dominates the Web. Media's Future Eyed by Google, HuffPost I Want Media Arianna Huffington, Dan Abrams, Cindi Leive and a genuine "boy genius" will be among the participants in "The Future of Media: 2010," a panel discussion from I Want Media. The free Internet Week forum aims to explore the key issues that are reshaping traditional media. Veronis to Exit Veronis Suhler Stevenson MediaPost John Veronis is leaving Veronis Suhler Stevenson, the influential media industry private equity firm he co-founded with John Suhler. Jeffrey Stevenson, who joined the firm in 1982, will continue to serve as the managing partner of VSS and its sponsored funds. Hulu Eyed in Comcast-NBC Merger Deal B&C Sen. Herb Kohl (D-Wis.), chair of the Senate Judiciary Antitrust Subcommittee, is seeking strong conditions on any Comcast-NBC Universal merger, including that it divest its stake in the online video site Hulu within a year and apply program access rules to web video. Disney Staffer Fraud Fuels ABC Sale Talk Dow Jones An administrative assistant to Disney's head of communications and her boyfriend are being arrested for trying to sell advance access to the company's earnings reports. The twosome allegedly claims that Disney is in talks to sell ABC. Disney describes the claim as false. FCC to Study Media Ownership, Internet NY Times The U.S. Federal Communications Commission will begin soliciting public comments as part of its required review of media ownership rules. The agency also is seeking opinion on the impact of the Internet on the use of television and radio, as well as access to news. Comcast-NBC Merger Deal Probed by FCC LA Times The Federal Communications Commission is questioning Comcast and NBC Universal as part of its review of the companies' proposed merger. Of particular interest is how they decide what content goes on what platform. The video site Hulu is among the items being probed. Emmis to Be Taken Private by Its CEO Dow Jones Emmis Communications will be taken private as a company formed by its executive chairman Jeff Smulyan acquires it in a deal valuing the radio-station owner at about $90 million. The acquisition still needs to be approved by Emmis shareholders and regulators. Murdoch Cuts Price of Centre Island Home Newsday Rupert Murdoch is getting more serious about selling his waterfront estate on Centre Island in Nassau County, chopping the price for a second time by more than $2 million. The estate first hit the market in 2007, listed for $14.8 million. The current asking price is $10.5 million. News Corp Unveils Pay-For Times Websites Times News Corp. is launching paid-for websites for the Times of London and the Sunday Times. Starting in June, readers must pay 1 pound ($1.44) per day or 2 pounds per week for both titles. Also: Articles on the sites will not appear in searches by Google and other search engines. Disney Ends Miramax Talks With Weinsteins Wall St Journal Disney is said to be formally terminating negotiations with Harvey and Bob Weinstein to buy back Miramax Films, due to the "complex structure" of the acquisition. The end of the talks could pave the way for another bid by billionaire brothers Tom and Alec Gores. Google Offered Viacom $600M for Content CNET In 2006, Google offered nearly $600 million in guaranteed revenue if Viacom licensed its TV shows and films to YouTube. But Viacom wanted $700 million. News of Google's offer is revealed in newly released documents in the Viacom-YouTube copyright lawsuit. Time Warner: Drop 'Time' from Its Name? H'wood Reporter At Time Warner's annual meeting on Friday, the loudest applause came after CEO Jeff Bewkes reminded attendees that the company has dropped "AOL" from its moniker. One shareholder suggested that "Time" be dropped as well, changing the media giant's name yet again. Viacom-YouTube Feud Reveals Nasty Talk Ars Technica YouTube employees sneered at rights holders as "copyright bastards" and "a-holes" in newly released court documents from the ongoing Viacom-YouTube copyright battle. Former Viacom CEO Tom Freston wrote in an e-mail: "If we get UTube ... I wanna run it." Murdoch: Secret Talks with Prime Minister Mirror David Cameron, the newly elected U.K. prime minister, held "secret talks" with News Corp. chief Rupert Murdoch at No 10 Downing Street last Tuesday. Political observers suggest that Cameron may pay back Murdoch for his newspapers' support during the election. Disney's Miramax Sale Not on the Rocks AP Ron Burkle and partners the Weinstein brothers are denying reports that talks to buy Disney's Miramax Films division are on the rocks. Discussions are being slowed, sources say, mainly because of problems securing the Weinstein brothers as the company's managers. Time Warner Preps Movie Shortcut to TV Wall St Journal Time Warner Cable is in talks with Hollywood studios about a "home theater on demand" service that would send movies to people's living-room TVs just 30 days after films hit the multiplex. Consumers would be allowed to watch a movie at home for about $20 to $30 a pop. Comcast-NBC Merger: A 'Killer Asteroid' B&C An effort by the activist group Free Press to stop the proposed Comcast-NBC Universal merger is producing an flood of complaints to the Federal Communications Commission. The group created a video comparing the deal to a killer asteroid headed for Earth. Murdoch Son Slams Google Over Internet Evening Standard Google recognizes it has not done enough to help media owners and publishers protect their intellectual property, says News Corp. exec James Murdoch, responding to news that his company has been in talks with the Internet giant. Google's "approach needs to change." Barnes & Noble to Move Away from Books Wall St Journal Barnes & Noble, the leading U.S. bookstore chain, plans to evolve into a different kind of retailer in the coming years, selling more nonbook items like puzzles and games. The move is in response to the rise of e-books. Some question whether bookstores will disappear. Time Warner's Cable Outlets Drive Profit Bloomberg Time Warner's biggest cable channels, TBS and TNT, are spending more on original TV series and paying for marquee names like Conan O'Brien to drive ratings at the unit that now accounts for most of the company's profit. TBS and TNT are increasing program spending by 26%. Yahoo Former CEO Semel Eyed for MGM Wall St Journal Metro-Goldwyn-Mayer's creditors are holding talks with a handful of Hollywood execs about running the debt-laden film studio in exchange for an equity stake. Those having discussions include onetime Yahoo chief Terry Semel and former News Corp. exec Peter Chernin. Murdoch Lacks Allies for Digital Crusade AllThingsD Rupert Murdoch is due to announce details of a long-planned digital news subscription service within the next few weeks. However, News Corp. reportedly has yet to sign any external partners on to the venture. Still, the company is said to be in "late stage" talks with Gannett. Old Media Entering Deals With Foursquare Mediaweek The Wall Street Journal, CBSNews.com and Time Out New York are among the growing number of media outlets entering partnerships with Foursquare, the location-based social network. Foursquare is seen as "a major place where people will consume actionable content." Media Moguls Talk New-Media Monetization World Screen Comcast's Brian Roberts, Time Warner's Jeff Bewkes and CBS's Les Moonves are among the media CEOs weighing in on new-media business models at this week's Cable Show in Los Angeles. "Content is everything," asserts Moonves. "Wireless is useless if you're hitless." Media Execs Giddy Over Prospects for iPad H'wood Reporter Many media execs are said to be downright giddy about the Apple iPad's role as a device for media consumption. "Importantly, we make money on it." Execs foresee consumers having a tablet computer in every room. "The iPad will be your server. Why do you need cable TV?" Sony Considers Developing iPad Rival Tablet Bloomberg Sony says it is mulling the development of a tablet computer to compete with Apple's iPad, though it wants more evidence consumers will buy them. "The iPad has created a new opportunity." For now, Sony plans to keep investing in its Reader line of devices for digital books. NBC Universal's 'Robin Hood' Eyes Media AFP If Robin Hood was alive today he would aim his arrows at big media, says "Robin Hood" actor Russell Crowe at the Cannes Film Festival. "He would be looking at the monopolization of media as the greatest enemy." The new "Robin Hood" film is a production of NBC Universal. Disney's Club Penguin Misses Profit Goals NY Times Club Penguin, the online community acquired by Disney in 2007, has failed to meet profit targets that were tied to $350 million in payouts to the website's creators. Club Penguin, where members pay $5.95 a month to dress penguin characters and play games, "is stumbling." Time Warner CEO Sidesteps Magazine Talk CNBC Advertising is on the upswing for Time Warner's television and magazine businesses, says CEO Jeff Bewkes. While sidestepping the question of whether Time Warner would sell off its magazines, Bewkes talks up the division's strengths. Time on the iPad "comes to life." Saban Buys Power Rangers, Eyes Newsweek Wall St Journal Media investor Haim Saban has bought back the rights to the Power Rangers children's franchise from their current home, Disney, and plans to bring them to Viacom's Nickelodeon. Also: Saban says he will "take a serious look" at Newsweek magazine, which is up for sale. Comcast 'Won't Comcast-ize' NBC Universal Dow Jones NBC will receive "more love" if Comcast wins regulatory approval to take over NBC Universal, says Comcast CEO Brian Roberts in an industry interview session with former News Corp. COO Peter Chernin. "At the end of the day, broadcast is going to have another revenue stream." News Corp Ex Chernin Builds Media Venture NY Times Peter Chernin, the subject of much speculation since his departure from News Corp., appears to be building his own ambitious media enterprise. His firm is expected to meld original content with cutting-edge technologies that use the Web and other digital delivery platforms. Time Warner Supports Ending Saturday Mail Bloomberg Time Warner says it supports the U.S. Postal Service’s proposal to eliminate Saturday mail delivery to save money. A "healthy" service is needed to deliver the company's more than 20 magazines, although Time magazine would have to shift its production schedule. Disney Plans Exporting Channels to Korea AP Disney plans to launch two Korean-language channels in South Korea in a joint venture with SK Telecom. The venture plans to launch Disney Channel and Playhouse Disney Channel aimed at children and families there in spring 2011, pending approval from Korean regulators. Viacom Backed by Rivals Against YouTube H'wood Reporter NBC Universal, Warner Bros. and Disney are joining performing rights associations in supporting Viacom's $1 billion copyright lawsuit against YouTube. They argue that Viacom's attempt to hold the Google-owned video-sharing service liable is "an important copyright case." 'TV Everywhere' Faces Industry Resistance LA Times A year after Time Warner's Jeff Bewkes introduced "TV Everywhere," allowing paying consumers to view shows on any device, his plan is facing resistance. Disney, NBC and News Corp. champion an alternative, Hulu. Critics see the plan as an effort to wipe out free online TV. Media Giants Mull Payouts as Ads Rebound Bloomberg News Corp., CBS and Viacom are weighing dividend increases or share buybacks as the advertising rebound spurs cash flow. News Corp. and Viacom may increase payouts to investors by August. "Investors in the media world would continue to prefer a return of capital." Murdoch 'Seeks Revenge' for Biography Guardian Michael Wolff claims that the New York Post's Page Six column published items about his affair as revenge for the unfavorable portrayal of News Corp. chief Rupert Murdoch in his book, "The Man Who Owns the News." Says Wolff: "If he feels threatened he will do anything." News Corp Exec Salaries 'Quite Obscene' LA Times While most CEOs of U.S. companies saw their compensation fall in 2009, top execs of media companies continued to rake it in. So says a study by the Los Angeles Times, following a similar report last week in the New York Times. "The move to digital doesn't bode well." Time Warner Only Potential Buyer of MGM Variety Access Industries is dropping out of the bidding for beleaguered film studio Metro-Goldwyn-Mayer, leaving only Time Warner as a potential buyer. Time Warner CEO Jeff Bewkes says that an acquisition of MGM "could make good sense" at the right price. Liberty Chief: FCC Favors Internet Giants Dow Jones The Federal Communications Commission appears to be acting in the interests of major Internet companies in taking a more aggressive stance on Internet regulation, according to cable pioneer John Malone. "I'm not enough of a prophet to figure out where this is all going." FCC Paves Way to Bypass Movie Theaters LA Times U.S. regulators have granted a waiver to the Hollywood studios that clears the way for them to show first-run movies in the home shortly after -- or even during -- their release in theaters. The "selectable output control" technology is expected to help stop illicit recording. Comcast Eyes Sale of NBC Station in LA Wall St Journal Comcast plans to sell one of NBC Universal's three Los Angeles television stations to win regulatory approval for its proposed acquisition of the media broadcaster. The NBC station that Comcast proposes selling is likely to be KWHY, an independent Spanish-language station. Cablevision Yanks Ads from Village Voice NY Post Cablevision pulled some $1 million in advertising from the Village Voice after the alternative weekly newspaper published an "inappropriate" quip about the cable giant's chairman, James Dolan. Cablevision says: "Who the hell wouldn't pull their ads after they read that?" News Corp Plans Prequel to 'Planet of Apes' H'wood Reporter News Corp. film studio 20th Century Fox plans to release "Rise of the Apes" in summer 2011, a prequel to "Planet of the Apes," incorporating digital effects developed for the company's box-office smash "Avatar." Former News Corp. president Peter Chernin will co-produce. Viacom, News Corp Ex-Execs Eyed for MGM Bloomberg Metro-Goldwyn-Mayer's creditors, unsatisfied with proposals to buy or restructure the debt-laden film studio, have contacted execs who may be willing to run it. Former News Corp. head Peter Chernin and ex-Viacom exec Jonathan Dolgen met with lenders in recent weeks. Netflix, Redbox Expected to Kill Blockbuster Bloomberg Blockbuster bonds are trading at prices that indicate its restructuring efforts will eventually fail and the video rental chain will go out of business, investors and analysts say. "It will cease to exist by 2013." Netflix and Redbox are taking Blockbuster's business. Media Stocks Peak as Investors Turn Away Reuters CBS, Time Warner and News Corp. are reporting stronger quarterly results, but a sell-off in their shares suggests that investors have already priced in the advertising recovery. "None of the media companies are paragons of enormous value," says one investor. CBS Said to Overpay Moonves $28 Million Bloomberg If CEOs were paid according to shareholder return, CBS' Les Moonves would take a $28 million pay cut under a model developed by pay expert Graef Crystal. Google's Eric Schmidt would get more than a $17 million raise. Schmidt is described as a "bargain" CEO. Time Warner CEO Sees Possible CBS Deal NY Times Time Warner's CNN could partner with CBS News or another broadcast network in the next 12 months, says CEO Jeff Bewkes. "It's no secret we've talked to other news organizations." He adds that Time Warner does not "have any desire to own a broadcast network." Comcast-NBC 'Won't Hurt' Internet Video Bloomberg A merged Comcast and NBC Universal will have numerous public benefits and won't harm Internet video distribution, the companies claim in a report submitted to U.S. regulators. Comcast-NBC "lacks an incentive to block Web services from accessing programming." NBC Universal CEO Mulls Future in Politics Daily Beast NBC Universal boss Jeff Zucker says he is interested in running for political office after he eventually steps down from atop the Peacock network. "Being a senator would interest me." Zucker may laying the groundwork for his exit from NBCU after the Comcast-NBC deal closes. Media Mogul Saban Eyes Brand Management LA Times Haim Saban is committing $500 million to acquire leading entertainment and consumer names: "As media and consumer options become increasingly fragmented, our thesis is that properties that resonate with consumers today will only become more meaningful." News Corp Eyes MySpace, Internet Content Dow Jones News Corp. "made some big mistakes" with MySpace, but more traffic is expected by the end of the year, says chief Rupert Murdoch. He adds that the company will hold a press conference in three to four weeks for a "big announcement" about charging for online news content. Disney: 1.5 Million ABC TV Episodes on iPad Bloomberg Disney says owners of Apple's iPad have played more than 1.5 million episodes of ABC television shows since the device went on sale. More than 400,000 copies of the free ABC player have been downloaded since April 3. Disney is also an investor in the Hulu video site. Time Warner Claims Record Quarterly Profit CNNMoney Time Warner is reporting its highest quarterly profit in company history, easily beating Wall Street's forecasts. "The advertising recovery benefited both Turner and Time Inc," says CEO Jeff Bewkes. Time Inc., however, saw sales slip, despite a rise in ads and subscriptions. Old Media Valued Higher Than Internet Giants Wall St Journal Juiced by a bounce-back in advertising, shares of "old media" companies are enjoying a renaissance. Discovery is trading at 23 times forecast 2010 earnings -- higher than even Google. Nonetheless, the long-term threats to the media world haven't gone away. "Caution is in order." Disney Shares Skyrocket as Ad Sales Recover Bloomberg Disney, the world's biggest media company and owner of ESPN and ABC, saw its shares rise to an almost 10-year high after Viacom and other rivals reported a rebound in advertising. "Comments that advertisers are opening up their wallets" are pushing up media valuations. Time Warner Makeover Enters 'Next Chapter' Multichannel News Time Warner's corporate makeover is entering the next chapter, as investments in the company's basic cable networks benefit from a rebound in advertising. An upside is seen at TBS in recruiting Conan O'Brien -- ad revenue in the late-night time slot could double. Murdoch's Fox Accused of Violating Copyrights TorrentFreak Fox News is said to be violating the copyrights of a photographer, even after owner Rupert Murdoch declared war against Google and others he believes are infringing on his company's work. Fox News is "exploiting" the work of Flickr user "Orvatli" without permission. Viacom, MTV Boost Security After Bomb Scare LA Times After the attempted bombing in New York's Times Square, police are stepping up patrols around studios in Hollywood. Sites linked to Comedy Central's "South Park" are getting extra protection. "We continue to be vigilant when it comes to the MTV location." Canwest to Poised to Sell TV Biz, Newspapers Canoe The breakup of Canadian media giant Canwest Global is coming closer, with Shaw Communications saying it will buy the television business for $2 billion and Torstar bidding for its newspapers. Canwest is struggling under $4 billion in debt from aggressive expansion. Pearson Sells IDC Data Business for $3.4 Billion Bloomberg Warburg Pincus and Silver Lake plan to buy Pearson's Interactive Data Corp., a provider of financial market data and services, for $3.4 billion, in the biggest private-equity deal this year. "The price signals a re-entry of private equity into the media sector." Obama Jokes: I Can't Save Media Industry WaPo / DB President Obama gave the media industry some heart-quickening teasing at the White House Correspondents' Dinner, saying he won't be able to bail out their businesses: "I'm not a miracle worker." Also: Obama's puns were contributed by writers from "The Daily Show." Media Chiefs Continue to Get Big Paydays NY Times Despite tough times in the media business, many of the people at the top continue to enjoy big paydays. CBS boss Les Moonves doubled his pay package last year to almost $43 million. Big compensation figures are seen as "one of the difficulties in the whole business model." Viacom TV Series Eyed in NYC Bomb Scare NY Daily News An Islamic group that warned Comedy Central's "South Park" of retaliation for lampooning the Prophet Muhammed is denying involvement in the Times Square bomb plot. The SUV containing the explosives was parked next to the headquarters of Comedy Central owner Viacom. Disney's 'Iron Man 2' to Battle Online Pirates WSJ / CNET "Iron Man 2" had a strong international debut this weekend and is hoped to give Disney its biggest film franchise since "Pirates of the Caribbean." Also: Scores of pirated copies of "Iron Man 2" are already available online ahead of the summer film's U.S. premiere this weekend. Media Mogul Saban 'Helped' with Disney Deal TheWrap Media billionaire and Clinton pal Haim Saban used political influence to help complete his sale of Fox Family Channel to Disney in 2001, according to a profile in this week's New Yorker. Saban's lawyers have already threatened legal action if the piece is "disparaging." U.S. Media Spending Rises Over 35 Years H'wood Reporter Over the past 35 years, U.S. media spending rose at a compound annual growth rate of 8.1%, second only to the services sector, says a new database from private-equity firm Veronis Suhler Stevenson. Also, a key industry growth driver has been digital-based media. Time Warner Ex-Boss Trashed Over Google Atlanta JC CNN founder Ted Turner has ridiculed Time Warner execs for selling the company's stake in Google too soon and for not selling CNNfn to Rupert Murdoch. "I said to [former CEO] Dick Parsons, 'We ought to hang onto that Google stock.' He said, 'That company's a bunch of bull---.'" Murdoch's 'Ink' Biz Slammed by Media Rival Bloomberg Viacom chief Sumner Redstone, taking aim at media rival Rupert Murdoch, has chastised the News Corp. boss for investing in newspapers, saying the "ink" industry will be dead in two years. "He lives in ink, and I live in movies and television. Ink is going to go away." News Corp: 'Too Complicated' to Sell Fuel LA Times Late last year, News Corp. tried to sell its Fuel TV cable channel to Viacom. The rationale was that the extreme sports channel for young guys might make a better fit within Viacom's youth-centric MTV universe. But after months of haggling, News Corp. has decided not to sell. Big Media May Benefit From Ad Recovery DJ / WSJ News Corp., Time Warner, Viacom and other major media conglomerates are expected to post better quarterly results in the coming weeks as the advertising market improves. Also: Advertisers are poised to boost spending on commercials for the coming television season. Murdoch's Saudi Pal Mulls News Channel Bloomberg Saudi Prince Alwaleed bin Talal plans to sell a stake in Middle East media company Rotana to the public within two years. Rotana in February agreed to sell a stake to News Corp. for $70 million. Alwaleed also may start a regional news channel to compete with Al-Jazeera. Murdoch Eyes NYT's Readers, Advertisers Reuters / Post The Wall Street Journal is unveiling its highly anticipated New York edition, deeply cutting the cost of a full-page ad and throwing in a full-page ad in sibling New York Post as a bonus. Also: News Corp. chief Rupert Murdoch is throwing a bash to celebrate the launch. Viacom Offices Boosts Security After Threat Post / Fox Police have tightened security at Comedy Central's offices in response to the "South Park" episode featuring the Prophet Mohammed in a bear suit. Also: The 20-year-old student who suggested a threat against "South Park's" creators says: "If you kill us, then we kill you." Time Warner Near Deal with Conan O'Brien Deadline Conan O'Brien is becoming a Time Warner man all the way. His company, Conaco Productions, is said to be finalizing a major production deal with Warner Bros. Television, now that it is producing his new late-night talk show for TBS. Conaco had been based at NBC. News Corp Exec Writes About Alcoholism Daily Beast David Yelland, a onetime senior VP of News Corp., writes about alcoholism in a new book, "The Truth About Leo." The ex-editor of the New York Post and London Sun writes: "One morning I had breakfast with Rupert having dressed in blackout over last night's clothes." Nielsen to Begin Hiring Bankers for IPO Financial Times Nielsen, the world's largest TV and consumer measurement company, will begin auditioning bankers next month for one of the largest U.S. initial public offerings in recent years. Nielsen's private equity owners hope the offering will value the company at up to $21 billion. News Corp Heir Apparent in Office Fracas Guardian James Murdoch, News Corp.'s heir apparent, caused a "media sensation" by storming into the office of Simon Kelner, editor of the U.K. Independent newspaper, and berating him for running a promotional ad assuring readers: "Rupert Murdoch won't decide this election. You will." Viacom Censors 'South Park' After Threat LA Times Comedy Central bleeped out all references to the prophet Muhammad in "South Park" after a threat from a radical Muslim group. The incident provides the latest example that media giants still struggle to balance free speech with safety concerns and religious sensitivities. Time Warner, CBS in March Madness Deal Fox Business Time Warner's Turner Broadcasting and CBS have inked a $10.8 billion, 14-year deal to televise NCAA's March Madness basketball tournament beginning in 2011. The deal means that for the first time, all games will be televised live across four national networks. Viacom Censors 'South Park' After Threat LA Times Comedy Central bleeped out all references to the prophet Muhammad in "South Park" after a threat from a radical Muslim group. The incident provides the latest example that media giants still struggle to balance free speech with safety concerns and religious sensitivities. Time Warner, CBS in March Madness Deal Fox Business Time Warner's Turner Broadcasting and CBS have inked a $10.8 billion, 14-year deal to televise NCAA's March Madness basketball tournament beginning in 2011. The deal means that for the first time, all games will be televised live across four national networks. Studios, Redbox End Lawsuits in DVD Deal CNBC 20th Century Fox and Universal Studios have struck a distribution deal with Redbox, agreeing to wait 28 days before offering new DVD releases for rental from the company's $1-a-day kiosks. The deal should protect the studios' business of selling new releases on DVD. Bernstein Media Analyst Nathanson Exits Bloomberg Nomura Holdings, Japan's biggest brokerage, is said to have hired Sanford Bernstein analyst Michael Nathanson as head of U.S. media and telecommunications equity research. Nathanson is the top-ranked entertainment industry analyst in Institutional Investor's 2009 survey. News Corp Invests in Digital Music Startup CNET News Corp. is acquiring a small stake in music startup Beyond Oblivion, which plans to enable consumer electronics makers to preload music on handhelds, computers and other gadgets. With MySpace Music, News Corp. already has a significant position in digital music. Time Warner Invests in TV-Marketing Firm NewTeeVee Simulmedia, a marketing firm founded by former AOL exec Dave Morgan, has raised $8 million in financing led by Time Warner. Simulmedia uses anonymous viewing data and a proprietary predictive technology to help television programmers build audiences. Disney Close to Sale of Miramax Film Studio Bloomberg Disney is said to be close to an agreement to sell its Miramax film studio to billionaire Ron Burkle's Yucaipa Cos. for $625 million. The deal may be completed in 48 hours. Burkle is working with Miramax founders Bob and Harvey Weinstein, who won't hold an equity stake. Sony to Air Baseball Games on PlayStation 3 Bloomberg Sony, maker of the PlayStation 3 video game console, plans to stream live Major League Baseball games over the Internet to its machines to expand its online offerings. The company is preparing an update for the console software to enable streaming on existing machines. Disney Hires Digital Pro as Marketing Chief TheWrap Disney is naming MT Carney as the new head of marketing for its film studio. Carney co-founded Naked Communications, a New York City-based media planning firm. Its clients have included Coca-Cola, Kraft, Johnson & Johnson, Google, Microsoft and Nokia. Viacom, Disney Feel Impact of Volcano CNBC Viacom's and Disney's film studios are moving the premiere of "Iron Man 2" from London to Los Angeles, due to disrupted travel schedules caused by the volcano in Iceland. The film's debut in international theaters will be uninterrupted, however, thanks to digital distribution. Time Warner Buys Game Studio Turbine Financial Times Warner Bros. is acquiring online gaming studio Turbine, in an effort to spread its social networking and micro-payments technology across its video games and home video business. Turbine is the group behind the hit online game based on Warner's "Lord of the Rings." Disney to Sell ABC? Who Would Buy It? MarketWatch Is Disney quietly shopping ABC or, at least, the news division? "The reality in the broadcast media today is that network television properties are assets of diminishing promise. Cable is where it's at. On its own, ABC is not regarded as an attractive takeover candidate." News Corp Buys Game Firm Irata Labs LA Times News Corp. is acquiring Irata Labs, a San Francisco developer that builds games and other apps for social networks. Irata is best known for creating Spymaster, an espionage game on Twitter. It is believed to be the first game to use the microblogging platform. Microsoft, Chernin Mull Xbox TV Channel Bloomberg Microsoft and former News Corp. president Peter Chernin are said to have discussed creating a television channel for users of the Xbox video-game console. The channel would be owned jointly by Chernin and Microsoft, and would offer reruns and original shows. News Corp Mulls Spinoff of Digital Ad Unit AllThingsD While there have been reports that News Corp. is selling its advertising unit, Fox Audience Network, the company has actually been in talks with about spinning it off and selling only a 20% to 30% chunk of it. The worry: If Google dominates that business, "it's game over." Martha Stewart Coming to Video Games Barron's Martha Stewart Living Omnimedia is teaming up with video-game firm Majesco Entertainment to develop and produce interactive electronic games based on Martha's "expansive portfolio of lifestyle content." Women are "increasingly engaged in social gaming," Stewart says. Viacom Staff YouTube Uploads 'Irrelevant' Dow Jones Viacom admits that its employees uploaded company content on YouTube for promotional purposes during a period of alleged copyright violations, but says that the act was irrelevant to its case. "YouTube and Google did nothing because they didn't want to know." Media Consumption Increasing, Study Says Guardian People are watching more television, reading more news, playing more video games, and spending more time updating their social networking profiles than they were six months ago, says a U.K. survey by KPMG. But spending has plunged as consumers expect free access. Disney Near Deal With Weinsteins for Miramax Bloomberg Disney is said to be near an agreement to sell its Miramax film unit in a deal that would put Bob and Harvey Weinstein back in charge of the studio they founded. The Weinsteins, who are working with Ron Burkle's Yucaipa Cos., entered into exclusive talks with Disney on Friday. Viacom CEO Extends Contract, Gets a Raise NY Post Viacom CEO Philippe Dauman, after guiding the media company through a turbulent 2009, has received a 40% raise, to $3.5 million, according to papers filed with the Securities and Exchange Commission. The news comes a day after he inked a five-year contract extension. CBS Boss Doubles Pay From Previous Year LA Times CBS's not-so-undercover boss, Les Moonves, was awarded a compensation package of $43.2 million for 2009, according to regulatory filings. Moonves' package for 2009 was more than double what he was awarded in 2008 when the company's stock dropped precipitously. Time Warner Downgraded on Weaker Growth AP Morgan Stanley has downgraded shares of Time Warner, saying the factors that could boost growth at the media giant are largely over. Time Warner completed a major restructuring over the past 18 months. As such, any more lift to the stock from such efforts "has passed." Disney to Shutter Music Label, Lay Off 25 Tennessean Disney plans to close its Nashville-based Lyric Street Records label, the latest casualty of a music business hit hard by declining album sales and a fast-changing digital landscape. Lyric Street, which opened in 1997, is home to such major country music acts as Rascal Flatts. Viacom's YouTube Attack 'Threatens' Internet KC infoZine The Electronic Frontier Foundation and other nonprofit groups want a federal judge to reject copyright claims made in lawsuits against YouTube. Plaintiffs in those lawsuits are pushing for legal rulings that would undermine federal law and throttle free speech online. Liberty Media Eyes Cable Asset Buys in Europe BusinessWeek In January, John Malone's Liberty Global bought Germany's No. 2 cable operator, Unitymedia GmbH. The company says it is now looking for more European assets. The race is for dominance in newer digital technologies for both on-demand TV and Internet access. Time Warner Nabs Conan Ahead of Murdoch Bloomberg Conan O'Brien, the ousted host of NBC's "Tonight Show," will join Time Warner's TBS, shunning News Corp.'s Fox network as pay television challenges the broadcast networks' late-night dominance. "Conan is a great talent and we wish him every success," Fox says. Murdochs Break New Baby News on Twitter Sydney Morning Herald Lachlan and Sarah Murdoch have given birth to third child, Aerin Elisabeth Murdoch. The news was released by a family friend via Twitter on Monday night. The youngest addition to the Murdoch empire took her second name from her paternal great-grandmother. Disney: Is a Sale of ABC on the Horizon? Daily Beast With Disney CEO Bob Iger garnering praise for his stewardship of the company, sources say he will now focus directly on ABC. Despite Iger's insistence that he doesn't feel a need to sell the network, such a move remains a possibility. "There's no growth at ABC." Time Warner Weighs MGM Bid Structures Reuters Time Warner is evaluating possible new structures to its bid for Metro-Goldwyn-Mayer, as the auction for the studio drags on. A meeting with MGM's advisors is expected to be sought to talk about ways that the media giant could move forward in the bidding process. Comcast COO Highest Paid Company Exec Reuters Comcast COO Stephen Burke was the highest paid exec at the No. 1 U.S. cable company last year, topping even CEO Brian Roberts. Burke, a former Disney exec, took on extra responsibilities in 2009 as the manager to oversee the integration of NBC Universal into Comcast. FCC Headquarters Evacuated in Bomb Threat TV B'cast The headquarters of the U.S. Federal Communications Commission was evacuated Wednesday morning due to a bomb threat. Speculation sped through various Twitter feeds, though nothing initially appeared on the FCC's Web site nor its own Twitter page. Comcast Ruling May Impact Broadband Plan Reuters The Obama administration's plan to expand broadband could be impacted by a court ruling that limited the Federal Communications Commission's authority to regulate network providers, says FCC general counsel Austin Schlick. "We are assessing the implications." Murdoch: Google to Stop Getting Free News MarketWatch News Corp. chief Rupert Murdoch says he expects online content aggregators such as Google will soon halt the practice of posting content produced by others without paying to do so. "We're going to stop Google and others from taking our content" and using it for free. Comcast Wins in Case on FCC Net Neutrality Bloomberg Federal regulators lacked authority to censure Comcast for interfering with subscribers' Internet traffic, a U.S. court says. The ruling is a setback for the likes of Google and Amazon.com, which want "net neutrality" rules to keep Internet providers from limiting Web traffic. Disney Receives Three Bids for Miramax LA Times Disney has received three bids for the specialty label Miramax Films, and now has to decide whether to sell the asset or hold on to it. Among the three: supermarket magnate Ron Burkle and his Yucaipa Cos. in association with Miramax founders Bob and Harvey Weinstein. Fox, Sony Reach DVD Pacts with Blockbuster Bloomberg Blockbuster has reached new deals with 20th Century Fox and Sony's film studio to get rental copies of DVDs on the same day they become available for sale. An accord last month with Warner Bros. also offers the company earlier access to DVDs than rival Netflix. Liberty Chief Malone to Exit DirecTV Board TheStreet Media tycoon John Malone is resigning from the board of directors of DirecTV. The U.S. Federal Communications Commission mandated the change be made by Liberty Media, where Malone is chairman, as a result of its acquisition of DirecTV from News Corp. in February 2008. News Corp in Talks to Sell Radio Assets Moscow Times News Corp. plans to sell its Russian radio stations to Vitaly Bogdanov, a senator from the Kursk region. The stations include Nashe Radio Moscow, Best FM, Ultra and Nashe Radio St. Petersburg. News Corp. announced plans to unload all of its Russian assets in 2008. Media Stocks Off to Good Start in 2010 H'wood Reporter Shares of media conglomerates are up across the board for the first three months of 2010, except for a minimal decline at CBS, and most outperformed the S&P 500 stock index. But some analysts warn that media stocks will have a tough time continuing their momentum. Media M&A Activity Shows Signs of Life BtoB The mergers and acquisitions market in media continued its modest recovery in the first quarter, according to tabulations by media investment bank Jordan, Edmiston Group. Driving some of the transaction volume were publishing companies shedding most of their titles. Media Rebuild Web Sites for Apple iPad TechNewsDaily Media companies are already changing the way they build their Web sites to accommodate Apple's iPad. The New York Times and Wall Street Journal are changing their content layout to better fit the iPad screen; CBS is working on an iPad-friendly version of its video site. Murdoch Is Facing New Antitrust Claims Bloomberg News Corp.'s $500 million settlement of Valassis Communications' unfair competition complaints has stirred Floorgraphics, a former rival in the supermarket promotions business, to try to reopen a closed case to take another crack at its charge of anticompetitive behavior. Comcast-NBC Deal Eyed by Five States Bloomberg At least five states are involved in the U.S. antitrust review of Comcast's plan to acquire NBC Universal. The involvement of New York, California, Florida, Oregon and Washington shows a level of interest and unease with the transaction, according to antitrust observers. Murdoch Web Exec Exits as Deals Drop FT Jeremy Philips, one of Rupert Murdoch's most senior Internet execs, is leaving News Corp. "to focus on new entrepreneurial ventures." His exit highlights the media giant's reduced appetite for digital deal-making. News Corp. bought MySpace during Philips's tenure. Movie Downloaders Hit with Lawsuits H'wood Reporter More than 20,000 movie torrent downloaders have been sued in the past few weeks in U.S. federal court for copyright infringement. The lawsuits were filed by the U.S. Copyright Group, a venture working on behalf of an ad hoc coalition of independent film producers. Disney: 'HS Musical' Franchise Not Done Multichannel Disney plans to wring more money out of its lucrative "High School Musical" franchise by producing a new Disney Channel original movie focusing on alum Sharpay Evans, "Sharpay's Fabulous Adventure." Disney is also preparing a "High School Musical 4" movie for 2011. Media Giants' Results Driven by Cable H'wood Reporter Cable is still king when it comes to driving the revenue of the major media conglomerates, and the degree to which they do will become clear as they report first-quarter earnings in a few weeks. News Corp.'s cable channels "have a lot of room left to grow," says COO Chase Carey. Time Warner Says YES to Web Growth AP The Yankees' YES Network has expanded its Internet reach to include Time Warner Cable. The network will start streaming telecasts to Time Warner viewers who receive YES in the team's home territory, adding to deals with Verizon FiOS and Cablevision. Murdoch Names Actors as Godparents M&C Jordan's Queen Rania hosted a three-day tour of her country following the baptism of Rupert Murdoch's daughters Grace and Chloe. Hollywood stars Nicole Kidman and Hugh Jackman become godparents to the Murdoch youngsters at the ceremony. Time Warner CEO Bewkes' Pay Fell in 2009 MarketWatch Time Warner CEO Jeff Bewkes's total compensation fell 9.5% to $19.6 million in 2009 as the value of his stock and option awards declined, although his performance-based bonus jumped 59%. Bewkes had refused an increase in his salary due to the economic downturn. Viacom: 'Easy Pickings' for Big Media Rivals Barron's Viacom could become a takeout candidate should chief Sumner Redstone "not live forever," according to an analysis in Barron's. With a market value of $20 billion and highly coveted assets, Viacom "would be easy pickings for News Corp., Comcast or Time Warner." Sony Blocks Beyonce's Page on YouTube E! Online Sony Music is said to have blocked all music video content on pop star Beyonce's YouTube page. The action followed a copyright infringement case involving the singer-actress's label. Beyonce's videos remain available on Vevo, the music video site co-owned by Sony. News Corp's 'Avatar' Most Pirated Film Ever Barron's "Avatar" is not only the highest-grossing movie of all time, it is also the most pirated film in history, according to director James Cameron. "Imagine how much we would have made if we weren't the most pirated film." "Avatar" will be available on Apple iTunes in May. Viacom Chief Dauman Upbeat on Media Biz Boston Globe Viacom CEO Philippe Dauman says he sees "three waves of change" transforming media businesses as they look to adapt and innovate: "global, technological and millennial." Media companies should study the habits of the millennials: "They grew up with the Internet." Disney Ex-Chief Eisner: Big Media Will End WorldScreen The era of total control by big media companies is "probably going to end," says Michael Eisner, founder of the digital firm Tornante Company. "Those that do compelling stories will find [their] way. There will also be the lower, horrible stuff. And probably more of that." NBC Gets Financing for Merger with Comcast Philly Business NBC Universal says it has reached agreements to receive $9.1 billion of financing and a $750 million credit facility to provide the financing needed to form the company's planned joint venture with Comcast. The deal still must win the approval of U.S. regulators. Time Warner Appears to Lead Bids for MGM Dow Jones Time Warner appears to be the lead bidder for struggling Metro-Goldwyn-Mayer, which said it has received several offers from suitors wanting to acquire it or keep it operating as a standalone company. Time Warner has offered $1.5 billion to acquire the studio. Lions Gate, Icahn Trade Barbs; Shares Rise Reuters Lions Gate and investor Carl Icahn are engaging in heated exchanges after the movie studio rejected his hostile bid. The company's shares are up, and analysts say that is because an acquisition of the studio, home to the "Saw" films and "Mad Men" TV series, is more likely. News Corp Unveils Pay Mobile Video Service GigaOm News Corp.'s Fox Mobile is launching a mobile video service called Bitbop, which will deliver on-demand television shows and movies to consumers' smartphones for $10 per month. At launch, the "Hulu-like" service will include content from Fox, NBC Universal and Discovery. Blockbuster Seen Slowly 'Bleeding to Death' CNNMoney Blockbuster is in trouble with nearly $1 billion in debt, and its latest fixes -- such as a new on-demand video service via T-Mobile smartphones -- might not be enough to keep it afloat, analysts say. Blockbuster is "bleeding to death," and "they're putting on a lot of Band-Aids." Murdoch Wealth Nearly Doubles in Year BRW News Corp. chief Rupert Murdoch is the wealthiest business executive in Australia, according to the annual ranking by BRW, an Australian business magazine. Murdoch's share wealth almost doubled in the past year to nearly $6 billion from about $3.4 billion a year earlier. U.S. Media Ownership Restrictions Eased AP A U.S. federal court has at least temporarily lifted government rules that block owning a newspaper and a broadcast television station in the same market. The decision is "appropriate given the economic upheaval affecting the viability of many newspapers and broadcast stations." News Corp to Sell Fox Audience Network TechCrunch Fox Audience Network, the advertising arm for News Corp. digital, is said to be for sale. The entity, which also powers many third-party Web sites, is the eighth largest U.S. online ad network. News Corp. has sold off digital assets such as Rotten Tomatoes and Photobucket. Time Warner Bids $1.5B to Acquire MGM LA Times Time Warner has submitted a $1.5 billion offer for Metro-Goldwyn-Mayer, joining two other known bidders, independent studio Lions Gate and industrialist Len Blavatnik's Access Industries. Still, the debt-laden MGM could wind up opting for prepackaged bankruptcy. Sony to Make 3D Film of Hearst's 'Popeye' Variety Producer Avi Arad, who teamed with Sony to turn Spider-Man into a powerhouse film franchise, now plans to bring "Popeye" back to the big screen. The iconic comic sailor man, owned by Hearst's King Features Syndicate, will be given a 3D, all-CGI film treatment. Murdoch Daughter Avoids Succession Talk Guardian Elisabeth Murdoch, the head of U.K. production house Shine and scion of 79-year-old Rupert, dismisses talk of succession at News Corp. as "inappropriate." She and her siblings will "work very closely together but whether that means in executive roles, I don't know." Blockbuster to Get Rentals Before Netflix Bloomberg Blockbuster has reached a deal with Time Warner allowing it to offer Warner Bros. film titles earlier than Netflix and Redbox. DVDs will be available for rental the day they go on sale, giving Blockbuster a 28-day head start over its two movie-rental rivals. Malone Sees Pay-TV Industry Consolidation Bloomberg Media billionaire John Malone says fee disputes between U.S. broadcasters and cable-television operators will force companies to combine to gain negotiating clout: "The smaller distributors are going to be pretty powerless to protect themselves from getting creamed." Time Warner Eyes MGM as Deadline Passes LA Times While bids for the troubled Metro-Goldwyn-Mayer studio were due Friday, front-runner Time Warner was still mulling an offer late in the afternoon and it was unclear if, and when, the media company was going to bid. MGM may be forced to extend the deadline for final bids. Lions Gate: Carl Icahn Makes a Hostile Bid LA Times Carl Icahn, the activist investor, launched a hostile $6-a-share takeover bid Friday for Lions Gate Entertainment, ratcheting up his pressure on Hollywood's biggest independent studio to change its strategy. However, "he's certainly not going to get the company at this price." Viacom Seen at Disadvantage in YouTube Case eWeek While a judge weighs arguments from Viacom and YouTube in their closely watched copyright case, legal experts say Google's video site may have the advantage. "Most judges have positive thoughts about YouTube." Plus: "Judges are reluctant to take down Google." Disney: Cyrus Says 'Bye to Hannah Montana Parade Disney's $1 billion Hannah Montana franchise encompasses a television show, records, concert tours, books and other merchandise. Miley Cyrus is now marking her final season as the character. "I hate being thought of as a product," she says. "I am not a doll." News Corp Sees 3D TV Channel for Europe Dow Jones British Sky Broadcasting, the U.K.'s biggest pay-television provider, will launch the first 3D TV channel in Europe on April 3, with a soccer match. News Corp. holds a controlling stake in BSkyB. Rupert Murdoch's son James serves as BSkyB chairman. Murdoch's No 2 Sent to Sky Deutschland FT Chase Carey, Rupert Murdoch's right hand man at News Corp., is poised to be parachuted into the group's struggling German pay-television company Sky Deutschland as its new chairman. "This is a move that could be seen as rescuing James Murdoch from a tricky situation." Time Warner Considers Bid for MGM Studio Bloomberg Time Warner is said to be considering a bid of $1.2 billion to $1.5 billion for the debt-laden Metro-Goldwyn-Mayer film studio. An offer at that price range may not be enough to win over MGM's creditors, however. Time Warner is among a dwindling number of possible buyers. Comcast-NBC Merger Seeks Public Comment Reuters The U.S. Federal Communications Commission is calling for public comment on the proposed merger between cable giant Comcast and broadcaster NBC Universal, with a May 3 deadline. The FCC action is just one part of a regulatory process for the $30 billion union. Universal Music to Cut CD Prices for Sales Billboard Universal Music could rewrite U.S. music pricing when it tests a new pricing structure, which is designed to get single CDs in stores at $10 or below. Beginning in the second quarter, the company's single CDs will have suggested list prices of $10, $9, $8, $7 and $6. Barnes & Noble Names Web Chief CEO AP Barnes & Noble is naming William Lynch as the new CEO of the world's largest book retailer. He succeeds Steve Riggio, who will remain vice chairman. Lynch joined the company in February as head of Barnes & Noble.com. He also helped develop the B&N's eBook Reader. Disney's Miramax Attracts Mesa as Bidder Reuters Mesa Global, an investment banking firm co-founded by former CAA exec Mark Patricof, is emerging as a potential bidder for Disney's Miramax film unit ahead of an offer deadline on Friday. Platinum Equity Partners and Weinstein Co. are also expected to bid for Miramax. Liberty Media, Elliott Drop Bids for MGM Bloomberg Liberty Media and hedge fund Elliott Management have decided not to bid for debt-laden Metro-Goldwyn-Mayer. The thinning field of potential buyers is lessening the chance of a bidding war. Time Warner, Lions Gate and Access Industries are mulling second-round bids. Apple Founder Set for TV 'iCon' Sendup San Jose Business Cable channel Epix and studio Media Rights Capital are working on a satirical television show about Apple CEO Steve Jobs. The show, called "iCon," has hired Newsweek contributor Dan Lyons as a writer. Lyons authored the Secret Diary of Steve Jobs blog. Sony Sees Blog as Witherspoon Vehicle Deadline Sony's Columbia Pictures is developing "The Pioneer Woman" as a potential star vehicle for Reese Witherspoon. The studio has acquired the rights to thepioneerwoman.com, a blog by Ree Drummond that detailed her transformation from "city girl to ranch wife." Viacom-YouTube Secrets to Be Exposed AP A legal dispute over copyright law pitting Viacom against YouTube is about to get dirtier as a federal judge is due to release documents Thursday that will expose the two company's secrets. Each side will likely be pointing to things that the other might find embarrassing. Murdoch Arab Foray Seen as Trojan Horse ME Online The recent tie-up between Arab media giant Rotana and "pro-Israel" News Corp. chief Rupert Murdoch is being viewed with suspicion in parts of the Arab world. Murdoch's "strident" news outlets, such as Fox News, are often accused of an anti-Arab, pro-Israel bias. News Corp: 'Avatar' DVD Due on Earth Day Bloomberg "Avatar," the world's highest-grossing film, will be released on Blu-ray and DVD April 22 in the United States and Canada, News Corp. says. The home-video release of "Avatar," which follows the nature-loving inhabitants of a distant moon, coincides with Earth Day. MySpace Is Not for Sale, News Corp Says Barron's News Corp. is denying reports that it wants to sell or spin-off MySpace, the now-declining social network. Investment bank CODE Advisors is said to be "out pitching" MySpace to potential investors. The company says: "News Corp. is committed to MySpace and is not seeking a buyer." Disney's 'Alice' Sparks Debate Over DVDs AP Disney's plan to quickly release the hit "Alice in Wonderland" on DVD is sparking a debate between Hollywood studios and movie theaters over how quickly films move from the big screen to people's living rooms. Cinema operators worry other studios will follow Disney's lead. Media Giants: 'Video Store Just Moved In' Bloomberg Time Warner, News Corp., Comcast and other major film studios and cable giants are teaming up for a $30 million marketing effort to tout on-demand movie rentals as DVD sales decline. Ads, with the theme "The Video Store Just Moved In," will run on television, in print and online. Blockbuster: Bankruptcy Is a Possibility Dallas Business Blockbuster says it may have to file for Chapter 11 if unable to generate enough cash flow to meet or restructure its debts. The movie rental chain attributes its weakened operations to increasing competition. Blockbuster says it intends to expand its digital offerings. CBS Lawsuit Over Redstone Is Dismissed Reuters CBS has won dismissal of a lawsuit over allegations that it took an impairment charge in October 2008 timed for the personal benefit of chairman Sumner Redstone. The lawsuit alleged that the company and senior execs "artificially inflated CBS's goodwill value." FCC's Internet Plan May Chill Investment NY Post The U.S. Federal Communications Commission is unveiling its long-awaited plan to bring broadband to 90% of the United States by 2020. But some critics worry the effort could stifle investment in broadband technology. "It will cap Internet growth and restrict Internet trade." Sony, Jackson Estate in $250 Million Deal Wall St Journal Michael Jackson has set a music-industry record, thanks to a new deal between his estate and Sony valued at some $250 million. The deal, touted as the most lucrative recording contract ever, will involve a mix of previously unreleased songs and new packages of familiar ones. Traditional Media Declining, Report Says RTT Traditional news gathering suffered severe losses in 2009, according to the new "State of the Media" report by the Pew Research Center's Project for Excellence in Journalism. Advertising revenues from newspapers fell 26%, local television 22%, magazines 17%, network TV 8%. Media Content Dollars Shifting to Access CNBC U.S. consumers are shifting their media dollars. Instead of buying physical objects -- DVDs, books and magazines -- they're spending on access -- cable and Internet. The average American household now spends $98 monthly on media, and 77% of that goes to access. U.S. to Propose Major Broadband Policy NY Times The U.S. Federal Communications Commission is submitting a 10-year plan to establish high-speed Internet as the nation's dominant means of communication. The move is likely to upset television broadcasters, who already oppose turning over spectrum for mobile service use. Murdoch to Net $400 Million from 'Avatar' Bloomberg News Corp. is expected earn about $400 million from James Cameron's "Avatar" once the world's top-grossing film is also released on pay television and DVD. News Corp.'s share amounts to almost half of the company's average quarterly operating profit in the past year. Disney Cuts 450 Jobs in Studio Shutdown LA Times Disney says it is closing director Robert Zemeckis' ImageMovers Digital studio, a producer of motion-capture animation technology, based in Northern California: "Given today's economic realities, we need to find alternative ways to bring creative content to audiences." News Corp Deal Rumored in Satellite TV Times Shares in BSkyB are up amid rumors that News Corp. could take the British satellite broadcaster private. Traders speculate that News Corp. is on the lookout for assets to buy. Analysts are skeptical, however. "This rumor comes around about once a year." Lions Gate Rejects 'Coercive' Icahn Offer LA Business Lions Gate, owner of the TV Guide cable channel, is rejecting Carl Icahn's unsolicited bid to increase his stake to become the company's controlling shareholder, calling the offer "coercive." Its board is also adopting a poison pill to discourage further efforts by the activist investor. News Corp: Rupe's 79th Stirs Questions The Age News Corp. chief Rupert Murdoch celebrated his 79th birthday on Thursday, raising questions about succession plans at the media giant. But analysts say investors need not worry about an unforeseen departure: James Murdoch is "coming through in a dynastic sense." Murdoch: All Media Will Go on Devices Fox Business All media, from books to movies, are going to go on the Apple iPad or similar forthcoming tablet devices, predicts Rupert Murdoch. Gadgets "will get better and better." If you touch a newspaper photo, it will become a video. "These sort of things are going to happen." Media Need Multiple Platforms, Execs Say AAP Multiple platforms and revenue streams will be key for media industry players hoping to survive and thrive in the fast-changing digital world, say media execs at the Bloomberg BusinessWeek 2010 Media Summit. "The brand has to transcend all of the different platforms." Disney CEO May Consider Spin-Off of ABC Reuters Disney is keeping its options open for dealing with ABC and its struggling news division, including a spin-off, according to CEO Bob Iger. "There are no guarantees in terms of what will remain part of our company and what will not," he said at Disney's shareholders meeting. Facebook Exec to Join Board of Disney LA Business Disney, which held its annual meeting on Wednesday in San Antonio, named Facebook COO Sheryl Sandberg to its board of directors. The move gives Disney access to a major name in social networking, which will likely play a larger role in the company's future marketing efforts. News Corp May Sell MySpace, Source Says Mergermarket News Corp. chief Rupert Murdoch resists letting go of MySpace because such a move would be seen as capitulating in the social media market, says a source familiar with the company. However, "the business has a price tag, so its fate will also depend on an attractive offer." Murdoch Jr Digs In Over Battle with Google Times / Reuters James Murdoch, at the Abu Dhabi Media Summit, reiterated the threat made by his father to yank content from Google: We "may have to withdraw access." Also: News Corp. will add online pay walls to its British newspapers "within the next few weeks to months." News Corp Exec: Pay, Free Will Co-Exist Guardian Jon Miller, head of digital media at News Corp., says that dual revenue streams are likely to co-exist as media try ways of making money online. "The choice between pay wall or free is not mutually exclusive. They can co-exist based on quality of content and geography." Time Warner: Digital Offers Opportunity Dow Jones Consumer use of Time Warner's television programming, films and even magazines has increased thanks to the Internet, says Time Warner CEO Jeff Bewkes. "Digital distribution is fueling this continued growth. Sustainable economic models are clearly emerging." News Corp Site Blocked in Middle East Times / Beehive City Rupert Murdoch, in a speech at the Abu Dhabi Media Summit, is calling on the Middle East to open its markets to foreigners and reject media censorship. Online access to parts of Murdoch's U.K. Sun newspaper is blocked in the region because it contains "prohibited content." Viacom Says Stewart May Return to Hulu Bloomberg Comedy Central's "The Daily Show" and "The Colbert Report" may return to Hulu if the video site's business model changes, according to Viacom CEO Philippe Dauman. "On the current economic model for Hulu there's just not much in it for us to continue at this time." CBS Expects Double-Digit Gains in 2010 Dow Jones CBS chief Les Moonves says that based on recent strength in the advertising market, he expects pricing to be up by a double-digit percentage rate in this year's upfront market for the new fall programming season. "I've never seen a scatter market this strong." Time Warner Seeks to Block TV Blackouts Bloomberg Time Warner Cable plans to ask U.S. regulators to block broadcasters from cutting signals during fee disputes, aiming to avoid disruptions such as Disney's blackout of the Academy Awards. Time Warner Cable is set to negotiate fees with Disney when their deal ends in August. Sony to Stream HD Movies on PlayStation San Francisco Business Sony has a deal to sell and rent high-definition movies from six major studios on its PlayStation Network. Titles that will be available include films currently playing in theaters, such as Fox's "Fantastic Mr. Fox," Disney Pixar's "Up" and Universal's "Inglourious Basterds." Time Warner May Remake 'Wizard of Oz' Los Angeles Times Fresh off Disney's massive success with Tim Burton's updating of "Alice in Wonderland," Warner Bros. is looking into a remake of another childhood classic. A possible new film treatment of "The Wizard of Oz" would refurbish the property with special effects and 3-D. News Corp Looking Forward to Apple iPad Hollywood Reporter News Corp. is looking forward to working with Apple on the new iPad, says COO Chase Carey. An iPad user reading a story in the Wall Street Journal, for example, could switch seamlessly to a Fox News Channel video related to the same story and view a video advertisement. Murdoch Eyes Abu Dhabi as Key for Growth National Rupert Murdoch has signaled that Abu Dhabi is to become a key location in his efforts to expand across the Middle East. News Corp.'s Fox International Channels is making Abu Dhabi a regional hub for online advertising sales, satellite television broadcasting and other services. Time Warner Seen as Top Bidder for MGM Hollywood Reporter About a half-dozen companies are expected to place updated offers for Metro-Goldwyn-Mayer by March 19, the newly set deadline on second-round bidding for the beleaguered film studio. Time Warner is seen as in "the best position to make a compelling offer." Disney May Pull ABC from Time Warner Next Bloomberg Disney, which blocked some viewers from the first 13 minutes of the Oscars amid a dispute with Cablevision, may repeat the maneuver if it can't reach a deal with Time Warner Cable once their agreement ends in August. Disney "may have used Cablevision as a test case." Liberty Media Grabbing Up Satellite Radio Denver Business Liberty Media is on the verge of controlling the assets of WorldSpace, a satellite radio company that owns three satellites and broadcast spectrum reaching nearly worldwide outside the United States. Liberty rescued Sirius XM, the sole U.S. satellite radio provider, last year. Cablevision Seen as Winner in ABC Dispute Reuters Cablevision was the likely winner in its stalemate with ABC owner Disney, but broadcasters may ultimately win the industry's running debate over fees, according to Moody's Investors Service. "We award this Oscar to Cablevision as the likely victor, this time." Summit's 'Hurt Locker' Gets Oscar Boost Bloomberg DVD sales of "The Hurt Locker" spiked after the film won best picture at the Academy Awards, and analysts say its six Oscars may help double box-office revenue. The Iraq war drama quickly became the most-rented movie on Amazon's video-on-demand service and Apple's iTunes. News Corp: 'Avatar' DVD Won't Be in 3D Dow Jones News Corp.'s initial DVD release of "Avatar" this year will not be in 3D, according to COO David Carey. The market for 3D home entertainment is not developed enough yet for a 3D DVD release, he says. A 3D version of "Avatar" could be released in the future. Sony to Begin Worldwide 3D TV Launch PC World Sony will begin selling 3D TVs in Japan on June 10 and worldwide at about the same time, the company says. Sony's first two sets, which are 40- and 46-inch models, will come bundled with two pairs of 3D glasses. Sony will launch six additional 3D TV sets in July. Media Bigs Gather at Abu Dhabi Forum Financial Times The inaugural Abu Dhabi Media Summit, running Monday through Wednesday, is attracting the likes of Rupert Murdoch and Eric Schmidt. Many execs believe that the Arabic-speaking media market is ripe for growth. The summit "might become the next Davos of media." Murdoch Didn't Reach 'Summit' at Oscars Bloomberg "The Hurt Locker," the Iraq war drama from Summit Entertainment, took home the Oscar for best picture at the 82nd Academy Awards, beating out News Corp.'s No. 1-grossing "Avatar." Summit won the most Oscars this year with six, while News Corp. won five. Apple CEO Attends Oscars, Runs TV Ad VentureBeat Apple chief Steve Jobs attended the Academy Awards ceremony, as his company ran its first-ever commercial during the big broadcast to promote the new iPad tablet computer, due out April 3. Jobs is the former CEO of Pixar, the studio with Disney behind Oscar-contender "Up." Disney, Cablevision Reach Deal Over ABC WABC Disney reached an "agreement in principle" with Cablevision over re-transmission fees Sunday night, restoring ABC to 3 million New York area cable customers just as the network's Academy Awards telecast began. Disney had pulled ABC off Cablevision the night before. Disney's 'Alice' May Re-Write DVD Rules CNBC Disney's plan to release the DVD of Tim Burton's "Alice in Wonderland" a month earlier than usual could prompt positive change for the floundering business. Releasing a DVD earlier allows the product to tap into the marketing and buzz around the theatrical release. Viacom: We're Unlikely to Sue Bloggers Ars Technica Viacom says it is unlikely to file lawsuits against bloggers for posting clips of "The Daily Show" or "The Colbert Report," contrary to reports floating around the Internet. "Fair use works for us," says a Viacom spokesperson. "I can't recall a time we've ever sued a blogger." News Corp, Sarah Palin Enter Book Deal Dow Jones Sarah Palin is entering a deal to write a new book for News Corp. unit HarperCollins. Palin's yet-to-be-titled book will be "a celebration of American virtues and strength." Palin is the author of the 2009 bestseller "Going Rogue," also published by HarperCollins. Murdoch's Lawsuits Cost 'Avatar' Earnings Bloomberg Rupert Murdoch may have spent the equivalent of the projected earnings of News Corp.'s hit movie "Avatar" to settle anticompetitive lawsuits against his supermarket-coupon unit, News America Marketing. Murdoch "relies on the coupon business" to help fund new ventures. 3-D 'Alice' Poised to Give 'Avatar' the Blues New York Post The opening of Dinsey's "Alice in Wonderland" is swallowing up many of the U.S. 3-D screens formerly occupied by News Corp.'s "Avatar." All three of Manhattan's IMAX theaters will be switching over to the Tim Burton epic, even though "Avatar" is still selling out some screenings. Murdoch Jr Eyed by Sotheby's Auction House Associated Press James Murdoch, News Corp. CEO of operations in Europe and Asia and son of Rupert Murdoch, has been nominated for election as a board member of Sotheby's auction house. Murdoch's understanding of digital media and knowledge of Asia was cited in his recommendation. Media M&A Activity to Escalate in 2010 Adweek Based on signs of an economic recovery, leaders at media companies expect merger and acquisition activity to pick up significantly in 2010, according to a survey by AdMedia Partners. A whopping 92% of the group believes that buyers should "act now." Murdoch Rumored to Eye Monster.com Barron's Monster Worldwide, a frequent subject of takeover speculation, traded higher on Monday following rumors that News Corp. could make a bid to acquire the parent company of the online job board. Just last month, Monster.com acquired Yahoo's HotJobs for $225 million. Media Analyst Greenfield Joining BTIG Bloomberg BTIG, a New York-based investment brokerage, is starting a research group and hiring longtime media analyst Richard Greenfield, along with colleague Walter Piecyk, to lead the effort. The two were formerly with Pali Research, which shuttered in February. Viacom Yanks Stewart, Colbert from Hulu New York Times In the first major fracture between television show owners and the wildly popular Hulu, Viacom will remove "The Daily Show With Jon Stewart," "The Colbert Report" and other Comedy Central programs from the video site. Viacom and Hulu "could not agree on a price." Study: Too Much Media May Hurt Children CBC Children spend about as much time with media as they do sleeping -- and the overexposure could take a toll on their health, says a U.S. study reported in the journal Pediatrics. Media exposure can make kids "more prone" to violence, obesity and unprotected sexual activity. Viacom/CBS Chief: No Sale of Companies CNBC CBS and Viacom have regained their strength in the marketplace and neither company will be selling any more stock, says chief Sumner Redstone. Both companies are "doing great," he adds. "Those who think I will sell CBS, they don't know what they are talking about." Time Warner Cable: TV No Longer Anchor Dow Jones Broadband Internet service has replaced cable television service as the "anchor product" at Time Warner Cable, says CFO Landel Hobbes. "Consumers like it so much that we have the ability to increase pricing," even if the cable TV business continues to slow. Murdoch's Endgame: Rupert vs NYT, Google New York Rupert Murdoch, who turns 79 next week, is "not going gently into the night." The media chieftain is waging a war with Google over use of his content, rebuilding the Wall Street Journal with an eye on destroying the New York Times, and battling back his own family's efforts to take control. Lions Gate to Review Carl Icahn's Offer Los Angeles Business Carl Icahn has made an unsolicited offer to Lions Gate for up to 13,164,420 shares for $6.00 a share. The company's board is reviewing the offer. The move comes as Lions Gate has expressed interest in the MGM studio and film library and the Miramax label and library. Sony Fixes Glitch Halting PlayStation 3 Bloomberg Sony says it fixed a software glitch that prevented as many as two-thirds of its PlayStation 3 game consoles from connecting to the player's online network. The internal clock on some of the consoles mistakenly recognized 2010 as a leap year, the company says. News Corp Mulls Web-Pay Model, Bing Deal New York / Newser News Corp. is said to be in talks with Microsoft to yank its news content from Google's search index and sign an exclusive distribution deal with Bing. Also: News Corp. is working to develop a "Hulu-like" strategy for online news, aggregating content from a variety of publishers. Disney Releases Apps to Tie In With Movies iPhone-Codes Disney is releasing "Alice in Wonderland – An Adventure Beyond the Mirror," an Apple iPhone app to tie in to the Tim Burton production of Disney's new film "Alice in Wonderland," opening this week. The $4.99 app allows users to play as Alice and solve a series of puzzles. Viacom, News Corp Targeting India for Battle Financial Times Viacom's Colors Indian cable-television venture is launching a series of reality-TV shows based on the Indian Premier League cricket competition. News Corp.'s Star Plus plans to respond with a Bollywood awards show featuring the Indian film industry's top stars. Sony Sees Twitter as New Platform for Sales New Media Age Sony says it sees Twitter as a viable sales platform as well as a tool to amplify public relations activity. The company's Vaio Twitter account is said to have generated more than $1 million in sales. "The marketing budget now includes social media at the inception." Media Emperors' New Clothes: Still Naked The Economist Several big media companies are reporting unexpectedly good earnings, observes The Economist. But while share prices are bouncing back, media CEOs still face big obstacles: "Advertising is migrating online, and the Internet retains the power to disintermediate." Time Warner, Liberty Circling MGM Studio Bloomberg Metro-Goldwyn-Mayer is asking suitors to submit new bids for the debt-laden studio by mid-March. Time Warner, Lions Gate and Liberty Media are said to be among the potential buyers. Also: Liberty Media is mulling options for its money-losing Overture Films. News Corp Probed in New York Magazine Gawker Rupert Murdoch will turn 79 next month. As he approaches his final years at the helm of News Corp., his empire is said to be facing a growing internal factionalism. That conflict is likely to be the focus of a New York magazine story on the company, due out next week. Media Giants Start to Pay Dividends Again Hollywood Reporter As the credit crunch dissipates, media heavyweights such as Time Warner and News Corp. are increasing their payouts to shareholders. Dividends are "a show of confidence in the economy, a company's business and its ability to raise new financing, if needed." Comcast-NBC Hurts Workers, Union Says Bloomberg Comcast's proposed takeover of NBC Universal will hurt employees, stifle Internet investment and raise cable prices, says Larry Cohen, head of the Communications Workers of America. Cohen is slated to testify to the U.S. House Judiciary Committee. "We see problems." CBS Chief Moonves Re-Ups Without Raise Los Angeles Times CBS boss Les Moonves has signed a new deal that will keep him running the media company through February 2015. Moonves won't get a raise as part of his contract. He will have to get by on his current salary of $3.5 million a year. However, he will be eligible for bonuses. Disney CEO Iger Has Plan to Win Boy Fans Bloomberg Disney CEO Bob Iger is on a spending spree to attract a new generation of boys raised on video games. Having captured the young female audience with the likes of "Hannah Montana," Disney is eyeing boys with franchises in development from its Marvel comics acquisition. Blockbuster Walloped by Netflix, Redbox Bloomberg Blockbuster will close at least 500 U.S. stores and is exploring ways to restructure its debt of $963.9 million. The largest U.S. movie-rental chain closed 253 stores in January as more consumers turned to Redbox vending machines and online services such as Netflix. News Corp Ex Chernin Eyes Cable Buy Los Angeles Times Peter Chernin, eight months after stepping down as president/COO of News Corp., is hiring execs to help him run his new company, Chernin Entertainment. Rupert Murdoch's former No. 2 is also working on a deal to buy a cable channel, according to one well-placed person. Disney Test Drives Online Hub for Boys Los Angeles Times Disney is testing World of Cars, a new subscription-based online community aimed at boys and based on the Pixar movie "Cars," set for rollout this summer. The game will allow kids to create their own car persona and "rub hubcaps" with characters from the movie. Murdoch to Acquire Stake in Saudi Media MarketWatch News Corp. is taking a 9.09% stake in Rotana, a Middle East media giant, for $70 million. Rotana is owned by Prince Alwaleed Bin Talal of Saudi Arabia, a top News Corp. shareholder. Growth in the Middle East "is set to outstrip that of more developed economies." Time Warner Buys Stake in Video Games Financial Times Time Warner studio Warner Bros. is taking a majority stake in Rocksteady Studios, the London-based developer behind the "Batman: Arkham Asylum" video game. The game, released last year, is a critical and commercial success, shipping 3 million units worldwide. FCC Launches 'Future of Media' Inquiry B&C The U.S. Federal Communications Commission is officially launching its inquiry into the future of the media with a March 4 workshop focusing on television and radio stations, as well as the First Amendment: "Journalism's decline moves measurably forward by the month." Disney Takes Long View in 'Alice' Dispute Reuters Europe's top movie theater chain plans to withdraw from screening Disney's new film "Alice In Wonderland," in a dispute over the studio's proposal to release the movie's DVD weeks earlier than usual. Disney, analysts say, sees its future "more reliant on new technology." Murdoch: 'Avatar' Sequel Faces Hurdles MTV "Avatar" director James Cameron says he is waiting to sort out contractual details before committing to doing a sequel to the highest-grossing movie in U.S. history. 20th Century Fox boss Rupert Murdoch "told us we were doing it, so now they have to make a deal." News Corp to Sell TV Channel in Bulgaria AP News Corp. plans to sell its Bulgarian TV channel, bTV, to Central European Media Enterprises for $400 million in cash. In addition to bTV, CME will get News Corp.'s bTV Comedy and bTV Cinema channels. It will also get News Corp.'s 74% stake in radio company CJ. Time Warner to Hire Murdoch Confidant New York Post Time Warner plans to hire former News Corp. exec Gary Ginsberg to be a senior adviser to CEO Jeff Bewkes, overseeing marketing and corporate affairs. Ginsberg's hiring follows the resignation of longtime Time Warner corporate communications boss Ed Adler last week. Disney Names President for ABC Sales Reuters Disney is naming Geri Wang, former senior VP of primetime sales for ABC, to president of sales and marketing of the network. Wang will be responsible for all sales and marketing efforts for ABC. She will also run Disney/ABC Unlimited, a cross-platform sales unit. Disney's 'Alice' Movie May Face Boycott Bloomberg Some Dutch and U.K. theater owners say they plan to boycott "Alice in Wonderland" after Disney proposed speeding up the new movie's release to DVD, seeking to boost sales. Disney's move risks alienating exhibitors, who are concerned it may hurt ticket sales. Redbox to Delay Offering Warner Films Los Angeles Times In a big win for the studio and a major step in the ongoing transformation of the home entertainment market, Redbox is agreeing not to offer Warner Bros. movies through its $1-per-night kiosks until 28 days after they go on sale. The deal ends a six-month legal battle. Lions Gate: Icahn Seeks to Take Control Reuters Carl Icahn is launching a tender offer to buy control of Lions Gate Entertainment, potentially triggering a technical default in the studio's bank credit facility. Icahn already holds 18.9% of the studio, home to the popular "Saw" movie series and "Mad Men" television show. Media Conglomerates See Revenue Boosts Hollywood Reporter Disney, Time Warner and News Corp. are among the media giants reporting at least slight growth in the current earnings season. But investors remain concerned that there is no guarantee the revenue gains will translate into profit growth without further cost cuts. Old Media to Face Online Ad Challenges BtoB Media companies will face challenges monetizing consumers as they increasingly move online, according to a study by the IBM Institute for Business Value. Advertisers will "want to pay less for them." The path to charge more for ads will lie in "context and relevance." News Corp's 'Avatar' Leads to 3D Film Glut WSJ / News Hollywood is releasing a crush of 3D movies this year in the wake of the success of "Avatar." But they risk overloading multiplexes, which are equipped to handle only a few 3D films at a time. Also: Director James Cameron plans to write an "Avatar" prequel novel. Viacom Chief Redstone Turns Up on TMZ TMZ Sumner Redstone is featured in a video clip on Time Warner celebrity news site TMZ. The Viacom/CBS boss is taped as he exits a Los Angeles eatery. "TMZ ... That's a channel, right? Do I own it?" he asks the paparazzi. He adds: "Do not give these pictures to Rupert Murdoch." Yahoo Ex-Boss Semel Talks About Media Forbes Terry Semel, the former Warner Bros. and Yahoo CEO, offered insights on both Hollywood and Silicon Valley in his keynote at the Stanford Graduate School of Business' "Future of Media" conference. Media's gatekeepers, he says, "have probably lost their keys to some degree." Apple CEO to Cooperate on New Biography New York Times Apple chief Steve Jobs is preparing to collaborate on an authorized biography, to be written by Walter Isaacson, the former managing editor of Time magazine. Isaacson is currently CEO of the Aspen Institute, a nonprofit education and policy studies organization. News Corp Blamed for Turmoil at MySpace Guardian / Telegraph MySpace, which ousted its CEO last week, is struggling because owner Rupert Murdoch has left the business in a state of "total desperation," observers say. Also: MySpace is losing another exec, as group architect Monica Keller departs to join arch rival Facebook. Time Warner Longtime PR Chief to Leave New York Post Ed Adler, regarded as one of the most powerful execs in corporate communications, is leaving Time Warner after spending his entire career there. "There's not as much action here anymore," he says. "I'd like to go work for another big company that's in the news all the time." Viacom Seeks Refund from Game Maker Los Angeles Times After losing money for three years on its MTV "Rock Band" video games produced by Harmonix, Viacom is moving to take back a "substantial portion" of a $150-million bonus it paid in 2008 to the company's former owners. "We believe that we are entitled to a refund." Redbox Could See Revenue Drop of 50% Home Media The specter of a possible retail window for new-release packaged media could significantly impact DVD rental kiosk market leader Redbox's revenue by 50%, according to Pali Capital analyst Richard Greenfield. Consumer perception of the $1 DVD rental firm "will change." Viacom to Place More Emphasis on Digital CNBC Like all the other media CEOs this past quarter, Viacom head Philippe Dauman is placing a huge emphasis on digital distribution. While new business models and devices emerge and evolve, Viacom says it plans to make its content available on all platforms. Disney's 'Alice' DVD Plan Upsets Theaters Los Angeles Times Disney plans to release the film "Alice In Wonderland" on DVD only three months after it opens in theaters March 5. The decline of DVD sales is prompting Disney to speed up new releases to the home. The move, however, is upsetting theater owners: "We don't like it." Media Moguls Take Pay Cuts in Recession TheWrap Media moguls are doing some belt-tightening in the recession era. At $19.9 million, News Corp. CEO Rupert Murdoch took a 28% cut in total compensation in 2009. Time Warner chief Jeff Bewkes actually got a pay bump: His base salary jumped 15% to $22 million. News Corp: MySpace CEO Exits in Clash FT / ATD MySpace CEO Owen Van Natta is stepping down following a clash with Jon Miller, digital head of News Corp., the struggling social network's owner. Van Natta wanted to oust MySpace top exec Jason Hirschhorn. Also: News Corp. "is stuck trying to fix a distressed asset." Murdoch, Turner No Longer Media Enemies Bloomberg Ted Turner says he has made peace with Rupert Murdoch, a rival he calls "the only real enemy I ever had." The CNN founder bought the News Corp. chief, who he once challenged to a boxing match, a bison burger at a Ted's Montana Grill. "We decided to bury the hatchet." Disney CEO: iPad Could Be Game Changer AFP Disney chief Bob Iger says that Apple's new iPad "has a lot of potential" and "could be a game changer in terms of enabling us to essentially create new forms of content. It will be a great device to play games and watch videos because of the quality of the screen." Warner CEO: E-Book 'Fracas' Helps Music Associated Press Edgar Bronfman Jr., the head of Warner Music, is expressing hope that the recent "fracas" over the price of e-books will help give all content creators more pricing power over device makers. "Content is going to have more pricing flexibility over time rather than less." Viacom, Redstone Make Up With Tom Cruise Bloomberg Paramount Pictures will make "Mission Impossible IV," bringing back Tom Cruise after he was fired by the studio and publicly criticized by Sumner Redstone, chairman of parent Viacom. The first three "Mission Impossible" movies generated $1.4 billion worldwide. Viacom, RealNetworks Spin Off Rhapsody CNET MTV parent Viacom and RealNetworks plan to spin off the Rhapsody subscription music service, which has struggled to grow its subscriber base as fans prefer to own their songs. RealNetworks is also giving up its controlling interest in the music service. FCC: Traditional Media Won't Get Bailouts Broadcasting & Cable The decline and fall of U.S. newspapers and broadcasters is fine as long as their function is replaced by something else, says Steven Waldman, senior advisor to the chairman of the Federal Communications Commission. "Saving any particular industry is not our job." Media Dealmakers Address New Realities BtoB / Folio Much of the discussion at the DeSilva & Phillips Media Dealmakers Summit last week focused on how to cope with the near-continuous emergence of disruptive technologies. "We believe in content," says one attendee. "But we're struggling to monetize it." Media Investors Hunt for Bargains in 2010 Associated Press The number of media merger and acquisition deals fell by 49% in 2009, according to a report by PricewaterhouseCoopers. The deals continued to favor online media. Going forward, investors will be "bargain hunting" in broadcasting and certain publishing businesses. Viacom in Talks to Buy Murdoch's Fuel TV SportsBusiness Journal News Corp.'s Fox Cable Networks is said to be in advanced talks to sell its action sports channel Fuel TV to Viacom. Fuel TV, which focuses on extreme sports such as skateboarding and motocross, is seen as a good fit with Viacom's portfolio of cable channels like MTV. Disney, Google Eye Stake in Chinese Media Reuters A Disney-led consortium is in advanced discussions to buy into Bus Online, China's largest in-bus digital media and advertising company. Google, which threatened to quit China last month over censorship and hacking, is said to be among investors in the consortium. News Corp's 'Avatar' Dethroned via Twitter Reuters Sony's romantic tearjerker "Dear John" ended the seven-week reign of News Corp.'s "Avatar" as the No. 1 North American film this weekend. The "chick flick" lured young women in droves after the first wave of moviegoers texted and tweeted favorable verdicts to friends. Disney's Miramax Studio Eyed by Lionsgate New York Post Lionsgate is said to be planning to submit an "aggressive" offer for the Miramax art-house film studio, which Disney shuttered last month. Lionsgate could leverage Miramax's 600-plus film titles for its TV Guide Network and Epix movie cable channels. Time Warner CEO: Perform or Hit the Road MarketWatch Time Warner boss Jeff Bewkes warns that no under-performing company unit is sacred. The Time Inc. magazines must make headway in their digital evolution and show earnings growth, he says. "If they can't, they're better candidates for private ownerships." Media: Signs of Recovery in Earnings Reports Reuters / FT News Corp., Time Warner and Comcast are offering evidence of confidence that an economic recovery is on its way. Still, no traditional media company has solved fundamental problems: Establishing a digital business remains tough; advertising is "only getting less bad." News Corp Stresses Dual Revenue Streams ClickZ The future of online advertising is multiple revenue streams, according to the CEO of News Corp.'s digital business, Jon Miller. He adds that News Corp. "believes in e-readers, tablets and pads," and that such devices will "redefine the consumption of content," especially news. Fox Files More Suits Claiming DVD Piracy New York Times Escalating its efforts to crack down on DVD piracy, 20th Century Fox is filing six lawsuits against several dozen people that it says had sold DVDs of an unfinished version of "X-Men Origins: Wolverine" and other counterfeit Fox titles on Craigslist and other sites. News Corp Plans Women's Exec Network Guardian News Corp. is planning to create a global network for its female execs. The effort, which could have both social and business networking aspects, is being spearheaded by U.K. newspaper division CEO Rebekah Brooks and News Corp. top exec James Murdoch. Time Warner: All TV Is Migrating to Internet CNBC Essentially the entire television network world is migrating to the Internet, according to Time Warner CEO Jeff Bewkes. "It's very exciting. You're going to see HBO, TNT and CNN on broadband." CNN is already "the No. 1 place on the planet to get news interactively." Viacom/CBS: Redstone Cleared In Midway Suit Bloomberg Viacom-CBS boss Sumner Redstone and former directors of "Mortal Kombat" video-game maker Midway Games are winning dismissal of claims brought by Midway creditors over disputed loans to the company. The defendants "hid behind the protective skirt of law." Comcast In Talks Over Future of NBC Execs New York Post As Comcast prepares to take over NBC Universal, COO Stephen Burke is meeting with ex-NBCU exec Randy Falco for advice, including which NBC bosses should stay. Falco, who most recently served as CEO of AOL, "had a falling out" with NBC CEO Jeff Zucker. Hollywood Loses Key Battle Over Downloads AFP Warner Bros., 20th Century Fox and other Hollywood film studios are the losers in a landmark court bid to hold an ISP responsible for illegal movie downloads. In a world-first judgment, a judge says that an ISP did not authorize downloads -- a blow to the piracy fight. Movie Gallery Files Bankruptcy, Closes Stores Portland Business Movie Gallery is filing bankruptcy for the second time in less than three years. The movie rental chain says it will immediately close 760 of its 2,415 stores in a bid to remain viable as overwhelming debt and mounting operating losses hobble its balance sheet. Time Warner to Accelerate Digital Transition CNNMoney In its first financial report without AOL in a decade, Time Warner is raising its dividend as it reports an increase in quarterly sales and profit that beat Wall Street's forecasts. Time Warner in 2010 will "accelerate the digital transition in our businesses," says CEO Jeff Bewkes. Murdoch: We're on 'Cusp of Digital Dynasty' Australian News Corp. is reporting a profit in the fiscal second quarter, reflecting growth across much of the company's film, cable television and newspapers. Feeling emboldened, chief Rupert Murdoch declares: "Content is not just king -- it is the emperor of all things electronic." Media's Next Top Business Model: Hybrids Nieman As the publishing, broadcasting, film, music, and gaming industries grapple with business model uncertainty, one concept is emerging as the next big thing: "hybrids" -- a combination of different models, like advertising plus a subscription, suggests a study by Accenture. Media Venture Activity Blooms in New York GigaOM New York City is becoming a larger center of Internet entrepreneurship, as the talent pool of software engineers and programmers expands in Lower Manhattan and Brooklyn. Traditional media's $100 billion-plus in annual revenue is "vulnerable to smart Web solutions." Disney: Weinstein Bros Eye Buy of Miramax TheWrap Two hedge funds are said to have approached Harvey and Bob Weinstein about teaming up to buy Miramax studio from Disney. The Weinstein brothers founded Miramax in 1979 and sold it to Disney in 1993. The studio has declined since they parted ways with Disney in 2005. Sony to Lay Off 450 as Business Models Shift CNBC Sony Pictures Entertainment, feeling the pinch of online piracy and the decline of DVD sales, plans to lay off 450 employees, or 6.5% of its workforce. The studio's cuts are attributed to "the shifting landscape of entertainment and its impact on the economic model." News Corp's 'Avatar' Among Top Oscar Nods Associated Press News Corp.'s sc-fi sensation "Avatar" and Summit Entertainment's war-on-terror thriller "The Hurt Locker" lead this year's Academy Awards with nine nominations each, including best picture. For the first time the Oscars feature 10 best-picture contenders instead of five. Fox Exec Brown Dies; Helped Create Cosmo Los Angeles Times David Brown, the former 20th Century Fox exec who produced "Jaws" and other hits, died Monday at his home in New York City after a long illness. Brown, 93, helped conceive Hearst's spicy Cosmopolitan magazine, launched in 1965 with wife-editor Helen Gurley Brown. News Corp Rumors Hint of Coming Upheaval Independent Rumors circling News Corp. -- such as talk of a sale of the Times of London newspaper -- are seen as "barometers of the rising power" of the adult children of chief Rupert Murdoch, who turns 79 next month. Murdoch associates "are more than a little concerned." Murdoch Unit to Pay $500 Million Settlement Associated Press News Corp. subsidiary News America Marketing says it will pay rival Valassis Communications $500 million to settle antitrust charges. Valassis, a marketing firm that provides direct mail and coupons, has accused News America of threatening customers with price hikes. Time Warner Raises CEO's Pay, Bonuses Dow Jones Time Warner's board is giving CEO Jeff Bewkes a pay increase to $10 million a year from $8.5 million. The pay hike recognizes Bewkes' "execution of a new corporate strategy." Under Bewkes, Time Warner has spun off both its cable operation and AOL. Comcast-NBC Blasted Over Online Video Datamation Comcast's proposal to take over NBC Universal is sparking criticism from advocacy groups that claim the deal threatens to undercut emerging forms of online video. But Comcast points to YouTube owner Google as a company with "substantial advantage" in the area. Vivendi: 'Delighted' CEO Cleared of Fraud Reuters French media giant Vivendi is liable for potentially $4 billion in damages for misleading investors about its financial condition before its 2000 merger with Seagram and Canal Plus, says a U.S. jury. Former CEO Jean-Marie Messier, however, is "not liable" and "delighted." Disney Seeking a Buyer for Miramax Studio New York Times Disney is said to be quietly shopping what remains of its beleaguered Miramax film unit. Seven to 10 bidders are believed to be interested in the once-mighty Miramax name and 700-film library, which includes films like "Pulp Fiction" and "Shakespeare in Love." News Corp Offers Cash, Debt Help to MGM Bloomberg News Corp. is said to have expressed interest in providing Metro-Goldwyn-Mayer with cash and help in restructuring debt to keep the studio independent. "James Bond" maker MGM is mulling preliminary bids from possible buyers as it struggles with $3.7 billion in debt. Comcast, NBC Vow to Keep News, Free TV Reuters Comcast and NBC Universal are promising U.S. regulators that they will continue reporting news and keep broadcast television free if the cable giant is OK'd to take control of the TV and movie company. Comcast says the deal shouldn't be conditioned on online distribution. Disney Shutters Miramax Indie Film Studio LA Weekly Miramax Films, the studio that made indie films such as "Pulp Fiction" the darling of Hollywood in the 1990s, is closing down. About 80 people are expected to lose jobs at the Disney subsidiary. In recent years, Disney has downscaled the studio's output. Media Execs See Mixed Bag in Apple iPad Wall Street Journal Apple's iPad offers few signs of a new model for distributing television shows, movies or magazines, according to media execs. "There's no iMagazines and there's no iNews. Either we have to package our products much differently, or we just lost the paid content game." Apple's iPad Gives Wings to Media Stocks DailyFinance Wall Street appears to think that Apple's new iPad is going to help save media companies. Share prices for many big media firms were up Wednesday, and by a significantly larger margin than the market as a whole. The New York Times Co.'s stock was up 1.61%. McGraw-Hill 'Booted' From iPad's Launch VentureBeat Apple is said to have cut McGraw-Hill from its iPad launch presentation after CEO Terry McGraw divulged information about the device the day before during an interview on CNBC. As soon as McGraw "shot his mouth off," Apple CEO Steve Jobs had McGraw-Hill removed. Viacom Benefits from MTV's 'Jersey Shore' Associated Press Viacom has struggled with poor ratings and a flagging stock price since 2006. "That has now changed," analysts say, due to the popularity of its MTV reality shows like "Jersey Shore." MTV will be able to leverage the series in June's cable upfront ad-buying season. Murdoch Daughter Touts Social Networks Los Angeles Times Elisabeth Murdoch, CEO of British television program producer Shine Group, urges TV execs to embrace social networking. Fans "remain the best salesmen for our content. We are at the start of something exciting -- a model that can lead to a new kind of commerce." Dying Media Look to Apple Tablet for Hope AFP Struggling U.S. newspapers and magazines may seek Internet Age resurrection in a so-called "Jesus tablet" -- a device expected to grab the spotlight at today's Apple event in San Francisco. The press event could include the launch of an "iTunes for content." Auletta: Apple Won't Be Only Media Savior InternetNews The Apple tablet is the great hope of the day, but it is only one of many, says New Yorker media columnist Ken Auletta. Media companies are struggling to develop pay models, be it subscriptions or micropayments. Advertising alone "is a very slender reed to lean on." Tablet May Boost Time Warner, News Corp Reuters Analysts are singling out Time Warner and News Corp. as potentially benefiting from the Apple tablet, since their print assets have "basically nil" valuation, so their stock could see an upswing from any revenue from the device. "Publishers are keen to gain control of pricing." McGraw-Hill CEO Confirms Apple Tablet San Francisco Chronicle The first media partner is breaking the silence about Apple's new tablet. McGraw-Hill CEO Terry McGraw tells CNBC that the publisher has been working with Apple for some time on the device. "We have 95% of all our materials that are in e-book format on that one." Old Media on 'Death March,' Eisner Says TBI Vision Michael Eisner says that old media is on a "death march" and that made-for-Web content is an "explosion ready to happen." The former Disney and Paramount boss made the remarks as he unveiled "Booth," the latest Web series from his Vuguru new-media studio. Borders Chief Resigns in Wake of Decline Financial Times Borders, the struggling U.S. book-seller, is announcing the resignation of CEO Ron Marshall, who was appointed only a year ago to head continuing turn-round efforts at the chain. Borders reported a "disappointing" 13.7% fall in sales during the holiday season. Murdoch in Unfamiliar Position with 'Avatar' Portfolio "Avatar" is putting Rupert Murdoch's movie studio in an unfamiliar position: at the top. News Corp.'s 20th Century Fox is now the top-grossing movie studio as "Avatar" becomes the biggest box-office film of all time. Fox hasn't had a top-grossing movie of the year since 1999. Sirius XM, NY Times 'Riskiest' in Media Seeking Alpha Sirius XM Radio and the New York Times Co. are the most risky investments in media, according to an analysis by Audit Integrity. Bottom-ranked companies have "consistently opaque financial reporting." Scripps Network Interactive has the best risk ranking. Liberty Media Makes Bid for Live Nation Denver Business Liberty Media is dangling $414 million in front of Ticketmaster-Live Nation Entertainment investors in an offer to boost its stake in the merged company. The combination would pair a ticket-selling giant with the highest-profile owner of venues and live musical talent. Comcast: No Anxiety for NBC Debacle The Deal For all of the lurid headlines over NBC's late-night spat, the shenanigans are unlikely to create too much anxiety for owner-to-be Comcast. CEO Brian Roberts says the NBC Universal deal was less about NBC than what he calls the "greatest cable channels on the planet." Media Outlook Bleak as Online Grows Seeking Alpha The outlook for most U.S. media remains bleak, especially for print-related businesses, according to a new report by Standard & Poor's. "Online media is absorbing a significant share of total ad spending, as search-related advertising seems likely to keep growing." Mobiles, Tablets to Save Old Media? Toronto Star After taking blame for the decline of traditional media, the digital world -- including mobile devices and tablet computers -- is now being eyed as a potential savior. Industry observers point out that the market for mobile devices is just beginning to "explode." News Corp's 'Avatar' to Sink 'Titanic' Reuters James Cameron's 3D spectacle "Avatar" is replacing his maritime melodrama "Titanic" as the biggest international release of all time and is on the verge of claiming its worldwide crown. "Avatar" has sold $1.841 billion worth of tickets during its six-week reign. Time Warner Is 'Holding Up' Downloads TheWrap Time Warner's HBO has deals with film studios Warner Bros., 20th Century Fox and Universal Pictures that prohibit download sales while new releases play on the premium channel. Rival execs complain that the pacts block efforts to develop movie downloads as a business. FCC Starts Initiative on Future of Media Radio Ink The U.S. Federal Communications Commission is announcing an initiative to examine the future of media. The project, which includes a new "Future of Media" blog, will probe the state of traditional news as technological changes bring "financial turmoil" to traditional media. Media Moguls: Beware of Apple Tablet Forbes Print media publishers and movie studio execs are likely shaking in their seats: Apple's forthcoming tablet device could allow CEO Steve Jobs to "control the distribution of films and anything that is printed on paper today to their demise and his gain." News Corp Sees Benefits from 'Avatar' Forbes The ongoing success of sci-fi epic "Avatar" and climbing newspaper profits will offset risks like MySpace lagging behind Facebook and the dwindling popularity of "American Idol," prompting Soleil Securities to raise its rating and earnings estimates for News Corp. Murdoch Son Favored by Saudi Investor Bloomberg Prince Alwaleed bin Talal, the billionaire Saudi investor, says his choice to succeed Rupert Murdoch at the head of News Corp. is his son James Murdoch. "I'll be the first one to nominate him." James is "a Rupert Murdoch in the making." Alwaleed holds a 7% stake in News Corp. Time Warner Among Bidders for MGM Reuters Time Warner and Lions Gate are among the first-round bidders for Metro-Goldwyn-Mayer, the debt-laden film studio. MGM is considering a prepackaged bankruptcy along with a sale, which would offer a buyer a healthier company by cleaning up its balance sheet. Media Use by Teens Up Thanks to Mobiles Chicago Tribune Americans age 8 to 18 now devote an average of 7 hours, 38 minutes to daily media use, or about 53 hours a week -- more than a full-time job, says the Kaiser Family Foundation. The increase can be attributed to the rise of the cell phone as a content delivery device. Media Trends Report Sees Rival to Google Radio Ink A potential Bing-AOL-Yahoo tie-up could come to compete with Google, says a media trends report by BIA/Kelsey. Also, location-targeted mobile will have a "core role" in local media. Plus, "look for publishers to begin testing monetization paths for mobile search." News Corp's 'Avatar' Yanked in China Los Angeles Times China's state-run movie distributor is yanking the 20th Century Fox blockbuster "Avatar" from 1,628 movie screens in favor of a biography of ancient philosopher Confucius. Propaganda officials are concerned that "Avatar" is taking too much market share from Chinese films. Sony to Sign Deal With Simon Cowell Financial Times Sony Music plans to announce a five-year deal with "American Idol" judge Simon Cowell, who recently announced he was quitting America's top-rated television singing contest. The joint venture will produce a wider range of music, television, film and digital content. News Corp's 3D 'Avatar' Wins Golden Globe Bloomberg News Corp.'s "Avatar" is this year's winner of the Golden Globe for best drama. The 3D adventure is also top U.S. film for the fifth weekend with $41.3 million in sales. "Avatar" has taken in $1.61 billion worldwide so far, making it the second-highest-grossing film ever. Murdoch, Saudi Billionaire Talk Alliances Associated Press Saudi billionaire Prince Alwaleed bin Talal, whose investment firm is one of the biggest stakeholders in News Corp., says he is looking to expand his alliances with Rupert Murdoch's media giant. News Corp. may be thinking of buying a stake in Alwaleed's satellite channels. Disney Makes Changes as Biz Evolves Forbes Shares of Disney dipped after its studios division named Sean Bailey as president of motion picture production, as part of a restructuring which reportedly includes layoffs. "Our industry is evolving rapidly," says chief Rich Ross. "We are adapting to be more agile." Apple Sells Hijacked Media Brand Apps AllThingsD Apple's iTunes store is offering unauthorized paid apps for several media brands, including the New York Times. Apple's policy on the matter is similar to the one that Google takes to YouTube copyright complaints: Put it up, then take it down if someone complains. Murdoch, Chernin May Reteam for MGM Los Angeles Times Former News Corp. president Peter Chernin may team up with Rupert Murdoch in an effort to acquire debt-ridden movie studio Metro-Goldwyn-Mayer, sources say. Chernin would have an equity stake in the entity, while News Corp. would be the primary owner. Disney May Block Netflix Film Streams Bloomberg Disney is said to be in talks with Liberty Media's Starz that may limit the movie channel's ability to provide films online to Netflix. Disney wants viewers watching Starz movies online through companies such as Netflix to pay more for what the studio considers a premium channel. Broadway Must Pay to Vacate Airwaves Bloomberg Broadway theaters and other users of wireless microphones are being given five months to vacate U.S. airwaves that regulators say are needed for high-speed Web services planned by AT&T and others. The cost may reach $100,000 for a theater to replace microphones. Disney Donates $100,000 to Haiti Victims Associated Press ABC-ESPN parent Disney says it will donate $100,000 to the Red Cross to help earthquake victims in Haiti. Says CEO Bob Iger: "We hope this donation will help the Red Cross to provide immediate aid and relief to the thousands of people affected by this terrible tragedy." Media-Ownership Rules Eyed for Change Wall Street Journal U.S. media-ownership rules should be loosened to allow more consolidation and attract capital, say investment community reps. The Federal Communications Commission is holding workshops on how the agency might improve the health of newspapers and broadcasters. Viacom, CBS: What Happens After Sumner? Pali Research As Viacom/CBS boss Sumner Redstone turns 87 in May, investors ask: "What would happen if Sumner were no longer around?" While buyers for CBS are seen as limited, the list of suitors for Viacom "would be long -- particularly with ratings on the rebound at MTV." News Corp Blocks Online News Aggregator New Media Age News Corp.'s U.K. newspaper publishing arm is blocking online news aggregator NewsNow from linking to content from the Web sites of the company's Times, The Sun and News of the World. A company spokeswoman says: "We're updating our system." Time Warner May Profit from Jay Leno AllThingsD NBC's Jay Leno-Conan O'Brien debacle is good news for Time Warner, according to JP Morgan analyst Imran Khan. Time Warner is a major producer of scripted programming, which NBC will need to replace Leno at 10 p.m. This will represent "incremental spending." Disney: CEO Bob Iger Reshapes Business Los Angeles Times Disney's Oren Aviv is being ousted as studio production chief, in the media company's latest executive shakeup. The changes are seen as a sign that CEO Bob Iger is moving ahead with plans to turn Disney into a brand factory, led by Pixar, Marvel and DreamWorks. News Corp Shaking Up TV Division Execs Broadcasting & Cable News Corp. is considering a restructuring of its television division that is expected to a see a re-shuffling of duties among top execs. Peter Rice is expected to assume greater control over entertainment assets, while David Hill will gain greater power in sports. Comcast Blamed for Leno-O'Brien Switch Atlantic NBC's looming merger with Comcast is cited by industry observers as the reason for the surprise decision to swap Conan O'Brien for Jay Leno. NBC Universal chief Jeff Gaspin has "every incentive to show improvement" before his new bosses at Comcast take over. Murdoch's Son-in-Law to Leave Company Ninemsn Rupert Murdoch's son-in-law Alasdair MacLeod is leaving the media mogul's global empire as part of a restructuring of News Corp.'s Australian newspaper business. MacLeod is married to Prudence MacLeod, the only child from Murdoch's first marriage. Murdoch's Family in Feud Over Fox News Daily Beast The long-simmering feud between Fox News chief Roger Ailes and Rupert Murdoch's adult children is erupting into a public verbal sparring match, the outcome of which could impact News Corp. Murdoch son-in-law Matthew Freud says he is "ashamed and sickened" by Ailes. News Corp Bottom Line Boosted by 'Avatar' Associated Press The runaway global success of James Cameron's 3-D spectacle "Avatar" is prompting analysts to lift earnings estimates for News Corp., the owner of movie studio 20th Century Fox. It is fairly rare that a media conglomerate's bottom line is affected by a single movie. Viacom Lawsuit to Test YouTube's Liability Bloomberg Google's YouTube will seek to persuade the judge in the copyright suit brought against it by Viacom that federal law protects it from being liable for infringement. YouTube says it is protected by the safe-harbor provision of the Digital Millennium Copyright Act. FCC Opens 'Reboot' Site for Public Input Radio Ink The U.S. Federal Communications Commission is launching a Web site, called Reboot, to allow the public to "take part in improving citizen interactions." The new site includes the first official FCC blog, set to include posts from FCC commissioners and staff. Media's Future Probed by Three Books USA Today Three new books -- "The Curse of the Mogul," "Googled" and "The Chaos Scenario" -- provide useful perspectives for readers who want to understand the current mess in media. It's still unclear, though, whether the familiar pillars of culture are merely teetering, or about to collapse. Redstone Sells Theaters to Daughter Associated Press Sumner Redstone's holding company, National Amusements, is selling its Russian theater chain to Redstone's daughter, Shari, and other investors in a further move to pay down its debts. Redstone is selling off theaters and stock in CBS and Viacom to fend off creditors. Sony Makes Plans to Control 3D Market BusinessWeek Sony will start selling 3D televisions and Blu-ray disc players, part of a plan by CEO Howard Stringer to seize control of the market. "3D is harder to pirate," says Stringer. "And it's a bet we had to make because if you stand still with technology, you're crushed." Disney to Release Blu-ray Titles in 3D Hollywood Reporter Disney, which says it has produced more 3D content than any other major, will begin rolling out 3D Blu-ray titles this year beginning with "Disney's A Christmas Carol" and followed by "Alice in Wonderland" and "Toy Story 3." Television sets with 3D capabilities are "all the rage." MGM Sets Jan 15 Deadline for Bidders Bloomberg Metro-Goldwyn-Mayer, the film studio burdened by about $4 billion in debt, is setting a Jan. 15 deadline for potential buyers to say whether they are interested in acquiring the company. About a dozen parties, including Time Warner, have signed non-disclosure agreements. Comcast, NBC Deal Eyed by Justice Dept Associated Press The Justice Department says it will be the agency to scrutinize Comcast's plans to buy a controlling stake in NBC Universal's broadcast networks, cable TV channels and movie studios. The Federal Communications Commission must also approve the combination. Disney Unveils New 'KeyChest' Technology Reuters Disney is unveiling a technology called KeyChest to enable consumers to buy films or television shows, store them on remote servers, and play them on multiple platforms ranging from TVs to computers and phones. Disney will soon announce partners in the program. WPP Chief: Media Aren't Making Money Sparksheet Both new and old media are "under a lot of pressure," says WPP chief Martin Sorrell. Even new media companies are hardly making any money nowadays. "Google is an exception. Google is a much more intimidating company than it was even six months ago." Sirius CEO: Google 'F-ing With the Magic' Orbitcast Google's advertising model is "f-ing with the magic," says Sirius XM Radio CEO Mel Karmazin. Almost all of mainstream media is suffering because of an ad model that never focused on creating a return on investment. "That's why subscription, subscription, subscription ..." Disney to Open High-Tech Retail Store Crain's New York Disney plans to open a new retail store in Times Square in the former home of Virgin Records. The store will feature technological advancements including a new theater, where visitors can see Disney movies, television and publishing in a "new way." Media M&A Activity Optimism in 2010 BtoB Merger and acquisition activity in media and marketing increased significantly in the fourth quarter, prompting some optimism for 2010, according to reports by investment banks Jordan, Edmiston Group and Petsky Prunier. "We expect higher levels of M&A activity." Big Media Gambles That Content Will Rule Dow Jones Major media conglomerates hope to return to growth in the new year with an overriding strategy to produce premium content in a bet that consumers are ready to pay for it online. However, some observers say there is "little evidence that content will be king in the future." Media Forecast: Changes to Watch in 2010 DailyFinance Among the industry developments that will make headlines in the year to come: cautious action on paid content; a possible asset fire sale in the fourth quarter; more e-reader tablet devices and nonprofit newsrooms; and the likely exit of some big names in media. Disney, CNN Among Top Social Brands Multichannel News Disney, CNN and MTV are among the companies that create the greatest social media buzz, according to a study from Vitrue of online conversations on social networks, blogs and other sites. Other media brands on the list include ESPN, Fox News, Hulu and Comcast. News Corp's 'Avatar' Sets Piracy Record Times of London Despite belief that the 3D technology of "Avatar" would deter online theft, almost 1 million pirate copies were downloaded within seven days of its release -- a record. Bootleg copies of the hit film appeared online days before its premiere in theaters last month. Rupert Throws Rotten Tomatoes at Flixster Los Angeles Times News Corp. is selling Rotten Tomatoes, the movie review aggregation site it received as part of its acquisition of IGN in 2005, to fast-growing user-reviews site Flixster. News Corp. is taking a stake in Flixster -- and could buy back the combined company in the future. Viacom: Stephen Colbert in YouTube Row CNET Comedy Central star Stephen Colbert is being questioned by attorneys during a legal deposition as part of Viacom's $1 billion copyright lawsuit against Google and YouTube. Google also wants "South Park" creators Matt Stone and Trey Parker to turn over documents. AOL-Time Warner Ex-CEO Apologizes Fortune Gerald Levin, who sold Time Warner for AOL shares inflated by the dotcom boom, is marking the 10th anniversary of the disastrous $164 billion deal by appearing on CNBC and apologizing for the "pain and suffering" caused by the merger. "I take responsibility." Murdoch Sees Better 2010 for News Corp Reuters News Corp. will do better in 2010 than the previous year thanks to the strong performance of its cable and film businesses, says chief Rupert Murdoch. "In 2009 we had a $3.5 billion operating profit, we will do better in 2010." Advertising will pick up but not at boom levels, he adds. News Corp's 'Avatar' Rakes In $1 Billion Reuters "Avatar" sped past the $1 billion mark at the worldwide box office after three weekends in release, making it the fourth-biggest movie of all time. James Cameron's 3-D sci-fi epic, from News Corp.'s 20th Century Fox, saw sales of $202 million during the New Year holiday weekend. Viacom Had Most Pirated Films in 2009 New York Post "Star Trek" and the sequel to "Transformers" were the most ripped-off films of 2009, according to TorrentFreak. Online pirates pinched more than 20 million copies of the two Paramount films. For the nine months ending Sept. 30, revenue at the Viacom studio fell $535 million. Old Media Decline to Continue in 2010 Economist Traditional media such as magazines, newspapers, television and radio will continue to lose advertising share next year, according to The World in 2010, a collection of expert predictions from The Economist. "Harnessing the advertising potential of social media will be key." Big Media Veteran Acquires Broadway.com Crain's New York Tom McGrath, a former exec with Time Warner and Viacom, and his private equity firm Key Brand Entertainment are buying the theater Web site Broadway.com for $45 million. Key Brand now owns an editorial outlet covering theater news and box office results. Digital Media to See Growth Next Year Nielsen Wire Changes in technology complicate predicting the future winners in media, say industry leaders in a 2010 Outlook report by Nielsen. Among the top trends next year: Digital media will see solid growth and new advertising models will emerge to exploit smartphones. Media Companies End '09 in Bankruptcy Reuters U.S. radio giant Citadel, broadcaster NextMedia and newspaper publisher Heartland Publications are the latest media companies to file for bankruptcy this year. "Media is being hammered by the impact of the both the economic downturn and the pressure posed by the Internet." Apple Preps Service to Rival Cable TV Wall Street Journal CBS and Disney are said to be considering a proposal by Apple to offer a subscription-based television service over the Internet, as Apple prepares a potential new rival to cable and satellite TV. The proposed service could offer access to a selection of TV shows for a monthly fee. Hollywood Adds Money, Talent to Web Associated Press Hollywood studios are starting to get behind made-for-Web productions, boosting their budgets and quality. "There's no limit to how many episodes can be in a Web series. So why don't we design it as a feature-length movie so we can sell it as a DVD feature at the end?" News Corp's 'Avatar' Sets 3-D Record Bloomberg "Avatar," James Cameron's science-fiction epic, led the box office with $73 million in U.S. and Canadian ticket sales its opening weekend, a record for a 3-D movie that may aid in expanding the format. The News Corp. film also had the second-best debut for a December release. News Corp: 'Avatar' a Game Changer CNBC Can a movie lift the fortunes of its parent company? Pali Capital analyst Rich Greenfield is so impressed by the new 3-D sci-fi film "Avatar" that he is upgrading the stock of parent News Corp. to "neutral" from "sell." "Avatar" will be "a game changer," he says. Time Warner, Lions Gate Circle MGM Reuters First-round bids for the struggling Metro-Goldwyn-Mayer are said to be coming in later than expected because talks over confidentiality agreements are slowing down the sale process. Time Warner and Lions Gate have signed MGM's NDA; News Corp. has not yet signed. Icahn Buys Stake in Take-Two Interactive Los Angeles Times Activist investor Carl Icahn is taking an 11.3% stake in Take-Two Interactive, the money-losing video-game publisher best known for the hit "Grand Theft Auto." Icahn, known for his sharp elbows, has tangled with management at the likes of Yahoo and Time Warner. News Corp vs Time Warner Over Fees Wall Street Journal News Corp. is launching an advertising campaign warning consumers that Fox programs such as "The Simpsons" may go off the air for some Time Warner Cable subscribers. Time Warner opposes News Corp.'s new fees to carry Fox and other channels. Disney: Eisner Ouster Roy Dies at 79 Associated Press Roy Disney, the nephew of Walt Disney whose behind-the-scenes influence on the Disney company led to the departure of CEO Michael Eisner, died after a battle with stomach cancer. Disney had set up SaveDisney.com to oust Eisner and revamp the company. Murdoch: Arrest in 'Wolverine' Piracy Reuters FBI agents have arrested New Yorker Gilberto Sanchez on charges that he uploaded a copy of the movie "X-Men Origins: Wolverine" to the Internet before its May theatrical release. "Wolverine," posted on Megaupload.com, is from News Corp.'s 20th Century Fox. Time Warner Buys TV Network in India Reuters Time Warner says it will buy NDTV Imagine from India's NDTV Networks for $126.5 million, further expanding its international reach. Imagine owns a leading Hindi general entertainment channel and other entertainment assets in India. Viacom Launches Site to Sell Movie Clips WebProNews Viacom's Paramount Pictures is launching an online service to sell movie clips to businesses in an effort to combat declining DVD sales. ParamountClips.com allows users to search the Paramount library, reformat clips and export them to any video platform. Disney to Sell Digital Comics on Devices Bloomberg Disney will start selling comics to users of Apple's iPhone and other devices Wednesday to take advantage of increased demand for digital content. The new Digicomics service will be accessible through Apple's iPhone and iPod touch and Sony 's PlayStation Portable. Media Revenue Streams in Modern Shift UPI Revenue among U.S. newspapers and radio stations has dropped sharply, while Internet and television have flourished, according to the Census Bureau. From 2007 to 2008, revenue among newspapers fell 8.3% to $43.9 billion, a steeper drop than the 2.7% decline in 2007. Viacom Accused of Stealing 'Dreamgirls' Washington Business A Virginia man is suing Viacom, Paramount Pictures and BET for allegedly stealing his screenplay to produce the 2006 movie "Dreamgirls," starring Jennifer Hudson and Beyonce Knowles. Writer Samuel Bailey claims "Dreamgirls" rips off his "Poison Passion." News Corp Spends Big on 'Avatar' Film Bloomberg News Corp.'s 20th Century Fox and partners Dune Entertainment and Ingenious Film Partners are spending $380 million to make and market "Avatar," James Cameron's 3-D sci-fi adventure due out this weekend. "Avatar" ranks among the most expensive films. News Corp Circling Flixster Movie Site AllThingsD News Corp.'s MySpace is said to be eyeing Flixster, the popular social-networking site for movies. Whether this is an acquisition or more of a larger partnership deal is unclear. Flixster could be combined with Rotten Tomatoes, another News Corp.-owned site. Viacom Delays Its Decision on Redbox Los Angeles Times Viacom's Paramount Pictures is extending through June a trial agreement with $1-a-night DVD rental firm Redbox that allows it to evaluate data on whether low-priced rentals of new movies are hurting sales. Paramount's ultimate decision is being closely watched. Hollywood In Effort to Boost Blu-ray Associated Press Consumers are hesitant to embrace Blu-ray, the next-generation video format. So Hollywood studios are starting to package Blu-ray discs of movies with regular versions on DVDs, and throwing in so-called "digital copies," which can play on computers and iPods. Media Question: Is Content Still King? New York This week's UBS Media Conference included a panel of twentysomethings discussing their media habits, providing a sobering antidote to bullish claims by media CEOs that "content is king." When asked what content they would pay for, the panelists chose Gmail and search. Time Warner: More Cutting to Be Done Los Angeles Times Time Warner CEO Jeff Bewkes is issuing a "goodbye" memo acknowledging the official spinoff of AOL and reiterating the company's commitment to content. Bewkes says there is still more cutting to be done. "We must continue to make our businesses more efficient." News Corp Content Chief Disney to Exit Broadcasting & Cable Anthea Disney is exiting News Corp. after 20 years with the company. Disney, currently Exec-VP for content, will retire at the end of the year. Among her roles: president of Harper Collins, chairman/CEO of News America Publishing and chairman of Gemstar-TV Guide. Disney Grandson Arrested on Gun Charge Los Angeles Daily News Patrick Disney Miller, a grandson of the late Walt Disney, is under arrest on suspicion of illegal gun possession. Miller, 42, is being booked for "possession of a firearm by a felon" and selling ammunition. Information on Miller's felony background is not immediately known. Citadel Broadcasting Eyes Bankruptcy Wall Street Journal Citadel Broadcasting, the third-largest U.S. radio broadcaster, is said to be planning to file for bankruptcy by the end of the year. Overall advertising revenue for radio is expected to drop 19% in 2009. Current shareholders, as in most bankruptcies, will be wiped out. Time Warner Ex-CEO Doesn't Regret AOL Fox Business Gerald Levin, former CEO of Time Warner, says he doesn't regret the merger with AOL. "There was a guiding principle, which was a digital makeover of an older media company." In 1999, AOL "was like what we think of as Google today -- the symbol of access to the Internet." Time Warner Faces Challenges After AOL MarketWatch Life may get somewhat easier for Time Warner after it spins off AOL on Wednesday. But the media giant will still have to decide what to do with the next-most obvious lack of growth -- the Time Inc. magazine unit. "Time Inc. is going to be the next problem child to deal with." Murdoch Son Sells More News Corp Stock Bloomberg Lachlan Murdoch, son of News Corp. chief Rupert Murdoch, is selling 2.29 million shares of non-voting stock in the company for $28.1 million. His Illyria outfit is joining with other investors to bid for the Hollywood Reporter, Billboard and other trade magazines owned by Nielsen. Media Companies See Slower Ad Declines Wall Street Journal Positive advertising projections by CBS, Discovery, New York Times and other companies are providing a bit of optimism for traditional media. The sentiments are lifting the shares of some media stocks. Says CBS boss Les Moonves: "There is definite light at the end of the tunnel." Liberty Media Will Look at MGM Assets Reuters Liberty Media CEO Greg Maffei says his company will look at the assets of Metro-Goldwyn-Mayer, which is considering selling itself. MGM is struggling with nearly $4 billion in debt. Other interested parties are said to include Time Warner, News Corp., Lions Gate and Sony. Viacom/CBS: Redstone Firm Sells Theaters Deadline Rave Motion Pictures, a Dallas-based movie-theater owner, is buying 35 theater complexes from National Amusements, the company owned by Sumner Redstone, which operates as the parent of both Viacom and CBS. The deal will make the Rave the fifth largest U.S. exhibitor. Comcast: No Plans to Sell Fourth-Place NBC Associated Press Comcast exes say they have no plans to sell NBC Universal's broadcast television business when they take control of the company. Comcast CEO Brian Roberts acknowledges that the cable channels are the driving force behind the deal to buy a control of NBC Universal. Viacom: Comcast Wanted to Acquire Us Dow Jones Viacom CEO Philippe Dauman says Comcast had been interested in the company before negotiating to buy a majority stake in NBC Universal. After Comcast's bid for Disney failed, the cable giant became interested in other media companies. "We just weren't available." Murdoch: The Ad Business Model Is Dead Wall Street Journal The Wall Street Journal is publishing an excerpt from Rupert Murdoch's remarks at the Federal Trade Commission's workshop on journalism and the Internet. "The old business model based mainly on advertising is dead," says the News Corp. chief. "Let's face it." Time Warner Set to Drop Also-Ran AOL MarketWatch When AOL and Time Warner announced their $160 billion mega-merger in 2000, few were even aware of a startup called Google. As AOL prepares to spin off from Time Warner this week, analysts point out that Google now "controls the search and advertising world." News Corp Blamed for MySpace Decline Financial Times Shortly after News Corp. acquired MySpace in 2005, the media conglomerate's execs are said to have clashed with site founders Chris DeWolfe and Tom Anderson, who were "unused to being told what to do." Users deserted MySpace after it became "cluttered with ads." Murdoch Eyes Abu Dhabi Media Summit Guardian Rupert Murdoch plans to co-chair the inaugural Abu Dhabi Media Summit in March. The event will focus on the emerging markets of the Middle East, India and Asia. Some 400 delegates are expected. Murdoch says: "I can't think of a better place to be talking about the future of media." Discovery to Name Liguori as No. 2 Exec Los Angeles Times Discovery Communications plans to announce that it is hiring Peter Liguori as COO. Liguori left News Corp. earlier this year in a management shakeup. He will start his new gig on Jan. 19. The move signals Discovery's desire to become a bigger player in Hollywood. Media Get Real About Paid-For Content Reuters Consumers will soon have to start paying more often for news and entertainment on the Web as media companies face the reality that advertising won't foot the bill. According to Discovery chief David Zaslav: "There is no business model right now on the Web." Media Predictions 2010: A Glut of Content CNBC In 2010, control over distribution is expected to continue to shift to consumers. More content than ever will be produced, forcing media giants to distinguish themselves from non-professionals. Print media will struggle even more. Smart phones will be "more prevalent." Comcast, NBC Announce $30B Merger Washington Post Comcast and NBC Universal are announcing their much-anticipated $30 billion merger, giving the biggest U.S. cable television provider control of NBC and about two dozen cable channels. Jeff Zucker, currently CEO of NBC Universal, will lead the new joint venture. Sony Chief Stringer Isn't Leaving Soon Bloomberg Sony chairman Howard Stringer plans to remain the company's chief for at least three years to complete a turnaround plan delayed in part by the global recession. Stringer says he aims to lead Sony through its mid-term plan ending in March 2013, by which time he will be 71. News Corp, Viacom Back Movie Clip Site Associated Press Movieclips, an online movie clip-sharing service, is launching in beta, touting the cooperation of six major Hollywood studios amid a slowdown in DVD sales. The company hopes to put advertisements over the bottom third of the clips and share ad revenue with the studios. News Corp Buys Into Middle East Media Variety Rupert Murdoch is closing his long-gestating deal for News Corp. to acquire a 10% stake in Saudi Prince Waleed bin Talal's diversified media company Rotana. The pact marks the most significant investment yet by a Western media company in the Arab world. Murdoch Says Web Aggregators Should Pay Bloomberg Rupert Murdoch, speaking in Washington at the U.S. Federal Trade Commission's workshop on journalism in the Internet age, says news aggregators must pay to distribute his company's news articles. "It's not fair use. To be impolite, it's theft." Viacom/CBS: Redstone Defeats His Nephew Los Angeles Times Sumner Redstone is prevailing in his latest family legal squabble, this time with his nephew over a disputed trust in a case that could have cost him hundreds of millions of dollars. Michael Redstone claimed that he had been unfairly deprived of shares in National Amusements. GE, Vivendi Forge Tentative Deal on NBC Stake Wall Street Journal General Electric is said to have hammered out a tentative agreement to buy partner Vivendi's minority stake in NBC Universal for $5.8 billion, setting up a deal that would give control of NBC Universal to Comcast. The two sides reached a verbal agreement over the weekend. AOL-Time Warner Merger Lawsuit Dismissed Reuters The last in a wave of hundreds of shareholder lawsuits over the 2001 AOL-Time Warner merger is being dismissed by a New York judge who found the claim was filed too late. Time Warner is slated to cast off its AOL division to become a standalone company on Dec. 9. Media's Next Big Thing: Cellphone News Times of India The spread of news and advertising via mobile phones and social networks are the two areas that will shape the news industry in the years to come, say speakers at the World Newspaper Congress in Hyderabad, India. U.S. mobile advertising is slated to reach $3.33 billion by 2013. Media Biz at Crossroads as Deals Pick Up Reuters The growing influence of the Web to distribute content is leaving many media execs and investors uncertain about where to make their next bets. "More content will be consumed on the Web and on various devices. The problem is people don't want to pay for anything online." Media Ex-Adversaries Poised for Mergers New York Post Among the mergers that media insiders believe could come down the pipeline are a Time Warner-Viacom tie-up, a Discovery-Scripps marriage and a Verizon-Vodafone deal. "If public companies don't take advantage of this window of opportunity now, they are crazy." Twitter Guys: Media Person of the Year? New York Post Both Gawker boss Nick Denton and celebrity editor Bonnie Fuller say the Twitter Guys would get their votes for 2009 Media Person of the Year. The eighth annual online poll by I Want Media opens Monday. Other contenders include Rupert Murdoch, Jay Leno and Oprah Winfrey. Comcast Sees NBC Universal as Laboratory New York Times Despite a stall in the talks, Comcast is continuing to close in on a deal to give it the reins of NBC Universal. Universal is expected to become a laboratory to reformulate the movie industry's approach to its own customers, including a push into digital distribution. Redbox Defends Cut-Rate DVD Rentals Wall Street Journal Redbox, the company behind the $1-a-night DVD-rental kiosks springing up in groceries and convenience stores around the country, is no threat to Hollywood, says president Mitch Lowe. "This whole idea about the dollar price point is the studios looking for a scapegoat." GE Considers IPO of Vivendi's NBC Stake Dow Jones General Electric is said to be leaning toward allowing an IPO of Vivendi's 20% holding in NBC Universal as talks to purchase the stake stall. The two sides are still about $500 million apart on a valuation for Vivendi's stake in the company. An IPO may force GE to adjust its plans. Vivendi, GE Haggle Over Price of NBC Stake Wall Street Journal General Electric and Vivendi are wrangling over the value of the French media group's stake in NBC Universal. GE has offered about $5 billion for the stake. Vivendi, meanwhile, has asked for a price somewhere from the "mid-five" billion dollars to closer to $6 billion. News Corp, Time Warner Interested in MGM Bloomberg News Corp., Time Warner and Qualia Capital are said to be interested in buying the debt-laden Metro-Goldwyn-Mayer film studio, owner of the "James Bond" franchise. The companies haven't examined the studio's finances and their level of interest will depend on price. Disney Eyes Web for New Hollywood Model Los Angeles Times Disney Studios head Rich Ross and his boss, Disney chief Bob Iger, want to create a new business model to address the sweeping changes impacting the business. Rather than spend millions on television advertising, Ross says studios should harness social networks and the Web. Microsoft, News Corp Talk Google Content Financial Times Microsoft is said to be in early stage talks with News Corp. and other publishers about the possibility of paying them to remove their sites from Google's search index, setting the scene for a search engine battle that could offer a ray of light to newspapers. Media Job Cuts: The Worst Is Not Over Reuters Although many U.S. media conglomerates are reporting strong earnings and their CEOs are touting a long-awaited uptick in advertising spending, analysts warn that more cost cuts lie ahead. Layoffs are "nowhere near over." Business models "are still in flux." NYC Loses Nearly 60,000 Jobs In Media WCBS The New York City comptroller's office says the city has lost nearly 60,000 communications jobs since 2000, including in publishing and broadcasting. San Francisco has lost a third of its information industry jobs. Phoenix, Atlanta and Dallas lost more than one quarter. Murdoch Jr: TV is News Corp's Future Telegraph Broadcasting and entertainment are the future for News Corp., with newspapers playing a much smaller role, says James Murdoch, the company's head of Europe and Asia. "Journalism plays a role" in our business. But, "television is vastly more profitable." AOL-Time Warner Divorce to Take Toll Associated Press AOL plans to cut one-third of its workforce ahead of next month's spinoff from Time Warner. The struggling Internet outfit is looking for up to 2,500 employees to voluntarily accept buyouts starting Dec. 4, just days before the divorce from its parent company. Sony to Launch Product-Linking Service Dow Jones Sony plans to launch an online network service in early 2010 to distribute games and videos for various hardware devices. The service, which is tentatively named Sony Online Service, is expected to connect to televisions and various mobile devices. Comcast NBC Deal Hit by Stake Valuations Financial Times General Electric and Vivendi are said to be at least $1 billion apart on their valuation of the French group's stake in NBC Universal. The situation is dampening hopes of a quick resolution to a stand-off that is holding up Comcast's planned bid for a majority stake in NBCU. Sony Still Haunted by Decline of Walkman Associated Press Sony says it aims to become profitable in gaming and flat-panel TVs as it cuts costs to turn around money-losing businesses. "We still have more work to do," admits CEO Howard Stringer. Sony's big challenge is coming up with an equivalent of the Walkman. Vivendi Seeks More Money for NBCU Sale Bloomberg Vivendi is said to want a bigger portion in cash from partner General Electric for its 20% stake in NBC Universal. The talks are key to GE's plan to form a new venture with Comcast. Vivendi may decide not to sell its stake. A final decision depends on the talks with GE. Martha 'Pissed' Prison Hurt Her Company UPI Martha Stewart says she never thought her 2004 prison sentence for lying to investigators about a stock trade would cost her her media empire. "I was pissed. OK," she admits in an interview on ABC's "Nightline." "Pissed that something could actually affect that." Murdoch, Google Poised to Start 'Web War' InformationWeek The Web is in danger of becoming segmented into a federation of closed camps led by the likes of Google, Microsoft, Apple and Rupert Murdoch. So says Internet pundit Tim O'Reilly, during a keynote address at the Web 2.0 Expo. "We're heading back into an ugly time." Hollywood Studios Spy On Redbox Kiosks New York Times News Corp.'s Fox is keeping a close eye on an effort by Redbox, the operator of dollar-a-day DVD rental kiosks, to stock its movies, despite a refusal by Fox, Universal and Warner to sell new releases to the company and a pending legal fight over the dispute. Time Warner, AOL to Split in Three Weeks USA Today Time Warner is making it official: On December 9 the media giant will spin off AOL, closing the book on one of the most disastrous mergers in business history. Ted Turner once described the AOL deal as "better than sex." AOL will become a separate public company. Murdoch Sees More Media Opportunities Dow Jones The globalization of media presents opportunities for the industry even as it navigates the uncertainties posed by the digital world, says Rupert Murdoch, in videotaped remarks to promote the Abu Dhabi Media Summit. "Our aim must be to enhance the lives of our citizens." Burda Buys 25% Stake in Rival to LinkedIn TechCrunch German media giant Burda is using its digital arm to purchase a 25.1% share in XING, the business social network that is biggest in Germany and competes with LinkedIn. Burda, which publishes more than 250 magazines worldwide, will be XING's largest shareholder. Echostar Names Dugan CEO, Ergen Is Chief Reuters Charlie Ergen is relinquishing his role as CEO of EchoStar and naming Michael Dugan to run the maker of television set-top boxes. Dugan, a member of the company's board, will serve as president/CEO; Ergen will stay on as chairman, a role he also holds at Dish Network. Comcast to Help Ticketmaster, Live Nation Bloomberg Comcast is working with Ticketmaster and Live Nation to help the two companies salvage their merger now under U.S. antitrust scrutiny. Comcast, which runs a ticket seller, may receive client contracts and other perks as part of a proposal to help alleviate regulatory concerns. News Corp Loses Another Senior Lieutenant Fortune Gary Ginsberg, News Corp.'s chief marketing officer and communications exec, is leaving the company. Ginsberg is said to have been close to former president Peter Chernin, who resigned earlier this year. Ginsberg helped News Corp. navigate a succession of controversies. Karmazin: 'No Chance' I'll Leave Sirius XM Radio Ink Speaking to Neil Cavuto on Fox Business Network, Sirius XM CEO Mel Karmazin says he has no intention of leaving the satellite radio company, even though he is being discussed as a possible exec to run Comcast-NBC. Says Karmazin: "I'm not good" at being a No. 2 exec. Viacom: Suing File-Sharers 'Like Terrorism' Ars Technica Suing people for file-sharing "feels like bullying," says Viacom general counsel Michael Fricklas, speaking at Yale University. Fricklas oversees Viacom's legal efforts, including its $1 billion lawsuit against YouTube. Customers "need to be treated with respect." Comcast to Take On ESPN in Local Markets SportsBusiness Journal Comcast is responding to ESPN's move to launch local Web sites by beefing up its news operations at five of the company's regional sports networks. Comcast plans to hire big-name writers to appear on both TV and online as it rolls out new Web sites with original reporting and video. Murdoch: U.S. Government Is Dysfunctional Dow Jones Rupert Murdoch, speaking at the Wall Street Journal CEO Council, says he wants to see better people in U.S. politics, adding that the current government is dysfunctional, with each side far apart on the issues. He also says that he sees a "slight revival" of the economy. Chernin's Foundation Gets Comcast Donation Bloomberg Comcast will make a donation to Malaria No More, a foundation co-founded by Peter Chernin, in return for the exec's advising work on the NBC Universal deal. Chernin, speaking at the University of Southern California, says Comcast-NBC shouldn't pose any regulatory hurdles. Media: All Sectors Face Challenging Times Hollywood Reporter Newspapers, radio and local TV stations are among the most challenged media sectors, say private-equity investors. Newspapers will come to see "fewer players," they predict, as more dollars move out of traditional media and toward the Web and social media. Bloomberg Preps Strategy to 'Rule the World' New York Times Bloomberg LP, using the cash stream from its namesake terminals, aims to become "the world's most influential news organization." Bloomberg plans to maintain new acquisition BusinessWeek as a weekly, improve the paper quality and expand globally, with The Economist as a model. News Corp Hires McKinsey for Dow Jones Forbes News Corp. is retaining McKinsey and Co. to evaluate operations at Dow Jones, publisher of the "barely" profitable Wall Street Journal. The management consulting firm did studies this year for Conde Nast and Time Warner, later used as blueprints for layoffs. Vivendi Sets a High Bar on NBC Universal New York Post General Electric and Vivendi execs are said to have spent the weekend in talks over the value of the French conglomerate's 20% stake in NBC Universal. Vivendi, which has until Dec. 10 to reveal its intentions, is "trying to squeeze every nickel they can out of GE." Murdoch Ready to Hit Delete on Google Telegraph Jon Miller, News Corp.'s chief digital officer, says chief Rupert Murdoch is ready to block Google's access to his Web sites "within months" and that the company will lead the media industry in this direction. "There is real tension surrounding the free versus pay debate." News Corp's Carey Seeks Media Money Daily Finance The key to survival in the media business these days is supplementing advertising revenue with subscription fees and other revenues derived from consumers, says News Corp. president Chase Carey. Ad dollars alone "is really competing with one hand tied behind your back." Time Warner Invests in Internet Games VentureBeat Six Degrees Games, publisher of sports game site ActionAllStars.com, is raising $7 million in a second round of funding in a deal led by Time Warner's investment arm. The company lets players create their own sports athletes and enter them in competitions. Disney CEO Hints Staggs Is Successor Associated Press Disney is posting an 18% increase in fourth-quarter earnings and announcing an executive job switch that might point to new parks head Tom Staggs as an eventual successor to CEO Bob Iger. Says Staggs: "I'm certainly not going to speculate on what the future holds." Comcast-NBC May Shake Up Media Biz Hollywood Reporter The combination of Comcast and NBC Universal could transform the way content owners and distributors do business, analysts say. Comcast could develop on-demand television offerings "that derail the growth of DVRs." A preliminary deal could be unveiled as early as Sunday. Liberty to Buy German Cable Operator MarketWatch Liberty Global, John Malone's international cable operator, is acquiring Unitymedia, Germany's second largest cable-television firm, for about $5.2 billion. The deal will expand Liberty Global's footprint in Europe, where Unitymedia is the third largest cable operator. Lions Gate, Time Warner Eyeing MGM Bloomberg Lions Gate Entertainment is interested in buying troubled "James Bond" producer Metro-Goldwyn-Mayer, depending on the cost. "It's all about price," says Lions Gate chief Michael Burns. Time Warner is also interested and may outbid Lions Gate, Burns adds. Disney Studios Restructures for Tech Los Angeles Times New Disney Studios chief Rich Ross is restructuring marketing, distribution and operations to reflect a focus on finding new ways to reach audiences through technology. Among other moves, Ross is naming Pixar exec Greg Brandeau as Disney's first-ever chief technology officer. Comcast-NBC May Be Weakened by FCC Reuters Comcast's bid for a controlling stake in NBC Universal to create a media powerhouse could be hurt by merger conditions from U.S. regulators that end up weakening synergies, observers say. Comcast may be forced continue providing content to rivals such as Verizon. FCC May Relax Media Ownership Limits Forbes The U.S. Federal Communications Commission is preparing for possible changes to media ownership rules in 2010. One possible change: common ownership of multiple television stations in a single market on the condition that they reach no more than 30% of the audience. Murdoch 'Less Powerful' Than Google Hollywood Reporter Forbes' inaugural list of the world's most powerful people has News Corp. chief Rupert Murdoch at No. 7, ahead of figures like Pope Benedict XVI at No. 11. Murdoch, however, is bested by Google guys Sergey Brin and Larry Page, who rank at No. 5. President Obama is No. 1. Hearst Mulls $1 Billion Spend on New Media New York Post Hearst is said to be sitting on a $1 billion war chest -- one reason it has tapped investment banker Mitchell Scherzer as the company's new CFO. The move is seen to signal a more aggressive acquisition strategy to find new revenue streams in non-traditional media. Martha Renews Multimillion Dollar Contract WWD Martha Stewart Living Omnimedia is reporting that founder Martha Stewart has agreed to a new contract, set to expire in March 2012. As part of the agreement, Stewart is entitled to $2 million a year, in addition to an annual bonus, with a target equal to $1 million. News Corp Would Lose Traffic Without Google WebProNews If Rupert Murdoch blocks Google from indexing News Corp.'s online properties, such a move would be felt, according to Experian Hitwise. Google is the top traffic provider for News Corp.'s WSJ.com, accounting for more than 25% of the site's traffic. Disney Eyes Digital as Studio Head Exits Los Angeles Times In a continued housecleaning at Disney, studio president Mark Zoradi is leaving the company after 29 years. Disney operations are expected to undergo restructuring as CEO Bob Iger moves to position the company's film studio for a future that includes digital distribution. Murdoch Wants Family to Run News Corp Bloomberg Rupert Murdoch says he wants one of his children to succeed him at News Corp. "I am sure one of them will emerge," he says. "It would be nice." His family, with about 40% of the voting rights, will "have a lot of say." Murdoch, 78, adds that he will step down "when I start to lose it." Google News May Be Blocked by Murdoch Guardian Rupert Murdoch says he will consider removing news articles from Google's search index as a way to encourage people to pay for content online. Google, Microsoft and Ask.com "simply just pick up everything and run with it." Murdoch says. "We say they steal our stories." Time Warner Seen as Potential Buyer of MGM BusinessWeek The debt-hobbled MGM studio may be forced by its creditors to seek a buyer, sources say. Time Warner and News Corp. are among the potential candidates. Other potentially interested buyers could be former News Corp. president Peter Chernin and ex-Yahoo CEO Terry Semel. Time Warner CEO: Free Media Not Viable Daily Beast Jeff Bewkes, CEO of Time Warner, says broadcast television's business model is "increasingly not viable." Without a carriage fee, "they may not survive." Also, Bewkes predicts widespread paid content for news Web sites within two years. "Free content" doesn't work, he says. News Corp, CBS Seek Dual Revenue Stream Broadcasting & Cable News Corp. and CBS are staking their claim to additional retransmission dollars to help bolster the financial profiles of their broadcast networks. Media owners are looking for new revenue streams to help broadcast divisions more closely resemble their cable businesses. News Corp Launches Free Channel in Italy Reuters News Corp. will launch a free digital terrestrial television channel in Italy in a move that heats up competition with Italy's Mediaset and state broadcaster RAI. The new Milan-based channel called Cielo, which means Sky, will start broadcasting on Dec. 1, reaching 12 million families. GE, Comcast Value NBC Universal at $30B Wall Street Journal General Electric and Comcast are said to have settled on how to value NBC Universal, clearing a key obstacle to giving Comcast control of GE's television and movie company. Both sides have agreed to value NBCU at about $30 billion. A deal announcement could come this week. U.S. Media Rules Expected to Stay Strict Reuters Struggling media companies want the U.S. government to help them survive tough times by easing ownership rules. But other pressing concerns on Capitol Hill and in the Obama administration are muffling enthusiasm. "Nobody cares or is willing to spend political capital over it." FCC Appoints Editor to Help Fix the Media Daily Finance Steven Waldman's new job is the U.S. Federal Communications Commission's designated deep thinker on the future of media. "My first assignment is to figure out what the problem is," he says. FCC policies "have huge implications for how media evolves." Media Chiefs 'Disappoint' at Quadrangle Wall Street Journal A big draw at this week's Quadrangle conference of media bigwigs may the back-to-back onstage interviews with GE head Jeff Immelt and Comcast boss Brian Roberts, who are in talks over NBC Universal. However, "those hoping for useful intel were disappointed." Murdoch Son Buys His Australian 'Xanadu' News.com.au Lachlan Murdoch is buying the French government's former consulate in Sydney, a six-bedroom estate with panoramic views, for $21 million, beating out bids by actors Russell Crowe and Nicole Kidman. The oldest son of Rupert Murdoch and his wife are expecting their third child. Americans Willing to Pay for (Some) Media Financial Times Americans are still willing to pay for cable television, broadband and movie tickets in spite of weak consumer spending, according to the first crop of third-quarter results from U.S. media companies. Print newspapers and magazines are "down in advertising terms." Redbox DVD Kiosks See Explosive Growth Los Angeles Times Redbox, operator of the $1-a-night DVD kiosks that are controversial among Hollywood studios, is reporting that revenue grew 90% in the third quarter and operating income nearly doubled. The company says it could "easily grow" its current 20,600 kiosks to nearly 60,000. Scripps to Buy Control of Travel Channel New York Times Scripps Networks is buying a controlling stake in the Travel Channel, in a deal valuing the network at $975 million. It will own 65% of a new joint venture controlling the channel, while current parent Cox Communications will own 35%. A News Corp. bid "pushed the price higher." News Corp: 2010 Will Be 'Year of Stability' MarketWatch News Corp. chief Rupert Murdoch says he sees "some encouraging trends" in most of his company's businesses, adding that he expects 2010 to be "a year of stability." Also, Murdoch says there will probably be "half a dozen" e-readers of some kind on the market shortly. Time Warner: Extend TV Everywhere to Print CNBC Time Warner CEO Jeff Bewkes says the company aims to expand the TV Everywhere initiative to the publishing industry. "As e-readers and other mobile technologies become more popular, consumers will want magazine content on a range of devices. It's an exciting opportunity." Media Deals: Why They Fail? 'No Magic' BusinessWeek At a panel discussion at Thomson Reuters in New York to promote the new book "The Curse of the Mogul," co-author Jonathan Knee says media execs have tried to merge their way to excellence by "convincing the world there is something special and magical about media." Zelnick Hosts 'New Media' Biz Dinners Reuters Strauss Zelnick, chairman of video-game publisher Take-Two and co-founder of private equity firm ZelnickMedia, is hosting "New Media Dinners" at his Manhattan home, with the aim of assembling the best media-focused minds to talk about the future of the business. Time Warner Profits Hit by Publishing Dow Jones Time Warner is reporting third-quarter earnings fell 38% on particular weakness in publishing. Still, the media giant topped analysts' expectations. The publishing group saw a 40% decline in earnings. The segment has long been the topic of rumors about its future. Media Bigs Set for Quadrangle Conference AllThingsD Google CEO Eric Schmidt, Twitter co-founder Biz Stone and News Corp. scion James Murdoch are among the media bigs scheduled to appear this week at the Foursquare conference, hosted by the Quadrangle private-equity fund. The invitation-only affair is off the record. Big Media Break-Ups 'Clearly the Trend' Time Big media need to "get more focused," says Jonathan Knee, an investment banker with Evercore Partners and co-author of "The Curse of the Mogul." "That's generally the direction that they're going. Viacom and CBS split up. Time Warner will spin off AOL. This is clearly the trend." Viacom Goes Online to Boost DVD Sales BusinessWeek Paramount Pictures has found a new way to generate more revenues from its films and the DVD market. The Viacom studio has made an inexpensive film called "Circle of Eight" and is premiering on MySpace. The idea is to create buzz, then rent or sell the film through Blockbuster. Clear Channel Pres Mays Stepping Down Bloomberg Randall Mays, president and CFO of Clear Channel Communications, plans to step down from his role at the radio broadcaster. CEO Mark Mays will assume the title of president. New owners Bain Capital and Thomas H. Lee "have assumed a more direct role in the operations." Media Stocks Rise on Wall St Ad Optimism Hollywood Reporter Wall Street is becoming more optimistic about the advertising outlook for media companies, and industry stocks are continuing to run up as a result. Analysts see "positive momentum" in television advertising. "We continue to see the most upside in Disney and Viacom." Murdoch Wins in Ad Spat with Berlusconi BBC Silvio Berlusconi's Italian broadcaster Mediaset is being anti-competitive against Rupert Murdoch's News Corp., a Milan court says. A judge has ruled the Italian prime minister's media arm was preventing News Corp.'s Sky Italia from buying ads on its television networks. Media Companies 'Must Use' Twitter, Facebook Multichannel News Media companies must know how to navigate outlets like Facebook and Twitter as social media becomes more prevalent among consumers, according to a panel of execs speaking at a cable-TV industry panel. Social media is "beginning to replace other forms of communication." Time Warner Strips AOL of Luxe in Spinoff New York Post Time Warner is retaining the corporate jets when the struggling Internet service is spun off from the media giant, according to an amended Securities and Exchange Commission filing. Time Warner also plans to retain a number of patents and domain names licensed to AOL. Media Execs: Era of Free Is About to End Broadcasting & Cable From pay walls to authentication, many leading U.S. media execs say they are accelerating their plans to charge for what once was free. News Corp. No 2 exec Chase Carey argues that the free model is a "very difficult way to capture the value" of content. Time Warner Cable: No Big Acquisitions Multichannel News Pali Research media analyst Richard Greenfield is raising his rating on Time Warner Cable, observing that investors are beginning to move money from Comcast for one simple reason: TWC isn't trying to make a big acquisition. It's "telling investors exactly what they want to hear." Viacom Loses $90M from MTV's 'Rock Band' The Kartel Viacom has been vocal in touting the sales of the MTV "Beatles: Rock Band" game. However, Credit Suisse projects that the series is still currently unprofitable, having lost more than $90 million. On the upside, Credit Suisse predicts that the franchise will start to show a profit in 2010. Media Eatery Tweets Arrivals of Bigwigs New York Post Michael's, the Manhattan restaurant known for its media-heavy lunchtime crowd, is using Twitter to alert the world of notables as they arrive. One recent tweet read: "In the house: Norm Pearlstine," followed by alerts of Tom Brokaw, Mark Burnett, Liz Smith and others. Murdoch's Former No. 2 Stirs Media Talk Los Angeles Times Peter Chernin, who stepped down as president of News Corp. this summer, is serving as a key advisor on Comcast's negotiations to take control of NBC Universal. His activities are prompting speculation that he may be asked to serve in "some uber-capacity" at NBCU. Comcast in Due Diligence with NBC Universal The Wrap A possible deal in which Comcast would acquire a 51% stake in NBC Universal is moving toward a likely conclusion as company honchos gather at 30 Rockefeller Plaza to scrutinize balance sheets and perform due diligence. A final deal is said to remain weeks away. Vivendi Deal Lands Bronfman in Hot Water New York Post French authorities are ordering Jean-Marie Messier, Edgar Bronfman Jr. and five others to face a criminal trial over alleged stock rigging and insider trading stemming from their 2000 merger of Seagram and Vivendi to create the media giant formerly known as Vivendi Universal. News Corp Eyeing Sale of Digital Properties VentureBeat News Corp. is in the midst of culling its various digital assets and evaluating whether to sell them, says company digital chief Jonathan Miller. Photobucket is one property said to be for sale. Miller adds that News Corp.'s stalled MySpace could "take a lesson" from Twitter. FCC May Redefine Media Merger Measures Los Angeles Times The U.S. Federal Communications Commission is unveiling the topics it plans to discuss as the agency mulls revising the media-ownership rules. One area the FCC may probe is whether it should find an "alternative structure" to determine ownership limits in a single market. Disney 'Keychest' to Serve Multiple Devices Wall Street Journal Disney is close to unveiling technology, code-named Keychest, which will allow consumers to pay a single price for permanent access to a movie or television show across multiple platforms and devices -- from the Web, to mobile gadgets and cable services. Murdoch Ahead in Race for Travel Channel Financial Times News Corp. is said to be in the lead in the $800 million-plus auction for the Travel Channel. Owner Cox Communications could make a decision within two weeks. Other bidders include Scripps Networks and a consortium led by Providence Equity Partners. Viacom to Shell Out $60M for 'Ninja Turtles' Los Angeles Times Viacom's Nickelodeon is paying $60 million for the rights to "Teenage Mutant Ninja Turtles," the hit children's shows of the 1980s, in an effort to stem a decline in boys tuning in to its shows. Sibling studio Paramount Pictures will release a new feature based on the series. Disney CEO Iger Predicts 'Profound Changes' Contactmusic Disney chief Bob Iger warns that those running the movie business will have to make profound changes "or you will no longer have a business." Declines in DVD sales and new entertainment options are changing the industry "right before our eyes in profound ways." Viacom CEO Dauman: We Can Live with Piracy Bloomberg U.S. industry-led efforts can reduce piracy to "a level we can live with," says Viacom CEO Philippe Dauman. Still, he admits, for every authorized online showing of "South Park," the animated series on Viacom's Comedy Central, there are ten times as many unauthorized viewings. NBC's Graboff Says TV Windows Collapsing Reuters Traditional television viewing patterns are collapsing and the industry needs to quickly figure out how to profit in a world where people can watch TV shows anytime, anywhere, says NBC Universal TV chief Marc Graboff. "The audience is so fragmented at the expense of TV shows." Comcast to Debut Cable TV Shows Online Associated Press Comcast will become the first cable television operator to unlock online access to cable shows and movies. Subscribers can initially watch programs only on their home computers after verification. Time Warner Cable and other cable providers plan to follow with similar programs. Media Stocks Pushed Higher from Upgrades CNBC Wall Street analysts are upgrading media giants, boosting the stocks of Time Warner, Disney, Viacom and CBS. A resurgence in auto advertising and a strong political spending year are expected to bolster results. Also, media will benefit from the "consolidation trend." Time Warner CEO Bewkes Quiets the Critics Crain's New York Jeff Bewkes, nearly two years after being named CEO of Time Warner, is getting a thumbs-up from Wall Street, following the spin-off of Time Warner Cable and the resolution of the future of the floundering AOL. Bewkes "thinks about business in classic economic terms," analysts say. Ex-News Corp Execs Advise Comcast on NBC Los Angeles Times Peter Chernin and Peter Liguori, two former high-ranking execs with News Corp., are said to be advising Comcast in its talks with NBC Universal. People close to Chernin says he has no interest in running the media company should Comcast acquire a controlling stake in NBCU. Murdoch to Move from Dependency on Ads The Age Rupert Murdoch says that the business models for both broadcasting and newspapers are changing, requiring new fees for the company's Web sites and retransmission fees for it broadcast operations. News Corp. is "creating an economic template for the future." Liberty Media Chief Sees Media Upheaval Dow Jones John Malone, chairman of Liberty Media, says he expects "massive restructuring and consolidation in old media," but that change is unlikely to include his company acquiring NBC Universal. Malone says he will watch to see what happens as Comcast seeks a stake in NBCU. GE Preps for Possible Shake-Up at NBCU Los Angeles Times NBC Universal is "a great franchise; a solid performer," says General Electric chief Jeff Immelt. But he signals that a change may be forthcoming. "We plan to operate NBCU over the long-term or partner if that accelerates the growth of the franchise." Vivendi, GE $500M Apart on NBCU Value Wall Street Journal General Electric and Vivendi are said to be about $500 million apart in talks over what Vivendi should be paid for its minority stake in in NBC Universal. Both News Corp. and Liberty Media have mulled their own rival bids for NBCU but have not entered any talks. Turner Lost Fortune, Feels 'Like a Dummy' Bloomberg Ted Turner, founder of CNN, says he doesn't have enough money to re-enter the media business. Turner lost $7 billion when Time Warner's stock collapsed after the 2001 merger with AOL. "If I had the money, I'd think seriously about getting control of Time Warner." Martha Clarifies Kmart Comment After Jab Reuters Martha Stewart is issuing a statement expressing her appreciation for retail partner Kmart, one month after saying the quality of her merchandise "deteriorated" at their stores. Stewart's relationship with Kmart is ending as she starts a new one with Home Depot. Paul Allen to Maintain Control of Charter New York Post Microsoft co-founder Paul Allen has won a ruling that lets him keep control of cable company Charter Communications as part the company's reorganization plan. Allen argued to a bankruptcy judge that the restructuring did not amount to a change in control. Ted Turner: I Want to Return to Time Warner Hollywood Reporter Ted Turner, a former vice chairman, says he would like to return to Time Warner. "I'd like to see me running Time Warner." Turner would like to make changes at CNN, the news network he founded 29 years ago. CNN needs "less fluffy news and more international news." Redbox May Expand Into Games, Downloads Chicago Tribune Redbox, the DVD kiosk chain, is making Hollywood nervous with its $1-a-night movie rentals. Now, Redbox is exploring offering video-game rentals and downloadable videos. Consumers "really want films in lots of different ways," says Redbox president Mitch Lowe. Murdoch: A 'Frantic Emperor' in Twitter Age ABC Rupert Murdoch's plan to charge for online content is a move by "frantic emperor" whose power is gone, says Mark Scott, head of the Australian Broadcasting Corporation. Today's audiences, empowered by the likes of Twitter, have the upper hand. "We need to team up with them." News Corp Web Site Invites Google to 'Steal' Newsweek Rupert Murdoch's outrage at Google for "stealing" his content is phony, writes Weston Kosova. Murdoch's FoxNews.com site includes coding that explicitly allows Google to pick up its news stories. Murdoch appears to be upset because he no longer has "total control." Sumner Redstone's Financial Picture Brightens Los Angeles Times Big gains in the value of Sumner Redstone's shares in Viacom and CBS have given the billionaire some badly needed leverage with his lenders. In the last seven months, shares of Viacom have more than doubled in value, while the price of CBS stock has tripled. Time Warner CEO Stands by Magazine Division Crain's New York Time Warner CEO Jeff Bewkes is reiterating his support for his company's magazines. "If we can't take leading titles and make them more relevant, then shame on us." He adds that Time Warner has no interest in NBC Universal, which is "a very complicated company." Vivendi to 'Play Hardball' on NBCU Valuation New York Post Whether Vivendi goes along with a proposed deal for Comcast to buy most of NBC Universal from General Electric will hinge on whether the French company gets as much as it thinks it should for its minority stake, sources say. Vivendi's board meets today to discuss the deal. Weinstein Sells Stake in Online Social Network Los Angeles Times The Weinstein Co., which is shedding staff in the wake of a restructuring, is also selling its majority stake in aSmallWorld.net -- a social network described as "for the rich" -- to Swiss mogul Patrick Liotard-Vogt. The Weinstein Co. will retain a small piece of the firm. Comcast-NBC Universal Seen as Done Deal The Wrap The Comcast deal to buy 51% of NBC Universal is said to be done in principle, but it will be several more weeks before anything official is announced. "They've all agreed to agree." Talk of a possible bid for NBCU by News Corp. or Liberty Media is seen as "speculation." GE Could Exit Ownership of NBC Universal Associated Press A proposed deal to acquire NBC Universal would give owner General Electric the ability to unwind its stake over several years, and could see Comcast commit billions more to the joint venture. A deal is being discussed in which Comcast would gain majority control of NBCU. Big Media Could Benefit from Break-Ups Dow Jones Media companies should pursue break-ups, where they have had more success, rather than more acquisitions, given the industry's poor track record, analysts say. The "synergies seem elusive" in Comcast's potential deal for NBC Universal. Comcast "does not need content." Disney Welcomes Openly Gay Studio Chief Los Angeles Times Rich Ross, the newly appointed head of Walt Disney Studios, is Hollywood's first openly gay studio chief. The news about Ross, who previously ran the Disney Channel, is seen as a revelation among film execs. Disney "hasn't exactly been playing up that Ross is gay." Viacom: Smoking Gun in YouTube Lawsuit? CNET Lawyers working on a $1 billion copyright lawsuit filed by Viacom against Google's YouTube may have uncovered evidence that employees of the video site were among those who uploaded unauthorized content. YouTube managers "chose not to remove the material." CanWest to Sell Assets in Bankruptcy Filing Globe and Mail CanWest Global Communications' television and newspaper assets will likely be sold separately as Canada's biggest media company moves to satisfy its lenders. Buried under billions in debt, CanWest is filing for bankruptcy protection, saying it is now insolvent. Time Warner 'Eroded' Since Icahn Campaign 24/7 Wall St Lazard Frere's break-up analysis of Time Warner in January 2005 for shareholder Carl Icahn valued the company at $129 billion to $145 billion. Today, Time Warner is "probably worth" about $46 billion. Its market cap is said to have been "sharply eroded" by AOL and Time Inc. Disney Names TV Exec Ross to Run Studios Los Angeles Times Rich Ross, the television exec who helped revive the Disney Channel with "Hannah Montana" and "High School Musical," is being named to run Walt Disney Studios. The studio's chairman, Dick Cook, was ousted last month. Ross is "adept at turning entertainment into brands." Universal Chiefs Axed Over Box Office Flops Financial Times Universal Pictures, the Hollywood studio arm of NBC Universal, is firing co-chairman Marc Shmuger and David Linde after a string of flops, such as "Bruno" and "Land of the Lost." The shakeup comes amid uncertainty in "today's ever-changing media environment." Media Takeovers to Reconfigure Industry New York Post Comcast's talks to combine with NBC Universal marks the beginning of what industry observers believe will be a massive reconfiguration of the media landscape. Two years from now many media companies "will have vanished." Viacom and CBS "could be takeover targets." Hearst Heir Named to Board of Directors Albany Times Union George Hearst, great grandson of William Randolph Hearst, is joining Hearst's board of directors. He also serves as publisher of Hearst's Albany Times Union. Other new board members include execs overseeing Hearst newspapers, entertainment and business media. WPP: Media Poised to Consolidate, Decline Telegraph Traditional media is set for "massive" consolidation, because it "cannot survive in its current structure," says WPP chief Martin Sorrell. Many media businesses will continue to decline in value, he adds. "Long term it's about new media, new markets and consumer insight." U.S. Media Revenue Set for Historic Drop Advertising Age The top 100 U.S. media companies eked out 0.8% revenue growth in 2008, and the reported revenue for top media firms in the first half of this year fell 4.3% from a year ago. Digital media is "a mixed bag," with revenue flagging at Microsoft while surging 23.2% at Google. Google: Searching for Trouble with Big Media New Yorker In an excerpt from "Googled," the new book by Ken Auletta, CEO Eric Schmidt says Google could become the first media company to generate $100 billion in revenues, more than twice as much as the world's biggest media companies: Time Warner, Disney and News Corp. China Plans to Create Its Own Media Giants New York Times China plans to spend billions of dollars to develop media companies it hopes can compete with the likes of News Corp. and Time Warner. In the process, the world's most populous nation will allow foreign companies to invest in media, though largely through state-owned outfits. Bertelsmann Faces Problems as Mogul Dies AFP Reinhard Mohn, who built Germany's Bertelsmann into a global media giant, died Saturday after a long illness. He was 88. The company he leaves behind faces serious problems, hammered by falling advertising revenue. Its assets include Random House and Gruner + Jahr. Time Warner: No to NBCU, Yes to Time Inc Bloomberg Jeff Bewkes, CEO of Time Warner, says he isn't interested in making a bid for NBC Universal. A low percentage of larger media mergers and acquisitions "have delivered what they said they would." Separately, Bewkes insists the Time Inc. magazine unit is "not for sale." Disney to Slash Miramax Films Staff by 50 Los Angeles Times Disney, looking to rein in costs at its Hollywood studio, is eliminating 50 out of 70 jobs at Miramax Films and cutting in half the number of films the specialty label releases to just three a year. Disney is the latest big media company to scale back its art-house film business. Media Deal-Making Showing Signs of Life Mediaweek Media deal-making activity is starting to pick up, according to investment bank Jordan, Edmiston Group. Apparently, there are bargains to be found in print media: "Anything in print, you could probably buy any number of titles with the cash you have in your wallet right now." Bloomberg Tops Forbes' Media Wealth List Hollywood Reporter Michael Bloomberg is the richest American in the media business, according to the new Forbes list of wealthiest Americans. Bloomberg is followed by Anne Cox Chambers, John Kluge, Philip Anschutz and Rupert Murdoch. Further down the list: Oprah Winfrey, Barry Diller. Murdoch Going to Battle Against the Web Vanity Fair Rupert Murdoch is bent on making readers pay for online newspaper journalism, writes Michael Wolff. But almost all Internet experts think that charging for general-interest news online is "rubbish ... bonkers ... a crock ... a form of madness," in the words of the Guardian's Emily Bell. News Corp Wants Redbox Lawsuit Tossed Bloomberg News Corp.'s 20th Century Fox Home Entertainment unit is asking a judge to throw out an antitrust lawsuit by the Redbox $1 DVD rental kiosk outfit over a distribution deal for new movies. The suit is an attempt to "pressure Fox into selling DVDs to Redbox on Redbox's terms." GE, Comcast Talk NBC Universal Stake Sale Bloomberg Comcast, the largest U.S. cable operator, is said to be in talks with General Electric to buy about 50% of NBC Universal. Negotiations are believed to be ongoing and no agreement is certain. A deal would depend in part on Vivendi making a decision to sell its 20% holding. Comcast 'Looking for Content' Amid Job Cuts Inquirer / Variety Comcast is denying a report by The Wrap that it has reached a deal to acquire NBC Universal for $35 billion. However, Comcast senior VP D'Arcy Rudnay admits: "We are looking for content." Also: Comcast is cutting 39 positions in its entertainment group, which includes E! News Corp Expands Digital Media Operation Hollywood Reporter News Corp. chief digital officer Jon Miller is naming key execs for his group, which will now be known as News Corp. Digital Media, rather than Fox Interactive Media. The group, which houses MySpace, will become a "central bridge" to other News Corp. entities. Hollywood Warming to Internet as DVDs Fade Reuters Hollywood studios are becoming more receptive to joining forces with YouTube or setting up their own Internet portals, analysts say. Encouraging a migration online could sap higher-margin DVD revenue, but the transition is "inevitable" as more viewers move online. Media Stocks Rallying Despite Lack of Ads CNNMoney Shares of traditional media companies -- CBS, Gannett, New York Times -- are surging. "Some of the financial worries have been put aside," observers say. Still, "it's premature to say game's on." Sooner or later, big media must "prove that revenue is going to start growing again." Murdoch Aims to Change British Government Politics.co.uk The Sun, Britain's top-selling daily newspaper, is delivering a blow to Gordon Brown's effort to be reelected prime minister, declaring it is abandoning its support for the Labour party after 12 years. Owner Rupert Murdoch is said to be unhappy about the new Digital Britain strategy. Time Warner: AOL's Value Keeps Dropping AllThingsD When Time Warner spins off AOL near the end of the year, the Internet company will be worth about $4.2 billion, according to JP Morgan analyst Imran Khan. Google, which once held a stake in AOL, valued the company at some $20 billion just four years ago. Media Experts: Business Models Will Change USC News Media pros Peter Chernin and Gordon Crawford say that big media companies can no longer protect their "nonconsumer-friendly business models," thanks to new technologies. "The money hasn't gone away, it's just been reallocated. The business models are going to change." Barry Diller: People Will Pay for Online Content CBS News "Of course people will pay for content!" declares Daily Beast funder Barry Diller, appearing with founder Tina Brown on @KatieCouric. Diller adds: The Internet was started by tech people who "couldn't care less" about copyrights. The "Internet is free" concept is "mythology." Disney to Launch Pay Web Site for Storybooks New York Times Disney plans to introduce a subscription-based Web site, Disney Digital Books, aimed at children ages 3 to 12. For $79.95 a year, families can access electronic replicas of hundreds of Disney storybooks. Disney describes the venture as an "industry-defining moment." Time Warner Shares Climb on Magazine Talk WWD Time Warner shares rose 2.62% to $29.37 on Monday, following speculation the company might eventually sell off the Time Inc. magazine unit. Says CEO Jeff Bewkes: "Time Warner may well include publishing, but we're not making a religious statement about it." Viacom Launches African-American Channel Multichannel News Viacom's MTV Networks and BET are quietly soft-launching Centric, a new basic-cable network aimed at African-American adults. BET is rebranding its nearly 32 million subscriber BET J network under the Centric moniker, which will air music and lifestyle programming. Disney Triumphs in Battle for Pooh Rights Los Angeles Times A federal judge is ruling in favor of Disney by granting the company's motion to end an 18-year legal feud with the family of onetime Winnie the Pooh rights holder Stephen Slesinger. Disney is now "free to exploit Pooh," the media giant's most profitable character. Media Outlook for 2010: Not a Cakewalk Mediaweek Media companies ravaged by the recession might still be able to salvage their businesses, according to a special report in Mediaweek. "That's not to suggest that it'll be a cake walk." Print media must expand into new businesses "if they want to stay out of the morgue." Ad Execs Uncertain About Media's Future Financial Times Execs attending last week's Advertising Week in New York say few advertisers are willing to loosen purse strings until marketers see strong signs of a consumer spending rebound. Meanwhile, media chiefs such as Rupert Murdoch are insisting that the worst is over. News Corp Ex: Big Media Mergers Coming BusinessWeek Peter Chernin, the former president of News Corp., says he expects to see "great consolidation," as weaker media companies decide to sell rather than lose more market share. "The ones that will get destroyed first are the under-performers and these will be large companies." Time Warner May Sell Off Magazine Unit BusinessWeek Time Warner will eventually sell the Time Inc. magazine unit and may buy more assets for its core entertainment holdings, says Gordon Crawford, the company's largest shareholder. "They're going to sell their print division" and then "they'll probably be buying stuff." Disney: We Have No Room for Mediocrity New York Post Disney is "starting to show some cracks." The sour economy and a shift in viewing habits is pressuring Disney's movie and television businesses. "Audience choice is increasing," says CFO Tom Skaggs, "which makes one pay a bigger penalty for mediocre product." Media's Woes Blamed on Industry Moguls Atlantic Moguls, not the Internet, are to blame for the lousy performance of big media companies, argues the new book "The Curse of the Mogul." Rupert Murdoch, Sumner Redstone and the like are pursuing strategies -- convergence, globalization -- that are inherently "flawed." Google: We'll Be First $100B Media Company Amazon Google is poised to become the world's first $100 billion media company, says CEO Eric Schmidt, according to the new book, "Googled," by Ken Auletta. Google will generate more advertising revenues this year than the combined prime-time ad revenues of CBS, NBC, ABC and Fox. Murdoch Buys Family Friendly Game Site Gamasutra News Corp.'s IGN unit is acquiring What They Play, an independent content Web site aimed at parents looking for information on family friendly video games. The site, founded in 2007, is the creation of former Ziff Davis employees John Davison and Ira Becker. Diller Scheduled for CBS' @katiecouric Show Mediaite Barry Diller and Tina Brown, the funder and founder of the Daily Beast online publication, are scheduled be the next guests on CBS news anchor Katie Couric's new weekly Web show "@katiecouric." Separately, Couric is getting her own column in Conde Nast's Glamour magazine. Chernin Says Cable TV Faces Digital Threat BNET Cable networks are destined for the same "digital destruction" as broadcast television, newspapers and other media, says former News Corp. chief Peter Chernin. Whether cable can survive in a streaming on-demand video world is the "biggest question facing the media industry." MGM Said to Face Threat of Liquidation New York Post Debt holders and equity owners are said to be threatening to force film studio Metro-Goldwyn-Mayer into bankruptcy to gain leverage and extract better terms from each other. But some say the threat is a bluff because it could hurt lucrative franchises like James Bond. Big Media Research Coalition Wants Nielsen ClickZ The big-media consortium seeking to fund alternative audience research methods is inviting Nielsen -- which it would appear to want to replace -- to become involved with the new group. Nielsen's official position is that it is waiting to learn more about the consortium. Sony to Release New Song by Michael Jackson Billboard The first new Michael Jackson song to emerge since the pop icon died in June is to be released Oct. 12 from Sony Music. The single, "This Is It," ties in with Sony Pictures' forthcoming film, "This Is It," which chronicles Jackson's final days rehearsing for his comeback concerts. Media M&A Activity Expected to Pick Up Adweek Select parts of the media biz remain attractive M&A targets, according to private equity and venture capital execs speaking at an Advertising Week panel. Some say media companies need to continue to shrink and cut costs. Also, social media will become "a must-have." U.S. Media Rules Complicate Restructurings Wall Street Journal Lenders are hitting roadblocks over U.S. media-ownership rules as distressed firms restructure debt by offering equity stakes. J.P. Morgan could end up a shareholder of Tribune. It has already taken over Journal Register and could take over Freedom Communications. Traditional Media Aren't Dying, Execs Say Adweek Magazine, newspaper and radio execs speaking at an Advertising Week panel insist that reports of their industries' demise are greatly exaggerated. Print media will benefit from e-readers, they say. However, the newspaper biz is unlikely to "ever come back the way it was." Media Industry Gloom Predicted to Continue Financial Times Brutal times for the media will continue, predicts Martin Sorrell, CEO of global advertising giant WPP. Media execs are saying they see signs of recovery in an effort to talk up ad demand, he says. More broadcasters, newspapers and magazines "will force mergers," or go bankrupt. Weinsteins Eye Layoffs, Closing Book Unit New York Post The Weinstein Co. plans to lay off about 36 employees at its film studio, possibly starting next week, in a bid to bring its payroll in line with its number of releases. The company also may shutter Rob Weisbach's long-suffering books division. The books unit "should have died years ago." Vivendi Board May Decide on NBC Stake Sale Bloomberg Vivendi may decide at an Oct. 14 board meeting to sell its stake in NBC Universal, sources say. The French media giant may choose to sell the 20% stake because the unit isn't performing as well as the company's majority-owned operations. General Electric owns 80% of NBC. Disney Shakeup May Sink 'Pirates' Franchise UPI Johnny Depp says he may not star in a fourth "Pirates of the Caribbean" film, now that Dick Cook is no longer boss at Disney's film studio. Depp agreed to play the lead pirate in the film franchise at Cook's behest and is now reconsidering. Cook "abruptly" left Disney on Friday. Comcast to Unveil Remote DVR Programming Bloomberg Comcast plans to introduce a feature that will allow customers to use a telephone or computer to program their digital video recorders remotely, broadening its services to appeal to more consumers. The option is similar to a service already offered by DirecTV. FCC to Propose 'Network Neutrality' Rules Bloomberg Julius Genachowski, chairman of the Federal Communications Commission, will propose rules Sept. 21 requiring Internet companies to treat content providers equally. The proposal could spark protests from AT&T, Verizon and Comcast, which say rules could stem growth. Big Media's Piracy Pleas Heard in Europe IHT Media company lobbyists in Europe are hard at work seeking legislative relief from the double whammy of digital piracy and the economic downturn. Regulators in Britain and France are making aggressive moves toward plans to cut off the Internet connections of copyright cheats. FCC Chairman to Blog for Huffington Post Beet.TV The Hufffington Post is launching a technology section Monday edited by Jose Antonio Vargas, a former Washington Post reporter. Among the bloggers for the new vertical: FCC chairman Julius Genachowski, Facebook co-founder Chris Hughes and Wikipedia founder Jimmy Wales. Disney Clash at the Top: Studio Chief Out Los Angeles Times Dick Cook, the longtime head of Walt Disney Studios, is abruptly leaving the company after 38 years. The unexpected news reveals a rift between Cook and Disney CEO Bob Iger. The two execs are said to have had conflicting views about the future of the movie biz. Liberty Looms in Vivendi's NBCU Move New York Post The possibility that Vivendi could unload its 20% stake in NBC Universal has sparked talk that Comcast or Time Warner would enter the fray. The situation also could be tailor-made for John Malone's Liberty Media, observers say. "He'd only do it if he can get a position with claws." Time Warner Ex-CEO May Advise Sale of MGM New York Post Former Time Warner CEO Dick Parsons, who is joining Providence Equity Partners, may advise the private equity firm on its investment in Metro-Goldwyn-Mayer. "Parsons could end up being the bridge to an eventual deal between MGM and Time Warner," says one source. Charter Deal Doubts Put Control in Question New York Post Microsoft co-founder Paul Allen may lose control of bankrupt Charter Communications after talks with senior lenders to restructure the cable company's debt load appear to have broken down. A bankruptcy court judge is expected to rule on the reorganization Sept. 30. Time Warner CEO: TV Ad Model Will 'Thrive' MarketWatch The early industry reaction to Time Warner's "TV Everywhere" initiative has been positive, says CEO Jeff Bewkes. "People love it." Television shows that are viewed online will be counted by Nielsen, he notes. "You don't have to build a new model. You've already got it." News Corp: Ailes Paid $2M More Than Murdoch BusinessWeek According to News Corp.'s recent proxy statement. Fox News Channel boss Roger Ailes collected almost $24 million last year in salary, bonuses and other benefits -- nearly $2 million more than chief Rupert Murdoch. Ailes has made Fox News a "money-generating machine." Murdoch Files Antitrust Suit Against Berlusconi Dow Jones Rupert Murdoch's Italian pay-television business Sky Italia is filing a lawsuit in Milan against units of Silvio Berlusconi's Mediaset. Sky Italia charges that Mediaset's refusal to allow it to buy advertising on its commercial TV networks violates European Commission antitrust rules. Rupe's Daughter Starts Digital Content Venture AllThingsD Shine Group CEO Elisabeth Murdoch and former Bebo and Google chief Joanna Shields are forming a digital content company aimed at fusing television production with social media. The yet-to-be named venture will pursue a strategy of investment, development and partnerships. Viacom Mulls Buy of Game Maker Harmonix Financial Times Sales of "The Beatles: Rock Band," from MTV Games and developer Harmonix, are exceeding expectations, says Viacom CEO Philippe Dauman. "It's been terrific." Dauman adds that Viacom would consider small investments to acquire assets such as Harmonix. Cox's Travel Channel Wins Private-Equity Bids Reuters Kohlberg Kravis Roberts & Co., Thomas H. Lee Partners, and Providence Equity are said to be submitting bids for Cox Enterprises' Travel Channel. The private equity firms are bidding separately for the channel in an auction expected to fetch up to $700 million. Disney, Time Warner Cut Back on Ad Spending Los Angeles Times TNS Media Intelligence is issuing the grim news that advertising spending plummeted 14.3% to $60.87 billion during the first six months of 2009. Among those cutting back was media itself: Disney, News Corp. and Time Warner all reined in ad spending in the first half of the year. Vivendi: IPO Possible for NBC Universal Stake Dow Jones Vivendi CEO Jean-Bernard Levy is leaving open the possibility that the company will exercise its option to unload its 20% stake in NBC Universal. If Vivendi exercises the option this year, he says, it may end up offering the shares in the public stock market. CBS, Sirius XM Risk Bankruptcy, Study Says Reuters U.S. media companies are among the industries that are about four times more likely to file for bankruptcy in the next year than firms in other sectors, according to a study by Audit Integrity. The study's bankruptcy risk list includes Sirius XM Radio, CBS and Liberty Media. Time Warner's Former CEO Returns to Media New York Times Richard Parsons, chairman of Citigroup and former CEO of Time Warner, plans to announce that he will become a senior adviser to Providence Equity Partners, the private-equity firm that owns MGM, Hulu and Univision. The move will put Parsons back into media deal-making. News Corp: Ad Markets Are 'Very Much Better' Dow Jones U.S. advertising markets are "very much better than they were four months ago," says News Corp.'s Rupert Murdoch, adding momentum to the improving sentiment on Wall Street. While ad spending is nowhere near where it was in 2007, he adds, results are "getting better." Murdoch Predicts Death of Print Newspapers Financial Times Electronic reading devices such as Amazon's Kindle and Sony's Reader one day will displace newsprint, predicts News Corp. chief Rupert Murdoch. It may take 20 years to come to pass, but "we're going to have no paper, no printing plants, no unions. It's going to be great." Liberty Eyes Time Warner Stake Swap for AOL Bloomberg Liberty Media, the cable company controlled by John Malone, is interested in AOL's dial-up Internet business, says CEO Greg Maffei. His comment follows previous remarks that Liberty would consider trading its $800 million stake in Time Warner for AOL or another asset. Blockbuster Doubles Planned Store Closures Los Angeles Times Blockbuster plans to more than double the number of stores it will close by the end of next year to between 810 and 960. Also, Blockbuster aims to expand its rental businesses to include Netflix-like mail rentals and retail kiosks that compete with Redbox. Traditional Media: Poised to Take Revenge? Forbes Many conventional media companies are well positioned to expand into digital and out-compete all but the best Internet companies, argues Brian Rich of Catalyst Investors. Most Web 2.0 companies have weak business models and are being kept alive by funding that is "drying up." Disney, Viacom Seen as Media Stock Winners RBR/TVBR Barclays Capital analyst Anthony DiClemente believes that a cyclical recovery for U.S. advertising is going to more than offset structural concerns about media companies in 2010 and 1011. Disney and Viacom lead his favorite media stocks; Time Warner is the weakest. Murdoch to Vie for Australian Pay-TV Network Bloomberg Media moguls Rupert Murdoch, James Packer and Kerry Stokes may vie for Foxtel, Australia's biggest pay-television network, after the government said Telstra may have to sell its 50% stake. Murdoch's News Corp. and Packer's Consolidated Media already own stakes in the Foxtel. Martha Stewart Joins Up with Home Depot Atlanta Journal-Constitution Home Depot is entering a deal with Martha Stewart, who will design a new line of products to be sold exclusively at its stores. Stewart's similar partnership with Kmart will expire in January. Her new deal with Home Depot could exceed $1 billion in revenues annually. Media Deal Buzz Mounts as Ad Market Improves Broadcasting & Cable With political money primed to kick start the advertising market, Wall Streeters are betting that media mergers and acquisitions will get started again. While NBC Universal is the sexiest subject among rumored targets, analysts say Scripps Networks "will be gone in six months." Cablevision Asset Spinoff May Lead to Sale Barron's Cablevision's plan to spin off Madison Square Garden and related assets will make the cable-television provider an attractive takeover target, analysts say, possibly either by Comcast or Time Warner Cable. Cablevision is "benefitting" from its acquisition of Newsday last year. BBC May Sell Part of Its Worldwide Division Guardian Britain's BBC is considering the part-privatization of BBC Worldwide, its commercial arm. News Corp. exec James Murdoch recently criticized the BBC in a public address, suggesting that the broadcaster's position made it impossible for rivals to make online news a viable business. Disney in Talks for Hindu Comics in India Times of London Disney, fresh from its $4 billion acquisition of Marvel Comics, is holding talks with Vimanika Comics, a startup in India that publishes novels based on Hindu mythology. The talks are believed to center on the possibility of bringing Vimanika's characters to television and film. Media Debt Sales May Open Door to Takeovers Bloomberg News Corp., Discovery and other media companies raised almost $4 billion in debt sales last month, a sign that thawing credit may open the door for acquisitions. "It'll start slowly," analysts say. Among the most attractive targets: cable networks and video-game creators. Time Warner: M&A Low on Our Priority List Multichannel News Time Warner is flush with cash, but the media giant won't turn to M&A activity to grow shareholder value, says CFO John Martin. The company's priorities are in maintaining its cash dividend and then repurchasing its stock. "We don't have the strategic need to do anything." CBS Unlikely to Make Major Media Acquisition Los Angeles Times CBS boss Les Moonves says he doesn't foresee "doing anything major in terms of an acquisition" when asked whether his company might look at Internet properties or other media deals. He adds that CBS will not sell off all its radio stations. "There is still value in radio." Disney to Unveil 'Lost' Mickey at D23 Expo Los Angeles Times A "lost" Mickey Mouse cartoon from the 1950s will be screened publicly for the first time at the D23 Expo in Anaheim, Calif., Disney's big new marketing event touting company products. Up to 40,000 people are expected at the expo, which charges an admission of $37 a day. Big Media Consortium Launches Nielsen Rival Reuters Time Warner, News Corp. and a dozen other top media companies are officially announcing plans to create a coalition to study new ways to measure television audiences. The long-rumored effort comes as broadcasters try to cope with major shifts in viewing habits. News Corp: Broadcast Business Must 'Evolve' Dow Jones Chase Carey, COO of News Corp., is adding fuel to the fire over questions about the future of the broadcast TV business, saying it "clearly needs to evolve from where it is today to a healthier business model." The industry needs to experiment with new models, he adds. Time Warner Reveals Possible Areas for M&A Broadcasting & Cable Time Warner CFO John Martin says the media giant has identified areas where it would be willing to invest, "like local TV and home production, games and networks where we could opportunistically expand." Cable, he adds, "is arguably the most attractive place to be." Comcast Mulls Making Content Acquisitions Dow Jones Comcast COO Stephen Burke says the cable giant is open to considering acquisitions in content as investors speculate the company may make a move on par with its attempt to acquire Disney in 2004. Comcast is particularly interested in cable-TV content, Burke says. Disney May Change Its Stance on Redbox Los Angeles Times Could Disney be changing its stance toward Redbox, whose $1 DVD rentals have roiled Hollywood? Pali Research analyst Richard Greenfield says Disney is seeking "a significantly different arrangement" for the November release of "Up." Deal terms will be "far less favorable." Time Warner to Move DC Comics Into Films Bloomberg Time Warner is placing DC Comics under its film division, a step that highlights the movie industry's growing reliance on comic-book characters such as Batman to generate hits. The move is expected to grow business in areas including television, video games and digital shorts. Murdoch Son is 'Desperately Out of Touch' Guardian BBC head Mark Thompson is issuing a strongly worded attack on James Murdoch, accusing the head of News Corp. in Europe and Asia of being "desperately out of touch." Thomson's staff email follows Murdoch's MacTaggart lecture calling for the BBC to be radically reduced in size. Media: How Can Even New Firms Keep Pace? Hollywood Reporter A panel discussion on digital media, moderated by Disney CEO Bob Iger, started as a debate about how to make money off the Internet. It evolved into a talk on how even new entrants like YouTube must work to remain relevant. MySpace forgot that companies "have to keep reinventing." Disney to Acquire Video Game Maker Wideload Dow Jones Disney is hiring video game creator Alexander Seropian, a co-creator of the "Halo" franchise, and agreeing to buy his firm, Wideload Games. The move comes as media giants contend with a slowdown in ad revenue; they see video games as a business with more growth potential. Time Warner, News Corp Settle 'Hobbit' Suit Barron's Time Warner says it has settled a lawsuit brought by the family of the late author J.R.R. Tolkien and the HarperCollins division of News Corp. over royalties from the "Lord of the Rings" films, clearing the way for the company's New Line unit to make movies based on "The Hobbit." GE Mulls Ownership Change for NBC Universal Broadcasting & Cable General Electric is paving the way for a possible change of the ownership structure at NBC Universal. A host of corporate names have been rumored as potential buyers should NBCU become available, including Time Warner, Comcast, Google and IAC/InterActiveCorp. Viacom-CBS Merger Marks 10th Anniversary Los Angeles Times Viacom and CBS announced their $36-billion merger 10 years ago this week. The union was troubled from the start, and the two companies split up about five years later. Today, the stock of the two companies combined is trading at roughly what Viacom was trading at before the split. Time Warner Unit Opposes Google Book Plan Bloomberg Time Warner's DC Comics and Microsoft are adding their objections to a deal reached by Google and U.S. publisher and author groups over a book-scanning project. "Access to millions of works will be consolidated into one company," DC Comics says in a court filing. Time Warner: Getting Ready for an Acquisition? BusinessWeek Time Warner is sitting on about $7 billion in cash, yet CEO Jeff Bewkes has made no deals in recent months. He denies that Disney's acquisition of Marvel will pressure him into making his own deal: "We still look at any potential acquisition for its strategic rationale." News Corp to Launch Internal Global News Wire Guardian News Corp. is launching a global internal service called NewsCore, which will operate like a wire service for all the company's TV, print and online news outlets. NewsCore, to be based in New York, will distribute text, video, audio and citizen journalism around the world in real time. Viacom's 'Beatles' Game to Take On Rappers New York Post With MTV's long-awaited "The Beatles: Rock Band" set to be released Wednesday, Activision, the company behind "Guitar Hero," is upping the ante with the Oct. 27 launch of "DJ Hero," a video game aimed at hip-hop fans, featuring exclusive songs by Jay-Z and Eminem. Cisco, Warner Partner in New-Media Venture Chicago Tribune Cisco is releasing a new Eos platform of software tools to help media companies to host their own social networking sites for artists, actors and movies. Cisco plans to take a cut of the media companies' advertising and e-commerce sales generated through the sites. U.S. Media Lose $10B Advertising in First Half Financial Times More than $10 billion in advertising disappeared from U.S. media markets in the first six months of this year, according to new data from Nielsen. Figures show a 15.4% year-on-year decline in ad revenues, the largest drop for any period since Nielsen began compiling such reports. Discovery Seeks to Become a Media Giant USA Today Discovery CEO David Zaslav. is grabbing attention with his initiatives to transform what was becoming an also-ran television service into a vigorous worldwide rival to media giants like Time Warner and Viacom. Discovery's shares have rocketed 55% to $21.68 so far this year. News Corp in Talks for Stake in Arab Media Wall Street Journal News Corp. is in talks with Saudi billionaire Prince Alwaleed bin Talal to take a stake in Rotana Media, marking its first major investment in the Middle East. A stake in Rotana could help expand News Corp.'s presence to more than 300 million people in the Arab world. Sony to Sell 3D TVs Worldwide by Late 2010 Financial Times 3D technology looks set to hit the home consumer market, with Sony announcing plans to sell 3D televisions globally by the end of 2010. "Today, 3D is clearly on its way to the mass market through technology, distribution and content," says Sony CEO Howard Stringer. U.S. Media Regulators Mull 'Tech Fair' for Kids Broadcasting & Cable The Federal Communications Commission is looking to organize a tech expo to help kids navigate social media platforms -- and help parents monitor where their kids are going online. News of the expo comes as the FCC begins to think about changes in kids' media habits. Disney-Marvel May Portend More Media M&A Dow Jones / CNBC Disney's deal to buy comic-book giant Marvel Entertainment raises the prospect of more media acquisitions in an industry struggling to find its footing amid an uncertain transition to digital. Also: Newser's Michael Wolff predicts Time Warner will buy NBC Universal. U.S. Regulators Eye 'Bad' Content in Media Bloomberg The U.S. government must do more to help shield children from "gratuitous sex and violence" in the media, says Sen. Jay Rockefeller, as the Federal Communications Commission releases a report describing ways to block content on television, mobile phones and the Internet. Disney to Acquire Comic-Book Giant Marvel Los Angeles Times Disney plans to buy comic-book powerhouse Marvel Entertainment for $4 billion, bringing such characters as Iron Man and Spider-Man into the family of Mickey Mouse and Hannah Montana. Disney will "add exposure to a young male demo it had sort of lost some balance with." Media Make Sacrifices in Hunt for New Model Financial Times "The media industry is in crisis," says the lead story in a week-long series of reports on "media's search for growth" in the Financial Times. "A decade struggling with Internet-enabled changes and a precipitous slide in advertising spending has humbled media owners." Murdoch Son Echoes Dad in MacTaggart Talk Sky News James Murdoch, giving the MacTaggart lecture at the Edinburgh Television Festival 20 years after his father, echoes Rupert Murdoch's current position: "It is essential for the future of independent digital journalism that a fair price be charged for news to people who value it." News Corp Pressing for TV-Newspaper Waiver RBR News Corp. execs are meeting with officials in the new regime at the U.S. Federal Communications Commission to try to move forward the long-delayed license renewal for WWOR-TV, Secaucus, N.J., which also requires renewal of the cross-ownership waiver for the New York Post. Sony Mulls Plan for $40 Movies via Internet BusinessWeek Sony is said to be approaching other film studios about showing their movies on television after they appear in movie theaters but before they can be seen on DVD or online. Owners of Sony's Internet-connected Bravia TV could pay $40 to watch a movie streamed to their set. Redbox Seen as Media's Public Enemy No. 1 CNNMoney Battle lines are being drawn as media companies try and figure out if Redbox -- the U.S. network of 18,000 kiosks offering $1-a-night DVD rentals -- is a friend or a foe. Redbox is likely to settle its various squabbles with film studios and partner with them, analysts say. Barry Diller Pursues Sponsored Web Content BusinessWeek Barry Diller, the former television exec and e-commerce impresario, is reinventing himself again as a digital media chieftain. As his firm IAC languishes, Diller is seeking to make money from sponsored Web news and TV. But one analyst says: "His media play is a bit of a long shot." Time Warner Magazine Mulls Pay Web Content I Want Media / min Rick Stengel, managing editor of Time magazine, says he believes that mainstream media will start to charge for online content by year-end. But will Time.com? In response, a Time spokeswoman tells I Want Media: "We're looking into a number of things." News Corp Promotes Former 'Bizarre' Editor Times of London News Corp.'s News International arm is naming Dominic Mohan as editor of the Sun, Britain's most popular newspaper. Mohan is a former editor of the tabloid's "Bizarre" showbiz column. He will replace Rebekah Brooks, who was recently named CEO of News International. Viacom Bets on Beatles for Video-Game Boost Bloomberg "The Beatles: Rock Band" video game, due out Sept. 9, will test whether Viacom can revive sales with the band's 1960s hits. "Rock Band" is the backbone of MTV Games, and the franchise needs a hit to reverse slumping sales. Analysts, however, say: "The genre has peaked." NBCU Hires Producer for Global Acquisitions Financial Times NBC Universal is hiring Denise O'Donoghue, a prominent U.K. independent television producer, to revive its international expansion plans. The company is encouraging O'Donoghue to pursue both organic growth and acquisitions. "It's a good time to look for acquisitions." Time Warner Cable, Partners to Test Web TV Wall Street Journal CBS and Viacom are among the seven media companies signed up by Time Warner Cable to test television shows on the Web for paying subscribers. In the test, viewers will be able to access TV shows on the Web after filling out an online form to prove they are cable subscribers. Media Predictions: Mobile, E-Readers to Rule Media Week UK What will the media world be like in five years' time? Experts predict that by 2014, prime-time television will no longer exist, e-readers will replace print newspapers, and social media will be "a part of everything." Plus, the Internet will be the glue "that holds all the media together." Viacom: Will an Ad Recovery Pass It By? AllThingsD Pali Capital analyst Richard Greenfield is revising his prediction for Viacom's 2010 U.S. advertising sales. He sees the sales drop increasing to 3%, as the owner of MTV and other cable channels watches viewers flee. "The risk to our estimates has increased." Viacom Studio to Give Redbox a Test Run Los Angeles Times As Hollywood studios line up for and against Redbox, Paramount Pictures is playing it down the middle. The Viacom studio is agreeing to make its movies available to the $1-a-night DVD rental firm through the end of the year and will then size up whether the rentals hurt sales. Murdoch Son to Deliver Digital Vision Independent In 1989, Rupert Murdoch delivered the MacTaggart Lecture at the Edinburgh Television Festival, where he foresaw the age of digital. His son, James, is scheduled to give the same lecture this Friday. James, a "digital native," is expected to expand on his father's vision. Disney Fest Seeks 'Digital World of Mouth' Los Angeles Times Disney next month will hold D23 Expo, a four-day event in Anaheim, Calif., that will celebrate -- and sell -- all things Disney, with celebrity appearances and sneak previews of upcoming films and ABC television shows. Disney hopes the event will generate a "digital world of mouth." Discovery: A Standout Stock in Media Biz Crain's New York Discovery Communications' recent results are making it a standout in the media sector, thanks in part to reality-show phenom "Jon & Kate Plus 8" on TLC. The company's share price is up 80% this year. Next up: The re-do of Discovery Health as OWN: The Oprah Winfrey Network. News Corp Shopping Dow Jones Indexes Wall Street Journal Dow Jones & Co. is hiring Goldman Sachs to seek buyers for the company's stock-market indexing business, which could result in the sale of the storied Dow Jones Industrial Average. The move shows that owner News Corp. is willing to shuffle its Dow Jones assets. News Corp Seeks Online News Consortium Los Angeles Times News Corp. is said to be meeting with major publishers including the New York Times, Washington Post, Hearst and Tribune about forming a consortium that would charge for news distributed online and on portable devices. News Corp. digital chief Jon Miller is overseeing the drive. Time Warner Expected to Drop Magazines Barron's Time Warner is likely to shed its magazine business after the spinoff of AOL, says analyst David Miller. Getting rid of the publishing arm, through an outright sale or equity carve out, would make Time Warner look like a "shinier Viacom," with a focus on cable networks and films. Murdoch's Take-Home Pay Declines 40% Dow Jones News Corp. CEO Rupert Murdoch received compensation valued at $18 million in the media giant's latest fiscal year, down 40% from $30.1 million the year before. Murdoch's biggest hit was in his bonus, which fell 69%. News Corp. lost $3.4 billion in its latest fiscal year. Disney Deaths Prompt Probe of Accidents Fox News A federal investigation is being launched into three fatal accidents that have occurred at the Disney World resort in Orlando, Fla., in the past several weeks. On Monday, a 30-year-old performer in an "Indiana Jones" show died after breaking his neck performing a stunt. Viacom's Nickelodeon to Build Theme Park Times-Picayune Viacom kid's network Nickelodeon, the home of SpongeBob Squarepants, plans to build a theme park at an abandoned Six Flags site in New Orleans, which was flooded out during Hurricane Katrina in 2005. The new Nickelodeon park will offer traditional amusement-park fare. Time Warner to Run Video Clips on YouTube Wall Street Journal Time Warner and Google are entering a deal to allow YouTube to host videos from the media giant's television shows and movies. Time Warner will share advertising revenue from its clips with YouTube. Time Warner rival Viacom sued Google in 2007 for "massive" copyright infringement. Redbox Sues Time Warner Over DVD Terms Reuters Redbox is suing Warner Home Video over new distribution terms that bar the $1 DVD kiosk service from renting out its movies until 28 days after public release. Some Hollywood studios are accusing Redbox of depressing DVD prices and depriving them of revenue-sharing options. Time Warner, Nielsen in Media-Gauge Pact Dow Jones Time Warner is entering a new, seven-year deal with Nielsen -- an achievement for the media measurement company, which could face fresh competition from a coalition that plans to create its own monitoring service. The agreement to create the coalition has yet to be finalized. Disney Seen as Ideal Buyer of Electronic Arts Barron's Disney ought to buy Electronic Arts, the global video-game giant, according to Janney Montgomery Scott analyst Tony Wible. Disney owns sports media juggernaut ESPN, and Electronic Arts is a huge player in sports video games. "It makes strategic and financial sense." Travel Channel Attracts Bids from Media Giants Bloomberg NBC Universal, News Corp. and Scripps Networks Interactive are said to be among the bidders for the Travel Channel. Owner Cox Communications said in June that it had received unsolicited inquiries about the channel. Time Warner may consider making a bid later. Cox Media Restructures for 'New Biz Model' Atlanta Business Cox Media is reorganizing, leaving behind its traditional grouping of businesses by medium. The new business model will continue to evolve over the next several months, Cox says. Cox's media properties will still operate independently. No job cuts are expected "right now." MGM Expected to Be Sold to Media Giant Los Angeles Times The ouster of Metro-Goldwyn-Mayer CEO Harry Sloan underscores the continued turmoil at the debt-ridden film studio. Most industry watchers believe that MGM won't survive much longer as an independent studio and is likely to be sold to a big media company such as Time Warner. Redbox Launches Web Site to Battle Studios Los Angeles Times The battle over $1 DVD rentals is heating up in the court of public opinion. Fast-growing DVD kiosk outlet Redbox is launching a Web site titled Save Low Cost DVDs. Movie studios "are trying to prevent Redbox customers from getting the latest DVDs at low prices," the site says. FCC (Finally) Launches a Blog, Twitter Feed USA Today The Federal Communications Commission is launching its first blog, aimed at chronicling the development of the agency's national broadband plan. The FCC is also launching a Twitter feed. Tweets will include news about the FCC, as well as progress reports on the national plan. Media Still Hunting for Digital Biz Model Wall Street Journal Digital technology, particularly the Internet, "is likely to leave a lasting impact" on traditional media, even as advertisers and consumers boost their spending again, writes Martin Peers. "It will take years for media to figure out exactly the right digital business model." Viacom, Gates Foundation Get 'Schooled' Daily Tell Viacom and the Bill and Linda Gates Foundation are teaming up for "Get Schooled," a 30-minute television special featuring Kelly Clarkson, LeBron James and other stars discussing the role that education has played in their success. The program will air on all 22 Viacom networks. Sony, Stung by Losses, Delays Thin TV Wall Street Journal Sony's next-generation television set, an ultrathin model hailed by execs as a symbol of the company's technological comeback, is being delayed until at least next year. Mass production of the new displays would have exacerbated losses at Sony's TV division. News Corp Cuts Jobs, Restructures in Asia Financial Times News Corp. is restructuring its Hong Kong-based Star television business, as head James Murdoch looks to cut costs and consolidate overlapping businesses. About 150 to 200 jobs are expected to go. News Corp. will establish an office in Hong Kong for the first time. Comcast to Bid for Viacom, Time Warner? Reuters Comcast has been hoarding cash to better manage its balance sheet. But investors worry that it could be preparing to make a big acquisition similar to its failed 2004 bid for Disney. Viacom and Time Warner could be targets, despite little evidence of such a move, analysts say. Ex-Disney Chief Creates Series for Viacom New York Times Michael Eisner, former CEO of Disney, has created an animated comedy series, "Glenn Martin, DDS," for Viacom's Nickelodeon, debuting Monday. The first television production from Eisner's Tornante firm was inspired by a dog owned by Disney CFO Tom Staggs. American Media Eye New Exports to China Wall Street Journal The World Trade Organization has ordered China to stop forcing U.S. media owners to deal with only state-run distribution companies. American media companies are hopeful that the move will open up the world's most-populous country to U.S. music, movies, books and video games. Media Giants Join Forces to Challenge Nielsen Financial Times Time Warner, News Corp., Viacom and other media giants are joining with marketers like Procter & Gamble to create a consortium to challenge Nielsen, the dominant force in TV audience measurement. The rise of online video and Hulu have made improving measurement more urgent. Time Warner Joins Rivals in Redbox Fight Wall Street Journal Time Warner's Warner Bros. studio plans to withhold new films from kiosk rental operators such as Redbox for 28 days after DVDs are released, joining News Corp. and NBC Universal in trying to delay access. Some studios believe Redbox is hurting DVD sales with its $1 rentals. News Corp Sued by Redbox Over DVD Access Los Angeles Times Redbox is continuing its battle with Hollywood studios, suing 20th Century Fox over its attempts to keep the vending machine operator from offering DVDs for $1 a night. The lawsuit accuses the News Corp. studio of using its power to "unlawfully coerce" Redbox distributors. NBCU Owner Attacks News Corp's Fox Report Associated Press NBC Universal parent General Electric called a Fox News Channel report about the company supplying terrorists with material used in bombs "irresponsible and maliciously false," as a feud between Fox's Bill O'Reilly and MSNBC's Keith Olbermann kept sizzling. Murdoch's Former No. 2 Hires Ex-PR Exec Hollywood Reporter Peter Chernin has hired Nicholas Weinstock away from Judd Apatow's production company for his new firm. The move reconnects Weinstock with the former News Corp. president, for whom he wrote speeches during an earlier stint as VP corporate communications at News Corp. Cablevision Hires Media Veteran for New Unit Newsday Cablevision has formed a business unit to oversee its local media holdings and hired Tad Smith, CEO of Reed Business Information, to run it. The company's new Local Media group will include Newsday "and other programming and interactive ventures." Hollywood Wins Ruling on DVD Copying Software Los Angeles Times A federal court has decided that RealDVD, the software that enables users to copy DVDs and store digital duplicates on a hard drive, violates U.S. copyright law -- a major victory for the film studios. Hollywood is working on its own programs to give consumers access to digital copies. Blockbuster to Launch DVD Kiosks Like Redbox USA Today Redbox is flooding Wal-Mart, 7-Eleven and other U.S. retail chains with vending machines that rent the latest DVDs of Hollywood blockbusters for just $1 a day, threatening Tinseltown. Now, rival Blockbuster plans to roll out its own kiosks, offering DVDs for 99 cents. Sony Acquires Jackson Video for $60M Bloomberg Sony has acquired the rights to footage of Michael Jackson's final concert rehearsals and plans to release a documentary in theaters worldwide on Oct. 30. Sony purchased the performance and behind-the-scenes film from the singer's estate and concert promoter AEG Live. Scripps Sees 'Slight Improvement' in Ads Cincinnati Business E.W. Scripps Co. bested Wall Street's earnings outlook to eke out a profit in its second quarter. "In the near term," says CEO Rich Boehnewe, "we are seeing some slight improvement in the flow of advertising in our markets, particularly at the television stations." Media Analysts Doubt CBS' Ad Optimism Reuters CBS's Les Moonves should be receiving thank-you notes from his fellow media CEOs. Moonves's comment that advertisers are "coming back very strongly" jolted many media stocks on Friday. But analysts caution that a recovery will likely be slow and "may never come" for some media. Media Bigwigs Admit TV Model is Broken Broadcasting & Cable Recently minted News Corp. COO Chase Carey is joining a growing group of industry bigs now openly admitting that the ad-supported broadcast model no longer functions for media conglomerates. "We need to build new distribution models in a digital world," Carey says. Diller's Digital Media Savvy Yet to Pay Off Los Angeles Times Barry Diller doesn't appear to have figured out how to squeeze riches from the digital media world, as the tepid results of his IAC/InterActiveCorp demonstrate. The media kingpin "doesn't seem to have divined how to exploit interactivity any better than anyone else." Liberty Media Hurt by Soft Sales at QVC Denver Business Weak sales at the QVC television shopping network drove Liberty Media revenue down slightly in the second quarter, despite growth in the company' Starz Entertainment movie channels and its Internet retailers. QVC's Internet sales, however, rose 10%. Viacom-Led Movie Channel in FiOS Deal Bloomberg Epix, the Viacom-led premium movie channel launching Oct. 1, will be available online for customers of Verizon's FiOS before its first broadcast. Verizon's fiber-optic television customers will get early online access to 160 movies. Epix will also carry music, sports and comedy. Murdoch Vows Web News Fees, Kindle Fight Australian News Corp., reporting a quarterly loss, plans to charge for online news across its many media outlets. "Quality journalism is not cheap," says chief Rupert Murdoch. He adds that he is irked by News Corp.'s revenue cut from Amazon's Kindle device. It will lead to "a break between us." Fox to Withhold DVD Releases From Redbox Bloomberg News Corp.'s 20th Century Fox has instructed DVD distributors to withhold new releases from Redbox vending-machine kiosks for 30 days. Fox imposed the restriction after talks with Redbox broke down, saying the $1 rental price is "grossly undervaluing” the product. Redbox Seen as Threat to the DVD Industry Barron's Retailers are starting to subsidize the cost of renting a DVD, making it less likely consumers will actually buy them, analysts say. The popular Redbox $1 DVD rental kiosks are entering deals with supermarkets and other retailers, "giving DVDs away for free with some groceries." News Corp Expected to See 30% Profit Hit The Age News Corp. is expected to report a 30% fall in full year operating profit. Rupert Murdoch's media conglom, which reports its fourth quarter and annual results Thursday, has seen its newspapers and television stations hammered by the advertising downturn. FCC: Broadband Is the New 'Highway' Wired Julius Genachowski, the new chairman of the U.S. Federal Communications Commission, is working to craft the nation's first broadband plan. "Broadband is our generation's infrastructure challenge," he says. "It is as important as electricity and highways were for past generations." FTC May Ease Laws to Help Save News TheWrap The U.S. government is preparing an inquiry into the endangered field of news and reporting. Federal Trade Commission chairman Jon Leibowitz is expressing sympathy to easing antitrust enforcement of media consolidation to prevent more newspapers from folding. Report: Consumers Prefer to Pay for Media New York Times In 2008, for the first time, consumers spent more time with media they paid for than with advertising-supported media, according to private equity firm Veronis Suhler Stevenson's newly released annual forecast. Media growth is expected from areas such as the Internet and mobile devices. Time Warner Prospers from Paid-For Media CNBC Time Warner has successfully "reinvented itself," according to CNBC "Mad Money" host Jim Cramer. The company is "becoming an entertainment powerhouse" thanks to "transformational leader" Jeff Bewkes. The CEO knows what works, which is content that "people will pay for." Murdoch, Immelt Order Cable News 'Truce' Los Angeles Times News Corp. chief Rupert Murdoch and General Electric boss Jeff Immelt recently met to discuss defusing the rising on-air sniping between Fox News and MSNBC anchors Bill O'Reilly and Keith Olbermann. Murdoch and Immelt's corporations cooperate on other ventures, such as Hulu. Disney, CBS, GE Pressured by White House Washington Post White House chief of staff Rahm Emanuel personally contacted the CEOs of Disney, CBS and General Electric to pressure them to air President Obama's latest press conference on their broadcast networks. TV execs say they can't afford to keep airing Obama's sessions. AT&T, Apple in FCC Probe Over Google App Dow Jones The U.S. Federal Communications Commission is launching an inquiry to AT&T and Apple over the rejection of Google's voice application for the popular iPhone. FCC chairman Julius Genachowski says the agency "has a mission to foster a competitive wireless marketplace." Viacom's 'Rock Band' Strikes Wrong Chord Dow Jones Viacom expects its new "The Beatles: Rock Band" video game, coming in September, to be a big hit. However, second-quarter sales of "Rock Band" fell flat. Also, analysts are questioning whether The Beatles, a classic rock band of the '60s, will attract "Rock Band's" younger audience. Liberty's Malone Offers Media Forecast Financial Times Liberty Media chief John Malone, one of the most powerful figures in the media, has a mixed outlook on the industry. "Newsprint is probably the most damaged media going forward," he says. "The broadcast networks are getting beaten up. Cable television has been OK." Media Companies Will Survive, Investors Say Dow Jones Shares of media companies jumped Monday as investors decided the industry's financial problems might not be as dire as they thought. Advertising spending "can't keep falling forever," analysts say. Nonetheless, ad dollars aren't coming back "like the way they previously did." CBS Outdoor, Clear Channel Asset Sale Eyed Bloomberg JCDecaux, the French outdoor advertising firm, says it would consider buying Clear Channel Outdoor or CBS's outdoor ad unit to become the world's biggest outdoor ad company. "Outdoor advertising at CBS is not their core business," notes JCDecaux chief Jean-Francois Decaux. Disney CEO: We See Signs of Recovery Los Angeles Times Disney is reporting a 26% drop in profit for its fiscal third quarter as the weak economy continued to take its toll on television advertising and DVD sales. "We do see signs of economic stabilization," says CEO Bob Iger. "But the pace and strength of recovery remain uncertain." Time Warner: HBO Unhurt by Bad Economy Los Angeles Times The economy is pounding media companies left and right, but Time Warner's pay cable channel HBO so far has been immune to the turmoil. There is little evidence of subscribers dropping the service to save a few bucks, according to co-president Richard Plepler. Time Warner Cable to Resell WiMax Service CNET Time Warner Cable will soon offer a 4G wireless broadband service using Clearwire's WiMax network. Clearwire's WiMax provides faster speeds than current 3G wireless technologies, but offers wider coverage than other high-speed wireless technologies such as Wi-Fi. NBC Working on Defining Its Brand Image Newsweek NBC is working to define the network's brand, says Jeff Gaspin, the newly appointed chairman of NBC Universal Television Entertainment. Gaspin is inheriting a network entering its fifth straight season in last place. "Broadcasting can take a page out of cable's playbook," he says. FCC Chair Seeks 'Vibrant' Media Landscape Reuters Julius Genachowski, the new chairman of the U.S. Federal Communications Commission, says he is focused on is the state of media ownership as newspapers struggle to stay alive and some broadcasters consolidate. The agency will launch a review of the industry next year. Dan Rather Calls On Obama to Save Media Aspen Daily News Former CBS News anchor Dan Rather is calling on President Obama to form a White House commission to help save the news media. Such a commission would work on creating new business models to keep news organizations alive. "Every citizen should be concerned." Wall St Journal Creating 'LinkedIn Killer' TechCrunch The Wall Street Journal is said to be developing a new online social network, to be called WSJ Connect, which is described as a "LinkedIn Killer." News Corp. sibling Slingshot Labs, the media giant's arm that works on digital products, is helping build the site. Time Warner: No Improvements in Ad Slump Dow Jones Time Warner, which is reporting a 34% drop in second-quarter income, says that advertising markets have been "more stable lately but we aren't seeing major improvements." CFO John Martin notes that he sees "no signs of recovery in demand" for AOL's offerings. Time Warner Cable Predicts Slower Growth Bloomberg Time Warner Cable predicts slower subscriber and revenue growth in the second half of the year, citing the extended economic slump and increased competition. Advertising sales "probably will drop" in the next two quarters, partly because of the recession. Cablevision to Spin Off Madison Sq Garden Bloomberg Cablevision is said to be preparing to spin off its Madison Square Garden assets, including the New York Knicks basketball team and Radio City Music Hall. Splitting off Madison Square Garden may lure potential buyers for Cablevision, such as Time Warner Cable or Comcast. Sony to Meld Gadgets with Games, Movies AFP Sony, which is announcing a smaller-than-expected first quarter loss, is having a difficult few years in the face of tough competition from products such as Apple's iPod. CEO Howard Stringer wants to meld Sony's strengths in televisions and other gadgets with its games and movies. Liberty's Malone: Cable is Key to the Internet Financial Times Liberty Media chief John Malone sees cable as key to future Internet revenues. Internet sites will eventually need to charge for content, he says, and cable companies are willing to provide the interface for consumer payment. "Somebody is going to be the intermediary." Disney Warns LAPD of Obsessed Miley Fan TMZ Concerned Disney execs are said to have informed the Los Angeles Police Department about the recent arrest and release of a 53-year-old obsessed Miley Cyrus fan in Georgia who claims the "Hannah Montana" star sends him "secret messages" through her Disney Channel television show. Dreamworks: 3-D TVs Will Boost DVD Sales Bloomberg DreamWorks CEO Jeffrey Katzenberg says 3-D movies will "absolutely" boost Hollywood's DVD sales when television makers release products that can display the films next year. "There are meaningful technological advances." Hollywood has been hard hit by a decline in DVD sales. Disney, Universal in New Pursuit of Pirate Bay Associated Press A dozen Hollywood production companies are filing a new lawsuit against The Pirate Bay, demanding that the file-sharing Web site be stopped from distributing television series and films. The site is still in operation despite guilty verdicts in a copyright trial in Sweden earlier this year. Viacom: Strong MTV Ratings a Key Priority MarketWatch Viacom is reporting its second-quarter profit fell 32%, hit by a decline in its media networks. CEO Philippe Dauman says ratings at MTV are improving as the network's schedule is rebuilt. Dauman describes strong ratings at MTV as a "key priority" at Viacom. Redstone Family Feud Playing Out in Court Los Angeles Times Today marks the third and final day of testimony in a lawsuit by Viacom/CBS chief Sumner Redstone's nephew Michael Redstone against his father, Edward, and uncle. The suit says Michael is owed several million dollars. In testimony Monday, Sumner appeared "visibly annoyed." News Corp Snubs Video Tie-Up with BBC Guardian News Corp.'s U.K. newspaper publishing arm is rejecting a proposal by the BBC to share online video with newspaper Web sites because it involves "onerous marketing conditions" that promote the British broadcaster. Newspapers would provide "marketing for the BBC at no cost." Time Warner Buying Google's Stake in AOL Reuters Time Warner is buying Google's 5% stake in AOL for $283 million, the company says in a U.S. regulatory filing. The price that Time Warner is paying for the stake implies that AOL has a total value of about $5.7 billion. Time Warner plans to spin off AOL by the end of the year. News Corp Book Unit Taps Editor for E-Books Crain's New York News Corp.'s HarperCollins is creating what appears to be the first "editor in chief"-style role for the digital category at a major publishing house. Margot Schupf will develop original e-book titles and work to build the publisher's digital presence with tools such as iPhone apps. Diller Warns Media Transition Will Get Bloody Los Angeles Times IAC chief Barry Diller predicts that the Internet is headed toward a three-revenue stream business: advertising, subscriptions and transactions. The transition to the Internet world will be "bloody" for content providers, he adds. IAC's The Daily Beast site will "have to earn its way." Media Giants Prepare to Report Lower Profits MarketWatch Viacom, Time Warner and Disney are expected to issue lackluster June-quarter earnings reports this week. Investors will be watching to see what's in store for Time Warner magazine publisher Time Inc., as it seems to be the next major company asset with "limited upside potential." Media Moguls Rethink Web Ads in Downturn Reuters Execs from Time Warner, News Corp. and Disney say they are hopeful about using the Web to glean data and target consumers directly. A "more effective" way to reach 14 to 24 year-old consumers could be to use social networks, "rather than bombard them with ads." News Corp Threatens to Yank Ads from Google Sydney Morning Herald Google is facing a challenge in Australia as both News Corp. and Fairfax Media are said to be threatening to pull millions of dollars in search advertising from the Internet giant. The two media companies are unhappy over Google's plan to list real estate for sale on Google Maps. Redstone Media Empire Faces Uncertain Future Los Angeles Times The future of Sumner Redstone's National Amusements hinges on an auction of about three-fourths of its 118 movie theaters. If the sale fails, Viacom/CBS chief Redstone may be forced to unload other holdings. Some speculate that Redstone might put CBS in play. NBC Universal Rumored in Vivendi Takeover New York Post Vivendi's decision last week to suspend talks to acquire control of mobile-phone firm Zain is evidence that the French conglomerate is plotting a takeover of NBC Universal, observers say. Vivendi is rumored to want to buy General Electric's 80% stake in NBCU. Media Dealmaking Risks Antitrust Scrutiny Reuters Media dealmaking is expected to heat up as more companies experiment with tie-ups and ventures to tackle tumbling DVD and advertising sales. However, new collaborations -- such as Hulu and "TV Everywhere" -- could raise regulatory eyebrows, media watchers say. News Corp to Charge for Content on the Web Bloomberg News Corp. plans to increase revenue at its Internet businesses by charging customers for news and entertainment, according to digital head Jon Miller. The Web "will become a have and have not world," he says. Journalism will increasingly become a "paid model" online. James Murdoch Boosts Role in Dad's Empire Financial Times James Murdoch is planning a shake-up of News Corp.'s Star Asian television operations, his biggest move yet to stamp his mark on the most promising growth area in his father's media empire. Star's Indian operation will start reporting directly to James. U.S. to Study Media's Effect on Children Bloomberg U.S. regulators will study how children are affected by the proliferation of digital media, including computers and mobile phones, says Julius Genachowski, the new head of the Federal Communications Commission. The FCC is studying ways parents can block objectionable content. Disney Developing Subscription Web Site Bloomberg Disney is working on a subscription-based product for the Internet, according to CEO Bob Iger. The media giant's movies, television shows and games will become available online. "We have ample evidence that people are willing to pay for quality, choice and convenience." Media Stocks to See a Tough Road Ahead MarketWatch A recent spike in media stock prices probably looks like a mirage right now to investors, and the latest round of earnings reports is unlikely to help, experts say. "I don't think we're going to bounce back from the advertising slump quickly." The conglomerates are "a mixed bag." A $65 Billion Ad Shift Away from Old Media? Forbes Some $65 billion will be siphoned away from traditional advertising channels in 2009 and spent instead on companies' own Web sites and Internet marketing, says a new study by Outsell. Advertising "has left the news industries" and "is not going to come back in its same form." Tina Brown: Old Media to See Difficulties Chicago Tribune "It's a very difficult time for people in old media," says Tina Brown, founder of the Barry Diller-backed Web site The Daily Beast. Media professionals who are in their 50s fear they can't "make the adjustment." This transitional period "will only last another few years." Media CEO Pay Is Criticized by Bernstein Broadcasting & Cable Executive pay in the media biz is out of line with company performance, says Bernstein Research's Michael Nathanson. His new report is critical of News Corp. and CBS. News Corp.'s recent hiring of Chase Carey re-affirms that media execs are "different from you and me." Media Mogul Haim Saban Sued in Tax Dispute Los Angeles Times Haim Saban is being sued by his former tax attorney, Matthew Krane, over $36 million in fees related to a tax shelter that was declared invalid. The origins of the battle stem from the sale of Fox Family Channel from Saban and News Corp. to Disney in 2001 for $5.2 billion. John Malone Offers $50K Journalism Prize Denver Business John Malone's Liberty Media will offer a $50,000 prize annually for "media contributions that explore the link between economic and political liberty." The inaugural Media for Liberty Award, presented next March, will be for media reports in print, broadcast and online in 2009. Media Stocks Gain on Analyst Upgrade Associated Press Media stocks including CBS and Disney got a bump Monday after Morgan Stanley issued an upbeat report on prospects for television providers and advertising. Positive signs on the economy and low expectations among investors could lead to a faster-than-anticipated recovery. Media: The Eye-Opening Truth on Value Barron's The cliche du jour is that "old media is dead," says the cover story of Barron's. Actually, "it could be decades" before print and broadcasting "truly become irrelevant." In fact, many media companies should do very nicely after the recession "has killed some of their traditional rivals." 'It May Be Too Late' for Media Companies Bloomberg Media companies are running out of time as they struggle to generate revenue from the Web, warns Liberty Media head John Malone. For some companies, "it may be too late." Users of services like Twitter and YouTube are growing addicted "and will pay for them." Sony, NBC Pursue Michael Jackson Footage DHD Sony and NBC are said to be favored in the auction of the live music, primetime television special and film rights to Michael Jackson's rehearsal footage for sale by AEG. The firm is "looking to do a primetime TV special with NBC, and then go with live albums and films with Sony." Murdoch Talks Media, Google, Twitter TheStreet.com News Corp. is going to be "more outspoken" about payment for copyright material, says chief Rupert Murdoch. "And that goes to every aggregator, whether it be Yahoo or Google or Ask.com." Also: Twitter is "an amazing phenomenon but I have no idea how they can monetize it." Media Giants: Glass Half Full at Half Year Hollywood Reporter Among the publicly traded media giants, shares of Viacom (+19%), Sony (+19%) and News Corp. (+12%) fared best in the first six months of 2009. Time Warner (-7%) and CBS (-14%) lagged their peers. Media companies, analysts say, need to "show investors the money." Viacom's Paramount in DVD Merger Talks Financial Times Viacom's Paramount Pictures is in talks with both Sony Pictures and News Corp.'s Fox studio, seeking to merge its home entertainment division with one of its rivals. The talks follow an industry-wide slump in DVD sales, one of Hollywood's most profitable revenue streams. Sony 'Should Drop' Walkman Brand at 30 Associated Press Sony is struggling to win back its reputation as a gadget pioneer once exemplified in the Walkman, which is marking its 30th anniversary as Apple's rival iPod reigns supreme. There is even some speculation that Sony should drop the Walkman brand. CBS Shares Fall Amid 'Tangible Tension' Associated Press Shares of CBS are slumping as Deutsche Bank cuts earnings estimates, reflecting uncertainty over the timing and extent of an advertising recovery. The bank says there is "tangible tension" between the idea that media stocks are set to rally and predictions of a prolonged slump. Media, Cable Among the Riskiest Sectors Reuters Companies in the media and cable sectors are at most risk of default and will help drive overall U.S. junk bond default rates to 12 to 14% by year end, according to a report by CreditSights. The risk is attributed to the decline in advertising revenues accelerated by the recession. Media's Hot Topics Discussed in Aspen Hollywood Reporter "The News Has No Clothes," a stage show to be tested at this week's Aspen Ideas Festival, could end up being pitched to television networks. The festival also will host sessions about hot topics in media. Speakers include Michael Eisner, Steve Brill and Nick Denton. Murdoch in Lawsuit Over 'Wolverine' Firing Bloomberg News Corp. chief Rupert Murdoch and Fox News are being sued by former columnist Roger Friedman over claims he was illegally fired for viewing a download of "X-Men Origins: Wolverine" to write a review of the movie. Friedman says his employment contract was violated. News Corp's MySpace Brazil to Shut Down Billboard As part of its worldwide restructuring, MySpace will reportedly shutter its Brazilian operation. In addition to Brazil, MySpace's operations in Argentina and Mexico will also close, sources say. The decision to shutter Brazil was a "surprise," says a MySpace Brazil exec. Apple Chief to Work Part of Week at Home Financial Times Steve Jobs will spend part of his working week at home, Apple says, as the company's CEO, who has been recovering from a liver transplant, returns to work. His partial absence suggests that he has not recovered fully. "As far as health is concerned, we're not out of the woods." Time Warner Rebuffed on Cablevision DVR Bloomberg The U.S. Supreme Court is refusing to question a television-recording service planned by Cablevision, turning away a challenge by media companies led by Time Warner's CNN. Cablevision's new service will let customers copy and store programs on a remote hard drive. Sony-Jackson Firm to Keep Beatles Rights Bloomberg Sony/ATV Music Publishing, co-owned by Michael Jackson and Sony, will maintain control of Beatles songs following the pop singer's death. Sony/ATV holds rights to more than 200 songs written by John Lennon and Paul McCartney. Jackson's stake is worth about $1 billion. Analyst: All Media Face Bankruptcy Risk Advertising Age All media companies need the economy to turn around -- and fast, according to Benchmark analyst Ed Atorino. Otherwise, "every media company is going to face Chapter 11." In the meantime, companies will "continue to look at options," like selling assets or reorganizing. Death-of-Old-Media Video Touches a Nerve Wall Street Journal "Mad Avenue Blues," a media-industry video ditty set to "American Pie," skewers virtually everyone in traditional media, from television to newspapers. The clip, a YouTube hit, is now drumming up business for creator Terry Kawaja, a managing director at GCA Savvian Investors. Liberty Media Expresses Interest in AOL Bloomberg Liberty Media, the cable company controlled by John Malone, would like to talk with Time Warner about its AOL assets, says CEO Greg Maffei. Time Warner plans to spin off the entire AOL Internet unit into an independent, publicly traded company by the end of the year. Murdoch Daughter Eyed for TV CEO Job Telegraph Elizabeth Murdoch, the daughter of Rupert Murdoch and founder of Shine Entertainment, is on the short list to become the new CEO of ITV, the British television network and principal rival to the BBC. Her understanding of media and entrepreneurial skills "make her an obvious candidate." FCC: Former IAC Exec OK'd as New Chairman Bloomberg The U.S. Senate is approving Julius Genachowski, a Democrat, as chairman of the Federal Communications Commission. Genachowski is a former adviser to IAC boss Barry Diller. Senators are also approving Republican Robert McDowell to serve a second term on the agency. Sony's Sales May See a Boost from Jackson Bloomberg Sony, owner of rights to Michael Jackson's music, may boost revenue through a rebound in sales of the late pop icon's CDs and DVDs. "There will likely be a positive impact," analysts say. Sony owns the rights for Jackson's "Off the Wall," "Thriller," "Bad" and other albums. Time Warner in Talks About Magazine Unit Wall Street Journal Time Warner is said to be talking with investment bankers about options for divesting its Time Inc. magazine unit, the publisher of Time, Sports Illustrated and People. Whether this is the focus of discussions isn't certain; Time Warner may be simply getting pitches from bankers. News Corp: More Layoffs in Interactive Media AllThingsD The layoffs at MySpace parent Fox Interactive Media are moving to Photobucket, as one-third of its staff of about 120 is let go. The photo- and video-hosting service was bought by News Corp. in 2007. Other properties, such as the IGN videogame firm, are also seeing layoffs. Viacom is No Longer Interested in MySpace Reuters Viacom, which lost the bidding war for MySpace in 2005, may still want to nab the social network, which could go for a bargain nowadays. But when contacted, Viacom says it is "not interested." Former Viacom CEO Tom Freston lost his job for failing to acquire MySpace. Sony Seeks Digital Success with New Service Fortune Sony, seeking to exploit its technology and content, is developing a new service described as an "omnibus Web-based software platform" that will connect the company's vast library of content and devices. The new service will "overlay the backbone of the PlayStation Network." Viacom's 'Transformers' Summer's Top Movie? Dow Jones The new "Transformers 2" sold $120.1 million in tickets on its opening Wednesday, with the U.S. total of $60.6 million, setting a record for movies debuting on that day. The results are good news for Viacom, whose Paramount Pictures and DreamWorks SKG are behind the film. Viacom/CBS: Redstone Gets Bids for Cinemas Financial Times Israel Theaters and Empire Cinemas have reached the second round of bidding for the 21 British cinemas put up for sale by media boss Sumner Redstone. The theater chain is being sold to help Redstone pay down a $1.6 billion debt and avoid having to sell shares in Viacom. Microsoft CEO: Old Media Won't Bounce Back Guardian Microsoft CEO Steve Ballmer, named "Media Person of the Year" at the Cannes Lions International Advertising Festival, sees a bleak future for print and broadcast media. Global advertising has been permanently "reset" at a lower level, he says. "All content consumed will be digital." Time Warner-Comcast Web TV Faces Hurdles Los Angeles Times A plan by Time Warner and Comcast to ensure that people who watch television on the Web are already pay-TV customers faces several hurdles, including a workable encryption system that is easy to use. The technology "has to work for the consumer; it cannot be obtrusive." 'Idol' Star's New Firm 'Bigger Than Disney' Daily Star Simon Cowell, the "American Idol" judge and television producer, is teaming up with billionaire British retailer Phillip Green to launch their own global entertainment firm. The two claim that their new Los Angeles-based venture, dubbed "Project X," will be "bigger than Disney." Time Warner, Comcast to Take Aim at Hulu Los Angeles Times Time Warner and Comcast plan to unveil a partnership that will make it harder for people to watch television shows online for free. Called "TV Everywhere," the initiative will require viewers to subscribe to a pay-TV service before they may watch certain shows online. News Corp Building Platform for Web Pay Hollywood Reporter More media execs are insisting that consumers will be willing to pay for digital content as new online pay models are explored. Les Hinton, CEO of News Corp.'s Dow Jones, says the company is working on a technical platform that will allow people to pay for online content. Time Warner is 'The Best Stock in Media' Hollywood Reporter Time Warner is the best stock in the media business, according to Miller Tabak analyst David Joyce. The company has a good shot at more than doubling during the next two years, he says. News Corp. is ranked further down on the list at No. 11, for "bulking up in newspapers." Liberty Chief Malone to Pay $1.4M Penalty Reuters Cable television pioneer John Malone will pay a $1.4 million fine, after the U.S. Justice Department says the Liberty Media chief failed to make required disclosures when he bought Discovery voting securities in 2005 and then bought more shares in 2008 during a waiting period. Media Stocks Sink; Growth Seen as Unlikely Hollywood Reporter Big-media stocks such as CBS and News Corp. are taking a tumble amid broader declines driven by renewed economic concerns and doubts that the recent rally will continue. Earlier: News Corp.'s New York Post reports that media stocks "suddenly look like a good bet." News Corp to Reshape Interactive Division AllThingsD Mike Angus, EVP and general counsel of MySpace parent Fox Interactive Media, is departing for another job within New Corp., as new digital head Jon Miller continues to reshape the division. Fox Interactive Media may change its name to simply "Digital Media Group." Time Warner Invests in Tumri Online Ad Firm Silicon Valley Business Tumri, a tech firm that focuses on dynamic online display advertising, is raising more than $15 million in new capital, including some $10 million from Time Warner. "We believe Tumri is a clear leader in this exciting space," says Time Warner Investments exec Rachel Lam. Media Suddenly 'Looks Like a Good Bet' New York Post Media stocks are starting to see signs of a comeback. Analysts are optimistic about summer movie blockbusters and the fall television season. Plus, advertising has reached bare-bone levels and can only start rising. The industry is "coming up from a 'going-out-of-business' basis." Time Warner Pressures 'Harry' to Perform Los Angeles Times "Harry Potter and the Half-Blood Prince," the sixth film in the Warner Bros. series, is expected to be a big blockbuster in theaters this summer. However, the slump in DVD sales is undermining Hollywood's business model -- and putting more pressure on franchises to succeed. Sony Hands More Power to Howard Stringer TheWrap Sony shareholders are approving a new management structure that puts more power in the hands of chairman and CEO Howard Stringer, expanding his role to include president. Stringer will lead a team to try to unite Sony's large electronic, digital and film businesses. Viacom Studio Ousts Top Production Execs DHD / NYP Top production execs John Lesher and Brad Weston are being ousted in a shakeup at Paramount Pictures. Lesher drew notice for "looking whacked out" during screenings. Also: Viacom is facing pressure to sell Paramount. "We hear talk of something going on," says one investor. Diller, Springsteen in Concert-Ticket Clash New York Post Barry Diller is blasting Bruce Springsteen for playing a role in a concert-ticket flap that put his Ticketmaster in the spotlight as the company tries to win U.S. regulatory approval to merge with Live Nation. Springsteen "held back" a huge block of tickets, Diller says. Apple Chief Steve Jobs Has Liver Transplant Wall Street Journal Steve Jobs, who has been on medical leave from Apple since January, received a liver transplant about two months ago. The CEO is expected to return to work later this month, though he may work part-time initially. COO Tim Cook is expected to take "a more encompassing role." 'Future of Media' Eyed in Panel Discussions Folio Recent panel discussions on the "Future of Media" attempt to answer the question: How do we engage audiences online and create sustainable revenue models? Among the concepts to walk away with: "Media companies need to rethink their roles and make hard choices." Internet Exec Wins Senate Panel OK for FCC Reuters The nomination of Julius Genachowski to become the next chairman of the U.S. Federal Communications Commission is taking a major step forward after the Senate Commerce Committee voted overwhelmingly in his favor. The full Senate will next consider his nomination. Viacom's Redstone Makes Up with Tom Cruise Variety Tom Cruise is signing up to do "Mission: Impossible IV" for Viacom's Paramount Pictures. Cruise's return to Paramount is surprising considering his "shockingly offensive" termination by Viacom chief Sumner Redstone in 2006. Redstone now describes Cruise as "a good friend." Media Mergers Seen Few and Far Between Reuters Bankers and financiers say they don't expect much takeover activity in the media sector until at least next year, especially given the shaky cashflows of many companies in the industry. Despite apparent bargain valuations, "there aren't many signs of M&A coming back." Media Industry All Atwitter Over 'Tweets' Boston Herald Twitter is providing the media with a plethora of news tips and insight, from the Hudson River plane crash to the disputed presidential election in Iran. According to one observer: "A lot of what we know, we know because of what's going on on these social networks." Media Industry Parody Videos Going Viral iMedia Connection The media biz is ripe for parody nowadays. And no matter what place one occupies in the media and advertising ecosystem -- media sales side, agency side or social media "guru" -- there is undoubtedly an online video for everyone. Some clips are described as "definitely NSFW." Disney Museum to Focus on Man Behind Brand Reuters Walt Disney is a global brand with film studios and theme parks bearing his name, and now his family is unveiling a museum to tell the story of the pioneer they say has been lost behind the trademark. The Walt Disney Family Museum plans to open Oct. 1 in San Francisco. News Corp Mulls Break-Up of Fox Interactive Business Insider News Corp. is considering dissolving its Fox Interactive Media operation. A spokesperson says that the parent company is "examining FIM and its role as a corporate umbrella" for digital businesses. Also, another round of staff cuts is expected at FIM's MySpace. Disney to Offer Its Own Laptop PC for Kids USA Today Disney is teaming up with Taiwanese computer maker Asus on a Disney-branded netbook for kids 6 to 12. The $350 laptop computer will come with parental control options, and desktops with customizable themes built around Disney brands like "Cars" and "Hannah Montana." Liberty Media Expected to Sell Off DirecTV Barron's Satellite-television outfit DirecTV eventually will be acquired either by AT&T or Verizon, according to Pali Research analyst Richard Greenfield. Owner John Malone is an investor and not an operator, he says. It is "increasingly hard to imagine DirecTV remaining a stand-alone company." U.S. FCC Nominee: Consumers Are Top Priority Reuters The U.S. Federal Communications Commission will focus on national broadband service under the Obama administration, says chairman-designate Julius Genachowski. Media is changing "dramatically." Lawmakers are expected to OK his nomination this week. Britain Aims to Become World's Digital Capital Times of London Britain plans to become the world's "digital capital" by building leading-edge broadband and media infrastructure to cement its role as a "global economic powerhouse," says prime minister Gordon Brown. "Britain is going to lead the world." The Internet has become "as vital as water and gas." PwC: Media Growth in Video Games, Not Ads Financial Times Advertising is set for a prolonged slump, says PwC's new media outlook report. The downturn will accelerate the move to digital, and the newspaper industry will "fare worse." Growth in media over the next five years will be in video games, television subscriptions, film and Internet access. Virgin, Universal Fight Piracy with Downloads InformationWeek Universal Music plans to offer its catalog on Virgin Media's new download service in return for the U.K. broadband provider agreeing to suspend service to people who download tunes illegally. The service will enable customers to download "unlimited" tunes for a monthly fee. NBC Universal Names Intellectual Property Chief Hollywood Reporter NBC Universal is naming Cory Shields to the new post of executive VP global policy strategies and alliances. Shields, formerly executive VP communications, reports to NBCU CEO Jeff Zucker. "The lifeblood of a media company is its intellectual property," Zucker says. Viacom's Paramount Could Merge, Investor Says Reuters Viacom's Paramount Pictures could merge with Sony Pictures, Universal Studios or another movie studio amid a wave of consolidation in the industry as owners seek to cut costs, according to veteran investor Mario Gabelli. "We hear talk of something going on." Murdoch 'Didn't Know What to Do' with MySpace Crain's New York Rupert Murdoch paid just $580 million for MySpace in 2005. Now, MySpace is losing traffic and layoffs are rumored. Some observers say that while Murdoch had the vision to grab MySpace, he didn't know what to do with it. "It may be that Rupert is ultimately a newspaper guy." Murdoch Blamed for Piracy of News Corp Movie New York Daily News News Corp. fired FoxNews.com columnist Roger Friedman in April after he wrote about watching a pirated copy of "X-Men Origins: Wolverine." Friedman is expected to charge in a lawsuit that the movie's leak can be traced to chief Rupert Murdoch, who wanted to see a copy. Copyright Owners Say Piracy Can't Be Stopped Ars Technica Copyright owners from around the world gathering in Washington, D.C., for the second World Copyright Summit admit that Internet piracy can't be stopped. Still, that doesn't mean that there is no point in trying: "Can you keep it to a point where it won't destroy you?" Media Chiefs See Ad Biz Bottom; Data Doesn't TheStreet.com The advertising recession continues apace, according to new data from Nielsen and TNS Media. But media bosses are striving to say otherwise. The ad market is "stabilizing," says CBS chief Les Moonves. The goal of the media chieftains appears to be "amelioration." Media Business Recovery Isn't Expected Soon Reuters U.S. advertising spending in the first three months of this year crashed 14%, according to TNS Media Intelligence, the biggest drop since 2000 when the industry researcher began keeping records. The figure suggests that a recovery in the media business may still be some time off. Diller: Internet Content Will See More Fees CNET IAC/InterActiveCorp chief Barry Diller agrees with Rupert Murdoch on the notion that more pay walls should be erected around Internet content. "The Internet is passing from its free phase into a paid system," he says. "The iPhone is a great example of what's going to happen." Consumers Want More Free Media, Study Says Mediaweek.co.uk More than a quarter of consumers plan to reduce or cancel their pay-television subscriptions, according to research by The7Stars. Some 46% say they will stop buying their daily newspaper if its price increases. Consumers are "more motivated towards free media." Scripps Network Seeks a Buyer for uSwitch Cincinnati Enquirer Scripps Networks Interactive is putting its troubled uSwitch U.K. energy price comparison Web site up for sale. Revenue from Scripps's interactive services segment, which includes uSwitch and comparison shopping site Shopzilla, fell by 35% in the first quarter of 2009. Pali Media Analyst Blogs to Power, Influence Crain's New York Richard Greenfield, Pali Research's media analyst, is known for voicing extreme opinions that others might only think about. The self-professed media geek posts on the Pali blog up to three times a day. Time Warner CEO Jeff Bewkes says that Greenfield writes "some great stuff." Time Warner Names New Global Media Head Associated Press Time Warner is promoting exec Mark D'Arcy to president of its global media group. He succeeds John Partilla, who is leaving to join Clear Channel. The global media group works with advertisers to "create ideas that leverage Time Warner assets against marketing challenges." TBS Ascends After Time Warner's AOL Spinoff Atlanta J-C After Time Warner ditches its troubled AOL unit, Turner Broadcasting System will emerge from the relative shadows to become half of the media giant, based on the profits of its cable networks -- CNN, TBS, TNT and others. CEO Jeff Bewkes says that TBS is "central to our future." Murdoch: Chase Carey Not My Heir Apparent Fox Business News Corp. chief Rupert Murdoch says that new No. 2 exec Chase Carey is not necessarily his heir apparent. "We're not making any commitments on that." He also predicts that print newspapers will be replaced by digital news sources. "It's going to be something that is quite mobile." Old Media Losing Audiences to Mobile Phones New York Times A survey of Apple iPhone and Android G1 users by Gravity Tank, a Chicago-based creative consulting firm, finds that smartphone apps are using up lots of people's time -- to the detriment of other media. Some 31% say they read newspapers less; 24% are watching less television. Murdochs to Sell Summer Getaway Home New York Rupert and Wendi Murdoch are putting their five-acre, 11-bedroom summer getaway estate on the North Shore of Long Island on the market for $12.8 million. In the meantime, the Murdochs are renting it to Brad Pitt and Angelina Jolie, for more than $100,000 a month. Diller, Murdoch, Zucker 'Friend' Each Other New York Observer Barry Diller, Rupert Murdoch and Jeff Zucker are among the digital media luminaries gathering for a star-studded Internet Week party, hosted by the entrepreneurial Founders Club. The event honors new AOL CEO Tim Armstrong and new News Corp. digital head Jon Miller. News Corp's Interactive Unit Preps Layoffs Los Angeles Times MySpace parent Fox Interactive Media, suffering from a steep drop in online advertising, is said to be preparing to lay off a significant number of employees. The layoffs are part of a restructuring of News Corp.'s digital operations. MySpace and other divisions will likely be affected. Disney Seeks Acquisitions in Video Games Bloomberg Disney is increasing spending on video-game development, part of a strategy to profit from the industry's growth by publishing more titles based on its movies. The company says it is "actively looking" for takeover targets that demonstrate "cultural alignment" with Disney. Media, Web Companies Look to Sell Start-Ups Reuters Many media and Internet companies that bought start-ups in the boom years are expected to shed assets they no longer see as core, as the recession imposes a new frugality. Says Twitter financial backer Todd Dagres: "In good times, companies acquire, in bad times, they divest." Forbes-Backed Web Site Seeks New Web Model Washington Post True/Slant, a new news Web site, plans to enable journalists "to develop their own brand," says founder Lewis Dvorkin, a veteran of the New York Times, Wall Street Journal and AOL. True/Slant is backed by $3 million in funding from Forbes Media and Fuse Capital. 'The Day the Media Died' Video Goes Viral YouTube GCA Savvian investment banker Terry Kawaja, during an Internet Week presentation, released his latest parody video, "Mad Ave Blues." The ditty, now on YouTube, includes the lyrics: "The digital revolution felt like thunder / With every paper that went under ... " Murdoch Wages 'Vendetta' Against Berlusconi Financial Times Silvio Berlusconi, Italian prime minister and media mogul, is lashing out at Rupert Murdoch, accusing his business rival of using the Times of London newspaper to launch a series of personal attacks. Berlusconi is upset over articles on his relationship with an 18-year-old "model." Viacom Chief Says Best Days Are Yet to Come Hollywood Reporter Viacom is experiencing a "creative renaissance," says CEO Philippe Dauman, speaking at the company's annual shareholder meeting. He and chief Sumner Redstone promise that being a hit factory will further boost Viacom's fortunes. "Creating hits is the name of the game." News Corp Names DirecTV CEO to Post Dow Jones As expected, News Corp. is appointing DirecTV CEO Chase Carey as its deputy chairman, president and COO. He will also join the company's board of directors when Peter Chernin steps down July 1. He will report to CEO Rupert Murdoch as he oversees the company's global operations. WSJ, Gawker Chiefs to Talk Media's Future I Want Media WSJ.com chief Alan Murray and Gawker boss Nick Denton are among the media and tech figures discussing "The Future of Media," in a forum today by I Want Media. The session, held in conjunction with Internet Week New York, will be webcast live by Livestream. News Corp to Lead Drive to Paid-For Media Hollywood Reporter Paid digital media services are the future, says News Corp. digital chief Jon Miller. And News Corp. is willing to take a lead industry position to push for change. One possibility: News Corp.'s various New York media outlets, including the New York Post, could be "bundled." Time Warner's Next Spinoff May Be Time Inc AllThingsD After spinning off AOL, Time Warner's next move may be selling off the company's namesake Time Inc. publishing unit, which faces "inherent difficulties," says Pali Capital analyst Rich Greenfield. CEO Jeff Bewkes and the company's board "have no emotional attachment to the assets." Universal Music Hit with Lawsuit by Cher Hollywood Reporter Cher is filing a lawsuit against Universal Music, claiming that the label's "creative" accounting has shortchanged her and the heirs of her late ex-husband Sonny Bono some $5 million. Universal is toying with "one of the most popular and iconic artists of all time," says Cher's lawyer. Warner Mogul Bronfman to Leave New York Times of London Edgar Bronfman, the billionaire heir to the Seagram fortune and CEO of Warner Music, is leaving his native New York for a home in Kensington, West London, with his wife, Clarissa, and four young children. He plans to run Warner Music from both London and New York. Media: Too Much Is Bad for Children's Health HealthDay News Easy access to a wide variety of media increases a child's risk for numerous health issues, such as obesity, eating disorders, drug use and early sexual activity, according to expert Dr. Victor Strasburger. "Parents have to change the way their children access the media." Media Industry to Feel Pain of GM Bankruptcy TheDeal Newspapers, magazines, television stations and Web sites are expected to lose hundreds of millions in advertising dollars from the Chapter 11 bankruptcy filing of General Motors. The losses will likely translate into layoffs or divestments to protect bottom lines. News Corp: CEO Move Primes Sale of DirecTV Multichannel News DirecTV CEO Chase Carey's possible jump to News Corp. to become Rupert Murdoch's No. 2 could be the first step toward an outright sale of the satellite giant, says Collins Stewart analyst Tom Eagan. "The heavy lifting is done." AT&T is a likely suitor, he adds. Time Warner May Be Forced to Sell Itself Wall Street Journal Time Warner, after its retreat from AOL, continues to face long-term threats from the Internet and digitization. CEO Jeff Bewkes may be forced to run the company in a scaled-down form -- without its publishing unit. Another option: Sell the company to the likes of Comcast or News Corp. Why Won't Traditional Media Outlets Innovate? Forbes Unless old media execs truly believe their business models have long-term viability, "they need to regain an appetite for risk," writes Scott Donaton, former publisher of Entertainment Weekly. "They should experiment with iPhone apps, mobile video, touch-screen readers." News Corp: DirecTV CEO to Replace Chernin TheWrap DirecTV CEO Chase Carey is being tapped to become the second in command at News Corp., replacing Peter Chernin when he steps down after the end of his contract in June. Carey would be vice-chairman rather than president, as Chernin was, and would be based in New York. Disney to Dominate Mommy Demo on Web Mediaweek Disney Online is set to the completion of its acquisition of a group of parenting Web sites run by the financially distressed Canadian outfit Kaboose, purchased for $18.4 million in April. Disney can now claim to be the biggest player in the moms category on the Web. NBC Will Still Be Here This Fall, Leno Says Reuters Jay Leno on Friday ended his 17-year run as host of "The Tonight Show." His move to 10 p.m. this fall, which will save NBC millions by avoiding production of a costly TV drama, is a gamble, he admits. "I'm betting NBC will still be around in three months, but that's not a given." MSNBC 'Morning Joe' Brewed by Starbucks New York Times Starbucks is becoming a sponsor of MSNBC's "Morning Joe," in the closest integration between an advertiser and a national news show in recent memory. Voice-overs will tell viewers that "Morning Joe" is "brewed by Starbucks." The show may start airing from Starbucks outlets. Playboy Expected to Offer CEO Job to Outsider Wall Street Journal Playboy Enterprises is expected to offer Scott Flanders, president and CEO of Freedom Communications, its vacant CEO post as early as this week. It isn't clear whether the possible appointment means the company is more likely to seek a buyer, as is rumored. Time Warner CEO Hints at Magazine Web Fees Associated Press Time Warner CEO Jeff Bewkes says he doesn't think it makes sense "to run a publishing business with no cost for the content." However, he isn't specifying whether any of Time Warner's magazines will start to embrace online fees to increase their revenue. Time Warner Eyes Content After AOL Spinoff CNNMoney Time Warner is spinning off the struggling AOL, undoing the famously failed $124 billion merger of 2001. The move will allow the media giant to focus more on content, says CEO Jeff Bewkes. AOL co-founder Steve Case tweets: A return to greatness is "doable." Media Giants Spin Piracy Fight as Job Effort Financial Times Media companies are joining forces with unions to lobby for tougher action against piracy, as rising unemployment focuses their attention on the threat to jobs from copyright infringement. Fighting piracy "is a jobs issue," says NBC Universal general counsel Rick Cotton. Media Shareholders See Exec Pay as Hot Topic Hollywood Reporter Executive pay, shareholder returns and signs of a possible advertising market stabilization are likely to be in focus as Time Warner, Viacom, CBS and other media biggies host their annual meetings in the coming weeks. Executive pay "could be a lightning rod." News Corp Seeks Broad Ad Deal with Google Reuters News Corp. hopes to sell Google access to a greater swathe of its media properties, say senior execs Jon Miller and Owen Van Natta. An advertising deal between Google and News Corp.'s MySpace is coming up for renewal. News Corp. assets encompass television, print and online. Time Warner: Lazard to Push for AOL Spinoff Wall Street Journal Lazard eviscerated Time Warner in 2006 with its report supporting activist investor Carl Icahn's campaign to break up the media giant. The investment services firm is now said to be vying for a mandate from Time Warner to spin off AOL. The move could make Lazard "millions." News Corp's Media Ownership Waiver Stands Broadcasting & Cable The U.S. Federal Communications Commission late on Friday before Memorial Day weekend released an order denying a challenge to News Corp.'s ownership of two TV stations and the New York Post in the same market. The FCC says the decision was not "buried." Disney: Jonas Brothers Fizzling as Franchise? New York Times The Disney film, "The Jonas Brothers: The 3D Concert Experience," was a dud at the box office earlier this year; "Jonas," a new Disney Channel comedy, is a ratings disappointment. One of the group's managers says: "We are transitioning to a slightly older audience." Time Warner Makes Bid for Midway Games Los Angeles Times Warner Bros. is making a $33 million bid for most of the assets of Midway Games, the bankrupt video game publisher previously owned by Sumner Redstone. Midway's "Mortal Kombat" series has already produced two movies from Warner subsidiary New Line. Disney Lets Fans Interact with 'Show White' Examiner Disney's new, expanded DVD and first-time Blu-ray release of its classic animated film "Snow White and the Seven Dwarfs" includes several interactive features. Viewers will be allowed to upload a personal photo and become one of the seven dwarfs on-screen in the actual film. Big Media Seek More Booty from Pirate Bay Ars Technica Several media companies are appealing the April 17 verdict in the trial of The Pirate Bay movie and music piracy site -- even though they won the case. Instead of $3.5 million, the companies want $13 million. They claim the lower fine doesn't fully cover the scope of the damages. FTC: Can News Media Survive the Internet Age? TheDeal The U.S. Federal Trade Commission plans to hold a hearing Sept. 15 on competition in the chaotic news industry. Titled "Can News Media Survive the Internet Age?," the workshop aims to explore concerns about the future of news on television and radio as well as in newspapers. Hearst Invests in Online Gamer VoxPop.TV VentureBeat VoxPop.TV, a site where users can build their own games and make money on them through advertising, is bringing in $1.5 million in a new round of funding led by Hearst Interactive Media. Time Inc.'s Entertainment Weekly has used VoxPop's platform to produce quizzes. Disney Opens Web Site to Sell Merchandise Reuters Disney is opening DisneyStore.com, a new site offering merchandise from its theme parks, as the entertainment group seeks new revenue sources. The site will sell Mickey Mouse ears and other items that were previously only available at Disney parks and resorts. Liberty Media Mulls Exporting Web Sites Dow Jones Liberty Media CEO Greg Maffei says that Internet commerce is a focus of international expansion for the company. "We are beginning to look at expanding a bunch of our e-commerce businesses internationally." Liberty assets include Backcountry.com and Bodybuilding.com. Time Warner Completes European Media Deal Associated Press Time Warner is closing on its acquisition of a 31% interest in Central European Media Enterprises (CME), the Bermuda-based broadcaster founded by cosmetics billionaire Ronald Lauder. CME operates TV channels in countries including Bulgaria, Czech Republic and Romania. Comcast, NFL Near a Deal on Digital Package Wall Street Journal The National Football League and Comcast are said to be closing in on a deal to put the league-owned NFL Network on a widely distributed tier of the largest U.S. cable operator. After years of disputes and litigation, an agreement would allow both sides to claim victory. News Corp: Harvard University Buys a Stake Politico Harvard University, the richest U.S. college with a $28.8 billion endowment, is making several new investments, including 1.47 million Class A shares of Rupert Murdoch's News Corp. The media conglomerate is currently trading at around $10 a share. Murdoch Aussie Rival Scoffs at Web Pay Plan CNN Rupert Murdoch's plan to put News Corp. Web sites behind a pay wall is will be "like putting toothpaste back in the tube." So says Jack Matthews, CEO at Fairfax Digital Media, the online arm of a News Corp. rival in Australia. Matthews says he is "bullish about mobile devices." Disney Film Strategy Sputters as TV Stars Flop Bloomberg / LAT Film flops threaten to leave Disney in last place at the box office among its Hollywood peers for the second-straight year, as movies featuring television stars Miley Cyrus and the Jonas Brothers disappoint. Also: Indie filmmakers fear Disney will dump its Miramax Films unit. Tribune: Still Waiting for Abrams' Innovation Mediaweek Lee Abrams, Tribune's first-ever chief innovation officer, was hired to bring fresh thinking to the company. One year into his tenure, however, it is unclear whether there has been any significant change. Earlier: Tribune will become "an oasis of creativity," Abrams promises. Media Industry Stocks Set to Soar -- or Sink? Hollywood Reporter U.S. media chieftains are expressing optimism about the advertising market and the economy. But several industry challenges -- user fragmentation, digital distribution -- will persist even after other conditions improve, analysts say. One warns: "The decline to come will be shocking." Murdoch's Sky Rebrands Premiere in Germany Dow Jones German pay-television operator Premiere plans to relaunch in July under the new name Sky Deutschland, joining other pay-TV outlets in Europe partly or fully-owned by News Corp. They include Sky Italia and BSkyB. News Corp. holds a 30.5% stake in Premiere. MGM to Restructure Big Debt Amid 'Stooges' Bloomberg Metro-Goldwyn-Mayer, the movie studio controlled by Providence Equity Partners and TPG, is in talks to restructure $3.7 billion in debt. The studio says it aims to stay independent. Releases this year include "The Three Stooges," with Jim Carrey, Sean Penn and Benicio Del Toro. Sony Posts First Annual Loss in 14 Years Xinhua Sony is announcing its first annual operating loss of $1 billion in the fiscal year through March, its first annual loss in 14 years, due to global meltdown. CEO Howard Stringer is slashing 16,000 jobs and 10% of the group's manufacturing plants in an effort to turn the company around. Comcast: We're Not Selling Our Teams Philadelphia Inquirer Comcast has no plans to sell its majority ownership stakes in the Philadelphia 76ers basketball team or the Philadelphia Flyers hockey team because of the weak economy. So says CEO Brian Roberts in response to a question at the cable giant's annual shareholders meeting. Big Media Rethink Role of Digital Officers Fortune A few years ago, old-media companies from ABC to Viacom, aiming to show that they had a clue when it came to the Internet, created the position of chief digital strategist. Today some media incumbents are dropping the role altogether, as deals fall by the wayside. Viacom May Sell Off Paramount, Analyst Says Dow Jones Viacom may be forced to sell Paramount Pictures, according to Citigroup analyst Jason Bazinet, despite the success of the new "Star Trek" movie. Viacom's cable networks, weakened as more advertising moves to the Internet, will find it more difficult to "subsidize the struggling studio." Redstone: Bids for Theaters; Suit from Creditors Reuters / Bloomberg Sumner Redstone's National Amusements has received a first round of bids for its theater chains, with bidders offering enough to help the company pay off its debts. Also: Redstone is being sued by Midway Games creditors over claims the video-game maker was hurt by his stake sale. Media Stocks Get Respect from Wall Street Variety Over the past two months, share prices in media companies that had flirted with or hit historic lows have been steadily inching up. The slow turnaround in Wall Street perceptions of media stocks is believed to be fueled in part by larger economic indicators, like unemployment. Old Media Aim to Start Internet Revolution Times of London In the past few weeks, Disney joined Hulu, Amazon unveiled the Kindle DX, and Rupert Murdoch announced plans to charge for his newspaper's Web sites. May 2009 may come to be remembered as the month when old media started to fight back with "business models for survival." Media Execs See Ad Recovery -- For Some Media Life Most media execs on earnings calls are saying that the advertising market is "not getting worse." But analysts are quick to note that a real recovery won't kick in for a year or so. In addition, some media just aren't going to come back, notably newspapers and magazines. Disney CFO Skaggs Sells Nearly $2M in Shares Barron's Disney CFO Tom Staggs is selling 75,000 shares in the media company for $1.9 million -- a move seen as bad news for the stock of the parent of ABC and ESPN. Says one observer: "I would not want to be a buyer of Disney when the CFO is selling such a large percentage" of shares. NBC Universal Plugs Itself in New Commercial DHD NBC Universal, in an effort to celebrate its fifth anniversary, is debuting a 30-second spot "designed to showcase all of the diverse assets within the company's portfolio." The spot will run all NBCU channels, as well as on a video billboard in Times Square and in New York City taxicabs. Viacom: 'Star Trek' to Live Long, Prosper Bloomberg The new "Star Trek" film, from Viacom's Paramount Pictures, opened with $72.5 million in ticket sales, the best debut in the 11-movie franchise. The debut may pave the way for still more "Star Trek" films. The media giant is likely to reap additional revenue from spin-off consumer products. Murdoch Donates $5.5M to Harlem School New York Post News Corp. chief Rupert Murdoch is donating $5.5 million to the Harlem Village Academy, a high-performing school serving grades 5 through 10. Murdoch presented the donation at an Apollo Theater gala hosted by Hugh Jackman, with performances by John Legend and Patti LaBelle. Big Media, R.I.P.: The Conglomerate 'Has Died' Newsweek On April 29, Time Warner CEO Jeff Bewkes "officially announced the death of Big Media" by revealing plans to spin off AOL. And now, Time Warner magazine unit Time Inc. "has a funereal atmosphere about it." Synergy has "proved to be the most overhyped concept" in business. News Corp's Murdoch Vows to Control Content MarketWatch Rupert Murdoch, while reporting News Corp.'s flat Q3 earnings, says that his newspapers will begin to charge for online content within the year. He also vows that News Corp. will not feed its content to Amazon's Kindle. "We will control the relationship with our customers." Murdoch to Study Internet Content Platforms New York Post News Corp. is assembling a team of execs -- include chief Rupert Murdoch himself -- to devise a system to charge for content on the Web. The team is looking at creating a device akin to Amazon's Kindle to deliver content from News Corp.'s newspaper, television and movie units. Disney CEO Sees Signs of Economy Stabilizing Dow Jones Disney CEO Bob Iger says that he sees "some signs" that the U.S. economic climate is stabilizing, echoing recent comments from federal officials and economists. Iger made the comment following the announcement of the company's Q2 46% decline in profit. Redstone Aims to Avoid Viacom, CBS Share Sales Associated Press National Amusements, the theater chain controlled by Sumner Redstone, is restructuring its $1.46 billion of debt. The firm holds controlling stakes in Viacom and CBS. Redstone was forced to sell $230 million worth of shares in Viacom and CBS last fall. CBS Creates Group for Interactive Music Assets FMQB CBS is combining its digital music assets to form the new CBS Interactive Music Group, a business unit bringing together CBS Radio's music sites and audio streams, various mobile applications and the Last.fm site. The group will share "technology resources to realize cost efficiencies." Viacom, CBS: Who Will Succeed Redstone? Bloomberg Viacom/CBS boss Sumner Redstone, 85, says he has no plans to die. "I'm going to live forever," he declared at a conference last week. Should Redstone fail to achieve immortality, however, a trust committee will decide his successor. "It just isn't quite clear who that successor will be." U.S. Media Hope 'Slumdog' Thaws China New York Times American media giants are shifting their global expansion efforts from China to a India, a nation with less resistance to foreign media. But the success of "Slumdog Millionaire," which was filmed in India, is raising hopes that China, out of regional rivalry, could start to thaw. News Corp's 'Wolverine' Slashed by Piracy? Reuters A rough copy of "X-Men Origins: Wolverine" leaked onto the Internet may have kept some moviegoers away from the film's opening this weekend. But the true impact is hard to calculate. An exec with backer 20th Century Fox admits: "I don't know that we'll ever know" the effect. Disney's Iger Named No. 3 Highest-Paid CEO AP / NYT Disney's Bob Iger comes in at No. 3 ($51.1 million) on a list of the 10 highest-paid CEOs for 2008, according to an analysis of chief execs in the Standard & Poor's 500 index. Also: "My first boss at ABC told me I wasn't promotable," Iger says. "Clearly he had poor judgment." Viacom Seen Set for Management Shakeup Wall Street Journal With Viacom's advertising-revenue growth estimated to be underperforming its rivals, CEO Philippe Dauman may need to overhaul management at the media giant's cable networks, observers say, including the floundering MTV. More "drastic options" include replacing Dauman. News Corp, Hollywood May Smash Records Wall Street Journal Despite the recession, Hollywood appears to be on track for its best year ever at the box office. "X-Men Origins: Wolverine," opening from News Corp.'s 20th Century Fox, is likely to take in over $100 million this weekend, making it the biggest opening of the year so far. Redstone: I Will Never Leave CBS, Viacom Reuters / HR Sumner Redstone says he has no plans to step down anytime soon or give up his controlling positions in CBS or Viacom. "I have no intention of dying." Also, newspapers are one business "I'd never be in." Plus: CBS' "CSI" will "beat the hell out of" NBC's Jay Leno at 10 p.m. News Corp's Chernin Dismisses Viacom Talk LAT / Bloomberg Peter Chernin is keeping his cards close to his vest about his post-News Corp. plans, but dismisses talk that he is being wooed by Viacom. "Nothing, no conversations," says News Corp.'s president and COO. Also: The Internet "may cannibalize" the television industry, he warns. Disney Takes Stake in Hulu for ABC Shows Bloomberg Disney is acquiring a 27% equity stake in Hulu, gaining a new Internet outlet for television shows such as "Grey's Anatomy" and "Lost." Disney is joining NBC Universal and News Corp. as investors in the third most-watched video site. Hulu would welcome CBS, says CEO Jason Kilar. Viacom Says U.S. Ad Market Is Stabilizing Associated Press Viacom says its first-quarter profit fell 34%, hurt by falling advertising and entertainment revenue. But CEO Philippe Dauman is pointing to signs of an ad turnaround, a critical factor for the company's cable assets. "Over the past few weeks we have seen the ad market stabilize." Time Warner Eyes AOL Spinoff, Mag 'Shakeout' MarketWatch Time Warner says it expects to spin off one or more parts of AOL, which would remove the biggest piece of uncertainty for investors in the media giant. Time Warner is also in talks to buy back Google's 5% stake in AOL. Plus: The company's magazines will see a "shakeout." Murdoch Son Buys Into Aussie Broadcaster Australian Lachlan Murdoch's private investment outfit Illyria is taking a 9.1% stake in the Australian regional television group Prime Media. The stake is worth just over $16 million. Lachlan is the son of News Corp. chief Rupert Murdoch and is a director on the media giant's board. Disney to Plant 2.7 Million Trees for 'Earth' Associated Press Walt Disney Studios vowed to plant one tree in Brazil's endangered rain forest for every viewer who saw its nature documentary "Earth" during its first week of release. According to Disney, the box-office tally hit $16.1 million, which translates to 2.7 million trees. News Corp: 'Greed Is Good' for Film Sequel Associated Press News Corp.'s 20th Century Fox is signing up Oliver Stone to direct a sequel to his 1987 hit "Wall Street." Michael Douglas will reprise his role as Gordon Gekko, in a "timely story ripped from today's headlines." (But will the Wall Street Journal, a new corporate sibling, have a part in the movie?) Murdoch: Media Profits Squished by Internet Dow Jones Television and newspapers "absolutely" have a healthy future, says News Corp. chief Rupert Murdoch, speaking at the Milken Global Institute Conference. But the question remains how people will pay for the news, he adds. The Internet makes it "harder to make bigger profits in media as we know it." Time Warner May Be Near Resolution on AOL Bloomberg Time Warner may tell investors during its earnings conference call Wednesday it is close to a resolution on AOL that would unwind the failed 2001 merger and enable the company to focus on its content businesses, analysts say. "Amputating that AOL limb will be beneficial." Media Giants Hurt By Fewer Ads, Internet Dow Jones Diversified media companies continue to be plagued by declining advertising and a consumer shift to the Internet. The recession is slowing the growth of online advertising as well. Newspapers are in dire straits, and local television stations face many of the same problems. Media Stocks Rally Despite Elusive Ad Recovery Reuters In the past month, Time Warner and News Corp. shares have risen nearly 20%, while CBS has surged about 40%. Still, advertising is not yet showing signs of a comeback, and there is little consensus about when a turnaround will occur. Opinions on the matter are "all over the board." Old Media Is 'No Match' for Popular Obama Washington Times President Obama's communications handlers acknowledge that today's evolving media landscape works to their advantage. Both network television and newspapers are "bleeding" and are "less powerful." And Obama is "more popular" than all of the media "combined." TV Networks Peeved at Primetime Obama New York Post The major television networks are said to be unhappy with President Obama's frequent primetime speeches, which are costing them some $10 million per hour in lost advertising revenue. Their revenue models didn't "anticipate monthly State of the Unions." Viacom Investors May Call for New CEO Crain's New York Analysts are blaming Viacom CEO Philippe Dauman for everything from MTV's sagging ratings to the 44% fall in the company's share price since he started. Some investors say they hope that "someday a CEO will come along" who can get more out of the company's assets. CBS Chief Moonves' Salary Dropped in '08 Los Angeles Times CBS boss Les Moonves' overall compensation for 2008 was valued at about $32 million, compared with $36.8 million in 2007, according to the company's proxy report. CBS stock lost 70% of its value last year. Moonves has indicated he will not take a pay raise in 2009. Time Warner Mulls Bid for Midway Games Bloomberg Time Warner is said to be preparing a bid for Midway Games, the creator of the "Mortal Kombat" video games. Midway filed for bankruptcy in February, two months after Sumner Redstone sold his 87% stake. "Mortal Kombat" has inspired two movies, both from Time Warner. Time Warner Cable Eyes Acquisition of Joost CNET Joost, the beleaguered online video service, is said to be seeking a buyer and Time Warner Cable is one of the companies interested. Joost, which launched in 2007, has struggled with management shakeups and tech setbacks, and has fallen behind rivals YouTube and Hulu. Big Media Film Studios Hit by Poor DVD Sales Reuters Consumer demand for DVDs is forecast to fall further over the next five years as the maturing market transitions to digital distribution. Bankers say these trends could hamper future film financing at the major Hollywood studios. "It's a different era from four years ago." Media Bigs Networking During Lean Times Variety Media bigwigs in New York are relying on power lunches at Michael's and the Four Seasons — as well as social-networking sites — to stay in the game as industry jobs disappear. Media maven Bonnie Fuller says Facebook and Twitter give users "an opportunity to connect." Hollywood Bloggers, Twitterers Vie for Power New York Observer Twittering actors and industry bloggers are threatening the role of the once mighty Variety as the premier source for Hollywood news. Nikki Finke's blog is "the one to beat right now." Still, actors, directors and producers are bypassing the press — and blogs — via Twitter feeds. News Corp Exploring MySpace CEO Options TechCrunch MySpace CEO Chris DeWolfe and co-founder Tom Anderson are reportedly paid an aggregate of $30 million a year. Their contract with News Corp. expires this October and must be renegotiated soon. A top headhunting firm is said to be scouring for possible replacements. Martha: Co-CEO Millard Not a Good Thing New York Post Wenda Harris Millard, co-CEO of Martha Stewart Living Omnimedia, is stepping down to join advisory firm MediaLink, after less than a year in the position at the lifestyle media company. A rift reportedly developed between Stewart and Millard over "control issues." Report: Media Growing More Fragmented World Screen Consumers worldwide are watching more content on a greater number of platforms than they were a year ago, according to a survey by Accenture. Content providers "face an urgent need to respond to changing consumption habits — or face playing catch-up." Viacom CEO Bashed in Analyst Report Multichannel News Pali Research analyst Rich Greenfield is downgrading his rating on Viacom from "buy" to "neutral," citing CEO Philippe Dauman's "poor decision-making." Viacom is wasting its time in its Google lawsuit, and should be trying to "figure out how they can make money online." Murdoch Son to Deliver Keynote Lecture Guardian James Murdoch, chairman and CEO for News Corp. in Europe and Asia, is to deliver the MacTaggart Lecture at the MediaGuardian Edinburgh International Television Festival in August. The 36-year-old is seen as the heir apparent to his father's News Corp. empire. CBS Chief Moonves, Chen Expecting Child New York Post CBS boss Les Moonves and wife Julie Chen are expecting a child. Moonves, 59, who married Chen, 37, four years ago, has three grown children from his first marriage. Chen, who is due to give birth in October, will have to take maternity leave from "The Early Show" and "Big Brother." Murdoch Empire Slighted by Investors BreakingViews.com Shares of Rupert Murdoch's News Corp. are trading at a "notable" discount to their component parts. However, a boost "might come only if the boss's advancing age changed his outlook — or led the board to appoint a successor less attached to some of the company’s assets." Media Earnings to Remain Challenged Broadcasting & Cable First-quarter results for several major media companies, to be announced in the coming days, are expected to reflect the continuing advertising slowdown. "It's not getting any better," says one analyst. "If you own a TV station or radio or outdoor or a newspaper, it's bad." Viacom Execs Get Raises as Stock Falls Los Angeles Times Although Viacom's stock lost half its value in 2008, chairman Sumner Redstone was compensated $12.1 million, up from $8.3 million in 2007. CEO Philippe Dauman earned $23 million, up $3 million. One executive compensation monitor gives Viacom a D grade. NBCU Profit Plummets -- Despite 'Chuck' MarketWatch / Ad Age NBC Universal's profit plunged 45% in the first quarter, hurt by declines in advertising sales at its television stations and higher network programming costs. Also: NBC is facing criticism for the Subway "$5 foot-long" advertising message in the script of the sitcom "Chuck." Comcast Chief Denies Threatening NFL Bloomberg Comcast CEO Brian Roberts says he didn't threaten the National Football League after he lost a bidding war for rights to live games, as alleged by the NFL. The real issue: the NFL's claim that Comcast illegally moved the network to a package that costs extra and gets few viewers. Disney Introduces First Black Princess Washington Post Disney's "The Princess and the Frog," set for release in November, will feature the company's first-ever black princess. The lead character, Tiana, is "a beautiful black princess from New Orleans." Her appearance comes with Michelle Obama's emergence as the nation's first lady. Actors Union Contract Nixes Web Rerun Pay Los Angeles Times The Screen Actors Guild, ending a nine-month stalemate with Hollywood studios, is approving a new film and television contract that establishes payments for shows streamed over the Web. However, the contract does not give actors residuals for most Internet shows, a sore point. AOL: Time Warner Gets OK for Sale, Spin-Off Reuters Time Warner's bondholders have agreed to change the terms of their debt contracts, removing restrictions on a sale or spin-off of its beleaguered Internet unit AOL. Time Warner CEO Jeff Bewkes has said he is examining options for the future structure of AOL. Martha Gets Pay Boost as Firm Sputters Wall Street Journal Martha Stewart Living says it will pay founder Martha Stewart at least $2 million a year for the next three years, in addition to a signing payment and a likely bonus, in a new contract renewal. The company has posted operating losses for four out of the last five years. Media Vets Eye Web Journalism for Pay New York Times Steve Brill, Gordon Crovitz and Leo Hindery Jr. are starting a company, Journalism Online, aiming to build a system to allow newspapers and magazines to charge for online access. For unlimited subscriptions, the firm is "playing with a figure of $15 a month." Murdoch Starts Content-Sharing Initiative Wall Street Journal News Corp. is forming a content sharing initiative that will allow its worldwide editorial properties to share resources. John Moody, the head of editorial operations for News Corp.'s Fox News Channel, will oversee the new unit. Moody will work to "identify areas of cost savings." Media Giant Stocks Forecast to 'Turn Ugly' Hollywood Reporter Shares of Disney, Time Warner, News Corp. and other media giants are seeing gains. But Wall Street analysts warn: "The rally will meet resistance once the market realizes that the first-quarter results are below consensus." Within a few months, "things turn ugly again." Time Warner CEO Gets $21.5M Pay Package Associated Press Time Warner CEO Jeff Bewkes was awarded compensation in 2008 valued at about $21.5 million, according to an Associated Press tally of data filed with regulators. That figure is up 11% from a year ago, as the company cut costs and moved to shed assets such as its cable unit. Disney vs Time Warner on Online TV Models New York Post Disney CEO Bob Iger and Time Warner CEO Jeff Bewkes are at odds about the model for offering television shows online. Disney, which owns broadcaster ABC, plans to make TV shows available for free; Time Warner, which owns cable channels, supports a pay model. Disney's Iger Beats Murdoch in CEO Pay New York Times Disney CEO Bob Iger is ranked as the third-highest paid CEO at a publicly traded company, according to a study by the New York Times. Iger earned $51.1 million in 2008, up 85% from 2007. News Corp. CEO Rupert Murdoch comes in at No. 8, with $30.1 million last year. Time Warner May Spin AOL, Buy Video Games Variety Time Warner is making moves that could pave the way for a spin-off of its beleaguered AOL unit. Some fund managers speculate that the media giant will try to buy video-game makers Electronic Arts or Take-Two Interactive. Games are "the fastest-growing industry in the media field." News Corp Film Leak Sparks Anti-Piracy Push Bloomberg Hollywood is seeking tougher U.S. anti-piracy enforcement following the illegal posting of News Corp.'s summer film "X-Men Origins: Wolverine" on the Internet last week. Says Disney studios chief Dick Cook: Piracy could "eliminate entire legitimate markets." Blockbuster May Not Be Able to Stay in Business Associated Press Movie rental company Blockbuster says the risk that it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern. The Dallas-based Blockbuster is struggling amid the rising popularity of DVD-by-mail services like Netflix. Sony, YouTube in Talks Over Feature Films CNET YouTube is said to be in talks to acquire licensing rights to full-length content from Sony Pictures, home of such films as "The International" and "Spider-Man." Google's video-sharing site appears to be aiming to become a player in Hollywood as online video is booming. Disney to Cut 1,900 Jobs at Theme Parks Los Angeles Times Disney is eliminating about 1,900 jobs in its U.S. theme parks. The media and entertainment giant employs about 80,000 people in its parks and resorts unit. The cuts signal that Disney is bracing for an extended downturn as consumers continue to keep their wallets closed. Murdoch Issues 'Fightin' Words' to Google Forbes Rupert Murdoch, in public remarks, is accusing Google of poaching content it doesn't own and urging media outlets to fight back. Murdoch's comments may be a "precursor to a lawsuit that would bring Google to the bargaining table," observers say. "Murdoch wants to be paid." Big Media: How to Make Consumers Pay? New York Times From television networks selling downloads of shows, to music companies trying to curb file-sharing, to struggling newspapers, the make-or-break question is this: How do you get consumers to pay for something they have grown used to getting free? Time Warner 'Probably' Won't Sell AOL CNBC Time Warner "probably" won't sell AOL, says CEO Jeff Bewkes. "Making it independent, maybe." Talk of a Time Warner merger with NBC Universal is "mostly wishful thinking" at NBC, he adds. Also, the company's struggling magazine business "might be better off private." News Corp Investing in Larger Mobile Device Dow Jones News Corp. chief Rupert Murdoch says his company is investing in a mobile device for reading newspapers on a larger screen than the typical handheld device. The project, which is in its early stages, represents a potential solution to the problems ailing publishers, he says. Murdoch Glum on Economy, Free Web News Dow Jones Rupert Murdoch says he doesn't see the global economic crisis easing anytime soon. He adds that the free online news model is "going to have to change" and questions whether newspapers should allow Google and other aggregators to continue "stealing all our copyrights." Time Warner: Can't 'Blow Up' Cable Model MarketWatch Time Warner CEO Jeff Bewkes is defensive of the company's "TV Everywhere" premise. The industry "can't just blow up the revenue structure" that cable operators and programmers have come to rely upon by continuing to stream shows free online to people who don't pay. Viacom CEO Sees No Backlash to Web Pay MarketWatch Viacom CEO Philippe Dauman says that there is unlikely to be a negative consumer backlash against the Time Warner-led "TV Everywhere" plan. "People are used to paying for video subscriptions. They're used to paying for broadband service, so there's nothing new there." Disney CEO: Pays Walls Are 'Anti-Consumer' Dow Jones Disney CEO Bob Iger has reservations about walling off online content on a subscription basis, particularly content from broadcasters like ABC, which he notes is free over the air and depends on advertising. Such a move "could be viewed as anti-consumer." Warner, Sony Take On CBS, Clear Channel Bloomberg Music labels and radio broadcasters are going toe-to-toe as they lobby U.S. lawmakers about legislation to make stations pay royalties for playing songs. Music labels and radio stations are both struggling as listeners turn to the Internet and devices such as the Apple iPod. Media Deals at Lowest Levels in 10 Years BtoB The value of mergers and acquisitions in media fell to a record low of $1.3 billion in the first quarter, according to Jordan, Edmiston Group. The media investment bank, however, says it is "starting to see a bit of sunlight at the end of the tunnel." Fox Scrambles to Yank Pirated 'Wolverine' Entertainment Weekly A DVD-quality print of Hugh Jackman's "X-Men Origins: Wolverine" is being pirated and leaked onto the Internet. News Corp.'s 20th Century Fox, the film's distributor, is enlisting the FBI to investigate the crime. "Wolverine," a major summer film, is due to open in theaters May 1. Big Media: All Conglomerates See Declines Hollywood Reporter Stocks in the media and entertainment sector are continuing to have a tough time. Time Warner, News Corp., Disney, Viacom, CBS -- all are seeing share declines in 2009. According to one analyst: "Essentially everything is going wrong at the same time." Time Warner No Longer No. 1 Media Company Bloomberg Time Warner's spinoff of its cable division dropped the owner of Time magazine and Warner Bros. to third place among U.S. media companies, following after Disney and News Corp. Analysts say: "It's better to be Disney than a company that's a third of the size like Viacom." Disney Buys Kaboose Family-Oriented Sites Los Angeles Business Disney Online is acquiring several family online sites from Toronto-based new media outfit Kaboose for $18.4 million. The sites, which include Kaboose.com, Babyzone.com and AmazingMoms.com, will become part of Disney's existing family properties. News Corp Names Miller as Digital Chief Reuters News Corp. is officially naming former AOL CEO Jon Miller to supervise the media conglomerate's digital strategy. Rupert Murdoch's media company also says that 20-year veteran Peter Levinsohn will be the head of new media and digital distribution at Fox Filmed Entertainment. Time Warner Cable Eyes Internet Usage Pricing BusinessWeek The newly spun-off Time Warner Cable will impose premium rates on big users of broadband in Web markets in Texas, New York and North Carolina. "We need a viable model to be able to support the infrastructure of the broadband business," says CEO Glenn Britt. Viacom/CBS Chief Redstone Eyes Chernin DHD Viacom/CBS boss Sumner Redstone is denying rumors that he is talking to Peter Chernin about replacing Philippe Dauman as his No. 2 exec. "Chernin is from the creative side, and Dauman isn't," says a source. Chernin is to step down as Rupert Murdoch's No. 2 at News Corp. Comcast Seeks Hearst's Stake in NECN Boston Globe Comcast, the largest U.S. cable provider and half-owner of New England Cable News, is in talks to become the sole owner of the regional 24-hour news network. Hearst, which co-owns the 17-year-old NECN, is expected to sell its half to the cable giant. Time Warner, Abu Dhabi in Talks to Revamp BusinessWeek Time Warner's Warner Bros. is in talks with Abu Dhabi Media to restructure a $1 billion agreement to build a theme park and movie theaters. The two sides are "not close to a resolution." The theme park is being redesigned and won't break ground this year as planned. CBS Falls After UBS Cut on Deeper Ad Slump Bloomberg CBS dropped the most in four months in New York trading Monday after UBS analyst Michael Morris recommended selling the shares because the advertising slump may be deeper and longer than expected. Industry-wide ad sales in 2010 will be "very similar" to this year. Disney Pacts with YouTube; Hulu Deal Near Bloomberg Disney is entering a deal to put video clips from ABC and ESPN on Google's YouTube in an advertising-revenue sharing arrangement. Disney also is near an agreement to take a stake in rival video portal Hulu, whose owners include NBC Universal and News Corp. S&P Cuts Time Warner to Near Junk Status Dow Jones Standard & Poor's is cutting its ratings on Time Warner to two steps above junk after the separation of Time Warner Cable, citing the loss of the company's "most predictable" growth source. The move also reflects the "underperformance at AOL and publishing." Time Warner to Test HBO on the Internet New York Times Time Warner Cable is testing a subscription service in Milwaukee for online television viewing. Residents who pay for HBO can watch entertainment programs from the Time Warner pay channel on their computers, using special software and a personal log-in. News Corp Hires Former AOLer for Digital DHD Jon Miller, the former CEO of Time Warner's AOL, is joining News Corp. in a newly created role as CEO of digital media, reporting to chief Rupert Murdoch. Peter Levinsohn, the head of News Corp.'s Fox Interactive Media, will return to the Fox studio with a promotion "in a big job." Murdoch Daughter Bests Siblings in Media Sydney Morning Herald Elisabeth Murdoch is launching an international expansion of her television production company, Shine, in a move that could see her beat her brother Lachlan in building a media business in Australia. The London-based Shine is setting up offices in Munich and plans more global outposts. Disney Said to Eliminate 800 'Cast Members' WKMG Nearly 800 jobs are being eliminated at Disney's Walt Disney World resort in Orlando, sources say. Disney, which employs about 62,000 "cast members" in Central Florida, is making cuts as the company reorganizes its domestic operations. More layoffs are expected. Hulu, Disney in New Talks Over Equity Stake Los Angeles Times Disney is negotiating with longtime rivals News Corp. and NBC Universal to take an equity stake in their video portal venture Hulu. In exchange, Disney would provide episodes of ABC shows to Hulu. Disney has "got to go where the people are." Redbox Seen as Hollywood's Latest Threat Los Angeles Times / HR Redbox movie kiosks are popping up by the thousands across the U.S. The kiosks stock DVDs that rent for $1 a day, which Hollywood fears could undermine industry economics by undercutting sales. Also: Redbox is "really scary," says Netflix founder Reed Hastings. Hollywood: Reshaping Old Business Models Washington Post Thanks to the Internet, the U.S. film, television and electronic gaming industries are starting to see their economic foundations overturned, observers say. In Hollywood, "there is a sense that it may all be coming to an end and that the old business models can't survive." Theaters Add 3-D for DreamWorks' 'Monsters' Bloomberg Theater owners are completing 3-D technology upgrades for Friday's opening of "Monsters vs. Aliens," the new DreamWorks Animation movie. Hollywood will release more than a dozen 3-D films this year, hoping to offer "something that cannot be achieved at home." Redstone Begins Sale to Save Viacom, CBS Wall Street Journal Sumner Redstone's family holding company, National Amusements, is said to be kicking off an auction to sell parts of its movie-theater chain. The move aims to pay down debt and help Redstone avoid having to sell some or all of his controlling stakes in Viacom and CBS. Martha Stewart Hires CFO from Time Warner Dow Jones Martha Stewart Living Omnimedia is hiring Time Warner exec Kelli Turner as CFO. She succeeds Howard Hochhauser, who left at year's end for the parent firm of Ancestry.com. At Time Warner, Turner was senior VP of operations in the office of the chairman and CEO. Media Companies Falling Behind in Digital Space World Screen A new study from IBM reveals a "growing rift" between advertisers, consumers and content owners, as media companies "struggle to keep pace" with the new demands of tech-savvy audiences. IBM is calling on traditional media to make "fundamental" changes. Time Warner: Tech, Succession Stress at Studio Los Angeles Times Time Warner CEO Jeff Bewkes must decide how to replace Barry Meyer and Alan Horn, who preside over the company's Warner Bros. studio and are to step down in 2011. Bewkes also must grapple with a business that is being undercut by new technologie