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Monday, April 30, 2012

Kermit Booked for Illegal Advertising on German TV

Kermit the Frog Rainbow Connection - P 2011

COLOGNE, Germany - Kermit has run afoul of Germany's media authorities. ZAK, the federal commission charged with regulating the German airwaves, found Kermit guilty of illegal product placement in an appearance last year on commercial network Pro7.

The channel used the famous frog to present its so-called Disney Day of programming, which featured several family-friendly films. But Kermit also mentioned the theatrical release of Disney's The Muppets. Because the promo was not marked on screen as an ad, Pro7 violated German media law, which bans product placement unless clearly identified as such.  Pro7 has admitted the error.

In its most recent session, the ZAK also ruled against pay TV group Sky Deutschland for showing ads of sports betting site bwin during its broadcasts of German league soccer matches. Sky violated the German ban on gambling ads on television, ZAK ruled. Sky has argued the gambling ban does not apply to on air references to bwin, which are not traditional ad spots.

The media commission can not directly fine broadcasters for breaking advertising laws, so it is unclear whether the violations will have any legal consequences.


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Sunday, April 29, 2012

News Corp. CEO Rupert Murdoch Discusses Political Influence, Media Regulation, Twitter Comments

LONDON - News Corp. chairman and CEO Rupert Murdoch on Wednesday downplayed his political influence, expressed his continued admiration for former conservative Prime Minister Margaret Thatcher, reiterated he was against too much media regulation and told a media ethics panel to not take all his tweets seriously.

He said he has "never asked a prime minister for anything," he said about his influence in British politics. He also said: "I take particularly strong pride in the fact that we have never pushed our commercial interests in our newspapers."

Murdoch, dressed in a dark suit and a blue tie, made his comments early Wednesday as he started giving evidence in front of the U.K.-government funded Leveson Inquiry into media ethics and standards. Led by Judge Brian Leveson, the panel has probed the British media’s relationships with politicians, police and the public.

Murdoch said he welcomed the inquiry. "The state of media in the country is of absolute vital interest to all citizens," he said, denying that he was upset at Prime Minister David Cameron, long seen as a political ally. "There have been some abuses shown. I would say there are many other abuses."

Asked if he was an admirer of Thatcher, Murdoch said yes. "And I remain a great admirer." Questioned about the support Thatcher got in 1979 from his tabloid, The Sun, as she looked to win the elections, Murdoch said: "I think we all wanted change."

Asked about his stance on media regulation, Murdoch said: "Clearly there are necessary rules…but they can't be overdone."

Questioned about his legendary media business instincts, he said: "Sometimes I've been right, sometimes I've been wrong - at great cost." Faced with the suggestion that he has a great aura or charisma that he uses to influence editors and politicians, Murdoch said: "I don't think I have any aura." While he always hopes that editors would appreciate and follow his basic line. Does he do it by any aura or charisma? "I don't think so," he said.

Asked about acid recent Twitter comments against political enemies, Murdoch said: "Don't take my tweets too seriously." The comment drew some laughs from reporters.

More laughs came when Murdoch was asked about his fight against the U.K. newspaper unions and was asked about his will to battle them. "I did not have the will to crush the unions," he replied. "I might have had the desire," but it took him a few years to succeed.

The discussion then turned to Murdoch's involvement in his company's newspaper business. Among other things, he said he had little personal involvement with the News of the World, focusing more on The Sun, which he said has never been better. "I couldn't say the same about my competitors," he added. Murdoch also suggested that people who want to judge his thinking should look at The Sun.

Asked to explain the core values of his newspapers, he said it was to tell the truth and get the attention of the public. "I have great respect for the British public," he said.

He shrugged off suggestions that he gave instructions on how to cover politics to his newspaper editors. The firing of Times editor Harold Evans came as some staff warned of a rebellion at the paper, he said. Evans once asked him for input, to which Murdoch replied that was not his job, simply urging him to be consistent and not change sides too much, according to Murdoch.

But he did admit to sometimes calling his editors to find out what was going on - out of curiosity. "I'm not good at holding my tongue," he also acknowledged in that context.

Murdoch arrived at the Royal Courts of Justice here for the hearing on a rainy London morning. He is believed to have prepared for the appearance with the help of advisers, including Joel Klein, the former New York City Schools Chancellor who joined News Corp. last year as executive vp and member of the Office of the Chairman.

On Tuesday, News Corp. deputy COO and Murdoch son James Murdoch told the panel that he was assured that the phone hacking situation was under control when he took over the conglomerate's U.K. newspaper unit in 2007 and that he didn't have much interaction with British politicians, even when the conglomerate tried to acquire full control of BSkyB. He also reiterated previous comments that his staff kept key information from him.

His father was scheduled to be questioned in a Wednesday session from 10 a.m. to 4:30 p.m. London time, including lunch and other breaks. He may have to return for more questioning on Thursday. Murdoch last July spoke in front of a parliamentary committee investigating phone hacking, telling it that the appearance made for the "most humble" day of his life.  

His Leveson appearance, which started just after news that the U.K. economy had fallen back into recessionary territory in the first quarter with a gross domestic product decline of 0.2 percent, drew a little more interest than his son's, with more members of the public lining up to follow the proceedings from inside the Royal Courts. Outside the building, about a dozen protesters from the National Union of Journalists London Photographers' branch weathered the rain. They brought signs saying "Not Fit," a reference to suggestions from critics that News Corp. was not fit to continue owning its stake in pay TV firm BSkyB. One protester held a caricature depicting Murdoch and Cameron.

Meanwhile, the Daily Telegraph reported that a U.K. shareholder called Local Authority Pension Fund Forum has teamed up with the Christian Brothers Investment Service to file a motion calling for News Corp. to oust Rupert Murdoch from his chairman role and appoint an independent chairman to deal with what they called a "lax ethical culture and lack of effective board oversight."

After a break to give the shorthand note taker a rest and allow attendees a break, the questioning resumed, focusing on Murdoch, his papers and the political influence they exert.

Jay referred to comments made by Lord Heseltine who expressed dismay in 1992 at attempts by politicians to curry favour with media proprietors.

Murdoch said he "never lets commercial considerations" enter into thinking about which political parties his papers back at general elections. He went on to say that he doesn't know many politicians.

"Our approach to public affairs is to take issues by issues," said Murdoch. And he went further claiming he was  oblivious to the commercial benefits to his company of a particular political party winning an election.

"I have no commercial interests except the newspapers. I love newspapers,"  Murdoch said referring to News International and his ownership in the U.K. of The Times, The Sun, the now closed News of The World.

Pressed by Jay on the commercial issue, Murdoch said: "they [shareholders] would like me to get rid of them all [his newspapers]".

Email: Georg.Szalai@thr.com

Twitter@ georgszalai


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Friday, April 27, 2012

'Tangled' Tops $150 Million at Domestic Box Office

Tangled

Disney's Thanksgiving film Tangled has transformed into the gift that won't stop giving, jumping the $150 million mark this week at the domestic box office and keeping up with newer Christmas family offerings.

Tangled grossed $3.6 million on Tuesday from 2,582 theaters for a cume of $150.6 million in its fifth week.

Disney's Tron: Legacy registered its own milestone Tuesday as it became the first Christmas film to cross the $100 million mark domestically. Overseas, the pic has brought in roughly $75 million for a worldwide total of $175 million.

Tron is a solid performer, but it hasn't broken out to the extent Disney might have liked beyond its core fanboy base.

Conversely, Tangled has done far more business than anyone predicted. Most had expected the film to gross $125 million domestically. Now, the movie is expected to reach $175 million.

It's probably no coincidence that Tangled is the only film of the year to receive a glowing A+ from CinemaScore. With that kind of grade, Tangled is being fueled by great word-of-mouth.

On Tuesday, Tangled came in No. 6 for the day to beat Fox's disappointing Christmas entry Gulliver's Travels, which grossed $2.9 million from 2,546 theaters for a four-day cume of $11.9 million. Gulliver's placed No. 7.

Tangled came in just behind Fox's The Chronicles of Narnia: The Voyage of the Dawn Treader, which grossed $3.7 million for a cume of $69.8 million.

Warner Bros.' Christmas kids pic Yogi Bear placed No. 4, grossing $4.4 million for a cume of $49 million.

Universal's Little Fockers, which brought in $7.8 million for a cume of $61.3 million, continued to top the domestic box-office chart.

Paramount's True Grit swapped places with Tron to come in No. 3 Tuesday, grossing $6.1 million for a cume of $49.3 million.


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Thursday, April 26, 2012

U.K. Cable Operator Virgin Media Posts Higher First-Quarter Financials

Virgin Logo - H 2012

LONDON - U.K. cable operator Virgin Media, in which entrepreneur Richard Branson owns a small stake, on Wednesday reported improved first-quarter financials as it continued to grow its subscriber base.

Virgin's earnings for the opening quarter of 2012 more than doubled to £7 million ($11.3 million) from £3 million, and operating profit increased by 18 percent to £131 million ($211.4 million). Operating cash flow didn't see much of a change though as the company spent more on advertising, including a TV spot touting the speed of its broadband service that featured sprinter Usain Bolt and founder Branson. Revenue rose 2.4 percent to £1.0 billion ($1.6 billion).

Net cable customer additions of 21,200 reflected improved customer churn and compared with 20,200 in the year-ago period, the company said. It ended March with a total of nearly 4.83 million consumer cable customers.

Virgin again benefited from a relationship with DVR pioneer TiVo. The cable operator's TiVo customer base grew by 242,000 to 677,100 in the latest period, or 18 percent of its TV user base. And the company also saw its broadband customers grow.

"In the first quarter of 2012, we've made steady progress against our strategy," said CEO Neil Berkett. Demand for super-fast broadband and TiVo, the U.K.'s first mass-market connected TV service, continued to gather momentum."

He added: "We have seen an increase in [average revenue per user] and greater customer loyalty with our best subscriber retention for two years, and this has reinforced our confidence that people increasingly appreciate the value of a genuinely next generation digital experience."

Email: Georg.Szalai@thr.com

Twitter: @georgszalai


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Wednesday, April 25, 2012

Apple Posts $11.6 Billion Quarterly Profit on Sales of $39.2 Billion

Apple Shares iPad Stock Market iPhone - H 2011

Apple blew past expectations by reporting Tuesday that it earned $11.6 billion in its fiscal second quarter on revenue of $39.2 billion.

On a per-share basis, Apple earned $12.30, up from $6.40 a year earlier and much better than the $10.02 analysts had predicted.

PHOTOS: Apple Products in TV and Movies

Apple shares were surging 7 percent, or $38, in the after-hours session after having lost 2 percent to $560.28 during regular trading.

In the year-ago quarter, Apple posted a $6 billion profit on $25 billion revenue.

One slight disappointment in the earnings release was that Apple sold slightly less than 12 million iPads during the quarter; that's a 151 percent increase over a year ago, but some analysts were expecting something closer to 13 million, given the astonishing popularity of the tablet computer.

Apple CFO Peter Oppenheimer said during a conference call with analysts that there were only about 2 million iPads in inventory, which is below the company's target of four to six weeks worth of sales, so the insinuation is that there certainly is no shortage of consumers who plan on purchasing an iPad in the weeks ahead.

Apple said it sold 35.1 million iPhones during the quarter, an 88 percent leap over last year, and 4 million Mac computers, up 7 percent. Apple sold 7.7 million iPods, which was 15 percent lower than the same quarter a year ago.

Also on the conference call, CEO Tim Cook said China contributed $7.9 billion in revenue during the quarter, more than three times what it contributed a year ago even though the iPad has not yet shipped to Greater China. "It's mind-boggling that we could do this well," he said.


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