Number one blog for finding anything that has to do with the law. Read up on the law and know your rights. Labor Laws, Wage Laws, Contract Laws, and anything else that has to deal with justice and rights.
Monday, July 29, 2013
Media Decoder: Outcry Against a Tooth Fairy Web Site
Tuesday, July 23, 2013
Media Decoder: Weinstein Company Loses Appeal to Use Movie Title ‘The Butler’
Eliot Spitzer promises to spend plenty on the race for New York City comptroller without revealing where it comes from.
Mark Kozelek shares a song about his mom, who cleaned his ears, dropped him off at rehab and helped him buy a Les Paul.
Sunday, July 21, 2013
Media Decoder: Weinstein Company Loses Appeal to Use Movie Title ‘The Butler’
Eliot Spitzer promises to spend plenty on the race for New York City comptroller without revealing where it comes from.
Mark Kozelek shares a song about his mom, who cleaned his ears, dropped him off at rehab and helped him buy a Les Paul.
Wednesday, June 26, 2013
Media Decoder: The Other Snowden Drama: Impugning the Messenger
Tuesday, June 25, 2013
Media Decoder: Hollywood’s Passion for Guns Remains Undimmed
Tuesday, June 4, 2013
Media Decoder: Apple Is Said to Be Pressing to Complete Deals for Internet Radio
News from the technology industry, including start-ups, the Internet, enterprise and gadgets.On Twitter: @nytimesbits.Apple’s service, a Pandora-like feature that would tailor streams of music to each user’s taste, has been planned since at least last summer. But Apple has made little progress with record labels and music publishers, which have been seeking higher royalty rates and guaranteed minimum payments, according to these people, who spoke anonymously about the private talks. While it is still at odds with some music companies over deal terms, Apple is said to be eager to get the licenses in time to unveil the service — nicknamed iRadio by the technology press — at its annual developers conference, which begins June 10 in San Francisco. Apple has signed a deal with the Universal Music Group for its recorded music rights, but not for music publishing — the part of the business that deals with songwriting. Over the weekend, Apple also signed a deal with the Warner Music Group for both rights. It is still in talks with Sony Music Entertainment and Sony’s separate publishing arm, Sony/ATV, whose songwriters include Taylor Swift and Lady Gaga. Representatives for Apple and the music companies declined to comment. Apple’s Internet radio feature is expected to be free and supported by advertising, and would represent a relatively late arrival by the company into what has become a fast-growing — if low-margin — sector of the music business. Pandora has more than 70 million regular users, the vast majority of whom do not pay, and similar features have been introduced by Google, Spotify and the radio company Clear Channel Communications. The licensing fees paid by Pandora have been a sore spot for music companies, which see promise in Apple’s service, particularly since it can be linked to sales through Apple’s iTunes store, but want higher rates. Publishers, for instance, are paid about 4 percent of Pandora’s revenue, but want as much as 10 percent from Apple. Apple is said to be negotiating directly with the music groups because it wants more extensive licensing terms.
Monday, June 3, 2013
Media Decoder: Defying Naysayers, ‘Gatsby’ Proves a Box-Office Winner
Wednesday, May 15, 2013
Media Decoder: Equestria Girls, a My Little Pony Offshoot, in Its Movie Debut
Tuesday, May 14, 2013
Media Decoder: Snooping and the News Media: It’s a 2-Way Street
Sunday, March 24, 2013
Media Decoder Blog: At The New Republic, Even Firings Enter the Digital Age
Just one year after the Facebook co-founder Chris Hughes bought The New Republic, the magazine confirmed it had fired one of its top editors.
Timothy Noah, a former Slate reporter and senior editor at The New Republic, posted a tweet on Friday afternoon that read, “I just got fired from @tnr. Don’t have a clue why. Anybody got a job?”
Franklin Foer, the magazine’s editor, confirmed through a spokeswoman that Mr. Noah had been fired. He added in a statement “Tim Noah has been a strong voice for liberalism and a rigorous columnist for The New Republic. We’ve appreciated his passion and contribution to the magazine over the past two years and wish him the very best.”
Mr. Hughes, who has spent the last year revamping the near century-old publication, started to reconfigure its masthead last May. He lured back Mr. Foer to replace the magazine’s editor at the time, Richard Just. Since then, Mr. Hughes has been courting new writers to the magazine, including Walter Kirn, the author of “Up in the Air,” and Judith Shulevitz, a former editor of Lingua Franca. In January, Mr. Hughes unveiled a redesign that featured an exclusive interview with President Obama. This week, Mr. Foer said the magazine had passed the 50,000 mark for its circulation, which is a 43 percent jump from the year before.
While Mr. Noah did not respond to a request for comment, his friends on Facebook and Twitter voiced their support. One wrote, “You did nice work there. You’ll do nice work in your next gig. There’s no shame in getting fired. It happens to me all the time.”
Sunday, March 3, 2013
Media Decoder Blog: Bertelsmann Acquires Full Control of BMG Music Company
Carlos Alvarez/Getty Images Will.i.am of the Black Eyed Peas is among the artists in BMG’s million-song music catalog.8:41 p.m. | Updated
Bertelsmann, the 178-year-old German media giant that has been trying to remake itself for the digital age, announced on Friday that it would take control of BMG Rights Management, the music company it restarted in 2008, in a deal that values BMG at $1.4 billion.
Bertelsmann said it would buy the 51 percent of BMG that it did not own from its partner in the venture, Kohlberg Kravis Roberts. The companies did not disclose financial terms, but a person with direct knowledge of the deal, who spoke on the condition of anonymity, said the purchase price was $700 million to $800 million, including the assumption of debt.
The deal signals a full return to the music business for Bertelsmann, whose other media properties include Random House and the magazine publisher Gruner & Jahr. After building the first incarnation of BMG, which stood for Bertelsmann Music Group, into a global powerhouse in the 1980s and ’90s, Bertelsmann sold most of its music holdings through a series of deals with Sony and Universal in the mid-2000s.
“We are bringing the music home to our group,” Thomas Rabe, Bertelsmann’s chairman and chief executive, said in a statement.
BMG was revived in 2008, and the next year, K.K.R. made the first of its $270 million of investments in the company. BMG has made a string of acquisitions in music publishing, the side of the business that deals with copyrights for songwriting, and built a catalog of more than one million songs by artists like Johnny Cash, Carly Simon and Frank Ocean and Will.i.am of the Black Eyed Peas.
“We saw that music was going to make a comeback,” Philipp Freise, a K.K.R. partner who directs its European media business, said in an interview. “Everybody said music was going to die, but we said music will not die — it will grow.”
K.K.R.’s exit after four years was not unusual for it as an investor. But some analysts said they believed that the sale could have been precipitated by BMG’s losing out on some of the biggest music auctions of the last couple of years, including Warner Music, EMI and, most recently, the Parlophone Label Group, a part of EMI that it divested itself of. (BMG has also bought some recorded music assets.)
Stressing efficient administration and the licensing opportunities of a largely digital business, BMG has been a bright spot for Bertelsmann. Mr. Rabe has said that he expects BMG’s annual revenue to grow to more than $640 million in the next four to five years, up from about $390 million in 2012.
Bertelsmann is also in the process of merging its Random House publishing unit with Penguin, a division of Pearson, creating the world’s largest book publisher. And in January, Bertelsmann said it wanted to sell part of its stake in the broadcasting subsidiary RTL to help finance more digital expansion.
“Like any traditional media company, they need to find a digital story for the future,” said Alice Enders, a media analyst at the research firm Enders Analysis in London. “In music, once you scrap out the cost of physically producing and distributing content, what you have is a pure copyright exploitation model. That’s what BMG Rights Management is all about.”
Hartwig Masuch, BMG’s chief executive, said in an interview that with Bertelsmann as its sole owner, the company could be “more aggressive moving forward” in developing its business, particularly with more recorded music rights.
“What we initially envisioned for BMG was an integrated rights company based on nontraditional models,” he said. “The old world was about complex distribution structures. Now you can license multiple users and distributors. The key is not infrastructure but how good are you at monetizing and accounting for those rights.”
Wednesday, February 27, 2013
Media Decoder: Glenn Beck Begins Campaign to Urge TV Systems to Add His Web Channel
8:48 a.m. | Updated Glenn Beck is beginning a campaign to get his Internet channel, TheBlaze, onto cable and satellite television systems across the country, and the one system that already carries the channel, Dish Network, is backing him up.
The campaign will begin on Monday when Mr. Beck starts promoting GetTheBlaze.com, a Web site that asks fans to contact their television provider and request the channel. He will talk about the site on his nationally syndicated radio show and link to it on his social networking Web sites.
“You probably pay good money every month to your TV provider for access to channels like MSNBC and Al Jazeera America — channels that you might not watch, or even agree with,” Mr. Beck wrote in a letter on the Web site. “Adding TheBlaze will ensure that you and your family have a source of news and analysis that you can trust and that doesn’t betray your values.”
Mr. Beck has previously indicated that he plans to position the channel as a libertarian news and entertainment source, which would put it into relatively direct competition with Fox News Channel, where he hosted a hugely popular 5 p.m. talk show for nearly three years. The plan is rather audacious, partly because TheBlaze is owned by Mr. Beck’s company, Mercury Radio Arts, not by a media conglomerate like Fox’s parent, News Corporation.
Twenty months ago Mr. Beck left Fox and started GBTV, the subscriber-only Internet channel that he later renamed TheBlaze. Within a year he had 300,000 subscribers, no small feat for any Web site. But by then he’d also decided he wanted to get back on old-fashioned TV. In September 2012 Mr. Beck announced a carriage deal with Dish, the first of what his company hoped would be many such deals. Simply stated, the economics of television are better — TV channels get small per-subscriber fees, whether or not the subscribers ever watch, and the advertising possibilities are enormous.
Dish has a period of exclusivity with TheBlaze, so no other cable or satellite system can carry the channel quite yet. The companies haven’t disclosed how long this period lasts, but it is probably ending soon, because TheBlaze is starting its campaign now. Such campaigns are attempted all the time by small, independently-owned channels, often with little success. Ordinarily cable and satellite systems are reticent to carry new channels; in fact, the trend is in the other direction, toward dropping independent channels altogether.
But what Mr. Beck has — and what other small channel owners don’t have — is an audience of millions on the radio and on the Internet. And some help from the Dish Network. In a statement provided by a spokesman for the channel, Dave Shull, the Dish senior vice president of programming, said, “TheBlaze and Glenn Beck bring a unique perspective to Dish’s broad spectrum of political programming on all sides.” When the channel was added last fall, he said, “We had customers sign up quickly, and we saw new customers join Dish. In fact, subscriptions attributable to TheBlaze outpaced our projections by 80 percent, proving that Dish is giving customers what they want with a choice in programming, not to mention the technology to choose how to watch it.”
Even with Dish’s endorsement, it remains to be seen whether other cable and satellite systems — such as DirecTV, Comcast and Time Warner Cable — will agree to carry TheBlaze. They may simply point out that viewers can find it on the Internet.
An end to Web streaming was something Al Jazeera accepted when it bought Current TV in January for an estimated $500 million. (Mr. Beck said he tried to bid for the channel, but was rebuffed by Current’s co-founders, Al Gore and Joel Hyatt.) Al Jazeera currently streams its English-language news channel on the Internet free, but to make its cable and satellite distributors happy, it will stop doing so when it officially replaces Current this spring.
Then again, the Al Jazeera stream was free; the Internet stream of TheBlaze is only accessible to subscribers. Asked whether the channel would be taken off the Internet as a condition of gaining carriage on television, a spokesman said, “TheBlaze has no plans to do that at this time and believes that the continued success of the subscription platform proves to distributors the demand for our content.”
Along with the campaign announcement on Monday, TheBlaze said that Lynne Costantini, a former Time Warner Cable and Scripps Networks executive, was joining the channel as president of business development, to lead its effort to get on television.
The “Get TheBlaze” campaign will commence in phases and last for at least nine months. Mr. Beck wrote in his letter: “This journey for truth that we are on is much bigger than you and I; the future of liberty is hanging in the balance. All of us have a choice to make: sit on the sideline, or get involved.” He described TheBlaze not just as a family-friendly news and entertainment channel, but a cog in nationwide political change.
“If we succeed then we change the media. If we change the media, we control the debate. If we control the debate, we change politics. And if we change politics, we change the country,” he wrote.
TheBlaze has more than 40 hours of programming a week, including simulcasts of Mr. Beck’s radio show, a nightly show of his just for the channel, a nightly panel conversation about the news, and a couple of documentaries and reality shows. In January Mr. Beck described ambitious plans for the channel, involving more news reporting (“We are currently looking for our own Woodwards and Bernsteins,” he said) and a libertarian bent. “I consider myself a libertarian,” Mr. Beck said.
Media Decoder Blog: Online Piracy Alert System to Begin This Week
The Copyright Alert System, a program of escalating warnings and prods against people suspected of online copyright infringement, is finally going into effect this week, more than a year and a half after the plan was announced as part of an agreement between the entertainment industry and five major Internet service providers.
The Center for Copyright Information, the organization created to administer the system, announced on Monday that the Internet providers would begin putting it in place “over the course of the next several days,” though it gave no specifics. The Internet companies are AT&T, Cablevision, Comcast, Verizon and Time Warner Cable.
In the alert system, media companies monitor online traffic through a third party and can complain to Internet providers if a file is downloaded illegally. The suspected violator is then given the first of six warnings, some of which carry “educational” messages and must be acknowledged. After the fifth and sixth warnings, the customer’s Internet speed can be slowed to a crawl.
The Center for Copyright Information says it will not ask for repeat offenders’ Internet access to be blocked, but most service providers have the right to do that if a customer violates its terms of service. The findings can be contested for a $35 fee, to be refunded if an appeal is successful.
The introduction of the alert system has been notably slow. Nearly a year passed before the group had a leader in place, and its own prediction failed when it said in October that the system would be coming in two months. Part of the reason for that might be the relationships between media companies and Internet service providers, which in the past have often been adversarial over issues of piracy and control.
So-called graduated response programs like the Copyright Alert System have been tried in other countries, with mixed results. France’s Hadopi law, passed in 2009, set up a system of three “strikes,” culminating in a fine. More than a million warnings have been issued through that plan, but a recent government report said that its effects were “hard to evaluate precisely.”
Thursday, January 3, 2013
Media Decoder Blog: Andrew Sullivan Leaving Daily Beast to Start Subscription Web Site
3:06 p.m. | Updated Andrew Sullivan, the prolific writer who has built up his following for his blog “The Dish” first at the TheAtlantic.com and then at the Daily Beast, announced on Wednesday he is striking out on his own with a Web site dependent entirely on subscription revenue.
Mr. Sullivan said in an announcement posted on “The Dish” that starting on Feb. 1, he plans to charge readers $19.99 a year or whatever they might want to pay to subscribe to his site. He said that he spent the last dozen years blogging and trying to figure out how to make his venture profitable. He tried pledge drives for six years and then shifted to partnering with larger institutions like the Atlantic and the Daily Beast. He said he decided to make this change now since his contract with the Daily Beast was finished at the end of 2012.
“We felt more and more that getting readers to pay a small amount for content was the only truly solid future for online journalism,” Mr. Sullivan wrote. He added “the only completely clear and transparent way to do this, we concluded, was to become totally independent of other media entities and rely entirely on you for our salaries, health insurance, and legal, technological and accounting expenses.”
Mr. Sullivan is starting his new company, Dish Publishing LLC, with his two colleagues and executive editors, Patrick Appel and Chris Bodenner. Mr. Sullivan said that he has received the support of Tina Brown, the Daily Beast’s editor in chief, and Barry Diller, its owner, to keep “The Dish” on the Daily Beast Web site through Feb. 1. Then the site will shift to his old address, www.andrewsullivan.com.
Mr. Sullivan said in an e-mail message that he could have remained at the Daily Beast under a new contract. But he said that as he and his two partners started negotiating, they “began to see the overpowering logic of real independence.”
He added that the Dish is going to stay in New York City, where he and his two business partners are based, “for the foreseeable future.” He added, “We need to be together as a group.”
In his announcement, he wrote that the new venture had decided not to depend on advertising for revenue because of “how distracting and intrusive it can be, and how it often slows down the page painfully.” He added that advertisers also require too much effort for a small company. “We’re increasingly struck how advertising is dominated online by huge entities, and how compromising and time-consuming it could be for so few of us to try and lure big corporations to support us,” he wrote.
Media Decoder Blog: Al Jazeera Is Said to Be Acquiring Current TV
5:48 p.m. | Updated Al Jazeera is putting the final touches on a deal to take over Current TV, the low-rated cable channel that was founded by Al Gore and his business partners seven years ago.
If the deal is completed, Current will provide the pan-Arab news giant with something it has sought for years: a pathway into American living rooms. Current is available in about 60 million of the 100 million homes in the United States with cable or satellite service.
Rather than simply use Current to distribute its English-language channel, called Al Jazeera English and based in Doha, Qatar, Al Jazeera will create a new channel based in New York, according to people with knowledge of the deal negotiations. The channel may be called Al Jazeera America. Roughly 60 percent of the programming will be produced in the United States, while the remaining 40 percent will come from Al Jazeera English.
Al Jazeera may absorb some Current TV staff members, according to the people, who insisted on anonymity because they were not authorized to speak publicly. But Current’s schedule of shows will most likely be dissolved in the spring.
For Al Jazeera, the impending acquisition is a coming-of-age moment. A decade ago, the Arabic-language channel was reviled by American politicians for showing video tapes and messages from al Qaeda members and sympathizers. Now it is acquiring an American channel.
“They really want to be able to compete for American viewers, and they have to find some way to get on,” said Philip Seib, the director of the center on public diplomacy at the University of Southern California and the author of “The Al Jazeera Effect.”
Mr. Seib said access to Americans is important both for economic reasons, for the channel’s advertisers, and for “the journalistic legitimacy of their venture.”
The plan will bring Al Jazeera, which is financed by the government of Qatar, into closer competition with CNN and other news channels in the United States.
To date, the country’s cable and satellite distributors have been reluctant to carry Al Jazeera English. It is available in just a handful of cities, including New York and Washington. To change that, Al Jazeera has lobbied distributors, called for a letter-writing campaign by supporters and promoted its widely praised coverage of the Arab Spring.
Acquiring Current TV, and thus its distribution deals across the country, would solve this dilemma for Al Jazeera, at least partially.
Current is hard to find on many cable lineups, and some analysts say it’s at risk of being dropped by some companies because of low ratings, but it would give Al Jazeera a foothold on the country’s cable and satellite service lineups. Then Al Jazeera could revamp the channel and promote it as a new American-based news source.
Representatives for Current TV and Al Jazeera did not immediately respond to requests for comment. There was no immediate word about the sale price.
Current was conceived in 2005 after Mr. Gore and another co-founder, Joel Hyatt, bought the small cable news channel Newsworld International. Current’s owners, along with Mr. Gore and Mr. Hyatt, include several venture capital firms and two major distributors, Comcast and DirecTV.
After several years in obscurity showing viewer-submitted videos and documentaries, Current tacked to the left in 2011 with the hiring of MSNBC’s Keith Olbermann. A year later, Mr. Olbermann was fired, but a liberal minded channel made in his image remained. The channel now simulcasts liberal radio shows in the morning and features news-talk shows in the evening by Joy Behar, Eliot Spitzer, Jennifer Granholm and others.
None of the shows have drawn significant audiences. On a typical night in 2012, about 42,000 people were watching the channel, according to Nielsen. Mr. Spitzer quipped to a reporter from Mediabistro last month, “Nobody’s watching, but I’m having a great time.”
At the end of October, Current confirmed that it was considering selling itself. Mr. Hyatt said in a statement at the time, “Current has been approached many times by media companies interested in acquiring our company. This year alone, we have had three inquiries. As a consequence, we thought it might be useful to engage expertise to help us evaluate our strategic options.”
The New York Times Company mulled a bid for the channel, but decided not to do so.
In recent months, uncertainty has plagued the staff of Current, which is based in San Francisco. Mr. Spitzer, the 8 p.m. host, remarked that someone needed to buy the channel. Ms. Granholm, the 9 p.m. host, renewed her contract for just three months. Plans for new programming at other hours have stalled. After the elementary school massacre in Newtown, Conn., the channel replayed the gun documentary “Bowling for Columbine” dozens of times.
If the deal is completed, Current’s programming will continue for about three months. Then an international feed of Al Jazeera English will be simulcast on the channel. Sometime later in 2013, the rebranded Al Jazeera news channel, with 60 percent American programming, will start.
Al Jazeera intends to open new bureaus across the United States to support the American programming. The news operation currently has bureaus in New York, Washington, Los Angeles, Miami, and Chicago.
Tuesday, January 1, 2013
Media Decoder Blog: Tribune, Bankruptcy Over, Is Expected to Sell Assets
6:12 p.m. | Updated
Analysts and prospective buyers are preparing for horse trading to begin over the Tribune Company’s newspapers now that the company, whose holdings include The Los Angeles Times and The Chicago Tribune, has emerged from bankruptcy protection.
Tribune, which completed its bankruptcy paperwork on Monday, has not announced the sale of any assets, but it is likely to do so in the next several months so it can streamline its business, said Reed Phillips, managing partner of DeSilva & Phillips, a media banking firm.
The troubled state of the newspaper industry makes those assets most likely to be sold, he added. Less clear, however, is whether the company will sell them all at once or by region, for example selling The Chicago Tribune with Chicago magazine.
“The company is too large and complex right now, coming out of bankruptcy,” Mr. Phillips said. “What’s needed is a more focused strategy.”
Aaron Kushner, chief executive of Freedom Communications and publisher of The Orange County Register in California, confirmed on Monday that he was eager to buy Tribune’s newspapers. He would not say whether he had had any specific conversations with Tribune Company executives.
He said that from what he had gleaned from bankruptcy court filings and public pension documents, it seemed likely that Tribune would sell its newspapers as a group. That is because the company has such enormous and complex pension obligations and corporate overhead that it would be difficult to untangle them and sell properties individually.
“We’re interested in all of the papers, though obviously, from an outside perspective, we have not seen the numbers,” Mr. Kushner. “If papers are sold, someone has to be responsible for the pensions.”
The company’s reorganization plan was approved in July by the United States Bankruptcy Court in Delaware. It received final approval from the Federal Communications Commission in November.
The announcement on Monday ended a four-year process for the company. Its assets were tied up in court while the media industry continued its digital transformation. In a letter to employees, Eddy Hartenstein, the company’s chief executive, acknowledged that the last four years “have been a challenging period.”
“You have been resilient, dedicated to serving the company, our customers and your fellow employees,” he said. ”You are what sets Tribune apart from our competitors.”
The company also announced a seven-member board. The directors include Mr. Hartenstein and Peter Liguori, a former chief operating officer of Discovery Communications, who is expected to be named chief executive. Bruce Karsh, a founder of Oaktree Capital Management, which is a major shareholder in the company, also sits on the board, as does Ross Levinsohn, a former interim chief at Yahoo.
Tribune said it expected to resolve details about board members’ responsibilities at its first meeting in the next few weeks. The company is emerging from bankruptcy protection with a $300 million loan to finance its continuing operations, as well as a $1.1 billion loan to finance its reorganization. According to a company statement, Tribune plans to give former creditors 100 million shares of new class A common stock and new class B common stock.
The end of the bankruptcy has led to plenty of speculation about who might buy Tribune’s newspapers, with names like Rupert Murdoch and David Geffen floated as contenders. Mr. Phillips said he was skeptical that Mr. Murdoch would be a serious bidder because his company had so much else on its plate.
“I would think they would take a look,” said Mr. Phillips. “But when it comes to stepping up and making a substantial offer, I would be surprised. They’re already splitting off the publishing business from the entertainment business.”
He said that Mr. Geffen, too, would probably not acquire Tribune properties “unless the price is really attractive, because he’s not someone who has run a newspaper company previously. So I think it will be more of a challenge. The price he’s probably willing to pay based on advice from his advisers is going to be lower than what someone else is willing to pay.”
Mr. Kushner praised Tribune’s board and said he expected that “one of the first things that they’ll be trying to figure out is how the different parts of the Tribune company really work well together or separately.”
Mr. Kushner, who bought The Orange County Register last summer, said he was focused on buying large metropolitan newspapers. He said that while Tribune newspapers appeared to be profitable, how they would remain profitable was unclear, as with many newspapers.
At The Register, Mr. Kushner said, he tried to increase revenue by strengthening relationships with subscribers.
For example, he said, the newspaper gave its readers more value by increasing its pages 40 percent in the last year. It also spent $12.4 million sending $100 checks to its subscribers that they could in turn make payable to favorite local nonprofit groups. He said enhancing a paper’s relationship with subscribers would help drive subscriptions and, ultimately, advertising.
“Our basic view is that we add more value,” said Mr. Kushner. “This is the only path that we can have revenue grow.”
Media Decoder Blog: Irving Azoff to Leave Live Nation
Irving Azoff, the executive chairman of Live Nation Entertainment, the concert and ticketing giant, is leaving the company, Live Nation announced on Monday.
As part of his exit, Liberty Media, already one of Live Nation’s largest shareholders, will buy 1.7 million of Mr. Azoff’s shares, giving Liberty a 26.4 percent stake in Live Nation. According to recently filed corporate disclosure documents, Mr. Azoff controlled about 2.6 million shares in Live Nation, either directly or through a family trust.
Mr. Azoff, 65, has been one of the most powerful executives and artist managers in music for four decades, and Live Nation has been only his most recent endeavor. Along with Michael Rapino, who remains the company’s chief executive, Mr. Azoff helped organize the merger in early 2010 of Live Nation — then largely a concert promotions company — and Ticketmaster, which also included Mr. Azoff’s Front Line management business.
Live Nation will continue to own Front Line, but Mr. Azoff will take some of his longtime management clients with him, including the Eagles, Christina Aguilera, Van Halen and Steely Dan. Mr. Azoff said that leaving would relieve him of what he described as burdensome corporate duties, and let him work again in his preferred mode as an entrepreneur.
“It’s no secret that I haven’t been a fan of public companies for some time,” Mr. Azoff said by phone from Mexico, where he was spending the holidays. “I looked at my calendar for the beginning of next year and I was able to clear 90 days for things that went into dealing with a public company, which I can now devote to productive work.”
He cited “taxes and estate planning” as the reasons for leaving on the last day of the year.
Mr. Azoff will join the board of Starz, the cable television company also owned by Liberty Media. Mr. Azoff also serves on the boards of Clear Channel Communications and the media and entertainment company IMG.
Live Nation announced Mr. Azoff’s departure after the market closed on Monday, but news of it was first reported by Bloomberg News before the end of the trading day. Live Nation’s stock closed at $9.31, up about 3.7 percent for the day.
Live Nation did not announce who would be taking over as chairman in Mr. Azoff’s absence.
In addition to its holdings in Live Nation, Liberty has a major stake in Sirius XM Radio, and has spent the last several months in the process of taking that company over. But when asked whether he might take over from the recently departed Mel Karmazin as chief executive of Sirius, Mr. Azoff scoffed.
“I’m never going to work for a public company again,” he said. “Any public company.”
Tuesday, December 25, 2012
Media Decoder Blog: Arbitron Deal Extends Nielsen's Reach Into Consumer Habits
With its $1.26 billion acquisition of Arbitron, announced on Tuesday, Nielsen is buying much more than the most widely followed radio ratings service. It is also extending its already substantial reach into the overlapping forms of media through which people consume their entertainment and news, and spend their money — information that is essential to advertisers.
Nielsen is best known for its television ratings, but its various branches also track an array of consumer product sales, like books and music, as well as consumers’ habits online and through their mobile devices. Just on Monday, for example, Nielsen announced a new system with Twitter to rank TV shows by their levels of social-media chatter.
Arbitron, meanwhile, has remained primarily focused on radio consumption, which has held surprisingly strong in the Internet age as people stay plugged in to their favorite radio stations, particularly while driving.
According to Arbitron’s most recent statistics, more than 241 million people in the United States, or about 92 percent of the population ages 12 and over, listen to the radio each week. And unlike television, the vast majority of the ads on broadcast radio are for local businesses.
Through the deal with Arbitron, Nielsen should be able to track even more of consumers’ media consumption and buying habits. In a presentation to investors and Wall Street analysts, Nielsen said that by adding Arbitron’s radio data to its portfolio, it would be able to increase the total amount of time in a given day it could track the listening and viewing habits of the average American to seven hours from the current five.
“That is a very big deal when your job is to measure how consumers ultimately form and change behaviors,” David L. Calhoun, Nielsen’s chief executive, said in a conference call. “And it’s that linkage of buy and watch that ultimately allows us to provide those insights.”
In early trading, Arbitron’s shares shot up by nearly 24 percent, reflecting the premium Nielsen will pay for the shares; Nielsen’s stock was up about 1.3 percent. Nielsen is active in more than 100 countries and last year had $5.5 billion in revenue. Arbitron is a much smaller company, but has substantial profit margins; last year it generated $53 million in net income on $422 million in revenue.
As some analysts see it, the challenges for the combined companies will include measuring the growth of online audio and linking Arbitron’s value for local advertising with Nielsen’s more extensive and national data.
For now, Internet radio services like Pandora are not measured by Arbitron in “apples to apples” terms alongside broadcast radio stations, which Pandora has complained puts them at a disadvantage with advertisers and media-buying agencies. But those measurements may become essential as online listening grows and is embraced by even the biggest radio broadcasters, like Clear Channel Communications.
Laura Martin, an entertainment and media analyst with Needham & Company, said that Nielsen’s expertise and its aggressive push into online markets could be an advantage in exploiting Arbitron’s local radio data.
“It’s interesting that they will have the management I.Q. of Nielsen in charge of local advertising possibilities,” Ms. Martin said. “The Internet is moving at the speed of light, and the next big promise of advertising cash is sitting in local. In Nielsen’s hands those relationships may turn into something that Arbitron didn’t think of.”
Ben Sisario writes about the music industry. Follow @sisario on Twitter.
Sunday, December 23, 2012
Media Decoder Blog: Murdoch Publishing Wing Shows Loss of $2.1 Billion
Potential investors got a glimpse of the financial challenges that Rupert Murdoch’s soon-to-be spun-off publishing company could face. In a regulatory filing, News Corporation said its publishing businesses lost $2.1 billion in the fiscal year that ended June 30.
The disclosure was filed to the Securities and Exchange Commission on Friday, as the media conglomerate prepares to split its publishing assets from its more lucrative entertainment segments. The new, stand-alone company will retain the name News Corporation and include newspapers like The Wall Street Journal, The New York Post and The Times of London; the HarperCollins book publisher; and a handful of fast-growing Australian pay-television assets.
The entertainment company, which will be called the Fox Group, will include 20th Century Fox studios, Fox Broadcasting and cable channels like Fox News and FX. That company has annual revenue of more than $23 billion.
The losses in the publishing business came largely from $2.8 billion in impairment and restructuring charges, mostly related to the closure of the tabloid News of the World in Britain, which was shut in July 2011 after revelations of widespread phone-hacking. Revenue at the publishing business fell to $8.65 billion in fiscal year 2012, from $9.1 billion a year earlier.
The S.E.C. Form 10 filing moves the company closer toward the split and gives shareholders a better idea of what the stand-alone publishing company, called the “New News Corporation” in the report, will look like financially when the spinoff is completed in mid-2013.
The company warned investors that “newspaper and advertising circulation revenues have been declining, reflecting general trends in the newspaper industry.” In addition to industrywide headwinds, the company said illegal activity at its British newspapers “could damage the New News Corporation’s reputation and might impair its ability to conduct its business.”
As additional civil lawsuits related to phone hacking are filed in Britain, News Corporation said it “is not able to predict the ultimate outcome or cost associated with these investigations.”
The fallout from the phone-hacking scandal, and an investor base that increasingly expressed disapproval of the newspaper business, prompted Mr. Murdoch to announce the split of his $60 billion media conglomerate in June.
“The filing of the Form 10 is another important step forward in the evolution of our company and in the establishment of two independent global leaders in Fox Group and the new News Corporation,” said Mr. Murdoch, who serves as chairman and chief executive of the combined News Corporation.
Earlier this month Mr. Murdoch said Robert Thomson, a confidant and the former managing editor at The Wall Street Journal, would serve as chief executive of the new News Corporation. Mr. Murdoch will continue to serve as chairman of both companies and chief executive of the Fox Group.
In his new role Mr. Thomson, 51, will have a base salary of $2 million with a performance-based $2 million bonus, according to the filing.
In addition to hundreds of newspapers on several continents, the publishing company will also include Australia’s RealEstate.com.au; Fox Sports in Australia; 50 percent of Foxtel, the No. 1 pay-TV provider in Australia; and 44 percent of Sky Network Television in New Zealand. Analysts expect those businesses to drive profits and support some of the weaker newspapers.
Fox Sports had revenue of $3.6 billion and Foxtel of $2.5 billion in 2012. Those results were not included in the publishing company’s 2012 earnings, but will contribute to the new company’s bottom line.
Media Decoder Blog: Awaiting Merger With Random House, Penguin Settles E-Book Case
Penguin, trying to ensure a clean slate before its planned merger with Random House, announced late Tuesday that it was settling a lawsuit brought by the Department of Justice over the pricing of e-books.
In a terse statement the company said, “Penguin has always maintained, and continues to maintain, that it has done nothing wrong and has no case to answer.”
Nevertheless, the company said, it was agreeing to settle because of the impending merger between Random House, a division of the German media company Bertelsmann, and Penguin, a division of the English conglomerate Pearson. That deal, in which Bertelsmann will assume 53 percent control of the new company, was announced this past October as the publishing industry begins to consolidate to try to better meet the online challenge from Amazon.
The company said in its statement, “It is also in everyone’s interests that the proposed Penguin Random House company should begin life with a clean sheet of paper.”
In April, the Justice Department filed a lawsuit accusing five major publishing houses and Apple of conspiring to fix the price of e-books. These five had moved from a wholesale pricing model that allowed retailers to charge what they wanted to a system that allowed publishers to begin setting their own e-book prices, what was known as “agency pricing.”
The publishers had been looking for a way to prevent Amazon from pricing books below their actual cost, a practice that they said would hurt the entire industry over time. But the government said that the publishers “conspired” in e-mails, in telephone conversations and at lavish dinners to keep e-book prices artificially high.
Three big publishing houses — HarperCollins, Simon & Schuster and Hachette — settled with the Justice Department, but Penguin, Macmillan and Apple decided to fight the charges, until Penguin reversed course on Tuesday.
In the terms of a settlement that a judge approved in September, the three publishers that settled agreed to end contracts with Apple and with e-book retailers that contained restrictions on their ability to set prices, and agreed not to make such restrictive contracts for the next two years.
In May, when Penguin filed its response in United States District Court in New York, it argued that it was Amazon that treated books as “widgets.” It further argued that Amazon was “predatory” and a “monopolist” and that the government’s case was based on “innuendo.”
Penguin said in its statement on Tuesday that it still believed that agency pricing was just. “Penguin continues to believe that the agency pricing model has encouraged competition among distributors of both e-books and e-book readers and, in the company’s view, continues to operate in the interest of consumers and author.” it said.
The terms of the settlement with the Justice Department were not available, but people with knowledge of the details said that they were the same as those received by the other three publishers.
This post has been revised to reflect the following correction:
Correction: December 18, 2012
Because of an editing error, an earlier version of this post carried an erroneous byline.