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FISHRGAME
_____________
Feature
Stories -
062005-06
/ Week tviNews
Convergence
Todays Puzzle
--
Murdoch's
News Corp.'s Net Income Based on DVD
Sales
• • Rupert Murdoch, during a
conference call with investors, News Corp. Chairman
Rupert Murdoch said he expected to reach an
agreement within nine months that would reduce
Liberty Media Corp.'s 18% voting stake to a level
less threatening to his family's control. Murdoch
and his family own about 30% of News
Corp.
• • "We haven't had any
substantial talks yet," Murdoch
said.
• • The company's cable
channels also boost profit despite wider operating
losses at its Fox television
network.
• • Despite the poor
performance of its Fox television network last
fall, News Corp.'s quarterly profit rose 80% on
strong DVD sales and continuing strength of cable
channels such as Fox News Channel.
• • The company reported
Wednesday that its net income rose to $386 million
during its fiscal second quarter, which ended Dec.
31, or 13 cents a share -- up from $215 million, or
8 cents, in the same period a year ago. Revenue was
up 18% to $6.56 billion.
• • The company projected
that operating profit for fiscal 2005 would
increase by as much as 20%, up from a previous
growth forecast that was in the mid- to high
teens.
• • News Corp.'s biggest
weaknesses during the quarter were the Fox
television network and Sky Italia, its Italian
satellite TV service. Operating losses at Sky
Italia rose to $105 million, from $104 million a
year earlier.
• • At the Fox TV network,
operating losses widened by $26 million to $153
million for the quarter, as programming costs
increased, prime-time ratings fell and local
advertising sales at its TV stations were weak.
News Corp. executives blamed the network's
continuing problem on disruption of its fall
prime-time launch caused by its airing of
professional baseball
games.
• • Yet News Corp. President
Peter Chernin predicted that Fox would end the
season in a battle with CBS for first place in the
ratings for young adults because of the continued
dominance of returning shows such as "American
Idol" and "24," and the promise of new programs
such as "House."
• • On a brighter note, News
Corp.'s film division was the quarter's star
performer. Home video sales doubled in the period
to $1.2 billion from a year earlier, giving News
Corp. the highest profit margins in the film
business, at 20%, analysts said.
• • Twentieth Century Fox
Television posted strong DVD sales for "The
Simpsons," "24" and "Family Guy," along with
various library titles.
• • A strong roster of
summer releases, such as "The Day After Tomorrow,"
as well as the DVD sales of catalog and TV titles
and the "Star Wars" trilogy, led to a year-end
payday in home video, Chernin
said.
• • He said the margins
could be sustained because of the studio's "focus
on profitability over market share," and its
success with lower-budget titles such as
"Sideways," which was recently nominated for five
Academy Awards, including best picture.
• • Cable programming also
contributed to News Corp.'s strong quarter.
Operating profit at the unit, which includes the
FX, Fox News and National Geographic channels, rose
46% to $227 million.
• • News Corp. shares rose 5
cents to $17.67 on the New York Stock Exchange.
///
• •
------------------------------------------------------------------------
NEWS
CONVERGENCE
///
Center
Page /
Rules for
getting Producer Credits for
Movies
• •
The Academy of Motion Picture Arts and
Sciences on Wednesday settled disputes about the
recipients of producer credit on two nominees for
best picture, "The Aviator" and "Million Dollar
Baby." The academy was spared a third deliberation
because the filmmakers behind "Ray" had
independently whittled the credited producers down
to three -- the maximum allowed under new
rule
• • The Academy of Motion
Picture Arts and Sciences on Wednesday settled
disputes about the recipients of producer credit on
two nominees for best picture, "The Aviator" and
"Million Dollar Baby." The academy was spared a
third deliberation because the filmmakers behind
"Ray" had independently whittled the credited
producers down to three -- the maximum allowed
under new rules.
• • The rules are part of an
effort to limit the number of producers who come
onstage to collect the top Oscar. But deciding who
should be left out has proved to be a sort of
"Sophie's Choice," as one studio executive put
it.
• • In the bitterly
contested "Aviator" determination, credit will go
to Michael Mann and Graham King. Mann helped
develop the screenplay while King's Initial
Entertainment Group oversaw the production and
financed the $110-million movie.
• • The decision was a blow
to Charles Evans Jr., who claimed in a 2001 lawsuit
that he developed several drafts of the movie,
lined up star Leonardo DiCaprio and helped shape
the vision of the picture. The case was settled
before it went to trial, and Evans won on-screen
producing credit. Evans declined to
comment.
• • The decision also cuts
out Sandy Climan, a colleague of Mann's at Forward
Pass Productions, who is listed on-screen as an
"Aviator" producer.
• • An official announcement
will be made today about "Million Dollar Baby."
Clint Eastwood, Tom Rosenberg, Al Ruddy and Paul
Haggis are the on-screen credited producers. But
sources say Haggis will not be recognized by the
academy. Eastwood starred in the film and directed.
Rosenberg is head of Lakeshore Entertainment, which
financed the movie. And Ruddy helped develop the
project along with Haggis, who wrote the adapted
screenplay. Haggis was unavailable for
comment.
• • Universal Pictures
confirmed that "Ray" director Taylor Hackford, his
producing partner Stuart Benjamin and Howard
Baldwin will be the designated producers when the
Oscars are awarded Feb. 27. That means Baldwin's
wife, Karen, who received on-screen credit, will be
left out. The Baldwins were aligned with Philip
Anschutz's Crusader Entertainment, which financed
the film
///
TIMELINE:
Top Stories To Start The Week
With:
///
ByLines:
Editors Note
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