Sources: Paramount in talks to merge backroom DVD operations with Sony and Fox

 

Paramount Pictures is in talks with at least two of its competitors to merge some elements of its home video backroom operations, people briefed on the negotiations said.

While negotiations are in a very preliminary stage, the Viacom-owned studio has initiated discussions with Sony Pictures and 20th Century Fox to combine the production, distribution and administrative elements of their DVD businesses, these people said. The talks are not limited to those studios and could expand to other studios, with Universal being a leading candidate.

People close to the talks stressed that any potential combination would be about saving costs, not about sharing revenue. The studios would not combine marketing or promotion of home entertainment.

There is precedent: Universal and Paramount formed a joint venture years ago called CIC to handle video distribution in international markets.

These talks come at a time when major retailers, including Wal-Mart and Best Buy, are reducing the amount of space they dedicate to carrying DVDs. First quarter DVD sales fell 14% in the first quarter of this year, compared to 2008, according to DEG: The Digital Entertainment Group, a non-profit trade group.

News of the talks was first reported by The Financial Times.

-- Joe Flint and Dawn C. Chmielewski

Gossip columnist Roger Friedman wants more than $5 million in lost wages and damages from Rupert Murdoch's News Corp. for firing him after he reviewed the company's "X-Men Origins: Wolverine" based on a pirated copy of the movie.

In a suit filed in New York State Supreme Court on Monday, Friedman says he was fired from his $250,000-a-year job (no, that's not a typo) as a columnist and contributor to Fox News illegally. He reiterates his interesting claim that the copy he viewed online ended up there only because Murdoch, the chairman of News Corp., had inadvertently allowed his own copy of the movie to appear on the Internet and that he was fired to cover that up.

The suit outlines in detail Friedman's take on the events of early April that led to his firing. He says he viewed "Wolverine" online and wrote a column about the film. He claims he sent an e-mail to a Fox News lawyer about watching the film online and didn't get a response. The article went up on the Fox News website on April 2, and less than 48 hours later it was taken down. Friedman says that he went to his editor, Refet Kaplan, to ask why and that Kaplan replied, "Rupert Murdoch ordered it taken down."

Usually if the chairman of the company wants something taken down, that's a bad sign. But Kaplan, the suit says, told Friedman on April 3 that he had talked to Fox News Chief Executive Roger Ailes and not to worry.

That apparently was bad advice. The next day, when the storm showed no signs of abating, Kaplan, according to the suit, told Friedman, "Ailes has got to get with Murdoch." Later that day, Friedman was fired and both News Corp. and 20th Century Fox issued damning statements about Friedman and piracy. Friedman says that John Moody, one of Ailes' top lieutenants at Fox News, told him to keep quiet and that on Monday, April 6, there would be a meeting that could "repair the situation."

Friedman, who has hired legal guns Joseph Johnson and Martin Garbus of Eaton & Van Winkle, wants $180,000 that he says is still owed to him on his contract and $5 million in damages. Friedman hasn't dropped off the face of the Earth since being canned by Fox News. He's blogging for the Hollywood Reporter and appeared today on NBC's "Today" show to discuss Michael Jackson.

A Fox News spokeswoman said the network had not been served with the lawsuit yet.

— Joe Flint

Photo: Roger Ailes and Rupert Murdoch. Credit: Peter Morgan/Reuters

20th Century Fox's high-profile stare-down with theater operators over who would pay for digital 3-D glasses to go with "Ice Age: Dawn of the Dinosaurs" has been settled. But the issues underlying the dispute will almost certainly flare up again.

Fox, which had initially threatened to make theater owners bear the costs, has agreed to pick up the tab, according to several people familiar with the matter.

The glasses are supplied by RealD, the Beverly Hills-based company that provides 3-D technology to theaters.

In the past, studios have paid between 75 cents and $1 per moviegoer for the glasses. For a successful film, that can easily add up to as much as $10 million.

That's a sore point for studio executives, who privately complain that they shouldn't have to pay that fee, particularly because glasses that aren't stolen or damaged can be reused. Additionally, producing a movie in 3-D can cost as much as $15 million extra.

Tickets for 3-D movies come with a $2 to $3 surcharge, which is split between theater owners and studios.

For their part, exhibition companies note that they already are investing heavily in the new format. They  typically pay RealD an upfront licensing fee of $5,000 to $10,000 a screen for the use of their equipment, plus a royalty of about 50 cents per ticket.

Fox was the first studio whose concerns became public, when word got out during the ShoWest film industry trade show in late March that it was pressuring exhibitors to pay for the glasses to go with "Ice Age: Dawn of the Dinosaurs," which comes out July 1 and is its first 3-D movie. Theater chains balked, with Regal, the nation's biggest, threatening to play the movie in 2-D only.

With nearly 50 3-D movies due out in the next two years, expect more dust-ups over the issue. Fox in particular is likely to continue pressuring exhibitors to pick up the tab for the glasses and pushing for theaters to reuse them. The studio has ample incentive to do so, since this December it will release the highest profile 3-D film to date: James Cameron's "Avatar."

-- Ben Fritz and Richard Verrier

Photo: Glasses for viewing digital 3-D films from RealD. Credit: Ken Hively, Los Angeles Times.

DirecTV Chief Executive Chase Carey is in talks to return to News Corp. as Rupert Murdoch's second in command, a person familiar with the matter confirmed.

Murdoch has been courting Carey, once a trusted member of his inner circle, since Chief Operating Officer Peter Chernin made clear his intentions to leave.

Discussions are serious but not yet finalized.

Carey, 55, has always been considered among leading candidates to succeed Chernin, but some questioned whether he would abandon the top job at DirecTV for the No. 2 slot at News Corp. Indeed, Carey's contract with DirecTV extends into December 2010. 

People close to the situation said Carey has gradually been wooed by Murdoch and is enticed by the prospect of returning to News Corp. with oversight of the sprawling and varied media enterprise with a film studio, television stations and a network cable operations and newspapers.

His appointment would also buy time until 36-year-old James Murdoch is ready to an elevated role at News Corp.

Carey had been co-chief operating officer at News Corp. as well as CEO of its satellite TV unit, Sky Global Networks Inc.; co-COO of Fox Entertainment Group and CEO of Fox Television.

-- Dawn Chmeilewski

Photo: Matthew Staver/Boomberg News

Peter Rice may have been a genius when it came to making Fox Searchlight the most successful specialty film distributor in Hollywood with such breakout hits as "Slumdog Millionaire," "Juno" and "Little Miss Sunshine."

But when it came to hitting it big with a division dedicated to comedies and thrillers aimed at teens, he bombed.

After a two-year, money-losing run of too many box-office misses, including the recent R-rated comedy "Miss March" and last year's comedy "The Rocker," starring Rainn Wilson, 20th Century Fox is shuttering its Fox Atomic "genre" label.

Six production executives will lose their jobs and another half-dozen who worked for Fox Atomic Digital will transition over to Fox Filmed Entertainment to work on digital projects.

Fox Atomic President Debbie Liebling is expected to return to the main movie studio, 20th Century Fox, headed by Tom Rothman and Jim Gianopulos, where she worked previously.

The big Fox studio will release the films that Atomic has in the hopper including "I Love You, Beth Cooper," directed by Chris Columbus, due out July 10, and "Jennifer's Body," a comedy horror film written by "Juno" screenwriter Diablo Cody, scheduled for release Sept. 18. "The Post Grad Survival Guide," a comedy slated for Aug. 14, will be released through Fox Searchlight.

Fox Atomic was launched in January 2007 as a way to give Searchlight's then-chief Rice expanded duties. Rice had hoped the unit could cash in on a lucrative market for low-cost, so-called genre films driven by young moviegoers, just as Dimension Films and Lions Gate have had been doing.

But most of Atomic's films incinerated at the box office. In January 2008, the label's marketing operation was folded into main Fox and nearly two dozen employees were laid off.

Last month, Rice, who oversaw Fox Atomic, was promoted to chairman of Fox Broadcasting.

-- Claudia Eller

Photos: 20th Century Fox

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Fired gossip columnist Roger Friedman files juicy suit against News Corp.

Gossip columnist Roger Friedman wants more than $5 million in lost wages and damages from Rupert Murdoch's News Corp. for firing him after he reviewed the company's "X-Men Origins: Wolverine" based on a pirated copy of the movie.

In a suit filed in New York State Supreme Court on Monday, Friedman says he was fired from his $250,000-a-year job (no, that's not a typo) as a columnist and contributor to Fox News illegally. He reiterates his interesting claim that the copy he viewed online ended up there only because Murdoch, the chairman of News Corp., had inadvertently allowed his own copy of the movie to appear on the Internet and that he was fired to cover that up.

The suit outlines in detail Friedman's take on the events of early April that led to his firing. He says he viewed "Wolverine" online and wrote a column about the film. He claims he sent an e-mail to a Fox News lawyer about watching the film online and didn't get a response. The article went up on the Fox News website on April 2, and less than 48 hours later it was taken down. Friedman says that he went to his editor, Refet Kaplan, to ask why and that Kaplan replied, "Rupert Murdoch ordered it taken down."

Usually if the chairman of the company wants something taken down, that's a bad sign. But Kaplan, the suit says, told Friedman on April 3 that he had talked to Fox News Chief Executive Roger Ailes and not to worry.

That apparently was bad advice. The next day, when the storm showed no signs of abating, Kaplan, according to the suit, told Friedman, "Ailes has got to get with Murdoch." Later that day, Friedman was fired and both News Corp. and 20th Century Fox issued damning statements about Friedman and piracy. Friedman says that John Moody, one of Ailes' top lieutenants at Fox News, told him to keep quiet and that on Monday, April 6, there would be a meeting that could "repair the situation."

Friedman, who has hired legal guns Joseph Johnson and Martin Garbus of Eaton & Van Winkle, wants $180,000 that he says is still owed to him on his contract and $5 million in damages. Friedman hasn't dropped off the face of the Earth since being canned by Fox News. He's blogging for the Hollywood Reporter and appeared today on NBC's "Today" show to discuss Michael Jackson.

A Fox News spokeswoman said the network had not been served with the lawsuit yet.

— Joe Flint

Photo: Roger Ailes and Rupert Murdoch. Credit: Peter Morgan/Reuters

20th Century Fox's high-profile stare-down with theater operators over who would pay for digital 3-D glasses to go with "Ice Age: Dawn of the Dinosaurs" has been settled. But the issues underlying the dispute will almost certainly flare up again.

Fox, which had initially threatened to make theater owners bear the costs, has agreed to pick up the tab, according to several people familiar with the matter.

The glasses are supplied by RealD, the Beverly Hills-based company that provides 3-D technology to theaters.

In the past, studios have paid between 75 cents and $1 per moviegoer for the glasses. For a successful film, that can easily add up to as much as $10 million.

That's a sore point for studio executives, who privately complain that they shouldn't have to pay that fee, particularly because glasses that aren't stolen or damaged can be reused. Additionally, producing a movie in 3-D can cost as much as $15 million extra.

Tickets for 3-D movies come with a $2 to $3 surcharge, which is split between theater owners and studios.

For their part, exhibition companies note that they already are investing heavily in the new format. They  typically pay RealD an upfront licensing fee of $5,000 to $10,000 a screen for the use of their equipment, plus a royalty of about 50 cents per ticket.

Fox was the first studio whose concerns became public, when word got out during the ShoWest film industry trade show in late March that it was pressuring exhibitors to pay for the glasses to go with "Ice Age: Dawn of the Dinosaurs," which comes out July 1 and is its first 3-D movie. Theater chains balked, with Regal, the nation's biggest, threatening to play the movie in 2-D only.

With nearly 50 3-D movies due out in the next two years, expect more dust-ups over the issue. Fox in particular is likely to continue pressuring exhibitors to pick up the tab for the glasses and pushing for theaters to reuse them. The studio has ample incentive to do so, since this December it will release the highest profile 3-D film to date: James Cameron's "Avatar."

-- Ben Fritz and Richard Verrier

Photo: Glasses for viewing digital 3-D films from RealD. Credit: Ken Hively, Los Angeles Times.

DirecTV Chief Executive Chase Carey is in talks to return to News Corp. as Rupert Murdoch's second in command, a person familiar with the matter confirmed.

Murdoch has been courting Carey, once a trusted member of his inner circle, since Chief Operating Officer Peter Chernin made clear his intentions to leave.

Discussions are serious but not yet finalized.

Carey, 55, has always been considered among leading candidates to succeed Chernin, but some questioned whether he would abandon the top job at DirecTV for the No. 2 slot at News Corp. Indeed, Carey's contract with DirecTV extends into December 2010. 

People close to the situation said Carey has gradually been wooed by Murdoch and is enticed by the prospect of returning to News Corp. with oversight of the sprawling and varied media enterprise with a film studio, television stations and a network cable operations and newspapers.

His appointment would also buy time until 36-year-old James Murdoch is ready to an elevated role at News Corp.

Carey had been co-chief operating officer at News Corp. as well as CEO of its satellite TV unit, Sky Global Networks Inc.; co-COO of Fox Entertainment Group and CEO of Fox Television.

-- Dawn Chmeilewski

Photo: Matthew Staver/Boomberg News

Peter Rice may have been a genius when it came to making Fox Searchlight the most successful specialty film distributor in Hollywood with such breakout hits as "Slumdog Millionaire," "Juno" and "Little Miss Sunshine."

But when it came to hitting it big with a division dedicated to comedies and thrillers aimed at teens, he bombed.

After a two-year, money-losing run of too many box-office misses, including the recent R-rated comedy "Miss March" and last year's comedy "The Rocker," starring Rainn Wilson, 20th Century Fox is shuttering its Fox Atomic "genre" label.

Six production executives will lose their jobs and another half-dozen who worked for Fox Atomic Digital will transition over to Fox Filmed Entertainment to work on digital projects.

Fox Atomic President Debbie Liebling is expected to return to the main movie studio, 20th Century Fox, headed by Tom Rothman and Jim Gianopulos, where she worked previously.

The big Fox studio will release the films that Atomic has in the hopper including "I Love You, Beth Cooper," directed by Chris Columbus, due out July 10, and "Jennifer's Body," a comedy horror film written by "Juno" screenwriter Diablo Cody, scheduled for release Sept. 18. "The Post Grad Survival Guide," a comedy slated for Aug. 14, will be released through Fox Searchlight.

Fox Atomic was launched in January 2007 as a way to give Searchlight's then-chief Rice expanded duties. Rice had hoped the unit could cash in on a lucrative market for low-cost, so-called genre films driven by young moviegoers, just as Dimension Films and Lions Gate have had been doing.

But most of Atomic's films incinerated at the box office. In January 2008, the label's marketing operation was folded into main Fox and nearly two dozen employees were laid off.

Last month, Rice, who oversaw Fox Atomic, was promoted to chairman of Fox Broadcasting.

-- Claudia Eller

Photos: 20th Century Fox

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Fox paying for 'Ice Age's' 3-D glasses, but Hollywood remains peeved

20th Century Fox's high-profile stare-down with theater operators over who would pay for digital 3-D glasses to go with "Ice Age: Dawn of the Dinosaurs" has been settled. But the issues underlying the dispute will almost certainly flare up again.

Fox, which had initially threatened to make theater owners bear the costs, has agreed to pick up the tab, according to several people familiar with the matter.

The glasses are supplied by RealD, the Beverly Hills-based company that provides 3-D technology to theaters.

In the past, studios have paid between 75 cents and $1 per moviegoer for the glasses. For a successful film, that can easily add up to as much as $10 million.

That's a sore point for studio executives, who privately complain that they shouldn't have to pay that fee, particularly because glasses that aren't stolen or damaged can be reused. Additionally, producing a movie in 3-D can cost as much as $15 million extra.

Tickets for 3-D movies come with a $2 to $3 surcharge, which is split between theater owners and studios.

For their part, exhibition companies note that they already are investing heavily in the new format. They  typically pay RealD an upfront licensing fee of $5,000 to $10,000 a screen for the use of their equipment, plus a royalty of about 50 cents per ticket.

Fox was the first studio whose concerns became public, when word got out during the ShoWest film industry trade show in late March that it was pressuring exhibitors to pay for the glasses to go with "Ice Age: Dawn of the Dinosaurs," which comes out July 1 and is its first 3-D movie. Theater chains balked, with Regal, the nation's biggest, threatening to play the movie in 2-D only.

With nearly 50 3-D movies due out in the next two years, expect more dust-ups over the issue. Fox in particular is likely to continue pressuring exhibitors to pick up the tab for the glasses and pushing for theaters to reuse them. The studio has ample incentive to do so, since this December it will release the highest profile 3-D film to date: James Cameron's "Avatar."

-- Ben Fritz and Richard Verrier

Photo: Glasses for viewing digital 3-D films from RealD. Credit: Ken Hively, Los Angeles Times.

DirecTV Chief Executive Chase Carey is in talks to return to News Corp. as Rupert Murdoch's second in command, a person familiar with the matter confirmed.

Murdoch has been courting Carey, once a trusted member of his inner circle, since Chief Operating Officer Peter Chernin made clear his intentions to leave.

Discussions are serious but not yet finalized.

Carey, 55, has always been considered among leading candidates to succeed Chernin, but some questioned whether he would abandon the top job at DirecTV for the No. 2 slot at News Corp. Indeed, Carey's contract with DirecTV extends into December 2010. 

People close to the situation said Carey has gradually been wooed by Murdoch and is enticed by the prospect of returning to News Corp. with oversight of the sprawling and varied media enterprise with a film studio, television stations and a network cable operations and newspapers.

His appointment would also buy time until 36-year-old James Murdoch is ready to an elevated role at News Corp.

Carey had been co-chief operating officer at News Corp. as well as CEO of its satellite TV unit, Sky Global Networks Inc.; co-COO of Fox Entertainment Group and CEO of Fox Television.

-- Dawn Chmeilewski

Photo: Matthew Staver/Boomberg News

Peter Rice may have been a genius when it came to making Fox Searchlight the most successful specialty film distributor in Hollywood with such breakout hits as "Slumdog Millionaire," "Juno" and "Little Miss Sunshine."

But when it came to hitting it big with a division dedicated to comedies and thrillers aimed at teens, he bombed.

After a two-year, money-losing run of too many box-office misses, including the recent R-rated comedy "Miss March" and last year's comedy "The Rocker," starring Rainn Wilson, 20th Century Fox is shuttering its Fox Atomic "genre" label.

Six production executives will lose their jobs and another half-dozen who worked for Fox Atomic Digital will transition over to Fox Filmed Entertainment to work on digital projects.

Fox Atomic President Debbie Liebling is expected to return to the main movie studio, 20th Century Fox, headed by Tom Rothman and Jim Gianopulos, where she worked previously.

The big Fox studio will release the films that Atomic has in the hopper including "I Love You, Beth Cooper," directed by Chris Columbus, due out July 10, and "Jennifer's Body," a comedy horror film written by "Juno" screenwriter Diablo Cody, scheduled for release Sept. 18. "The Post Grad Survival Guide," a comedy slated for Aug. 14, will be released through Fox Searchlight.

Fox Atomic was launched in January 2007 as a way to give Searchlight's then-chief Rice expanded duties. Rice had hoped the unit could cash in on a lucrative market for low-cost, so-called genre films driven by young moviegoers, just as Dimension Films and Lions Gate have had been doing.

But most of Atomic's films incinerated at the box office. In January 2008, the label's marketing operation was folded into main Fox and nearly two dozen employees were laid off.

Last month, Rice, who oversaw Fox Atomic, was promoted to chairman of Fox Broadcasting.

-- Claudia Eller

Photos: 20th Century Fox

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

DirecTV's Chase Carey in discussions to return to News Corp.

DirecTV Chief Executive Chase Carey is in talks to return to News Corp. as Rupert Murdoch's second in command, a person familiar with the matter confirmed.

Murdoch has been courting Carey, once a trusted member of his inner circle, since Chief Operating Officer Peter Chernin made clear his intentions to leave.

Discussions are serious but not yet finalized.

Carey, 55, has always been considered among leading candidates to succeed Chernin, but some questioned whether he would abandon the top job at DirecTV for the No. 2 slot at News Corp. Indeed, Carey's contract with DirecTV extends into December 2010. 

People close to the situation said Carey has gradually been wooed by Murdoch and is enticed by the prospect of returning to News Corp. with oversight of the sprawling and varied media enterprise with a film studio, television stations and a network cable operations and newspapers.

His appointment would also buy time until 36-year-old James Murdoch is ready to an elevated role at News Corp.

Carey had been co-chief operating officer at News Corp. as well as CEO of its satellite TV unit, Sky Global Networks Inc.; co-COO of Fox Entertainment Group and CEO of Fox Television.

-- Dawn Chmeilewski

Photo: Matthew Staver/Boomberg News

Peter Rice may have been a genius when it came to making Fox Searchlight the most successful specialty film distributor in Hollywood with such breakout hits as "Slumdog Millionaire," "Juno" and "Little Miss Sunshine."

But when it came to hitting it big with a division dedicated to comedies and thrillers aimed at teens, he bombed.

After a two-year, money-losing run of too many box-office misses, including the recent R-rated comedy "Miss March" and last year's comedy "The Rocker," starring Rainn Wilson, 20th Century Fox is shuttering its Fox Atomic "genre" label.

Six production executives will lose their jobs and another half-dozen who worked for Fox Atomic Digital will transition over to Fox Filmed Entertainment to work on digital projects.

Fox Atomic President Debbie Liebling is expected to return to the main movie studio, 20th Century Fox, headed by Tom Rothman and Jim Gianopulos, where she worked previously.

The big Fox studio will release the films that Atomic has in the hopper including "I Love You, Beth Cooper," directed by Chris Columbus, due out July 10, and "Jennifer's Body," a comedy horror film written by "Juno" screenwriter Diablo Cody, scheduled for release Sept. 18. "The Post Grad Survival Guide," a comedy slated for Aug. 14, will be released through Fox Searchlight.

Fox Atomic was launched in January 2007 as a way to give Searchlight's then-chief Rice expanded duties. Rice had hoped the unit could cash in on a lucrative market for low-cost, so-called genre films driven by young moviegoers, just as Dimension Films and Lions Gate have had been doing.

But most of Atomic's films incinerated at the box office. In January 2008, the label's marketing operation was folded into main Fox and nearly two dozen employees were laid off.

Last month, Rice, who oversaw Fox Atomic, was promoted to chairman of Fox Broadcasting.

-- Claudia Eller

Photos: 20th Century Fox

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Fox Atomic goes up in mushroom cloud after two-year money-losing run

Peter Rice may have been a genius when it came to making Fox Searchlight the most successful specialty film distributor in Hollywood with such breakout hits as "Slumdog Millionaire," "Juno" and "Little Miss Sunshine."

But when it came to hitting it big with a division dedicated to comedies and thrillers aimed at teens, he bombed.

After a two-year, money-losing run of too many box-office misses, including the recent R-rated comedy "Miss March" and last year's comedy "The Rocker," starring Rainn Wilson, 20th Century Fox is shuttering its Fox Atomic "genre" label.

Six production executives will lose their jobs and another half-dozen who worked for Fox Atomic Digital will transition over to Fox Filmed Entertainment to work on digital projects.

Fox Atomic President Debbie Liebling is expected to return to the main movie studio, 20th Century Fox, headed by Tom Rothman and Jim Gianopulos, where she worked previously.

The big Fox studio will release the films that Atomic has in the hopper including "I Love You, Beth Cooper," directed by Chris Columbus, due out July 10, and "Jennifer's Body," a comedy horror film written by "Juno" screenwriter Diablo Cody, scheduled for release Sept. 18. "The Post Grad Survival Guide," a comedy slated for Aug. 14, will be released through Fox Searchlight.

Fox Atomic was launched in January 2007 as a way to give Searchlight's then-chief Rice expanded duties. Rice had hoped the unit could cash in on a lucrative market for low-cost, so-called genre films driven by young moviegoers, just as Dimension Films and Lions Gate have had been doing.

But most of Atomic's films incinerated at the box office. In January 2008, the label's marketing operation was folded into main Fox and nearly two dozen employees were laid off.

Last month, Rice, who oversaw Fox Atomic, was promoted to chairman of Fox Broadcasting.

-- Claudia Eller

Photos: 20th Century Fox

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Former AOL chief to join News Corp.

Former America Online Chief Executive Jonathan Miller is expected to join News Corp. in the newly-created position overseeing digital strategy, according to a person familiar with the situation.

Miller is a well known figure in digital media, whose name was mentioned in conjunction with the top job at Yahoo. It would be the start of a major reorganization of the News Corp. digital division. It's unclear how this would affect Peter Levinsohn, who currently oversees Fox Interactive Media, which includes MySpace.

Levinsohn is well regarded by New Corp. Chairman Rupert Murdoch and other senior executives at the company, and sources say there could potentially be another role for him inside the company.

Miller stepped down as head of AOL in 2006, and founded the investment firm Velocity Capital. Last year, he was reportedly involved in trying to secure financing to make a bid for Yahoo at $20 to $22 a share, or $28 billion to $30 billion.

Miller has established himself as a hot hand on the Internet. He made his mark in e-commerce at Barry Diller's media conglomerate, then as chairman and chief executive of AOL, from which he was ousted in November 2006. He has detractors, particularly inside Time Warner, but gets plaudits from analysts and colleagues who say he is one of the industry's foremost strategic thinkers.

Herb Scannell, CEO of Internet television start-up Next New Networks and former vice-chairman of MTV Networks, calls Miller "one of the smartest guys I have come across in the media world."

-- Dawn Chmielewski and Claudia Eller

Photo of Miller by AP

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Former NBC exec to join Chernin?

Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. executive when he launches his new production company.

Pope, who as head of NBC's television studio helped shephard such shows as "Heroes" and "30 Rock," was one of three top programming executives who were outsted last year following a rocky fall season for the broadcast network.

Industry sources say Pope has been in discussions with Chernin, who announced that he would leave News Corp. when his contract ends in June, concluding more than a dozen years as the entertainment giant's chief operating officer. 

Chernin's contract guarantees him a six-year motion picture and television production deal, under which Fox is obligated to green-light at least two movies a year -- at his discretion.

Chernin did not respond to an e-mail request for information. Pope could not be reached for comment.

-- Dawn C. Chmielewski

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

'Wolverine' promo is 'too big for one night,' says Fox

So, here's a new twist on movie promotions.

20th Century Fox has produced a three-part trailer to promote its big-budget summer release "X-Men Orgins: Wolverine" that will run as separate 60-second spots beginning Sunday on the studio's TV shows "Family Guy," "House" and "American Idol."

Immediately after Tuesday's broadcast of the final "Wolverine" spot on "Idol," all three trailers — which together form a narrative — will appear on Yahoo.

The fourth "X-Men" movie, which debuts in theaters May 1, is one of this summer's most highly anticipated releases. The spinoff of the three earlier films, which have generated a total of $1.2 billion in worldwide ticket sales, traces the origins and transformation of the the mutant played by the humanly handsome Hugh Jackman into Wolverine. The studio is billing it as the first chapter in the X-Man saga that unites Wolverine with other legends in the X-Men character "universe."

Fox says the fourth installment of the Marvel Comics movie cost about $100 million. That would be considerably less than the cost of the 2006 sequel "X-Men: The Last Stand," which reportedly carried a price tag of more than $200 million. Why cheaper? For one, Jackman is the only major star in this "prequel." And Halle Berry, who appeared in the first three films, doesn't have a role. Nor was "Wolverine" directed by Brett Ratner, who made the last film, but rather Gavin Hood, who won the 2006 best foreign film Oscar for the low-budget crime drama "Tsotsi" and has never handled a big franchise picture.

— Claudia Eller

Photos from "Wolverine" courtesy of Fox

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Murdoch Fox strategic review spurs Chernin speculation

News Corp. Chief Executive Rupert Murdoch (above right) is in Los Angeles this week and next week to meet with top Fox executives on the West Coast.

Murdoch's presence, and his scrutiny of the company's entertainment businesses, has prompted increased speculation that Peter Chernin (above left), president and chief operating officer of News Corp., actually might be leaving the company after 20 years.  Chernin's contract expires in June.  Chernin has been particularly tight-lipped about his plans, fueling anxiety among Fox executives who want to keep Chernin, who is admired by both Wall Street and Hollywood power players.

Chernin declined to comment.

Murdoch flew into Los Angeles from Australia this week after celebrating the 100th birthday of his mother, Dame Elisabeth Murdoch, along with about 600 friends. The 77-year-old Murdoch is fond of saying that his mum's longevity bodes well for his own prospects of remaining at the helm of News Corp. for many more years.

Succession issues have bedeviled the company because Murdoch wants one of his children (he has six) to eventually run the global media empire that includes the 20th Century Fox film studio, Fox Broadcasting network, cable television outlets that include Fox News Channel, social network MySpace and a string of newspapers that includes his recently acquired jewel, The Wall Street Journal. 

Some on Wall Street worry that Murdoch's kids are not ready to manage the sprawling businesses that generated $33 billion in revenue last fiscal year. What's more, it would be a particularly awkward time for a major executive transition because the recession has hammered media companies that depend on advertising and consumer spending for such non-essential purchases as DVDs.

Last week, News Corp. reported a $6.4-billion loss for the quarter ended Dec. 31. Its stock is down 65% from a 52-week high of $20.49. 

During a conference call with analysts to discuss the results, Chernin seemed to play a less prominent role than he has in the past. Murdoch dominated the session, fielding questions about the entertainment properties that have long been Chernin's specialty.

Then there was the sticky issue of Chernin's contract.

Back during November's earnings call, when Murdoch and Chernin were asked to characterize the negotiations, Chernin called them "constructive." Murdoch quickly jumped in:  "I would characterize them as constructive and friendly."

But last week, the same question prompted a more measured response. "Peter and I are continuing our conversations and they're private and that is all there is to it," Murdoch said.  "Nothing more for me to say and we won't take any further questions on that. It is a confidential matter."

Chernin remained silent.

Murdoch's tour through Los Angeles is part of a strategic review of the company's businesses that takes place every three years, say people familiar with the situation who did not want to be identified in discussing the sensitive subject. Murdoch will hold two more weeks of meetings with top Fox executives this month in New York.

If Chernin were to leave News Corp., he would be available to step into the top job at any number of troubled media companies, of which there appears to be no shortage.

People close to Chernin said it would be hasty to draw a conclusion about Chernin's tenure and Murdoch's visit (the CEO comes here more often than people think, they said). Chernin, 57, has been known to take his employment negotiations down to the wire.  His last contract renewal, in July 2004, was announced three days before the new agreement went into effect.

— Dawn C. Chmielewski and Meg James   

Photo: Daniel Acker/Bloomberg News

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."

Hollywood sings the Blu(e)s

Hollywood is singing the holiday blues.

Several major studios and consumer electronics companies are bankrolling a $25-million marketing campaign this holiday season to promote Blu-ray movie discs.

The commercials will begin airing this month on television shows and cable channels that attract heavily male audiences (the classic technology early adopter), such as Fox's NFL games and ESPN, Comedy Central and the Discovery Channel.  The ad features some of the summer's biggest hits -- including "The Dark Knight," "Hancock" and "Wall-E" -- together with the promise that "all the movies you want will be on Blu-ray high definition ... The best way to watch movies at home, ever."

The launch of the "Tru Blu" promotional campaign underscores the enormity of the stakes for the studios and hardware manufacturers.  The initial format war over which technology would replace the DVD, Sony's Blu-ray or Toshiba's rival HD DVD, confused consumers and kept them from making the   high-def leap.

Meanwhile, DVD sales, long Hollywood's most dependable cash cow, are down 9% this year, according to Nielsen VideoScan. Studios are looking to promote Blu-ray to pick up the revenue slack.

Admittedly, spurring sales of a premium item as the economy spirals headlong into a recession is no small feat. Especially when a new Consumer Reports poll found that 76% of consumers plan to cut back on holiday spending on gifts, travel and entertaining. 

"With the recession, if people splurge, they’re going to splurge on watching movies at home, bypassing other entertainment options," said Ronald Sanders, president of Warner Home Video Inc.  "Yes, there are some challenges, given the recession. By and large, the industry is holding up very, very well."