Murdoch takes care of his own, but still won't talk about London tabloid controversy

 

Media mogul Rupert Murdoch has done a pretty good job avoiding the ink-stained-wretches-turned-tweeters at the Allen & Co. conference in Sun Valley, Idaho, by mumbling one- or two-word answers to their questions.

Wednesday, when asked whether he'd want to buy Twitter, he said no. Asked about selling MySpace, he said "hell no." Asked by this reporter whether he would buy the Los Angeles Times, he said "too difficult."

But he knows to take care of his own. The News Corp. chairman sat down today with his latest creation -- Fox Business Network -- for an interview here and during which he said the mood of the conference was "bearish."

“I’m shocked at the business mood, which is talking about either that we’re at the bottom or going lower, but that it’s going to take years and years, like five years at least before we see any real growth coming out of this," Murdoch said.

As for the newspaper industry, which Murdoch may be one of the last believers in, he said News Corp. would lead the way for a working pay model for newspapers, but offered no details.

"We have a lot of plans I’m not ready to disclose yet, to really lead the newspaper industry into monetizing what it has," he said.

There are advantages to talking to media outlets you control. One reason Murdoch has been dodging the media here is because of a controversy brewing at his London tabloid papers The Sun and News of the World, which have been accused of using wiretaps to get dirt for their stories.

But Murdoch didn't have to sweat the questions from Fox Business Network. Interviewer Stuart Varney tried to ask him about it and Murdoch said "I'm not talking about that issue today." Varney was more than happy to let it slide.

"No worries, Mr. Chairman," Varney said, adding "that's fine with me."

In fairness to Murdoch, NBC Universal Chief Executive Jeff Zucker also found time to squeeze in an interview with CNBC today, but otherwise has been hard to find. Last report was he's on the links.

-- Joe Flint

Photo: Rupert Murdoch, left, talks with Univision Chairman Haim Saban and Thomas Staggs, chief financial officer of Walt Disney Co. Credit: Matthew Staver / Bloomberg News

Allen & Co. conference: consumers, not media, hold the power now

One of the themes that seems to be emerging from the Allen & Co. media conference in Sun Valley is that marketing content is going to have to change in the digital age.

"Consumer behavior is going to change dramatically," predicted NFL Commissioner Roger Goodell.

At one of the panels here, Disney Chief Executive Bob Iger noted that Warner Bros. movie "The Hangover" wasn't a huge hit just because the studio did a smart marketing job. Social networks such as Facebook and Twitter fueled interest in the comedy, he said. IAC Chairman and Chief Executive Barry Diller noted that people want to know what their peers are saying, not critics and experts. The success of Paramount's "Transformers" sequel may be proof of that. Reviews were dreadful for the action film, yet it has grossed more than $300 million in the U.S. alone since its June 24 release.

One media executive noted that programmers have to realize that "dollars spent convincing people" to watch a show or see a movie won't work. "We need to focus on what they do like," the executive said.

-- Joe Flint

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Sun Valley update: Buffet on YouTube; Malone on Twitter; LeBron on ice

 

How much would you pay a month to look at YouTube?

Apparently, billionaire investor Warren Buffett is willing to shell out five bucks for the pleasure of seeing dogs skateboard, kids making their own videos and the occasional piece of unlicensed material. At least that's what he told Liberty Media Chairman Corp. John Malone at the Allen & Co. conference in Sun Valley, Idaho.

Malone shared that tidbit with reporters today after the morning sessions here. He was responding to one reporter's comment that Facebook probably could get away with charging a small fee to its users. Malone, who sits on the board of cable programming giant Discovery Communications, thinks eventually people are going to have to adjust to coughing up some cash for online content.

"People will get addicted and be willing to pay for it," Malone said.

Though Malone and other old-time media moguls think their content is worth something, they are not so sure about Twitter. The social networking site that has exploded this year has been the hot topic at Sun Valley. Everyone seems to love it, but no one is sure how to make money off of it.

Malone and IAC Chief Executive Barry Diller both expressed doubts about the site's prospects as a cash machine during a panel moderated by the New Yorker's Ken Auletta that also featured Walt Disney Co. Chief Executive Bob Iger.

Twitter co-founder and Chief Executive Evan Williams was in the audience but stayed quiet, according to Auletta. Williams also dodged reporters after the session.

News Corp. Chairman and Chief Executive Rupert Murdoch also made the rounds today. He doesn't seem to be in a buying mood. He said he wasn't interested in Twitter and when later asked about buying the Los Angeles Times, whose Chicago-based parent Tribune Co. is in bankruptcy, he wistfully said that it would be "too difficult."

Murdoch declined to elaborate on whether it would be too difficult to persuade his board to buy another paper or whether dealing with Tribune's Chapter 11 situation would be the hassle. As for speculation that he might want to sell MySpace, the social network site that has lost some luster to Facebook, he said "hell no."

The conference opened with a bleak panel on the economy that was moderated by CNBC's Erin Burnett and featured investor Wilbur Ross, American Express Chief Executive Kenneth Chenault and MIT Professor Simon Johnson. Panel attendees said that Ross was particularly gloomy. Looking for a bright spot, Malone noted that though Ross was being "realistic," the billionaire investor also said he was still willing to consider investments in the U.S. "Maybe he thinks it's reached a bottom," Malone said.

In between sessions, attendees did the usual hide-and-seek with the media. Ken Auletta was more than happy to chat with reporters about the panel he moderated despite Allen & Co.'s desire that its participants treat the media like zoo animals. You can look, but please don't feed them.

The most anticipated guest of the conference, basketball star LeBron James, arrived late in the afternoon in time for the banquet dinner. He carefully walked across the ice skating rink. No doubt James' handlers and coach wouldn't be happy if he suddenly decided to put on some skates and do a few figure eights. Asked how he felt to be the big star at the conference, he coolly replied, "I'm the small guy."

-- Joe Flint

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Photo: Warren Buffet arrives at Sun Valley. Credit: Matthew Staver / Bloomberg News

At Allen & Co. conference, there are lots of questions, few answers

There are no answers.

That seemed to be the theme of this morning's sessions that focused on the economy and digital media at the Allen & Co.

New Yorker writer Ken Auletta moderated a panel featuring Walt Disney Chief Executive Officer Bob Iger, Liberty Media Chairman John Malone and IAC Chief Executive Barry Diller. All had much love for Twitter, but there were doubts about how to monetize the social networking site in which users post 140-character updates (follow my tweets for all the latest tidbits going on here, see link below).

Diller in particular was pessimistic on how Twitter could make money, Auletta said afterward. Twitter co-founder and Chief Executive Evan Williams was in the audience but stayed quiet.

The three panelists were also asked by Cablevision Chief Executive James Dolan about offering consumers channels in bundles or a la carte. Both programmers and cable operators have traditionally been against letting consumers pick and choose the channels they want to watch, but with more and more content available online, that hard-line approach may have to change. Not having a la carte is defying the digital world, said Diller, according to Auletta.

The early morning panel about the economy, which was moderated by CNBC's Erin Burnett, was particularly grim, attendees said.  Billionaire investor Wilbur Ross was most bearish, per Auletta.

More power players showed up today including News Corp. Chairman Rupert Murdoch, but he wasn't very talkative this morning.  Allen & Co. is also tightening the already tight media restrictions. Potted plants have been put up everywhere to obstruct views. Reporters who need to go the bathroom get an escort.

There is a fair amount of male bonding going on. Murdoch, media mogul Haim Saban and Iger were chatting this morning while Murdoch's wife, Wendi Murdoch, and author Kathy Freston hung out together.

-- Joe Flint

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Top photo: Liberty Media's John Malone. Credit:  Peter Foley / EPA.

Bottom photo: Barry Diller and fashion designer Diane von Furstenberg. Credit: Peter Foley / EPA

After dark at Allen & Co. conference

When the work is done, it's time for fun.

After a rough first day of cocktails, a BBQ and a wagon ride, many of the attendees at the Allen & Co. conference retired to the Duchin Lounge inside the Sun Valley Resort to mingle with each other and duck reporters.

The scene often makes for interesting pairings. Harvey Weinstein, Cablevision Chief Executive Jim Dolan, Providence Equity chief Jonathan Nelson and Sony Corp. of America CFO Rob Wiesenthal were hanging outside the lounge, perhaps discussing Dolan's new digital video recorder. Asked about working with content partners who are very wary of Cablevision's new remote DVR (see our coverage of the device here), Dolan seemed confident an accord with programmers could be reached.

Inside the dark bar, Time Warner Chief Executive Jeff Bewkes was holding court with WME Entertainment's Jim Wiatt, Capitol Research's Gordy Crawford, media investor Vivi Nevo and former MySpace Chairman Richard Rosenblatt.

Former Viacom CEO turned global traveler and Oprah Winfrey adviser Tom Freston seemed very relaxed making small talk about the legacy of Michael Jackson and what it meant to MTV. "He helped put it on the map," Freston said.

Best overheard line of the night. When the bill was presented to a group of power players, Weinstein cracked, "bill it to Zucker," referring to NBC Universal chief Jeff Zucker with whom Weinstein had an ugly legal battle over "Project Runway."

Although known to keep the bar open until the wee hours of the night, on Day One the place was pretty much cleared out before midnight. Perhaps the big shots were saving their stamina for today's  6:30 a.m. start.

-- Joe Flint

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Paying for content the talk of Allen & Co. conference

Walt Disney Co. CEO Bob Iger wasted little time setting the tone for this year's Allen & Co. conference at Sun Valley.

Getting into his rental car after checking in at the Sun Valley Resort here, Iger held court with the press for a few minutes and declared, "People are going to pay [for] content.... we're not worried about monetizing content." Of course, Disney's ABC network started making some of its content available free on the online video site Hulu at the same time as it is joining News Corp. and NBC Universal as a co-owner.

Not surprisingly, it didn't take long for another media executive to pop up and offer a contradiction. Blake Krikorian, the co-founder of Slingbox, the device that allows people to watch their TV at home from anywhere, said the industry was "trying to put the genie back in the bottle." Another naysayer was former AOL executive Ted Leonsis, who said anyone trying to get consumers to pay for content online would be disappointed.

It is worth remembering, of course, that there was a time not too long ago when no one believed people would pay for television, and now nearly everyone subscribes to cable.

The Allen & Co. conference, which is expected to draw more than 260 executives from old and new media, politics, sports and government, kicked off today with a big welcome dinner. The real lifting won't begin until tomorrow, however, when there will be panels featuring Iger, Liberty Media Chairman John Malone and IAC Chief Executive Barry Diller discussing the digital future. On Thursday, Sony CEO Howard Stringer and General Electric Co. chief Jeff Immelt will talk about the global economic downturn. Also on Thursday, Google's Larry Page will appear on a Internet panel moderated by ABC News' Willow Bay, who is also married to Disney's Iger.

The conference also likes to bring in some special guests. This year hoops star LeBron James, who already has a relationship with Allen & Co., is expected to make an appearance. On Wednesday there was buzz that Gen. David Petraeus would be popping in on the event.

Many executives waver back and forth between schmoozing with the media and playing coy. Sirius CEO Mel Karmazin was all smiles at the front desk while asking for an alarm clock to be put into his room but brushed off questions about how the conference might play out. Sony's Stringer said questions about Michael Jackson's record sales were "ghoulish," although what would happen to the company's music publishing partnership with Jackson was on his mind but ultimately was "up to the lawyers."

Blake Krikorian, the Slingbox founder who was happy to riff on free Internet content, quieted down when asked about his own future. He is rumored to be a candidate to take Chase Carey's job running DirecTV. He was one of the more visible executives today in his tan shorts, blue shirt and cool shades, cruising the grounds with his wife on a bike. He wouldn't comment on any talks with the satellite broadcaster but joked that he wasn't too keen on trying to replicate Carey's legendary mustache if he were to follow him.

Viacom CEO Philippe Dauman also looked too cool for the room with his shades and tight pants. Meg Whitman, the former EBay chief who has been flirting with a run for governor, declined to comment on that race but later did go for a jog along the grounds.

Former super-agent Michael Ovitz is also here, and he joked that "things must be slow if you're waiting to talk to me." He did share that he does not think the merger of William Morris and Endeavor will be the last marriage between Hollywood agencies.

If one is thirsty, there is plenty of Coca-Cola around. Allen & Co. has long ties to the soft-drink king, and there are trucks and coolers all over the place. Good luck finding a Pepsi.

-- Joe Flint

Photos: Bob Iger, from top, Mel Karmazin, Philippe Dauman and Michael Ovitz (all Matthew Staver / Bloomberg News)

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Hollywood moguls, and others, start arriving in Sun Valley

 

Media moguls are starting to trickle into Sun Valley, Idaho, for Allen & Co.'s 27th annual conference.

They are welcomed at Friedman Memorial Airport by a team of greeters in green shirts and shorts. A British woman, Andy Kellog, runs the team and warns those renting cars not to speed. "The cops are there," she says sternly.

Spotted arriving at the Sun Valley Inn was Disney Chief Executive Bob Iger with wife Willow Bay and Discovery Communications CEO David Zaslav.

Already there has been an "incident" here as Universal Studios chief Ron Meyer made off with BET founder Bob Johnson's rental car. Meyer realized about halfway around the circle of the lodge that he was in the wrong car and promptly returned.

Blake Krikorian, the founder of Slingbox, who is rumored to be a candidate to take Chase Carey's job running DirecTV, cruised through the lobby in white shorts, a blue shirt and cool shades. He wouldn't comment on any talks with the satellite broadcaster but joked that he wasn't too keen on trying to replicate Carey's legendary mustache if he were to follow him.

Spouses are here as well. Elizabeth Wiatt, wife of Jim Wiatt, was busy putting her daughter on a bike for a midafternoon ride.

Reporters are gathered outside, mostly trying to figure out who's who, and have already dubbed themselves the "bizzerazzi." Most are grateful they're not at Staples Center.

-- Joe Flint

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Photo: Reserved parking space at Sun Valley/Joe Flint/Los Angeles Times

Allen & Co. gears up for annual invasion of Sun Valley

Kobe Bryant may have four championship rings, but it's the Cleveland Cavaliers' LeBron James who wrangled an invitation to hobnob with billionaire moguls at this week's Allen & Co. conference in Sun Valley, Idaho.

James, who already has ties to the New York-based investment bank and is busy building his own empire, will be in good company. One would think with the economy in tatters and layoffs and cost-cutting everywhere, attendance at what's been described as "summer camp for billionaires" would be down.

Apparently there's still some petty cash lying around as more than 260 old and new media chieftains, investment bankers, venture capitalists, politicians, agents and academics have been invited to participate in the five-day schmooze-fest. Among those expected are Bill Gates, Warren Buffett, Jeff Bewkes, Sumner Redstone, Sergey Brin, Mark Zuckerberg and Newark Mayor Cory Booker. Maybe Booker's going to try to lure big media to New Jersey since New York Mayor Mike Bloomberg appears to be skipping the confab this year.

The Murdochs are having a mini-family reunion, with oldest son Lachlan expected to pop in to visit with his father, News Corp. Chairman Rupert Murdoch, and younger brother and latest heir apparent, James. In fact, News Corp. may be the most well-represented company at the conference. Besides Rupert and James Murdoch, new Chief Operating Officer Chase Carey is also on the list, as is Jonathan Miller, new chairman and chief executive of the company's digital media units, and Owen Van Natta, chief executive of MySpace. Ex-COO Peter Chernin is also expected to be on the grounds, albeit as a mere producer nowadays.

All four major sports pro commissioners are usually there as well. Excuse NFL Commissioner Roger Goodell, though, if he appears a little tired. He's scheduled to arrive in Sun Valley after finishing a climb up Mt. Ranier.

In between rafting, knitting, yoga, chess and bridge (Buffett's a big bridge player), big deals are known to have been hatched during the conference's 26-year history. The most famous marriage with roots in Sun Valley was Disney's deal to buy Capital Cities/ABC in 1995, which came out of a random meeting in the parking lot between then-Disney CEO Michael Eisner; CapCities board member Buffett; and the company's CEO, Tom Murphy.

The gathering of the uberclass and the media who stalk it overwhelms Sun Valley and the neighboring town of Ketchum. If you are looking to rent a bike there this week, forget it; Allen & Co. has snagged them all. Tiny Friedman Memorial Airport will be overrun with private jets and the streets will be filled with town cars. Ironically the name of the main street into the Sun Valley Inn, a resort which for the week houses a good chunk of the Forbes richest list, is Dollar Road.

Like "Fight Club," the first rule of the Allen & Co. conference is you don't talk about the Allen & Co. conference. The event is closed to press and attendees are discouraged from even acknowledging whether they're attending and talking about the conference. Even the agenda is clouded in mystery, with the preliminary schedule that went out to attendees late last week providing scant details on which companies are making presentations. The conference isn't cheap to stage. Allen & Co. has been known to spend as much as $10 million on the festivities in the past.