Upfronts 2012: Fox isn't happy about Dish's ad-zapping Auto Hop

NEW YORK -- Add Fox Networks Group Chairman Peter Rice to the growing list of television executives upset about satellite broadcaster Dish Network's new Auto Hop commercial-skipping feature.

"It seems a strange thing to do," Rice said about Dish's new feature, which allows users to literally black out commercials from shows that are broadcast on ABC, NBC, CBS and Fox and then watched at least one day after their original airing.

While consumers with digital video recorders can fast-forward through commercials of recorded shows, the Auto Hop takes it a step further. The screen goes black when a commercial break appears and a few seconds later, the program returns. The service can't be used on live programming, such as a sporting event, that has been recorded.

With more than 14 million subscribers, Dish Network Corp.'s new technology is of great concern to the networks and advertisers.

Rice, who was speaking with reporters on a conference call Monday to announce Fox's fall schedule, noted that broadcast networks such as Fox are the largest content providers to pay-TV distributors such as Dish, and wondered why Dish would risk alienating that relationship. As for whether the network will consider some sort of legal action to try to derail Dish's new commercial-zapping offering, Rice said Fox is "still evaluating it."

On Sunday, NBC Broadcasting Chairman Ted Harbert also expressed frustration over Dish's Auto Hop, calling it "an attack on our ecosystem."

The NBC executive took it a step further Monday during the network's presentation of its fall schedule to advertisers at Radio City Music Hall. After talking in great detail about the billions NBC and its parent company Comcast Corp. have spent on sports programming, such as the National Football League and the Olympics, as well as hundreds of millions on comedies and dramas, Harbert called the Auto Hop an "insult" to that investment.

"Just because technology gives you the ability to do something, does that mean you should?  Not always," Harbert said.

Dish's new technology, which was announced last week, is only offered for use on broadcast programming, not shows from cable networks. A Dish spokesman said there was no technological reason that Auto Hop wouldn't work on cable but that it was being offered for use only on broadcast shows because those are most popular with Dish customers.

This is not the first time such a technology has been launched. Several years ago, a service called Replay did virtually the same thing. The broadcast networks sued and won on copyright infringement grounds.

A Dish spokesman said the satellite broadcaster "believes that consumers deserve a choice when it comes to television viewing and Dish’s Auto Hop feature is all about choice. Viewers have been skipping commercials since the advent of the remote control; we are simply making it easier.”

RELATED:

Dish's Auto Hop makes skipping commercials even easier

NBC Broadcasting head no fan of Dish's commercial-skipping device

-- Joe Flint

Photo: Peter Rice. Credit: Fox

Location stills from 'The Best Exotic Marigold Hotel' on display in L.A.

In "The Best Exotic Marigold Hotel," the low-budget movie from Fox Searchlight Pictures and Participant Media, seven middle-class British retirees decide to "outsource" their retirement to India.

Drawn by advertisements of the newly renovated Marigold Hotel, the retirees arrive in India to find a run-down dump far from the exotic and luxurious setting that they imagined.

The film, which opened in U.S. theaters Friday, was shot mainly in India in late 2010 with an all-star British cast including Judi Dench, Bill Nighy, Tom Wilkinson, Maggie Smith and Graham Broadbent.

Photographs highlighting some of the Indian locations used in the movie went on display this week at an exhibition at the W Los Angeles hotel in Westwood. The photographs, taken in Jaipur and Udaipur, India, will be on display at the hotel through May 31.

Here's a look at some of the scenes:

PHOTO GALLERY

RELATED:

Word of Mouth: Seniors invited to this 'Hotel'

India is key part of the cast for 'The Best Exotic Marigold Hotel'

Movie review: 'The Best Exotic Marigold Hotel'

-- Richard Verrier

Photo: Judi Dench on the set of "The Best Exotic Marigold Hotel." Credit: Ishika Mohan

Fox distribution president Bruce Snyder to retire

Twentieth Century Fox's president of domestic distribution, Bruce Snyder, who has worked in the film business 44 years and ran the division that books Fox movies in theaters since 1989, will retire in July, the studio announced Tuesday.

He will be replaced by his deputy Chris Aronson, who has worked at Fox since 2005 and in the movie business for three decades.

Theatrical distribution is one of the few key jobs in Hollywood that has largely remained the same as it was decades ago despite the rapid changes wrought by digital technology. Executives negotiate with theater owners to exhibit their movies and try to extract the highest possible percentage of ticket sales for their studios.

Most distribution executives are, like Snyder, longtime veterans who have been in their posts for decades.

Snyder, 65, began his career at Paramount Pictures in 1968 and joined Fox in 1976 as manager of the eastern division. Thirteen years later he was named president of domestic distribution, overseeing the release of such blockbusters as "Avatar" and "X-Men."

Aronson came to Fox in 2005 after previously working at Metro-Goldwyn-Mayer, Columbia Pictures, Universal Pictures and Rentrak Corp., which tracks box-office receipts and counts the studios as its key clients. His most recent position at Fox was executive vice president of domestic distribution.

"For decades, Bruce has represented everything that is good and strong and ethical about our studio and industry," Fox chairmen Jim Gianopulos and Tom Rothman said in a statement. "He has not only guided hundreds of our pictures into the theatrical marketplace, he has spent countless hours advising colleagues and even competitors, all of whom have benefited from his wisdom, experience and kindnesses. He is a prince among men and will be missed by everyone whose lives and careers he has touched."

ALSO:

Wolfgang Hammer and Terry Press chart CBS Films' new direction

MPAA's Dodd urges industry to reach out to 'connected consumers

James Murdoch insists he was unaware of widespread phone hacking

-- Ben Fritz

Photo: Bruce Snyder. Credit: 20th Century Fox.

Fremantle exec's promotion leaves hole at 'Idol,' 'X Factor'

The promotion of Cecile Frot-Coutaz from chief executive of FremantleMedia North America to CEO of parent company FremantleMedia leaves a big hole to fill at the production company behind musical talent shows "American Idol," "The X Factor" and "America's Talent."

Frot-Coutaz, who will relocate to Fremantle's London headquarters to succeed Tony Cohen, plays a large behind-the-scenes role in the creative and business operations of Fox's "American Idol" and "The X Factor" and NBC's "America's Got Talent." Fremantle parent company RTL Group said Cohen is leaving to "focus on his non-executive work."

No replacement for Frot-Coutaz in the United States has been named. Donna Redier Linsk is Fremantle North America's chief operating officer and the No. 2 executive there. She joined in 2009 from Fox Broadcasting, where she was a senior vice president of business affairs and alternative production.

Known for being direct, Frot-Coutaz has been instrumental in making Fremantle a force in the United States. She also isn't shy about speaking her mind in public on occasion. This year at a television programming convention, she poked at Simon Cowell's prediction that "The X Factor" would be bigger than "American Idol."

"Simon lives on a Simon planet, and that planet is a very ambitious one," she said. "Anyone who achieves that level of success walks a fine line between genius and a little bit of craziness."

One of Frot-Coutaz's priorities over the last few months has been lining up new judges to join Cowell on "The X Factor." Of the other judges from Season 1, only L.A. Reid remains: Paula Abdul and Nicole Scherzinger were both released. Pop sensation Britney Spears is on Fremantle's wish list to join the program.

ALSO:

American Idol plans Dick Clark Tribute

American Idol recap

-- Joe Flint

Photo: Cecile Frot-Coutaz. Credit: Fremantle

'Abraham Lincoln: Vampire Hunter' loses his name overseas

Abraham Lincoln won't get top billing in some foreign countries when his vampire-hunting adventure hits the big screen this summer.

Hoping to make its adaptation of the bestselling book "Abraham Lincoln: Vampire Hunter" more accessible to overseas moviegoers who might not be familiar with America's 16th president, 20th Century Fox is calling its June release "President Lincoln: Vampire Hunter" in Taiwan and Thailand and simply "Lincoln: Vampire Hunter" in Hong Kong and South Korea, a spokesman for the studio confirmed.

In Italy and Portugal, meanwhile, the title character is gone entirely. The film will be called "The Legend of the Vampire Hunter" and "Secret Diary of the Vampire Hunter," respectively, in those countries.

In the rest of Europe and all of the Spanish-speaking world, the picture will carry a local language version of "Abraham Lincoln: Vampire Hunter."

It's not uncommon for movies to get new names in certain overseas markets, particularly when the original title contains references that have more resonance for Americans. Last year's "Captain America: The First Avenger," for instance, was known simply as "The First Avenger" in South Korea, Russia and Ukraine.

For "Abraham Lincoln," directed by Russian filmmaker Timur Bekmambetov, some at Fox are already concerned  that the content itself -- with a main character drawn from American history -- will be less appealing than many other summer movies in certain overseas markets. Given the importance of international box office to turning a profit on big budget tentpoles, the last thing the studio needs is a title that will make the challenge even more difficult.

RELATED:

Honest Abe gets his vamp

'Captain America' will try to win over the world

Movie Projector: 'Three Stooges' are only rival for 'Hunger Games'

-- Ben Fritz

Photo: Benjamin Walker in "Abraham Lincoln: Vampire Hunter." Credit: Alan Markfield / 20th Century Fox.

James Murdoch resigns from BSkyB ahead of phone-hacking report

 

James Murdoch's resignation as chairman of satellite broadcaster British Sky Broadcasting comes ahead of what is expected to be a very critical government report on his handling of the ethics scandal at News Corp.'s British tabloids.

Murdoch, in announcing his decision, alluded to the ongoing investigations into accusations of phone hacking and payoffs to police, allegedly by the News Corp.'s News of the World and the Sun. News Corp. owns 39% of BSkyB and was on track to acquire the rest of the company last year until the problems at the tabloids derailed the deal. Murdoch resigned in February as executive chairman of News International, the media conglomerate's British publishing division.

"As attention continues to be paid to past events at News International, I am determined that the interests of BSkyB should not be undermined by matters outside the scope of this company," Murdoch said in a statement released Tuesday. "I am aware that my role as chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organization." Murdoch will remain on BSkyB's board of directors.

Murdoch, the youngest son of News Corp. Chairman and Chief Executive Rupert Murdoch, has been the focus of scrutiny over his handling of the crisis as head of News International. Last December he informed Parliament that he did not read an email from senior executives saying that the practice of phone hacking -- listening in on voice-mail messages left for celebrities, members of the royal family and even crime victims -- could be widespread. 

More than a dozen journalists and executives with News International have been arrested and questioned by Scotland Yard in connection with its investigation into the allegations of phone hacking and bribery. Police are also probing whether News International was engaged in a cover-up of criminal activity at News of the World and its sister tabloid, the Sun.

James Murdoch, who served as chairman of News International until stepping down from that post in February, has consistently denied any knowledge of widespread phone hacking at the papers then under his command. He insists he was led to believe that phone hacking was confined to one "rogue reporter" at the News of the World who was convicted and jailed for his offense.

James and Rupert Murdoch are expected to appear before Parliament again as part of an ongoing inquiry into possibly illegal activities at the tabloids. The damaging scandal exploded last summer when the Guardian reported that News of the World operatives had eavesdropped on voice-mail messages left for a missing teen girl who was later found murdered.

Murdoch's resignation as chairman of BSkyB does not mean the powerful broadcaster won't suffer collateral damage from the probe into the newspapers. British regulators may investigate whether News Corp.'s tabloid troubles have made it unfit to be part of BSkyB. Nicholas Ferguson, currently the deputy chairman, will succeed Murdoch as chairman of BSkyB.

Once seen as the heir to his father's kingdom, James Murdoch has been severely tarnished by the controversy, although he still holds a senior position at News Corp. as its deputy chief operating officer and focuses on its international television business.

"The story continues to not go away, and the feeling that somehow James was involved to a greater extent than he's willing to let on continues to persist," said Doug Creutz, media analyst with Cowen and Co. "He keeps falling back further and further backwards along the line of defenses in terms of his involvement in the Murdoch empire. There ain't a lot left."

RELATED:

News Corp. heir apparent James Murdoch resigns from London post

James Murdoch insists he was kept in the dark about phone hacking

James Murdoch blames subordinates in phone hacking scandal

 -- Dawn C. Chmielewski

Hulu's Jason Kilar 'Thinks Different' about television

Hulu Chief Executive Jason Kilar chose the advertising agency's conference in Los Angeles to do his own riff on Apple Inc.'s "Think Different" campaign.

Instead of saluting "The Crazy Ones" from the memorable TBWA/Chiat/Day ad campaign from 1997 that heralded the rebirth of Apple -- and featured some seminal figures of the 20th century, including Dr. Martin Luther King, Mohandas Gandhi and Albert Einstein -- Kilar offered his own pantheon of innovators.

Kilar saluted those who strove to do better -- including Walt Disney, who conceived of the idea for Disneyland while sitting on a park bench in Griffith Park, watching his daughters ride a merry-go-round; James Dyson, who invented the bagless vacuum cleaner (and brought a sense of industrial design to the bland household appliance), and Steve Jobs, whose iPhone relegated the rotary dial phones to museum pieces.

"I can think of no bigger inspirations for looking at the world around you and looking for a better way," said Kilar, speaking Wednesday at the American Assn. of Advertising Agencies conference at the Beverly Hilton hotel.

Hulu, said Kilar, strives to bring the same relentless innovation to television. "If we're really on our game people will look back on it and will say, "Wow, I can't believe TV was like that in 2007."

The online television service, which is jointly owned by media giants News Corp., Walt Disney Co. and Comcast Corp.'s NBCUniversal, as well as Providence Equity Partners, brought in $420 million in revenue last year. The site, which features television shows from the current season, attracted some 37.7 million viewers last month.

Kilar articulated his oft-repeated vision for the future of television, saying it will become more personalized (the way Internet radio service Pandora delivers music tailored to a listener's taste) and social.

"TV is one of the most social mediums.... The things people talk about most are the weather and television," Kilar said. "With digital, we should be able to encourage social to the core. It's going to be a big, big deal."

Kilar also highlighted some of Hulu's attempts to re-imagine advertising, including allowing the viewer to choose which ad they'd like to watch, or to skip commercials they don't find relevant. Such efforts increase the viewer's ability to remember the promotions they've watched, Kilar said. "The recall goes through the roof because they're mentally engaged with the ad."

RELATED:

Conference in L.A. reflects city's rise as ad industry hub

Hulu strikes distribution deal with Freemantle

CW network to offer new TV episodes on Hulu

-- Dawn C. Chmielewski

Video: Steve Jobs narrates this unaired version of Apple Inc.'s 1997 "Think Different" ad campaign.

Hulu strikes distribution deal with Fremantle

In deal that validates the quality of some original programming for the Web, Internet video service Hulu reached an international distribution agreement with FremantleMedia Enterprises.

Fremantle -- whose television production unit is best known for "American Idol,"  "America's Got Talent" and "The X Factor" -- signed a first-look deal for rights to distribute Hulu's original shows to global markets.

The first program Fremantle will attempt to sell is documentary filmmaker Morgan Spurlock's acclaimed series, "A Day in the Life." The second season premieres Monday on Hulu and its subscription service, Hulu Plus.

"For us, this isn't about one particular project, it's about getting into business with Hulu around their new content initiative," said Jeff Tahler, Fremantle's senior vice president of acquisitions and development.  "Looking at what they've done ... (and) their original programming efforts, it's similar to any other network or production company."

Hulu stands to benefit from Fremantle's broad reach and access to traditional distributors for television programming.  For the moment, the online service -- which is jointly owned by media giants News Corp. Walt Disney Co. and Comcast Corp.'s NBCUniversal -- is only available in the United States and Japan.

"That'll expand over time," said Andy Forssell, Hulu's senior vice president of content. "No matter how aggressive we are, there will be plenty of opportunities to get this content out that we'd be crazy not to look at."

Broader distribution also would provide additional revenue to help underwrite the cost of creating new shows. Hulu and competing subscription services like Netflix Inc. have been launching original programs as a way to differentiate their services.

Netflix's first scripted series, "Lilyhammer," premiered last month.

"The quality [of the originals] has got to be really high because it's sitting next to the best shows on TV last night," Forssell said. "It's a challenge. We're going to be very selective."

Hulu also has secured the rights to exclusively distribute more than 30 documentary films, including Amir Bar-Lev's "Re:Generation Music Project" and Spurlock's upcoming "Comic-Con Episode Four: A Fan's Hope," a behind-the-scenes look at the thousands of fans who gather each year in San Diego to attend the world's largest comic book convention.

"Documentaries have always done well on our service," Forssell said. "It's a passionate audience. Many of them tend to be tech-forward leaning."

RELATED:

No-hit TV show gets a lifeline on the Web

Hulu launches Latino service with Spanish-language programming

CW Network to offer new TV episodes on Hulu

-- Dawn C. Chmielewski

Photo: Director Morgan Spurlock in "POM Wonderful Presents: The Greatest Movie Ever Sold." Credit:  Daniel Marracino / Sony Pictures Classics.

CBS chief Leslie Moonves' favorite comedy is not on CBS

CBS Corp. Chief Executive Leslie Moonves made a startling admission at the 36th Annual UCLA Entertainment Symposium on Saturday.

At the end of a wide-ranging question-and-answer session, prominent entertainment attorney Ken Ziffren asked the television titan to name his favorite television comedy.

"Modern Family," Moonves said.  

The Emmy-winning sitcom, created by Steve Levitan and Christopher Lloyd, has become a colossal hit for ABC. The show, now television's top-rated comedy, is produced by another rival, 20th Century Fox Television -- not CBS'  production studio. 

It would hardly be news if any other entertainment CEO said he liked a competitor's program, but this was Moonves. He has been CBS' most ardent cheerleader for more than 15 years, and he has changed the names of several business units in his corporate stable so they would be branded CBS. 

Moonves immediately knew he would take flak.

"I'm going to get in big trouble with Chuck Lorre next week," Moonves said, referring to the prolific producer who has helped build CBS' comedy blocks into some of the most profitable half-hours in all of television with his shows "Two and a Half Men," "The Big Bang Theory" and most recently "Mike & Molly."

Ziffren noted that "Big Bang Theory" (produced by Warner Bros. Television), which airs on CBS on Thursday nights, is beating the once-invincible Fox Broadcasting singing competition "American Idol" in the ratings.

"Look, 'Idol' is still a monster show, I wish that I had it, but it's not what it used to be," Moonves said.

For the record, Moonves said his two favorite dramas on television were "The Good Wife" on CBS and "Homeland" on Showtime, which is owned by CBS. 

"And they are both mine," he said.

"Big Bang Theory" tops "American Idol" again

CBS chief testifies that he would have paid more than NBC for Golden Globes

CBS chief Leslie Moonves gets $57.7 million in compensation

-- Meg James

Photo: CBS Chief Executive Leslie Moonves in April 2011 at the National Assn. of Broadcasters convention. Credit: Julie Jacobson / Associated Press

`Terra Nova' demise shows story is more important than money

For all the talk about how new revenue streams, distribution platforms and the international marketplace are reinventing the television business, a show's success or failure still depends on how well it does on its home turf.

Case in point is Fox's "Terra Nova," the big-budget drama about a family that travels from 2149 to prehistoric times to try to save Earth only to run into some angry dinosaurs. Although the show was expensive — the per-episode production cost was about $4 million — it was not a money loser.

Because the show sold well overseas, 20th Century Fox Television, the production company behind "Terra Nova," was already making money on it, people familiar with the matter say. Fox Broadcasting, which was paying just over $2 million per episode in license fees for "Terra Nova," was also on solid financial ground with the show, the network's entertainment chief Kevin Reilly said in January.

So why pull the plug? Ultimately the network didn't believe the creative elements of the show were working or that the ratings would justify its big investment if the series kept going. Fox's Reilly made no secret of his concerns about the show's struggles to balance itself between being a family drama and a science fiction piece. The show, he said in January, was "hunting" for an identity.

While "Terra Nova" averaged about 10 million viewers and respectable 3.6 rating among adults 18-49 in its 13-episode run last fall, Fox needed bigger numbers. The production time on the special effects-filled series is much longer than a typical drama, meaning Fox could order only 13 episodes per season instead of the typical 22 or 24.

That being the case, it was crucial that "Terra Nova" have a huge audience that would stick with the show through its longer than usual hiatus. Even if the show was profitable for Fox in Season 1, any falloff in the ratings might have pushed "Terra Nova" out of the black and into the red in Season 2.

There will likely be debate about whether networks should still swing for the fences or play it safe. NBC is no doubt wondering the same thing with its musical drama "Smash." The problem with "Terra Nova" wasn't just that it cost too much. It was that all the special effects couldn't overcome that ultimately the story itself wasn't enough to pull in a big audience.

RELATED:

`Terra Nova' is latest bump for Steven Spielberg in TV

Fox cancels `Terra Nova'

Terra Nova fights against extinction

— Joe Flint

Photo: "Terra Nova." Credit: Brook Rushton / Fox.