Fox Digital stakes out Web territory with 'Wolfpack'

Fox Digital Entertainment has joined the growing pack of companies creating high-quality content for the Internet. The 2-year-old unit of 20th Century Fox movie studio this week released its first made-for-the-Web series called "Wolfpack of Reseda."

The 12-minute inaugural episode revolves around Ben March, a hapless car insurance salesman (played by Tate Ellington), whose life is transformed when he thinks he had been bitten by a werewolf at a San Fernando Valley park. The show, which consists of eight episodes with a new one released each Thursday, is something of a dark comedy.

"The key challenge in this space is the storytelling," said Matt Glotzer, senior vice president at Fox Digital Entertainment. "And then the challenge becomes about breaking the show. How do you make sure people see it?"

Fox Digital turned to Myspace, which is trying to transform itself, as its primary distributor. Myspace plans to create its own content, acquire other series and become something of a digital "farm system" to find new talent.

Kia Motors America is sponsoring the series. Tim Chaney, Kia's director of marketing communications, said the car company was attracted by the show's transformational theme. The story line felt like a good fit for its funky Kia Soul vehicle, he said.

The emergence of Fox Digital Entertainment and "Wolfpack of Reseda," highlights the trend of major media players stepping up their game when it comes to creating Web content. Online video has become the fastest-growing advertising segment, according to eMarketer Digital Intelligence. 

"Marketing and advertising is about going to where the eyeballs are, and increasingly those eyeballs are online," said Rebecca Lieb, media analyst with the Altimeter Group.

Read the full story in the Los Angeles Times.

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FCC can auction spectrum, but will broadcasters sell?

When it comes to parting with their spectrum, many broadcasters have the same attitude Charlton Heston had when it came to his rifle: The government can pry it from their “cold dead hands.”

On Friday, Congress cleared the way for the Federal Communications Commission to auction off some of the airwaves that broadcasters use to transmit their programming to wireless companies.

The proceeds would go toward building a new national network for law enforcement and public safety workers and toward paying for an extension of payroll tax and unemployment benefits.

Now comes the hard part: actually getting the spectrum, which has been valued at $25 billion, back from broadcasters to sell.

Even though the potential cut for broadcasters from the sale is $1.75 billion, there doesn't seem to be a whole lot of excitement about the idea.

“We have no intention of giving up spectrum,” said Alan Frank, president and chief executive of Post-Newsweek Stations, a broadcasting group that owns stations in several big cities, including Detroit, Houston and Miami.

David Smith, CEO of Sinclair Broadcast Group Inc., which operates 74 stations around the country, said he “hasn't heard of any broadcaster who has said they have anything for sale.”

The big networks seem to share that view. Although none would comment publicly, executives at Fox and NBC indicated they had no desire to sell any of their airwaves. CBS Chief Executive Leslie Moonves has previously said his company wants to keep all its spectrum.

“It would hurt our business,” Moonves said when asked last year at the National Assn. of Broadcasters convention if he would consider parting with some of CBS' airwaves.

Some broadcasters of independent and small-market stations could be game. Bert Ellis, president of Titan Broadcasting, which owns KDOC-TV Channel 56 in Los Angeles, told the House Subcommittee on Communications and Technology last June that his company might be willing to sell some of its spectrum.

In Los Angeles, there are several small independent stations that cater to ethnic groups including Asians and Latinos. The National Assn. of Broadcasters worries that if they sell, local communities would suffer.

“The stations likely to sell — if any — are the ones that offer truly niche programming serving a melting pot of immigrant populations,” said Dennis Wharton, a spokesman for the broadcasters group. “The notion that an ABC or CBS affiliate would voluntarily choose to go out of business to help solve an alleged spectrum crunch is ludicrous.”

Not everyone paints such a grim picture. The Wireless Assn. and the Consumer Electronics Assn. said this week that “only a very small percentage of the nation’s broadcast stations need participate in the auction in order to address the nation’s broadband spectrum shortage.”

Philip Weiser, dean of the University of Colorado Law School and a former telecommunications advisor for the Obama administration, said he expects smaller broadcasters to try to have their cake and eat it too by sharing spectrum.

For example, one TV station could sell its spectrum and then partner with another station and share airwaves. Although that would not appeal to a big broadcaster, smaller mom-and-pop TV stations might be more willing to embrace such an option.

“It is a huge opportunity for them,” said Weiser, adding that such a practice would allow for a more efficient use of spectrum and would give broadcasters who choose to sell a “hefty profit.”

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-- Joe Flint

Image: CBS Chief Executive Leslie Moonves at the Producers Guild Awards. Credit: Associated Press

Myspace names Fox executive as head of entertainment

Myspace has wooed a former Fox executive to head its entertainment division.

As the new Myspace entertainment president, Roger Mincheff will be responsible for original programming and content. He said he plans to create original Web shows, acquire content and promote Myspace as a digital "farm system," where budding talent can be discovered.  

"We will absolutely, in a big way, be committed to making original programming for two real purposes -- one is as the differentiator," Mincheff said. The other reason hearkens to the social network's origins. "The old Myspace was a great platform to stand on and say, 'discover me.' The new Myspace is all of that -- plus the tools, resources and effort to help identify and elevate you as a creator."

Mincheff already has signed his first deal to secure an eight-episode Web series created by Fox Digital Entertainment and Kia Motors. "Wolfpack of Reseda" is a supernatural comedy, in which its 20-something protagonist is bitten by a mysterious creature in the woods and believes he has been transformed into a werewolf.

"The level of content, stories and brands we're bringing -- this is just the tip of the iceberg," Mincheff said of the new series.

Mincheff joins Myspace from Fox Filmed Entertainment, where he served as senior vice president of branded entertainment. Prior to Fox, he was chief executive of Spacedog Media, a digital marketing agency.

He said he left Fox for the opportunity to participate in Myspace's potential comeback. Myspace was acquired last June by Specific Media, a digital media company, and musician Justin Timberlake.

News Corp., which had paid $580 million for Myspace in 2005, sold it six years later for just $35 million.

Earlier this week, Myspace announced that it had encouraged 1 million new users to check out the site in the last 30 days after months of steady declines. Its executives credited the reversal to the launch of a new music player in December, as well as its integration with one-time rival, Facebook.

"Since Lee Iacocca and Chrysler, tell me a better story than Myspace coming back to prominence," Mincheff said. "It's just a fantastic story to be a part of."

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Photo: Newly named Myspace Entertainment President Roger Mincheff. Credit: Myspace

 

 

 

News Corp. second-quarter net income jumps 65% to $1.06 billion

Strong performances from the film and cable television business helped propel a 65% jump in News Corp.'s net income for its second quarter from a year earlier, the company said Wednesday.

The media conglomerate reported revenue of $8.98 billion for the quarter that ended Dec. 31, up 2% from the same time a year earlier.  Net income rose to $1.06 billion, compared with $642 million a year earlier. Earnings per share rose to 42 cents.

"The significant growth we reported in the second quarter in the cable network programming, television and filmed entertainment segments clearly validates our strategy to develop and distribute superior wide-ranging content," Chairman and Chief Executive Rupert Murdoch said in a statement.

Cable television remains the engine that drives News Corp. Operating income rose 20% to $882 million for the second quarter, reflecting improved results at Fox's Regional Sports networks, reduced rights costs associated with the NBA lockout, and the continued performance of Fox News. 

The film group saw its operating income more than double, to $393 million, from $189 million in the same period in 2010.  The strong results were driven by home entertainment sales of the animated film "Rio" and summer releases "Rise of the Planet of the Apes" and "X-Men: First Class," as well as the strong second- quarter box office performance of "Alvin and the Chipmunks: Chipwrecked," which generated more than $300 million in worldwide ticket sales. The company also released the multiple Academy Award nominee "The Descendants."

The television group, which includes the Fox broadcasting network and a local television station group, reported a 25% increase in operating income from a year earlier, to $189 million for the second quarter. The growth reflects increased ad revenue from the network's stronger fall schedule, led by "X-Factor" and "The New Girl," as well as a 100% increase in fees paid to distribute network programming.

Publishing took a hit in the second quarter, with operating income falling 43% to $218 million, partly because of the lack of contributions from the now-defunct News of the World tabloid -- closed after revelations of phone hacking and bribes -- and weak advertising revenue from the company's Australian newspapers.

News Corp. took an $87-million charge related to the costs and ongoing investigations connected with the London phone-hacking scandal.

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-- Dawn C. Chmielewski

Photo: Caesar the ape is portrayed by Andy Serkis in "Rise of the Planet of the Apes." Credit: 20th Century Fox

'This Means War' official release date delayed

 

In an unusual move, 20th Century Fox is pushing back the official opening of the romantic action-comedy "This Means War" from Tuesday, Feb. 14 to Friday, Feb. 17. The move may be designed to let the studio avoid reporting what likely would have been weak box-office receipts on Valentine's Day.

 However, the movie will still get a "sneak preview," playing once Tuesday evening at between 2,000 and 2,500 locations nationwide. "This Means War" will then disappear from theaters for two days and officially open on Friday.

Pre-release surveys indicate audiences are less interested in "This Means War," which stars Reese Witherspoon, Chris Pine and Tom Hardy, and is directed by McG, than other movies opening in the next week. In particular, the romantic drama "The Vow" starring Rachel McAdams and Channing Tatum is proving popular with women, who are also a target audience for "This Means War." Research shows that women often dictate moviegoing choices on Valentine's Day.

"The Vow" is expected to open to at least $30 million from Friday through Sunday, while "This Means War" is on track to take in about half that much on its first weekend.

By playing the movie as a "sneak preview," Fox will not be expected to publicly report its grosses for Tuesday and potentially disclose that it came in No. 2, if not lower, generating negative press attention going into the weekend. Instead, the only public discussion around the film will be whether people who attended the sneak screening liked "This Means War."

"Word of mouth is great on this movie, and this gives people more time to talk about it," said Fox executive vice president of distribution Chris Aronson. "Sometimes you’ve got to let the movie speak for itself."

Typically, sneak previews happen a week or more before a movie debuts. Fox's "We Bought a Zoo," for instance, was previewed over Thanksgiving weekend but didn't officially open until Christmas Day.

Fox's last-minute gambit with "This Means War" is a gamble, in part because widespread advertisements have proclaimed that it opens Feb. 14.

Fox is betting that positive buzz will help boost the box-office tally for the approximately $65-million production on the weekend of Feb. 17.

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Photo: Chris Pine, left, Reese Witherspoon and Tom Hardy in "This Means War." Credit: Kimberly French / Fox.

Lionsgate and Grupo Televisa to expand TV partnership

Santa Monica-based independent studio Lionsgate and Mexico's programming powerhouse Grupo Televisa are expanding their budding partnership with a new venture that aims to create television shows for English-language audiences.

The move continues a trend of major media companies in the U.S. looking south to Latin America for programming concepts and business partners. Earlier this week, Rupert Murdoch's News Corp. said it planned to launch a new broadcast network this fall in collaboration with Colombian broadcaster RCN. 

Companies -- and advertisers -- are becoming increasingly interested in capitalizing on the growing clout of Latino consumers. They make up the fastest growing demographic group in the U.S.

Lionsgate and Televisa -- Mexico's largest media company -- said Tuesday that their new unit would tackle six to eight TV projects a year. The plan is to mine story lines from Televisa's vast vault of wildly popular telenovelas and adapt them into English-language comedies and dramas for U.S. broadcast networks and cable channels. Executives also intend to develop original concepts for scripted and unscripted shows.

The two companies first went into business in 2010 with a joint venture called Pantelion Films. Its purpose is to acquire and distribute feature films that appeal to Latinos in the U.S. 

The parties declined to disclose financial terms of their new TV arrangement. The soon-to-be-named venture will be managed by Paul Presburger, chief executive of Pantelion Films. Presburger helped put the TV entity together with Lionsgate on behalf of Televisa.

Televisa separately has an equity stake in Univision Communications, the largest Spanish-language media company in the U.S. Televisa's programming fuels the prime-time ratings on the flagship Univision network, helping to build it into the nation's fifth most popular network.

A handful of projects already are in development for English-language programmers, including a comedic adaptation of Pantelion's first film, "From Prada to Nada." The firm is working on a scripted drama for ABC based on Televisa's smash hit "Soy Tu Duena." The new show will be called "Badlands."  Walt Disney Co.-owned ABC Studios is collaborating on the series.

Until now, little of Televisa's programming was accessible to mainstream audiences. The new development, unveiled at the National Assn. of Television Program Executives convention in Miami, followed Univision's announcement that it would begin adding English-language subtitles through closed caption to its prime-time telenovelas. 

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Photo: Actors Fernando Colunga and Lucero in Televisa's telenovela "Soy Tu Duena," which produced huge ratings in the U.S. for the Univision network. Credit: Antonio Uribe / Univision

 

 

Univision telenovelas with a twist: English subtitles

Univision Communications is going bilingual. Well, sort of.

Beginning next week, the Spanish-language media giant will begin offering closed captioned English-language subtitles for its prime-time telenovelas, or soap operas. The move, announced Tuesday at the National Assn. of Television Program Executives convention in Miami, underscores the belief by  TV executives that the enormously popular Latino series, which run five nights a week and can last for several months, have commercial appeal beyond their loyal Spanish-speaking fan base.

Already, the programs have catapulted Univision to the rank of the nation's fifth most popular network. Advertisers have taken notice, intrigued by the passion of the audience and the rapid growth of the U.S. Latino population. 

“The continued success of the telenovela genre speaks to its broad appeal that crosses culture and language, which is why, as part of our commitment to connect audiences to our culture, we are delivering our novela block with closed captioning in English,” Cesar Conde, president of Univision Networks, said in prepared remarks.

Most of the Univision novelas are produced by Mexican powerhouse Grupo Televisa, which has an equity stake in Univision. Univision is also planning to launch a new cable TV channel in the U.S. dedicated to the soaps.

Earlier this week, another U.S. media giant -- News Corp. -- said that it was partnering with Colombian programmer RCN to form a new Spanish-language broadcast network in the U.S. called MundoFox. It is expected to launch in the fall. Others have joined the stampede to attract the Latino audience. Last month, online video service Hulu began providing Spanish-language programming.

Univision is currently airing “Una Familia Con Suerte” ("A Fortunate Family") and “La Que No Podia Amar” ("The One That Couldn’t Love"). On Monday, the New York-based Univision will roll out its highly anticipated telenovela, "El Talismán,” produced by Univision Studios and the Venezuelan company Venevision.

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Photo: Actors Rafael Novoa and Blanca Soto in "El Talismán." Credit: Univision Communications and Venevision Studios

The Morning Fix. Senior TV. 'Underworld' untouchable! Fox goes Spanish.

After the coffee. Before prepping for two weeks of non-stop Super Bowl hype.

The Skinny: Monday's headlines include News Corp.'s plans to launch a Spanish network in the U.S., a look at the weekend box office, a story about RLTV, a cable channel aimed at people over the age of 50 and a piece from Advertising Age about how ABC's "Modern Family" balances content vs. commerce when it comes to product placement. 

 

The Daily Dose: With the New York Giants set to battle the New England Patriots in almost two weeks, NBC couldn't have asked for an easier Super Bowl to promote. Not only did the contenders play in a nail-biter during the regular season, they squared off in perhaps the most memorable Super Bowl ever four years ago when the Giants topped the then undefeated Patriots in a stunning upset. Last year's Super Bowl drew a record 111 million viewers: Don't be surprised if this year's tops that mark. 

 

Senior moment. RLTV, a cable channel founded by John Erickson, who made his fortune building retirement communities, hopes to convince Hollywood and Madison Avenue that the over-50 audience is worth reaching. The network, currently in 15 million homes, hopes to double its reach in the next 12 months and has attracted some familiar faces to go in front of the camera including Joan Lunden, Deborah Norville and Florence Henderson. But persuading big cable operators and advertisers to support the channel is no easy sell. A look at RLTV from the Los Angeles Times.

Caliente! News Corp. announced early Monday that it is teaming up with Colombian broadcaster RCN to launch Mundo Fox, a Spanish broadcast network in the U.S. that will compete against Univision and Telemundo. The announcement, made at the National Assn. of Television Program Executives conference in Miami, said the channel should debut this fall. Details on the new channel from the News Corp.-owned Wall Street Journal, which broke the story.

Unbeatable. Sony's "Underworld: Awakening," the fourth installment of a franchise I was unaware of until three days ago, finished at the top of the box office with $25.4 million. "Red Tails," a historical film about the Tuskeegee Airmen, delivered a stronger-than-expected $19.1 million. "Haywire," which I thought would do better, took in only $9 million. Coverage from the Los Angeles Times and Movie City News.

Man behind the moustache. With the last name Murdoch a little bit tarnished, News Corp. President and Chief Operating Officer Chase Carey, known for his handlebar moustache and his no-nonsense approach to deals, has risen even higher in stature at the Rupert Murdoch-controlled media empire. The New York Times looks at Carey. The Los Angeles Times last year profiled Carey and his "everyone pays" revenue strategy.

A fine line between clever and silly. ABC's "Modern Family" is on the top of every advertiser's list when it comes to product placement. But the show's producers are very selective about the companies they do business with and how products are incorporated into the show. The fear is being seen as a shill, a perception currently plaguing CBS's "Hawaii Five-O," which took heat last week for an over-the-top placement for the Subway sandwich chain. Advertising Age examines what it takes to make the cut and get your product in the hands of the cast of "Modern Family."

Report card. Steve Burke is wrapping up his first year as chief executive of Comcast's NBCUniversal. The New York Post gives him a report card that pretty much reads incomplete and questions whether Universal Studios stays in the portfolio. My question: Where would it go?

Inside the Los Angeles Times: A look at the unappreciated work of Hollywood makeup artists.

-- Joe Flint

Follow me on Twitter. You'll join an elite club. Twitter.com/JBFlint

Photo: The Giants and Patriots battling in the 2008 Super Bowl. Credit: Charlie Riedel/Associated Press

News Corp. to add content to Microsoft's Xbox Live

Microsoft Corp. plans to bring Homer Simpson, Bill O'Reilly and Zooey Deschanel to its Xbox Live service.

Chief Executive Steve Ballmer, in what could mark his final keynote address at the Consumer Electronics Show in Las Vegas, announced Monday that media conglomerate News Corp. will be offering a series of apps featuring content from Fox Broadcasting, Fox News Channel, the Wall Street Journal and IGN Entertainment.

News Corp. said the content would be made available this year to Xbox Live Gold members who also are paying subscribers of as-yet-unidentified cable and satellite TV services.

The company said the Fox Broadcasting app would allow Xbox users to watch episodes of "Fringe," "The Simpsons," "New Girl" and "Family Guy." The Fox News app is to offer on-demand videos from such well-known personalities as Megyn Kelly and Bill O'Reilly.

The Wall Street Journal and WSJ Live are set to provide four hours of live video each business day, drawn from the Journal, Dow Jones News Wires, Barron's, Market Watch, Smart Money and AllThingsD.com.

Game site IGN Entertainment is to offer previews, game reviews, game-play videos and instant access to game help. 

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Photo: Zooey Deschanel stars in "New Girl." Credit: Greg Gayne / Fox

Preston Beckman, Fox scheduling head, moving to advisory role

This post has been corrected. See below for details.

Preston Beckman, the well-regarded head of scheduling for Fox Broadcasting, will be stepping back from his current position to take on a more strategic role within parent company News Corp.

The wry Beckman, known not only for his programming acumen but also lately for his snarky Twitter persona "Masked Scheduler," will give up day-to-day oversight of Fox's scheduling as its executive vice president of strategic program planning and research at the end of this TV season in May. He will then become senior strategist for the Fox Networks Group, which includes not only Fox, but many of its cable channels, including FX.

"His strategic mind and love of television make him the Muhammad Ali of scheduling executives," said Fox Networks Group Entertainment Chairman Peter Rice. "Fox has been incredibly fortunate to have Preston guiding our schedule for the past decade and seven consecutive years of No. 1 finishes.”

Beckman has been at Fox for 11 years and has indicated that he has been getting ready to move beyond the day-to-day pressures of scheduling a network.

Prior to joining Fox, Beckman spent 20 years at NBC in scheduling. During much of that time, the network was on top of the ratings.

-- Joe Flint

Photo: Preston Beckman. Credit: Fox

This post was corrected to reflect that National Geographic Channel is not part of the Fox Networks Group unit.