Filing: Chase Carey's bonus at News Corp. could reach $25 million annually [Updated]

 

If you're dining with Chase Carey, he can afford to pick up the tab.

According to just filed documents with the Securities and Exchange Commission, Carey received a $10 million signing bonus to rejoin News Corp. as deputy chairman and chief operating officer. That's on top of his annual base salary of $8.1 million per year over the next five years.

Carey, the filing says, is also eligible for a performance based bonuses that could hit as much as $25 million annually. His bonus for his first year back, which started today, will be no less than $5 million. Carey's bonus will be performance based and determined by News Corp.'s year-over-year increase in adjusted earnings per share

If Carey resigns "without good reason" he will get at least two years salary and some of his bonus money. If Carey is terminated within the next 12 months, he walks with $10 million in cash.

The jet is also ready for Mr. Carey. His deal calls for use of a corporate or charter jet for business and pleasure. He also gets a car allowance.

On the downside, he's not getting paid any extra to be on News Corp.'s board of directors.

As for outgoing COO Peter Chernin, final details of his new six-year deal have not been hammered. However, he too gets to keep using the corporate jet and gets a car and use of the screening room.

-- Joe Flint

Photo: Chase Carey by Matthew Staver/Bloomberg News

Bob Cook, president of Twentieth Television, the syndication and distribution arm for News Corp.'s broadcast and cable operations, is leaving the company, to form his own company.

Although no replacement for Cook has been named yet, it is expected that Greg Meidel, a veteran television industry executive who currently runs News Corp.'s My Network TV, will get oversight of Twentieth Television as well. My Network TV is the company's small broadcast network, but it has not made much headway in the marketplace and has scaled back its ambitions. A Fox spokesman declined comment, but said a search for Cook's replacement is underway.

For Meidel, a flashy salesman with one of the more arresting heads of blonde hair in the business, taking the reigns of Twentieth is a homecoming of sorts. He ran the unit in the mid-1990s before leaving for stints at Universal and Paramount.

He'll have his work cut out for him. The Wild West heyday of the TV syndication business, where deals would be done on the golf links and in the bar, are long gone. Cable networks, which used to gobble up old episodes of dramas like "NYPD Blue" that first aired on the broadcast networks, now prefer to produce their own shows. Local TV stations no longer cough up the big bucks for sitcom reruns and talks shows, and the ad market is in the tank. Other than that, it's going swell.

Cook said his new company MBN (the initials of his three sons) has already signed a contract with the Fox-owned TV stations to work on developing their digital platforms, His contract at Twentieth is up in November but he anticpates leaving in the next few months once his successor is in place.

-- Joe Flint

Clarity Media Group, the publishing company owned by conservative media mogul Philip Anschutz, has bought the right-wing political magazine the Weekly Standard from Rupert Murdoch's News Corp.

The deal, first reported by Company Town, will give Anschutz a powerful voice in Washington. Although the Weekly Standard has a small circulation of just more than 80,000, its readership is very influential on Capitol Hill.

In a statement, Weekly Standard Editor William Kristol thanked Murdoch for "his generous support and, if I may use the term, liberal disposition have made whatever we've accomplished possible."

Launched in 1995, the Weekly Standard may have become less vital to Murdoch after he acquired the Wall Street Journal, which carries much more clout in Washington.

-- Joe Flint

UPDATED:

News Corp.'s struggling social network MySpace said it would lay off nearly 30% of its staff -- or about 425 people -- as part of a plan to restructure the business.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.  Our intent is to return to an environment of innovation that is centered on our user and our product.”

When Rupert Murdoch struck a deal to buy MySpace for $580 million in 2005, he was hailed as a a new media visionary, the mogul who got the Internet. News Corp. had out maneuvered rival Viacom for the site, which so annoyed Sumner Redstone that he pushed out his CEO Tom Freston.

Soon after the MySpace deal, Murdoch told Wired Magazine that the Internet "is media's golden age." That's yet to be proven but later in the interview he was a little more prescient. "God knows what we're going to do with MySpace," he said.

Now four years later that's what everyone else is wondering that as well. Facebook has surpassed MySpace as the top social network site in the United States. It has little buzz anymore and its advertising revenue has dropped over the last year. Its groundbreaking $900-million advertising deal with Google ends next year and that revenue will be hard to replace.

Inside News Corp., integrating MySpace into the rest of the spawling media company has proven a challenge. MySpace has never become the platform for News Corp. content that many thought it would be when it acquired the company. MySpace co-founder Chris DeWolfe often clashed with other executives and left the company last spring, succeeded by Van Natta, Facebook's former chief revenue officer.

Bringing MySpace back to the top may be a steep challenge for Van Natta and Jonathan Miller, News Corp.'s new chief digital officer. Unlike television where everyone is one hit away from returning glory, social network sites that start to fade tend to keep fading. Anyone remember Friendster?

--Dawn C. Chmielewski and Joe Flint

Photos: Top left: Owen Van Natta, courtesy News Corp. Bottom right: Rupert Murdoch. Credit: Vince Bucci, Getty Images.

Fox Business Network, the struggling smaller sibling to behemoth Fox News, got a little help today from the boss, News Corp. Chairman and Chief Executive Rupert Murdoch.

Murdoch chose the Fox Business Network (which reaches "nearly" 60 million subscribers, but the ratings are kept private — so draw your own conclusions) as the platform to speak for the first time about his designated right-hand man, Deputy Chairman Chase Carey, who rejoins the company July 1 after a stint as chief executive of satellite broadcaster DirecTV.

Host Neil Cavuto asks the question everyone at News Corp., if not the broader media landscape, already knows the answer to: "Many say [he's] your heir apparent. Is he?" 

"No, I don't think we're making commitments on that at all," Murdoch said.

Perhaps that's because Murdoch doesn't need to say more on the topic. He has made no secret of the fact that he one day he hopes one of his children, James Murdoch, who runs the company's European and Asian operations, or Elisabeth Murdoch, an independent producer who recently rejected a board seat, will succeed him as chief executive.

Murdoch also weighed in, ever so elusively, on the Los Angeles Times story about pending and substantial layoffs at News Corp.'s digital group, Fox Interactive media. He tells Cavuto, "We're putting new management in there. They've been there for three weeks. They're making a close examination of it, and they'll no doubt set some directions, strengthen other very strong parts of it."

As for the reports of job cuts coming?

"It's too early to talk about that," Murdoch says.

— Dawn C. Chmielewski

 

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Shake-up at News Corp's Twentieth Television: Cook out, Meidel on deck [updated]

Bob Cook, president of Twentieth Television, the syndication and distribution arm for News Corp.'s broadcast and cable operations, is leaving the company, to form his own company.

Although no replacement for Cook has been named yet, it is expected that Greg Meidel, a veteran television industry executive who currently runs News Corp.'s My Network TV, will get oversight of Twentieth Television as well. My Network TV is the company's small broadcast network, but it has not made much headway in the marketplace and has scaled back its ambitions. A Fox spokesman declined comment, but said a search for Cook's replacement is underway.

For Meidel, a flashy salesman with one of the more arresting heads of blonde hair in the business, taking the reigns of Twentieth is a homecoming of sorts. He ran the unit in the mid-1990s before leaving for stints at Universal and Paramount.

He'll have his work cut out for him. The Wild West heyday of the TV syndication business, where deals would be done on the golf links and in the bar, are long gone. Cable networks, which used to gobble up old episodes of dramas like "NYPD Blue" that first aired on the broadcast networks, now prefer to produce their own shows. Local TV stations no longer cough up the big bucks for sitcom reruns and talks shows, and the ad market is in the tank. Other than that, it's going swell.

Cook said his new company MBN (the initials of his three sons) has already signed a contract with the Fox-owned TV stations to work on developing their digital platforms, His contract at Twentieth is up in November but he anticpates leaving in the next few months once his successor is in place.

-- Joe Flint

Clarity Media Group, the publishing company owned by conservative media mogul Philip Anschutz, has bought the right-wing political magazine the Weekly Standard from Rupert Murdoch's News Corp.

The deal, first reported by Company Town, will give Anschutz a powerful voice in Washington. Although the Weekly Standard has a small circulation of just more than 80,000, its readership is very influential on Capitol Hill.

In a statement, Weekly Standard Editor William Kristol thanked Murdoch for "his generous support and, if I may use the term, liberal disposition have made whatever we've accomplished possible."

Launched in 1995, the Weekly Standard may have become less vital to Murdoch after he acquired the Wall Street Journal, which carries much more clout in Washington.

-- Joe Flint

UPDATED:

News Corp.'s struggling social network MySpace said it would lay off nearly 30% of its staff -- or about 425 people -- as part of a plan to restructure the business.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.  Our intent is to return to an environment of innovation that is centered on our user and our product.”

When Rupert Murdoch struck a deal to buy MySpace for $580 million in 2005, he was hailed as a a new media visionary, the mogul who got the Internet. News Corp. had out maneuvered rival Viacom for the site, which so annoyed Sumner Redstone that he pushed out his CEO Tom Freston.

Soon after the MySpace deal, Murdoch told Wired Magazine that the Internet "is media's golden age." That's yet to be proven but later in the interview he was a little more prescient. "God knows what we're going to do with MySpace," he said.

Now four years later that's what everyone else is wondering that as well. Facebook has surpassed MySpace as the top social network site in the United States. It has little buzz anymore and its advertising revenue has dropped over the last year. Its groundbreaking $900-million advertising deal with Google ends next year and that revenue will be hard to replace.

Inside News Corp., integrating MySpace into the rest of the spawling media company has proven a challenge. MySpace has never become the platform for News Corp. content that many thought it would be when it acquired the company. MySpace co-founder Chris DeWolfe often clashed with other executives and left the company last spring, succeeded by Van Natta, Facebook's former chief revenue officer.

Bringing MySpace back to the top may be a steep challenge for Van Natta and Jonathan Miller, News Corp.'s new chief digital officer. Unlike television where everyone is one hit away from returning glory, social network sites that start to fade tend to keep fading. Anyone remember Friendster?

--Dawn C. Chmielewski and Joe Flint

Photos: Top left: Owen Van Natta, courtesy News Corp. Bottom right: Rupert Murdoch. Credit: Vince Bucci, Getty Images.

Fox Business Network, the struggling smaller sibling to behemoth Fox News, got a little help today from the boss, News Corp. Chairman and Chief Executive Rupert Murdoch.

Murdoch chose the Fox Business Network (which reaches "nearly" 60 million subscribers, but the ratings are kept private — so draw your own conclusions) as the platform to speak for the first time about his designated right-hand man, Deputy Chairman Chase Carey, who rejoins the company July 1 after a stint as chief executive of satellite broadcaster DirecTV.

Host Neil Cavuto asks the question everyone at News Corp., if not the broader media landscape, already knows the answer to: "Many say [he's] your heir apparent. Is he?" 

"No, I don't think we're making commitments on that at all," Murdoch said.

Perhaps that's because Murdoch doesn't need to say more on the topic. He has made no secret of the fact that he one day he hopes one of his children, James Murdoch, who runs the company's European and Asian operations, or Elisabeth Murdoch, an independent producer who recently rejected a board seat, will succeed him as chief executive.

Murdoch also weighed in, ever so elusively, on the Los Angeles Times story about pending and substantial layoffs at News Corp.'s digital group, Fox Interactive media. He tells Cavuto, "We're putting new management in there. They've been there for three weeks. They're making a close examination of it, and they'll no doubt set some directions, strengthen other very strong parts of it."

As for the reports of job cuts coming?

"It's too early to talk about that," Murdoch says.

— Dawn C. Chmielewski

 

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Philip Anschutz snags Weekly Standard from Rupert Murdoch

Clarity Media Group, the publishing company owned by conservative media mogul Philip Anschutz, has bought the right-wing political magazine the Weekly Standard from Rupert Murdoch's News Corp.

The deal, first reported by Company Town, will give Anschutz a powerful voice in Washington. Although the Weekly Standard has a small circulation of just more than 80,000, its readership is very influential on Capitol Hill.

In a statement, Weekly Standard Editor William Kristol thanked Murdoch for "his generous support and, if I may use the term, liberal disposition have made whatever we've accomplished possible."

Launched in 1995, the Weekly Standard may have become less vital to Murdoch after he acquired the Wall Street Journal, which carries much more clout in Washington.

-- Joe Flint

UPDATED:

News Corp.'s struggling social network MySpace said it would lay off nearly 30% of its staff -- or about 425 people -- as part of a plan to restructure the business.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.  Our intent is to return to an environment of innovation that is centered on our user and our product.”

When Rupert Murdoch struck a deal to buy MySpace for $580 million in 2005, he was hailed as a a new media visionary, the mogul who got the Internet. News Corp. had out maneuvered rival Viacom for the site, which so annoyed Sumner Redstone that he pushed out his CEO Tom Freston.

Soon after the MySpace deal, Murdoch told Wired Magazine that the Internet "is media's golden age." That's yet to be proven but later in the interview he was a little more prescient. "God knows what we're going to do with MySpace," he said.

Now four years later that's what everyone else is wondering that as well. Facebook has surpassed MySpace as the top social network site in the United States. It has little buzz anymore and its advertising revenue has dropped over the last year. Its groundbreaking $900-million advertising deal with Google ends next year and that revenue will be hard to replace.

Inside News Corp., integrating MySpace into the rest of the spawling media company has proven a challenge. MySpace has never become the platform for News Corp. content that many thought it would be when it acquired the company. MySpace co-founder Chris DeWolfe often clashed with other executives and left the company last spring, succeeded by Van Natta, Facebook's former chief revenue officer.

Bringing MySpace back to the top may be a steep challenge for Van Natta and Jonathan Miller, News Corp.'s new chief digital officer. Unlike television where everyone is one hit away from returning glory, social network sites that start to fade tend to keep fading. Anyone remember Friendster?

--Dawn C. Chmielewski and Joe Flint

Photos: Top left: Owen Van Natta, courtesy News Corp. Bottom right: Rupert Murdoch. Credit: Vince Bucci, Getty Images.

Fox Business Network, the struggling smaller sibling to behemoth Fox News, got a little help today from the boss, News Corp. Chairman and Chief Executive Rupert Murdoch.

Murdoch chose the Fox Business Network (which reaches "nearly" 60 million subscribers, but the ratings are kept private — so draw your own conclusions) as the platform to speak for the first time about his designated right-hand man, Deputy Chairman Chase Carey, who rejoins the company July 1 after a stint as chief executive of satellite broadcaster DirecTV.

Host Neil Cavuto asks the question everyone at News Corp., if not the broader media landscape, already knows the answer to: "Many say [he's] your heir apparent. Is he?" 

"No, I don't think we're making commitments on that at all," Murdoch said.

Perhaps that's because Murdoch doesn't need to say more on the topic. He has made no secret of the fact that he one day he hopes one of his children, James Murdoch, who runs the company's European and Asian operations, or Elisabeth Murdoch, an independent producer who recently rejected a board seat, will succeed him as chief executive.

Murdoch also weighed in, ever so elusively, on the Los Angeles Times story about pending and substantial layoffs at News Corp.'s digital group, Fox Interactive media. He tells Cavuto, "We're putting new management in there. They've been there for three weeks. They're making a close examination of it, and they'll no doubt set some directions, strengthen other very strong parts of it."

As for the reports of job cuts coming?

"It's too early to talk about that," Murdoch says.

— Dawn C. Chmielewski

 

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

MySpace lays off 425 employees [UPDATED]

UPDATED:

News Corp.'s struggling social network MySpace said it would lay off nearly 30% of its staff -- or about 425 people -- as part of a plan to restructure the business.

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.  Our intent is to return to an environment of innovation that is centered on our user and our product.”

When Rupert Murdoch struck a deal to buy MySpace for $580 million in 2005, he was hailed as a a new media visionary, the mogul who got the Internet. News Corp. had out maneuvered rival Viacom for the site, which so annoyed Sumner Redstone that he pushed out his CEO Tom Freston.

Soon after the MySpace deal, Murdoch told Wired Magazine that the Internet "is media's golden age." That's yet to be proven but later in the interview he was a little more prescient. "God knows what we're going to do with MySpace," he said.

Now four years later that's what everyone else is wondering that as well. Facebook has surpassed MySpace as the top social network site in the United States. It has little buzz anymore and its advertising revenue has dropped over the last year. Its groundbreaking $900-million advertising deal with Google ends next year and that revenue will be hard to replace.

Inside News Corp., integrating MySpace into the rest of the spawling media company has proven a challenge. MySpace has never become the platform for News Corp. content that many thought it would be when it acquired the company. MySpace co-founder Chris DeWolfe often clashed with other executives and left the company last spring, succeeded by Van Natta, Facebook's former chief revenue officer.

Bringing MySpace back to the top may be a steep challenge for Van Natta and Jonathan Miller, News Corp.'s new chief digital officer. Unlike television where everyone is one hit away from returning glory, social network sites that start to fade tend to keep fading. Anyone remember Friendster?

--Dawn C. Chmielewski and Joe Flint

Photos: Top left: Owen Van Natta, courtesy News Corp. Bottom right: Rupert Murdoch. Credit: Vince Bucci, Getty Images.

Fox Business Network, the struggling smaller sibling to behemoth Fox News, got a little help today from the boss, News Corp. Chairman and Chief Executive Rupert Murdoch.

Murdoch chose the Fox Business Network (which reaches "nearly" 60 million subscribers, but the ratings are kept private — so draw your own conclusions) as the platform to speak for the first time about his designated right-hand man, Deputy Chairman Chase Carey, who rejoins the company July 1 after a stint as chief executive of satellite broadcaster DirecTV.

Host Neil Cavuto asks the question everyone at News Corp., if not the broader media landscape, already knows the answer to: "Many say [he's] your heir apparent. Is he?" 

"No, I don't think we're making commitments on that at all," Murdoch said.

Perhaps that's because Murdoch doesn't need to say more on the topic. He has made no secret of the fact that he one day he hopes one of his children, James Murdoch, who runs the company's European and Asian operations, or Elisabeth Murdoch, an independent producer who recently rejected a board seat, will succeed him as chief executive.

Murdoch also weighed in, ever so elusively, on the Los Angeles Times story about pending and substantial layoffs at News Corp.'s digital group, Fox Interactive media. He tells Cavuto, "We're putting new management in there. They've been there for three weeks. They're making a close examination of it, and they'll no doubt set some directions, strengthen other very strong parts of it."

As for the reports of job cuts coming?

"It's too early to talk about that," Murdoch says.

— Dawn C. Chmielewski

 

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Rupert Murdoch grants first interview -- to Fox -- about incoming exec Chase Carey

Fox Business Network, the struggling smaller sibling to behemoth Fox News, got a little help today from the boss, News Corp. Chairman and Chief Executive Rupert Murdoch.

Murdoch chose the Fox Business Network (which reaches "nearly" 60 million subscribers, but the ratings are kept private — so draw your own conclusions) as the platform to speak for the first time about his designated right-hand man, Deputy Chairman Chase Carey, who rejoins the company July 1 after a stint as chief executive of satellite broadcaster DirecTV.

Host Neil Cavuto asks the question everyone at News Corp., if not the broader media landscape, already knows the answer to: "Many say [he's] your heir apparent. Is he?" 

"No, I don't think we're making commitments on that at all," Murdoch said.

Perhaps that's because Murdoch doesn't need to say more on the topic. He has made no secret of the fact that he one day he hopes one of his children, James Murdoch, who runs the company's European and Asian operations, or Elisabeth Murdoch, an independent producer who recently rejected a board seat, will succeed him as chief executive.

Murdoch also weighed in, ever so elusively, on the Los Angeles Times story about pending and substantial layoffs at News Corp.'s digital group, Fox Interactive media. He tells Cavuto, "We're putting new management in there. They've been there for three weeks. They're making a close examination of it, and they'll no doubt set some directions, strengthen other very strong parts of it."

As for the reports of job cuts coming?

"It's too early to talk about that," Murdoch says.

— Dawn C. Chmielewski

 

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Layoffs to hit Fox Interactive [Updated]

 

 

UPDATED:

Fox Interactive Media, suffering from a steep drop in online advertising,  is preparing to lay off a significant number of employees, according to people familiar with the situation.  The number and timing are in flux, but the cuts are expected to encompass a broad array of workers at the Beverly Hills headquarters.

The layoffs are part of a restructuring of Rupert Murdoch's News Corp.'s digital operations and come only two month after former AOL executive Jonathan Miller was named chief digital officer, with oversight of media giant's online properties. It is not immediately known how many employees will be let go, but a year ago Fox Interactive employed more than 2,000 people.

“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure,” said a Fox spokesman. “ It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.” 

The interactive division of News Corp. includes the MySpace social network and a collection of other online businesses, including IGN Entertainment, and entertaiment movie and product review site RottenTomatoes.com. In the most recent quarter, the News Corp. said Fox Interactive's revenue was down 11% from a year ago, reflecting a precipitous 16% drop in advertising. At the same time, costs rose 7% due to expenses associated with developing new features at MySpace.

MySpace's troubles have been widely publicized, culminating in the departure this spring of co-founder and chief executive Chris DeWolfe.

People familiar with the restructuring plans say MySpace will bear some of the burden of the cuts, but other divisions will also be affected.

The once-dominant social network has been surpassed by rival Facebook in terms of number of worldwide users. Another technological upstart, the microblogging application Twitter, generates more buzz among the technorati. The latest online traffic report from measurement firm comScore Media Metrix said Facebook and Twitter each added millions of new users, outpacing growth at Fox Interactive.

One industry analyst said all social networks, including MySpace, are struggling to figure out how to make money from their audiences. Spending on Internet advertising for the first quarter of the year is also down by 5%, compared with a year ago, according to the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

“The online networking space overall hasn’t turned out to be as lucrative as people originally thought. That’s one of the biggest problems,” said Charlene Li,  founder of the Altimeter Group, a research firm specializing in social networks.

In another sign of cost-cutting, Fox Interactive is also seeking to sublet new offices being built at Playa Vista development south of Marina del Rey. The group had agreed to rent 421,000 square feet of space, so it could consolidate its far-flung digital operations. 

-- Dawn C. Chmielewski

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

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

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Disney joins Hulu

The Walt Disney Co. has agreed to join News Corp., NBC Universal and Providence Equity as a joint venture partner of online video site Hulu.

Disney will offer full-length episodes of its most popular prime-time shows from its ABC network, including "Lost," "Grey's Anatomy," and "Desperate Housewives," as well as such cable offerings such as ABC Family's "Secret Life of the American Teenager" and Disney Channel's "Wizards of Waverly Place." It will also provide older episodes from ABC's library, such as "Who Wants To Be A Millionaire" and "Dancing with the Stars."

"From our landmark iTunes deal to our pioneering decision to stream ad-supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers," Robert A. Iger, Disney's president and chief executive, said in a statement. "Today's Hulu announcement is the next extremely important step in that ongoing journey."

Disney views the move as a way to reach a new audience that isn't coming to the network's own website. While the ABC.com website has attracted regular viewers of its shows, Hulu offers the opportunity to tap into a new group of viewers.

Terms of the deal were not disclosed. Once a regulatory review is completed, Disney will gain three seats on the Hulu board, to be held by Iger; Anne Sweeney, president of Disney/ABC Television Group; and Kevin Mayer, executive vice president of corporate strategy and business development.

“At the end of the day, both Disney and Hulu needed each other,” said Tim Hanlon, managing director of
VivaKi Ventures, an investment arm of advertising giant Publicis.

“It’s very hard to be ubiquitous,” Hanlon said.  “Disney ‘s ABC and ESPN has been among the most conservative media companies but even they recognized that they needed alternative distribution methods. We are in a world of distribution neutrality.”

-- Dawn C. Chmielewski

 

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

Facebook forces MySpace to get a face-lift

It got Rupert Murdoch on the cover of Wired Magazine, cost Tom Freston his job as chief executive of Viacom and even spawned a tell-all book.

But now News Corp.'s MySpace has gone from crown jewel to problem child.

While MySpace remains the largest social network in the U.S., rival Facebook, which rules the rest of the world, is closing the gap fast. In terms of buzz, it's no contest at all. MySpace has gone from the place where the cool kids hang out to the scary house down the street that parents tell their children to stay away from.

Integrating MySpace into the rest of News Corp. has also proved something of a challenge. Rather than use MySpace as the major platform for programming from its Fox TV operations, it opted instead to team up with NBC Universal and create Hulu as the online home for its content.

Now it's up to former Facebooker Owen Van Natta to reinvigorate MySpace. As Facebook's chief revenue officer and vice president of operations, Van Natta played a key role in the site's evolution from a college clique to worldwide block party.

But social networkers are a fickle bunch and comebacks are hard to manufacturer. Just ask Friendster. Even Facebook is now no doubt looking over its shoulder at Twitter, the fast-rising social networking site for people who find posting complete sentences just a little too taxing.

Van Natta's first task may be updating MySpace's look and technology. The site seems tired compared to Facebook, which sometimes takes heat for all its tinkering but ultimately is quicker to respond to how its members are using it.

Another challenge will be building MySpace's ad revenue. The social networking site's groundbreaking $900-million deal with Google ends in the spring of 2010 and those will be tough dollars to replace. While online advertising continues to grow at a far faster pace than traditional media, it too is being hit by the economic downturn as well as concerns about its effectiveness.

Van Natta may also be walking into hostile territory as many of the staff there spent years working with the now-exiled MySpace co-founder Chris DeWolfe and its president Tom Anderson, who may soon follow DeWolfe out of the company he helped build.

And then there is Murdoch himself. While MySpace is still a key part of News Corp.'s Internet strategy, it doesn't take much to fall out of favor with the mogul. Just ask the Dodgers and DirecTV. 

--Joe Flint

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

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