New Olympics channel already creating headaches

Will the U.S. Olympic Committee grab the gold or suffer one of those crushing "agony of defeat" moments?

A controversy over the U.S. committee's plans to launch its own cable channel intensified today when the International Olympic Committee, the worldwide organization that organizes the games, jumped into the fray. The IOC said in a statement that it doesn't want the U.S. group's proposed new cable channel to interfere in dealings with its powerful television partner, NBC Universal.

"The proposed channel raises complex legal and contractual issues and could have a negative impact [on] our relationships with other Olympic broadcasters and sponsors, including our U.S. TV partner, NBC," the IOC said.

NBC Universal's parent company, General Electric, has committed $2.2 billion to broadcast the 2010 and 2012 Olympic Games and owns a minority stake in a start-up venture, Universal Sports. That new cable channel, available in 45 million homes, is designed to shine a spotlight on off-season events, lower-profile Olympic sports and other "lifestyle sports" programming.

But if the U.S. Olympic Committee succeeds in launching its own channel, then Universal Sports might find itself without some of the key Olympics programming that it is banking on. NBC Universal owns the venture along with InterMedia Partners, a private equity firm.

Another concern for the IOC is whether the U.S. committee's efforts will become an unwanted wrinkle in the bidding for the next round of television rights for the 2014 Olympics and beyond. Already, NBC Universal, Disney's ESPN and News Corp.'s Fox Sports have expressed an interest in bidding on the Games.

The flap exposes more friction between the IOC and the U.S. Olympic Committee, which have had an ongoing feud over their revenue sharing plan. 

"The IOC's cooperation with USOC includes working together on Olympic sponsorship and broadcasting agreements within the United States,'' The IOC said in its statement. "We were aware that the USOC had been considering a new 'Olympic broadcast network,' but we have never been presented with a plan, and we had assumed that we would have an opportunity to discuss unresolved questions together before the project moved forward. It is for this reason that the IOC is disappointed that USOC acted unilaterally and, in our view, in haste by announcing their plans before we had had a chance to consider together the ramifications."

-- Meg James

Movie studios like to operate in their comfort zones. Hey, who doesn't? So, Universal Pictures, which is betting on three high-profile comedies this summer, is going to focus heavily on comedies and "event" movies when putting together its release schedule for next year. Indeed, given the recent lackluster box office for such adult dramas as "State of Play" and "Frost/Nixon," it's not a big surprise that executives at the General Electric-owned studio reevaluated their plans and halted development of some acclaimed dramatic projects, as my colleague John Horn recently reported.

"The mantra at the moment is to focus on what we know we do well," says Donna Langley, talking the other day in her office on the studio lot in Universal City. "We know we do really well with comedy and our event movies."

Universal is developing several projects with filmmaker Judd Apatow, to whom the studio gave a development fund to incubate ideas with his stable of talent that includes actor Jonah Hill and "Saturday Night Live" comedians Kristen Wigg and Will Forte. Hill will star in "Get Him to the Greek" as a record company intern who has two days to drag an uncooperative rock star to Hollywood for a comeback concert. Hill also brought Universal a project that he will star in and produce called "The Adventurer's Handbook," about four twentysomething pals who encounter bad guys on their globe-trotting adventure. The film, to be directed by Akiva Schaffer [We originally wrote it was Nick Stoller, but he's directing "Get Him To The Greek"], will start production next March.

British comedian Simon Pegg, who plays Scotty in Paramount's blockbuster "Star Trek," and Nick Frost co-wrote and will star in "Paul," about two sci-fi geeks who go on the road only to find an alien (a computer-generated character voiced by Seth Rogen) in the backseat of their RV. The movie, which also stars Kristen Wigg and Jason Bateman, starts shooting in a few weeks.

On the franchise front, Langley said the studio is "deep in development" on sequels to "Bourne Identity," "Fast & Furious" and "Wanted," the stylized action picture starring Angelina Jolie that was a big hit last year. 

Also, Universal just announced this week plans to make "Stretch Armstrong," the first film to come out of the studio's six-year deal with toymaker Hasbro. Producer Brian Grazer and writer Steve Oedekerk are on board to adapt the action figure into a movie that the studio expects to shoot the first quarter of next year. Universal has already staked out a release date of April 15, 2011.

Other Hasbro properties that Universal plans to adapt into movies include the board games Monopoly, Battleship, Clue and Candy Land, a framed artist rendering of which adorns Langely's office.

— Claudia Eller

Universal Music Group has enticed another major label -- Sony Music Entertainment --- to join its planned Vevo music video service.

Sony will contribute professionally created videos from its roster of performers, which includes Bruce Springsteen (aka The Boss), Justin Timberlake, Beyonce and Britney Spears.

Universal is working with YouTube to develop a new music hub, where viewers watch professionally created music videos of, say, Pink performing "Please Don't Leave Me" without having to wade through 80,000 or so cover renditions.

The goal is to imitate the success of Hulu, the red-hot online service that has attracted viewers and advertisers by offering professionally created content -- television shows, movies and short videos. As with Hulu, Vevo would also serve as a syndication platform to redistribute music videos elsewhere on the web.

To succeed, however, Universal still needs to sign on the two other major music labels, Warner Music and EMI, with whom it's reportedly in discussions. Until that happens, half of the pop cannon won't be enough for music fans.

-- Dawn C. Chmielewski

Photo: Bruce Springsteen. Credit: Bill Kostroun / Associated Press

"Up," the latest from Disney/Pixar, sailed to $21.4 million at the box office on Friday. That's just under the $23.2 million that the last Pixar flick -- "Wall-E" -- took in on its opening day last year en route to a $63 million first weekend.

The strong Friday means "Up" will definitely finish its first weekend looking more like "Wall-E" than Pixar's "Ratatouille," which opened at $47 million. There were projections that "Up" could hit as high as $65 million this weekend, but those might be a tad too optimistic. A safer bet would be between $57 million to $60 million. Hardly numbers to sneeze at, however.

The other major movie opening of the weekend, director Sam Raimi's finance-themed horror film "Drag Me to Hell" posted $6.4 million on Friday, which puts it on pace for a respectable $17.5 million, but below industry estimates that pegged it generating $20 million. Last year's horror picture "The Strangers" opened at $21 million.

-- 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

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

Dramatic upheaval: Universal Pictures to focus on comedies, event films [Updated]

Movie studios like to operate in their comfort zones. Hey, who doesn't? So, Universal Pictures, which is betting on three high-profile comedies this summer, is going to focus heavily on comedies and "event" movies when putting together its release schedule for next year. Indeed, given the recent lackluster box office for such adult dramas as "State of Play" and "Frost/Nixon," it's not a big surprise that executives at the General Electric-owned studio reevaluated their plans and halted development of some acclaimed dramatic projects, as my colleague John Horn recently reported.

"The mantra at the moment is to focus on what we know we do well," says Donna Langley, talking the other day in her office on the studio lot in Universal City. "We know we do really well with comedy and our event movies."

Universal is developing several projects with filmmaker Judd Apatow, to whom the studio gave a development fund to incubate ideas with his stable of talent that includes actor Jonah Hill and "Saturday Night Live" comedians Kristen Wigg and Will Forte. Hill will star in "Get Him to the Greek" as a record company intern who has two days to drag an uncooperative rock star to Hollywood for a comeback concert. Hill also brought Universal a project that he will star in and produce called "The Adventurer's Handbook," about four twentysomething pals who encounter bad guys on their globe-trotting adventure. The film, to be directed by Akiva Schaffer [We originally wrote it was Nick Stoller, but he's directing "Get Him To The Greek"], will start production next March.

British comedian Simon Pegg, who plays Scotty in Paramount's blockbuster "Star Trek," and Nick Frost co-wrote and will star in "Paul," about two sci-fi geeks who go on the road only to find an alien (a computer-generated character voiced by Seth Rogen) in the backseat of their RV. The movie, which also stars Kristen Wigg and Jason Bateman, starts shooting in a few weeks.

On the franchise front, Langley said the studio is "deep in development" on sequels to "Bourne Identity," "Fast & Furious" and "Wanted," the stylized action picture starring Angelina Jolie that was a big hit last year. 

Also, Universal just announced this week plans to make "Stretch Armstrong," the first film to come out of the studio's six-year deal with toymaker Hasbro. Producer Brian Grazer and writer Steve Oedekerk are on board to adapt the action figure into a movie that the studio expects to shoot the first quarter of next year. Universal has already staked out a release date of April 15, 2011.

Other Hasbro properties that Universal plans to adapt into movies include the board games Monopoly, Battleship, Clue and Candy Land, a framed artist rendering of which adorns Langely's office.

— Claudia Eller

Universal Music Group has enticed another major label -- Sony Music Entertainment --- to join its planned Vevo music video service.

Sony will contribute professionally created videos from its roster of performers, which includes Bruce Springsteen (aka The Boss), Justin Timberlake, Beyonce and Britney Spears.

Universal is working with YouTube to develop a new music hub, where viewers watch professionally created music videos of, say, Pink performing "Please Don't Leave Me" without having to wade through 80,000 or so cover renditions.

The goal is to imitate the success of Hulu, the red-hot online service that has attracted viewers and advertisers by offering professionally created content -- television shows, movies and short videos. As with Hulu, Vevo would also serve as a syndication platform to redistribute music videos elsewhere on the web.

To succeed, however, Universal still needs to sign on the two other major music labels, Warner Music and EMI, with whom it's reportedly in discussions. Until that happens, half of the pop cannon won't be enough for music fans.

-- Dawn C. Chmielewski

Photo: Bruce Springsteen. Credit: Bill Kostroun / Associated Press

"Up," the latest from Disney/Pixar, sailed to $21.4 million at the box office on Friday. That's just under the $23.2 million that the last Pixar flick -- "Wall-E" -- took in on its opening day last year en route to a $63 million first weekend.

The strong Friday means "Up" will definitely finish its first weekend looking more like "Wall-E" than Pixar's "Ratatouille," which opened at $47 million. There were projections that "Up" could hit as high as $65 million this weekend, but those might be a tad too optimistic. A safer bet would be between $57 million to $60 million. Hardly numbers to sneeze at, however.

The other major movie opening of the weekend, director Sam Raimi's finance-themed horror film "Drag Me to Hell" posted $6.4 million on Friday, which puts it on pace for a respectable $17.5 million, but below industry estimates that pegged it generating $20 million. Last year's horror picture "The Strangers" opened at $21 million.

-- 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

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

New Universal/YouTube venture gets Britney and 'The Boss'

Universal Music Group has enticed another major label -- Sony Music Entertainment --- to join its planned Vevo music video service.

Sony will contribute professionally created videos from its roster of performers, which includes Bruce Springsteen (aka The Boss), Justin Timberlake, Beyonce and Britney Spears.

Universal is working with YouTube to develop a new music hub, where viewers watch professionally created music videos of, say, Pink performing "Please Don't Leave Me" without having to wade through 80,000 or so cover renditions.

The goal is to imitate the success of Hulu, the red-hot online service that has attracted viewers and advertisers by offering professionally created content -- television shows, movies and short videos. As with Hulu, Vevo would also serve as a syndication platform to redistribute music videos elsewhere on the web.

To succeed, however, Universal still needs to sign on the two other major music labels, Warner Music and EMI, with whom it's reportedly in discussions. Until that happens, half of the pop cannon won't be enough for music fans.

-- Dawn C. Chmielewski

Photo: Bruce Springsteen. Credit: Bill Kostroun / Associated Press

"Up," the latest from Disney/Pixar, sailed to $21.4 million at the box office on Friday. That's just under the $23.2 million that the last Pixar flick -- "Wall-E" -- took in on its opening day last year en route to a $63 million first weekend.

The strong Friday means "Up" will definitely finish its first weekend looking more like "Wall-E" than Pixar's "Ratatouille," which opened at $47 million. There were projections that "Up" could hit as high as $65 million this weekend, but those might be a tad too optimistic. A safer bet would be between $57 million to $60 million. Hardly numbers to sneeze at, however.

The other major movie opening of the weekend, director Sam Raimi's finance-themed horror film "Drag Me to Hell" posted $6.4 million on Friday, which puts it on pace for a respectable $17.5 million, but below industry estimates that pegged it generating $20 million. Last year's horror picture "The Strangers" opened at $21 million.

-- 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

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

Opening Day: `Up' flies to $21.4 million, `Hell' digs in for $6.4 million

"Up," the latest from Disney/Pixar, sailed to $21.4 million at the box office on Friday. That's just under the $23.2 million that the last Pixar flick -- "Wall-E" -- took in on its opening day last year en route to a $63 million first weekend.

The strong Friday means "Up" will definitely finish its first weekend looking more like "Wall-E" than Pixar's "Ratatouille," which opened at $47 million. There were projections that "Up" could hit as high as $65 million this weekend, but those might be a tad too optimistic. A safer bet would be between $57 million to $60 million. Hardly numbers to sneeze at, however.

The other major movie opening of the weekend, director Sam Raimi's finance-themed horror film "Drag Me to Hell" posted $6.4 million on Friday, which puts it on pace for a respectable $17.5 million, but below industry estimates that pegged it generating $20 million. Last year's horror picture "The Strangers" opened at $21 million.

-- 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

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

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

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

Hollywood sings the Blu(e)s

Hollywood is singing the holiday blues.

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

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

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

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

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

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

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press

 

NBC Universal to make $500 million in cuts

NBC Universal President Jeff Zucker is calling for $500 million in cuts across the company next year, citing the slowing global economy and a drop in consumer confidence.   

Zucker said in a memo circulated Friday that he asked department heads to recommend cuts in staffing, promotional expenses and in discretionary spending, such as travel, entertainment and outside consultants. These reductions represent 3% of the company's budget, which comes to $16.7 billion.

The cuts were first reported by Broadcasting & Cable.

NBC Universal's announced cutbacks come as the worsening economy is taking its toll on Hollywood -- even though NBC just came off a great quarter thanks to the Beijing Olympics. Viacom and CBS Corp. slashed profit forecasts last week, and Sumner Redstone's theater chain announced it would sell Viacom and CBS shares to pay down debt. Merrill Lynch also downgraded the Walt Disney Co., citing concerns that its resort, broadcast and consumer products would suffer in a weakening economy.

The Zucker memo in full:

"We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue well into next year.

As we have been working on our budgets and planning for 2009, it has become evident that the decline in consumer confidence and spending will impact our operations. The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget.

While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs.  We have also asked them to find savings by going through our Sourcing department for all major purchases.

This kind of message is never easy, but it is the right step to make, and the right time to make it. We have no choice but to respond quickly to the external economic forces that are affecting the entire world economy.

We have an incredible portfolio of strong, dynamic, world-class brands across the global media landscape. We are as well positioned as any media company today; these moves will ensure that we continue to be so.

Thank you for your support.

Photo: NBC Universal President Jeff Zucker. Credit: Mark Lennihan / Associated Press