ITV

Tag: Time Warner

  • Is Bollywood taking over TV news?

    Is Bollywood taking over TV news?

     As the world’s largest television news bazaar – with over 40 dedicated news channels, unrivalled by any other country – India offers exciting possibilities for broadcast journalism. At the same time, just as elsewhere in the world, television news in India shows a clear trend towards infotainment – soft news, lifestyle and celebrities – and a decline in journalism for the public interest.

    While news outlets have proliferated globally, the growing competition for audiences and, crucially, advertising revenue, has intensified at a time when interest in news is waning. Audiences for network television peak-time news bulletins have declined in the US from 85 per cent in1969 to 29 per cent in 2005 (though in India news audience has grown).

    With the growing commercialisation of television news, the need to make it entertaining has therefore become a priority for broadcasters. They borrow and adapt ideas from entertainment and adopt an informal style with an emphasis on personalities, storytelling and spectacle.


    This has been reinforced by the take-over of news networks by huge media corporations whose primary interest is in the entertainment business: Viacom-Paramount (CBS News); Disney (ABC News); AOL-Time-Warner (CNN) and News Corporation (Fox News/Sky News and Star News Asia). This shift in ownership is reflected in the type of stories – about celebrities from the world of entertainment, for example – that get prominence on news, thus strengthening corporate synergies.

    In the process, symbiotic relationships between the news and new forms of current affairs and factual entertainment genres, such as reality TV have developed, blurring the boundaries between news, documentary and entertainment. Such hybrid programming feeds into and benefits from the 24/7 news cycle: providing a feast of visually arresting, emotionally charged infotainment which sustains ratings and keeps production costs low. The growing global popularity of such infotainment-driven programming indicates the success of this formula.

    Infotainment – a term that emerged in the late 1980s to become a buzzword – refers to an explicit genre-mix of ‘information’ and ‘entertainment’ in news and current affairs programming. This new news cannibalises visual forms and styles borrowed from TV commercials and a MTV-style visual aesthetics, including fast-paced action, in a post-modern studio, computer-animated logos, eye-catching visuals and rhetorical headlines from an, often glamorous, anchor person. This style of presentation, with its origins in the ratings-driven commercial television news culture of the US, is becoming increasingly global, as news channels attempt to reach more viewers and keep their target audiences from switching over.

    As I demonstrate in my new book News as Entertainment: The Rise of Global Infotainment, such type of journalism has been very successful: in Italy, infotainment-driven private television catapulted Silvio Berlusconi from a businessman to the office of the Prime Minister. A study of journalism in post-Soviet Russia found that the media were ‘paying huge attention to the entertainment genre’, while in the Chinese news world, Phoenix channel regularly runs such soft news programmes as ‘Easy Time, Easy News.’

    In the world’s largest democracy, what I have described as – the three Cs – cinema, crime and cricket – encapsulate most of the content on television news. Here global influences are important: As in many other countries, the greatest contributor to infotainment in India has been Rupert Murdoch, whose pan-Asian network Star, launched in 1991, pioneered satellite television in Asia, transforming TV news and entertainment. Murdoch was responsible, among other things, for introducing the first music channel in India (Channel V); the first 24/7 news network (Star News) and the first adaptation of an international game show (Who Wants to be a Millionaire).

    Murdoch was also the first transnational operator to recognise the selling power of Bollywood, its glamour and glitz. The obsession of almost all news channels with Bollywood-centred celebrity culture today dominates coverage. Crime is big too: as the ratings battle has intensified, news networks have moved towards reporting sensational stories, which are becoming progressively gruesome: murder, gore and rape are recurring themes. The paradox is stark: although crime coverage has spiralled, especially on more populist Hindi channels, in the real India the crime rate has in fact fallen dramatically in the last decade.

    A third obsession is to be seen in the coverage of cricket: cricket-related stories appear almost daily on all networks – and not just on sports news. And as Bollywood stars start bidding for cricketers, the ‘Bollywoodisation‘ of news is likely to continue.

    These three Cs are indicative of a television news culture that is increasingly becoming hostage to infotainment. The lack of coverage of rural India, of regular suicides by peasants (more than 170,000, in the last 15 years, according to government figures), and the negligible reporting of health and hygiene, educational and employment equality (India has the world’s largest population of child labour at the same time as having vast pool of unemployed young people), demonstrates that such stories do not translate into ratings for urban, Westernized viewers and are displaced by the diversion of infotainment.

    The lack of concern among television news networks for India’s majority population is ironic in a country that was the first in the world to use satellite television for educational and developmental purposes, through its 1975 SITE (Satellite Instructional Television Experiment) programme. The interest in broader questions of global equality and social justice appear to have been replaced among many journalists by an admiration for charismatic and smooth-talking CEOs and American or Americanized celebrities.

    Should we worry about this perceived dilution and debasing of news? In the early 1980s, years before media globalization and rampant commercialization of the airwaves, Neil Postman, in his influential book Amusing Ourselves to Death, argued that television militated against deeper knowledge and understanding since it promoted ‘incoherence and triviality,’ and spoke in only one persistent voice – ‘the voice of entertainment.’

    A quarter century later, looking at the Bollywoodization of news in India, Postman’s words ring truer than ever.

    (Daya Kishan Thussu is Professor of International Communication at the University of Westminster in London. His latest book is News as Entertainment: The Rise of Global Infotainment – the first book-length study of this phenomenon, published by Sage.)

  • Time Warner hires NBC’s Randy Falco as CEO of AOL unit

    Time Warner hires NBC’s Randy Falco as CEO of AOL unit

    MUMBAI: Time Warner Inc. has hired NBC Universal Television group president Randy Falco as chairman and chief executive officer of its AOL unit, replacing Jonathan Miller.

    The announcement was made by Time Warner Inc.’s chairman and CEO Richard D Parsons and president and COO Jeff Bewkes, asserts an official release.

    Commenting on Falco’s appointment Parsons said, “Jeff Bewkes and I are very pleased that a top operating executive of Randy Falco’s expertise and experience will be leading AOL into its next stage of development. A key to Time Warner’s digital future, AOL is showing early success in transitioning to an advertising-focused business model, and Randy is a first-rate choice to ensure AOL realizes its promise.”

    As president of NBC’s broadcast and network operations division, Falco was in charge of the facilities and operations of the NBC television network worldwide, adds the release.

    Falco added, ” My challenge will be to execute on the strategy that I believe will make AOL once again the leader of the online world. I see a tremendous opportunity for meaningful growth at AOL and will work hard with the fine people at AOL to make sure the company lives up to its full potential.”

    Time Warner, parent of AOL is a US based integrated media and communications company whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.

    Based in Dulles, Virginia, AOL is a global web services company that operates web destinations, runs the country’s Internet access business, and provides a full set of advertising solutions.

  • Time Warner’s Q3 revenues up 7%

    Time Warner’s Q3 revenues up 7%

    MUMBAI: US media conglomerate Time Warner has reported financial results for its third quarter ended 30 September, 2006.

    In the quarter, revenues rose by seven per cent over the same period in 2005 to $10.9 billion, led by growth at the cable and networks segments. Adjusted operating income before depreciation and amortisation climbed 16 per cent to $2.9 billion, reflecting double-digit increases at the cable and AOL segments as well as gains at the networks and publishing segments. This growth was offset partly by a decline at the Film segment. Operating income was up one per cent to $1.7 billion.

    Time Warner chairman and CEO Dick Parsons said, “Time Warner continues to build momentum and deliver value for our shareholders. This quarter’s results position the Company to meet all of our full-year financial objectives. We’re particularly encouraged by AOL’s early progress in making the transition to an advertising-supported business.

    ” Just as importantly, Time Warner Cable is generating outstanding results, even while successfully integrating its newly acquired cable systems. In addition, our capital allocation efforts continue to drive incremental value – including our $20 billion share repurchase programme as well as this year’s more than $20 billion of acquisitions and almost $4 billion of announced or completed non-core asset divestitures.”

    Revenues at AOL fell by three per cent ($58 million) to $2.0 billion, due to a 13 per cent decrease ($210 million) in subscription revenues, offset in part by a 46 per cent increase ($151 million) in ad revenues. The decline in subscription revenues was due primarily to a decrease in domestic AOL brand subscribers, which reflects in part AOL’s previously announced plan to offer its e-mail, certain software and other products free of charge to broadband users in the

    US ad revenues reflected strong growth in sales of advertising run on third-party websites generated by Advertising.com, as well as display and paid-search advertising. At the network segment (Turner Broadcasting, HBO and The WB Network) revenues rose by four per cent ($100 million) to $2.5 billion, reflecting higher subscription and ad revenues, including the consolidation of Court TV ($60 million), offset partially by lower Content revenues.

    Subscription revenues climbed nine per cent ($125 million), due to higher rates and, to a lesser extent, increased subscribers at Turner and HBO as well as the consolidation of Court TV ($17 million). Ad revenues were up by six per cent ($42 million), led by 16 per cent growth at Turner, including Court TV ($42 million), offset partly by a 36 per cent decrease ($48 million) at The WB Network, which ceased operations on September 17, 2006.

    The 23 per cent decline in content revenues ($72 million) is related to a decrease at HBO, due mainly to a difficult comparison to the prior year quarter, which included higher syndication sales of Sex and the City. For the quarter, Cartoon Network posted gains among kids 6-11 in both prime-time and total-day delivery compared to the prior year period.

    Revenues from films fell by 10 per cent ($260 million) to $2.4 billion, due to difficult comparisons to the prior year period. The current quarter included revenues from Superman Returns while overall theatrical revenue declined from the prior year quarter, which included results from Charlie and the Chocolate Factory, Batman Begins and Wedding Crashers.

    The company also reaffirmed its 2006 full year business outlook. It continues to expect that its 2006 full-year growth rate will be in the low-double digits.

  • Time Warner to sell AOL Internet business in UK

    Time Warner to sell AOL Internet business in UK

    MUMBAI: Time Warner will sell its AOL Internet business in the UK for $688 million to mobile phone retailer Carphone Warehouse Group.

    Completion is subject to EU competition authority clearance and is expected to take place by 31 December 2006.

    Under the agreement, Carphone Warehouse will acquire AOL’s Internet access customer base in the UK as well as the supporting management and infrastructure (the “Access” business). For its part, AOL will provide co-branded portal, content and other audience services and will manage the online advertising sales for Carphone Warehouse’s combined broadband customer base through a revenue-sharing agreement, according to a company statement. 

    The total cash consideration is £370m, of which £250m will be paid on completion and the balance paid in three instalments over the following 18 months. The consideration is being funded by an extension of existing bank facilities.

    The transaction is due to complete by 31 December 2006 and is subject to EU competition authority clearance. At this stage it is anticipated that the acquisition will increase current year pre-tax profits by approximately £10m (subject to completion by 31 December 2006), and next year’s pre-tax profits by £30-40m.

    Carphone operates the MViva mobile Internet portal. The deal gives the company a broadband customer base of about 2 million customers, vaulting it to third place among UK broadband service providers. AOL will continue to manage online advertising sales for the service and will share in those revenues.

    Commenting on the acquisition, Carphone Warehouse CEO Charles Dunstone said: “The acquisition of AOL’s UK Internet access business is transformational for our broadband business. This deal gives us significant scale to complement the rapid organic growth of our free broadband proposition. In addition, the joint development of AOL’s already successful audience platform will bring us new advertising and content revenues in a proven and low risk manner.”

    Time Warner chairman and CEO Dick Parsons said: “This agreement completes the restructuring of our AOL Europe businesses that both advances AOL’s strategic transition to an advertising-supported business model and underscores Time Warner’s commitment to shaping its portfolio of assets to drive the greatest growth possible. On both fronts – as well as across our company – we’re successfully building critical momentum to the benefit of our shareholders. As a leading provider of audience services in Europe, AOL will be better positioned than ever to continue to grow a cohesive online advertising business across a region that’s key to our future progress.”

    AOL’s Carphone deal follows an announcement that Neuf Cegetel, the French telecommunications network operator, plans to sell an 18.5 per cent stake in its business in order to raise around $957 million to fund its acquisition of AOL’s French Internet access business. Time Warner will also sell AOL Germany’s Internet business to Telecom Italia for $870 million.

  • Warner creates digital production venture to make content for broadband, mobile

    Warner creates digital production venture to make content for broadband, mobile

    MUMBAI: The Warner Bros. Television Group (WBTG) is establishing a new digital production venture Studio 2.0.

    This will work with creative talent and advertisers to create original live-action and animated short-form programming for broadband and wireless devices.

    WBTVG has tapped producer and senior advertising executive Rich Rosenthal to head Studio 2.0. These announcements were made by WBTG president Bruce Rosenblum. The venture will be overseen by WBTG executive VP Craig Hunegs.

    Studio 2.0 will provide a creative platform for the Television Group’s established as well as up-and-coming talent to produce content of varying lengths – from multiple-episode series to one-offs. Rosenthal will actively align Studio 2.0 with advertisers seeking early identification and involvement with original programming. They will develop projects through independent creative resources as well as through the various in-place Warner Bros. Television Group production arms.

    Studio 2.0 will look to license the programming to online sites, portals and wireless providers in collaboration with the recently formed Warner Bros. Digital Distribution.

    Rosenblum says, “What has become eminently clear is that our advertising partners in our traditional television businesses are anxious to work in collaboration with the creative community to develop original digital content.

    “At our core, we are a content creation company and Studio 2.0 is a natural, yet extraordinarily exciting, extension of our television production businesses. We are confident that Rich and Studio 2.0 will successfully provide advertisers with cutting edge tools that will integrate their brands with inventive digital content in fresh, impactful and meaningful ways.

    “At the same time, Studio 2.0 will present our creative partners in our television production divisions with a vibrant platform to express their vision in expanding digital arenas and allow us to collaborate with Simon Kenny (President, Warner Bros. Digital Distribution) and his team on terrific content for digital distribution.”

    Hunegs says, “Rich’s breadth of advertising experience, both as a creative and production exec, and the wide array of advertisers, brands and companies for which he has created, make him the ideal choice to run Studio 2.0. It is a coup to have him join us”.

    Time Warner Global Marketing, the cross-divisional client partnerships arm of Time Warner, will work closely with Rosenthal and Time Warner advertising clients.

  • Time Warner 2Q revenue grows marginally

    Time Warner 2Q revenue grows marginally

    MUMBAI: US media conglomerate Time Warner has reported financial results for its second quarter ended 30 June 2006.

    Revenues rose by one per cent over the same period in 2005 to $10.7 billion, led by growth at the cable and networks segments. Adjusted operating income before depreciation and amortisation climbed seven per cent to $2.7 billion, reflecting double-digit increases at the cable and filmed entertainment segments as well as a gain at the networks segment.

    This growth was offset partly by declines at the publishing and AOL segments. Operating income rose to $1.8 billion from a prior year loss, reflecting primarily higher adjusted operating income before depreciation and amortisation and the absence of the $3 billion in legal reserves related to securities litigation recognized in the prior year quarter.

    Time Warner chairman and CEO Dick Parsons said, “We are pleased with this quarter’s results, which put us firmly on track to achieve our full-year financial objectives. Especially significant was our generation of Free Cash Flow over the first half of the year, totaling more than $2.6 billion, or 49 per cent of our Adjusted OIBDA. Our cable, filmed entertainment and networks segments delivered standout operating performances, while AOL posted a better-than-expected quarter. Key to these results were impressive strength in AOL’s advertising revenues and across-the-board subscriber and profit growth at Time Warner Cable.

    “With the closing of the Adelphia-Comcast transaction, Time Warner Cable is now focused on integrating and upgrading the acquired systems and setting the stage for an aggressive deployment of Time Warner Cable’s advanced digital video, high-speed data and digital phone services in the coming months. In addition, we are continuing to return substantial value directly to our shareholders – including repurchasing 14 per cent of our outstanding common stock for approximately $11.7 billion since starting the programme last year.”

    Television networks (Turner Broadcasting, HBO and The WB Network) revenues rose by nine per cent to $2.7 billion, reflecting higher subscription and ad revenues – including the consolidation of Court TV ($65 million). Subscription revenues climbed nine per cent due to higher rates and increased subscribers at Turner and HBO as well as the consolidation of Court TV ($20 million), offset in part by a favorable audit claim settlement in the prior year quarter.

    Ad revenues were up eight per cent led by an 11 per cent growth at Turner, including Court TV ($43 million), offset partly by a nine per cent decrease at The WB Network. Content revenues increased by seven per cent due primarily to higher ancillary sales of HBO’s original programming.

    At AOL, revenues declined by two per cent to $2.0 billion, due to an 11 per cent decrease in subscription revenues, offset in part by a 40 per cent increase ($129 million) in ad revenues. The decline in subscription revenues was due primarily to a decrease in domestic AOL brand subscribers and an unfavorable impact from changes in foreign currency exchange rates. The growth in ad revenues reflected strong growth across each of the major ad categories – display, pay for performance and paid-search.

    Revenues from movies declined by 10 per cent to $2.4 billion, due primarily to difficult comparisons to higher home video revenues in the prior year quarter, which included Ocean’s 12 and The Aviator as well as several seasons of Seinfeld. Additionally, the second quarter of 2005 had benefitted from revenue from theatrical product on television, including various Harry Potter availabilities.

  • Time Warner to offer AOL service free-of-cost

    Time Warner to offer AOL service free-of-cost

    MUMBAI: What is perceived as a last ditch attempt to save its sinking internet business initiative AOL, Time Warner has decided to switch the service to free-to-access mode from September.

    With this move, AOL will attempt to transform itself into a full-fledged online media business venture, banking purely on advertising revenue and competing directly with rivals in this space Google, Yahoo and MSN. Approximately $2 billion subscriber revenue, which the company will miss now with the move, is expected to be made up in advertising.

    Time Warner will be implementing the free service in September this year. Former customers will be able to reactivate their accounts for free when the effort takes effect in September. According to industry estimates, AOL has lost a third of its subscribers since 2002.

    This is the next logical step for AOL to capitalize further on the explosive rise in broadband usage and online advertising. With its robust and rapidly expanding advertising operation, we expect to put AOL back on a growth path,” Time Warner president Jeff Bewkes has been quoted in media reports as saying.

  • Dopfner elected to join Time Warner Board of Directors

    Dopfner elected to join Time Warner Board of Directors

    MUMBAI: Time Warner Inc. has announced that Mathias Dopfner has been elected to join its Board of directors. Dopfner is chairman, CEO and head of the Newspapers Division of German publishing giant Axel Springer AG.

    Dopfner becomes the 12th member of Time Warner’s Board. His election is part of the company’s previously announced plan to add two new independent directors to its Board. Under the leadership of the Nominating and Governance Committee, the company is continuing the process of recruiting an additional independent director, informs an official release.

    Robert C. Clark, who chairs the Time Warner Board’s Nominating and Governance Committee, said, “We’re delighted that Dopfner has joined Time Warner’s Board. He’s an energetic and widely respected executive, with a solid record of leadership in the media industry. Dopfner not only brings the personal qualities that we seek in directors, but also enhances our Board’s independence and geographic diversity.”

    Time Warner Chairman and CEO Dick Parsons said, “Mathias Dopfner has done a terrific job of running one of the leading media companies in Europe, which is a key region of growth and opportunity for our company. In doing so, he has emerged at the top of a new generation of media industry leaders. He has a deep understanding of the challenges and opportunities facing media businesses around the world as well as the intelligence and character to enable him to serve the interests of our shareholders effectively.”

    Dopfner added, “I’m honoured to join Time Warner’s Board of Directors. I look forward to the opportunity to work with my fellow Board members and management in helping this great company achieve its strategic objectives and provide superior returns for its shareholders.”

    Since 2002, Dopfner has been CEO of Axel Springer which publishes more than 150 newspapers and magazines in 32 countries. He joined Axel Springer in 1998, as editor-in-chief of Die Welt. From 2000 to 2002, he served as the member of Axel Springer’s Management Board responsible for the company’s Multimedia and Newspapers Divisions. Before joining Axel Springer, Dopfner waseEditor-in-chief of Hamburger Morgenpost (1996-1998) and Wochenpost (1994-1996), adds the release.

    The other members of Time Warner’s Board are Richard D. Parsons, James L. Barksdale, Stephen F. Bollenbach, Frank J. Caufield, Robert C. Clark, Jessica P. Einhorn, Reuben Mark, Michael A. Miles, Kenneth J. Novack, Francis T. Vincent, Jr. and Deborah C. Wright.

  • AOL co-founder Case apologies for Warner merger

    AOL co-founder Case apologies for Warner merger

    MUMBAI: The co founder of US internet service provider AOL Steve Case has apologised for merging his company in 2001 with Time Warner.

    The merger proved to be a disaster and the company lost $200 billion of its value. The entity was called AOL Time Warner but then embaressed executives at Time Warner decided to drop AOL from the company’s name a few years down the line.

    In an interview on US pubcaster PBS with Charlie Rose Case expressed frustration that the merger did not develop in the manner that had been hoped for. He however, still belives that it was a good idea.

  • Time Warner chairman, CEO Parsons is Mipcom’s Personality of the Year

    Time Warner chairman, CEO Parsons is Mipcom’s Personality of the Year

    MUMBAI: Reed Midem which organises the television event Mipcom in Cannes France has named Time Warner chairman and CEO Richard D. Parsons as the Mipcom 2006 Personality of the Year.

    Parsons will receive the accolade on 11 October. Mipcom takes place from 9 to 13 October 2006 at the Palais des Festivals in Cannes.

    Reed Midem CEO Paul Zilk says, “We are extremely pleased to honour Richard Parsons as our Mipcom Personality of the Year. Under his leadership, Time Warner informs, entertains and connects people all over the globe through its leading brands and programming.

    “In an ever-evolving world defined by constant technological and demographic change, Time Warner – with its long tradition of innovation and creativity – continues to shape not only our industry, but the culture we live in.”

    Parsons says, “I am very honoured to be this year’s Personality of the Year and to join the notable ranks of past honourees. I am particularly pleased to be recognised at Mipcom, the veritable hub of the worldwide television market, which gathers industry leaders together from across the globe.

    “This award is a testament to the more than 85,000 Time Warner employees who are the creative source for all that we do. I dedicate it to them and to the hundreds of millions of people around the world who continue to inspire us to provide the best in entertainment and information in these rapidly changing times.”