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Ofcom to investigate Sky and 21st Century Fox merger
The UK's media regulator will investigate a proposed merger worth £11.7 billion ($14.6 billion) between 21st Century Fox and Sky. Speaking in the House of Commons, Karen Bradley, the Secretary of State for Culture, Media and Sport, said she had referred the matter because of "public interest considerations" which "warrant further investigation." These include media plurality -- the need for citizens to have access to a variety of independent news sources -- and a "commitment to broadcasting standards." Ofcom has 40 days to investigate and deliver its report, which will undoubtedly shape Bradley's decision to approve or block the deal.
Sky receives takeover bid from 21st Century Fox
21st Century Fox is in advanced talks to buy Sky, a major telecoms player and the biggest pay-TV provider in the UK. Negotiations are underway and the directors of both companies have reached an "agreement" of £10.75 per share. As Bloomberg reports, the deal values Sky at £18.5 billion ($23.2 billion). Fox already owns 39 percent of Sky, and media mogul Rupert Murdoch has tried to buy the remaining slice before. A takeover in 2010 was eventually abandoned, however, after News Corporation (now known as 21st Century Fox) was embroiled in a huge phone hacking scandal.
The Daily set to launch in the UK, US edition only
According to The Guardian newspaper, Rupert Murdoch's The Daily will be available in the UK within the first half of this year, but first Apple must introduce its new subscription-based pricing system in the UK. Jon Miller, the chief digital officer of Murdoch's News Corporation, said that it would be "not too long from now" until the news app arrives in western Europe. It's understood, however, that this will simply be the US edition made available outside of the US. There was some conjecture that a British-specific edition would be made available in the future, but The Guardian reports that "... the media giant [News Corp.] emphasized there were no immediate plans for a British edition of the title." The Daily launched in the US on February 2, 2011 and was received with a mixed reaction, particularly by the TUAW team. Check out Steve Sande's, Dave Caolo's and Mel Martin's (first and second) impressions of the electronic newspaper. The Daily has been available as a free trial since its launch, but next week it will cost 99 cents a week or US$39.99 for a year-long subscription. Although News Corp hasn't released any official figures, The Guardian estimates around 5,000 users have signed up for the the year-long subscription. [Via TNW]
News Corp and Apple set date for The Daily launch: February 2nd
The Daily, News Corp's iPad-specific news"paper," is living up to speculation about an early February inauguration with the announcement of a launch event on February 2nd. CEO Rupert Murdoch is explicitly mentioned on the invite, though Apple's presence will be fulfilled by Eddy Cue, presumably a late draft-in to substitute for his company's CEO, Steve Jobs, who's currently out on medical leave. Even without the great Apple orator, we expect the arrival of the first tablet-only news outlet to be a significant event, so we'll be strapping on our liveblogging gear and heading out to the Guggenheim Museum for a looksie. You'll join us in spirit, won't you?
Hulu looking to become more like cable, at risk of losing some ABC and Fox content?
We're still waiting to see just what the fallout for Hulu is going to be from the recent Comcast acquisition of NBC, and while many have feared that the cable company would try to kneecap Hulu to protect its market, a Wall Street Journal article has us wondering if maybe things could go a rather different way. The article, coming hot on the heels of Netflix posting promising Q4 results, suggests that Hulu management is considering transforming the purely on-demand service into more of a traditional cable network, offering "live" TV content in addition to the current archive of episodes. That could certainly give Comcast new life. Meanwhile, NBC, Disney, and News Corp., three companies that recently teamed up to speak out against FCC stipulations to the Comcast buyout, are apparently at odds regarding how much of what Hulu offers should be available to non-subscribers. There's talk that Disney may pull some ABC content and News Corp. may pull some Fox content from Hulu's free offerings, offering it instead on Netflix and other premium competitors. It all sounds a bit speculative at this point but, with cable subscriptions declining for the first time in years and online content viewership skyrocketing, it's obvious that some changes are afoot.
NBC Universal says 99-cent rentals would 'devalue' content, News Corp calls them a 'short-term test'
ABC and Fox may have been willing to part with their TV shows for 99 cents a pop on the new Apple TV and at Amazon, but don't be surprised if NBC Universal fails to join their ranks. "We do not think 99 cents is the right price point for our content," said CEO Jeff Zucker at an investor conference earlier this week, noting that NBC shows are indeed present on iTunes for those willing to shell out $1.99. That's not the only bad news for video-on-demand enthusiasts, as News Corporation is apparently reconsidering its stance -- though subsidiary Fox is presently dishing out 99-cent shows, president Chase Carey called its involvement a "short-term test." Guess that brave new world of cheap streaming is still a ways off, eh?
Magazine publishers announce joint digital distribution scheme
The joint venture between four leading publishers has issued a press release highlighting a few of the finer points of its plan to create a platform for digital magazine distribution -- we guess that The New York Observer wasn't kidding when it said that a deal between Conde Nast, Hearst, Meredith, News Corporation, and Time Inc. was imminent. Essentially a vehicle for selling publications for just about any device (including smartphones, e-readers, and laptops), the content will be optimized for multiple operating systems and display sizes, and according Time exec John Squires, it will all be DRM-free. They've yet to announce a name for this beast -- although we're leaning towards Magulu (or, perhaps, the iMags Store). PR after the break.
Rupert Murdoch staying out of the e-reader business, Red Eye sadly still on the air
With the news biz in obvious (and some might say terminal) disarray, of course folks in the industry will be seeking out ways to stay afloat in the age of the e-reader -- and it's long been rumored that Rupert Murdoch's News Corp is looking to launch a device of its own (if by "long" you mean "since early April or thereabouts"). When asked yesterday if this was the case, Murdoch answered: "I don't think that's likely. We're looking and talking to a lot of laboratories and big companies around the world like Sony, Fujitsu, Samsung. We're all working on wireless readers for books or for newspapers or for magazines. I think they're a year or two away, being marketed in a mass way, high quality ones. And we will be absolutely neutral. We're very happy to have our products distributed over any device provided it's only going to subscribers who are paying for it." Of course, the man may have some sort of diabolical scheme up his sleeve (when doesn't he, really?), but for the time being, he says, the Wall Street Journal is doing "very well... you've got the wallstreetjournal.com and you pay for it. And there is 1.25 million people nearly who are doing that. And we get a lot of advertising with it. It's a big business for us." So it's more likely that we'll see more News Corp papers adopting an online subscription model before the advent of any Fox News e-ink device. But if it does get in the hardware business, we'll gladly shell out for a Glenn Beck signature model. But only if it's ironic. [Via GigaOM]
Report: Rupert Murdoch forms global team, looks into hardware for content revenue stream
In case you didn't think Rupert Murdoch was serious about e-book readers before, The Daily Beast has it from its sources that the News Corp mogul has assembled a global team, with members hailing form London, New York, and Sydney, to find some way to better monetize / charge for online content. Unsurprisingly, that leads to hardware and possibly creating a more "user-friendly way" to deliver content that'll incentivize consumers to pay -- Kindle does it, Hearst wants to do it, so why not the world's biggest media conglomerate? As for the mythical device itself, let's recap what we've heard so far, from the man himself: a bigger screen than Amazon's now-antiquated models, a four-color pallette, and"you can get everything there." Now how about putting a name to the manufacturer, hm? [Via Electronista]
Disney grabs a piece of Hulu
Just as we'd heard, Disney has worked out a deal with Hulu that includes taking a piece of the streaming video site, joining NBC Universal, News Corporation and Providence Equity Partners as owners and bringing Disney TV shows and movies to the site. Expect Lost, Desperate Housewives, Greek, General Hospital and the like so show up after the deal closes, no word on any delay periods and the only content not mentioned in the deal appears to be ESPN related properties. Also sadly missing from the announcement? Any word of increased HD streaming on Hulu, lets hope they take a page from ABC.com and get right on that.
Jamba becomes Fox Mobile Group after News Corporation purchase
Two years ago, News Corporation shelled out some serious greenbacks for a slice of Jamba. Now, the monolithic company has paid an additional $200 million for the remaining 49% stake in the ringtone guru. Moving forward, Jamba will be continued under a different name -- Fox Mobile Group -- which will be comprised of three distinct operating business units. The Fox Mobile Distribution unit will assume responsibility for global distribution of mobile content, while Fox Mobile Entertainment focuses on licensing content on behalf of Fox Entertainment Group, and Fox Mobile Studios houses creative and technology talents / assets that develop original mobile content. Potentially more pertinent is that the newly formed FMG will launch a new US brand in Q1 2009, which will reportedly focus on "cross-platform content and simple pricing plans."[Via mocoNews]
