Plucked Peacock

[Petra]

I like the title ......

While Sony Pictures, Disney Buena Vista and 20th Century FOX are all having record years as of late, Universal Studio, the lone studio backing HD-DVD exclusively, is struggling to compete in the movie industry



http://www.nypost.com/seven/02072007...ter_lauria.htm

February 7, 2007 -- General Electric Chairman Jeff Immelt's increased involvement in the direction of NBC Universal could be a sign that the entertainment giant's parent is mulling an eventual exit from the TV and film business.

Three sources close to the company said that keeping NBC for the long-term remains very much an open question in Immelt's mind, and added he could look to sell the asset if it doesn't significantly improve in the next 12 months.

"Immelt is paid to be flexible, and the GE portfolio is very much in transition," said one of these sources. "I don't think he'll do anything in the near-term, but whether NBC is still at GE three to five years from now is yet to be determined."

Indeed, with digital media not yet rivaling the cash thrown off by traditional media, and GE's history of adherence to strict performance measures, Immelt could explore alternatives for the division, including a possible sale, these sources said.

Bob Wright, who yesterday stepped down as NBC's CEO to make room for Jeff Zucker, left that open in an interview with The Post.

"If the business doesn't have good prospects, as with any business within GE, it is going to come under a lot of scrutiny," said Wright, who remains a vice chairman at GE.

According to a second source with knowledge of the situation, Wright himself has recently brought up to Immelt the subject of selling NBC.

Wright's big ambition was to take NBC public and since that desire has been thwarted - Immelt shot down that prospect again yesterday, saying going public "was not something we envision - this source said Wright has taken the position that NBC is too challenging a business for GE to be in long-term.

A GE spokesman said the idea of selling NBC was wholly inaccurate.

"We like this business very much, we like the team we have in place and we plan on operating this company as best we can for the long-term," the spokesman said.

As far as reviewing its portfolio, the spokesman conceded that GE "enhances its business for sure, but to say that we constantly change is wrong." How quickly Zucker figures out how to offset the revenue decline in traditional media with revenue growth in digital media will be a key factor in determining how long GE will stay in the entertainment business.

"That's the singular challenge all us in media face," Zucker said. "We have to be prepared for when that will eventually happen."