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Sony Makes Deal for Electronic Dance Music

In the latest sign of the music industry’s gold rush over electronic dance music, Sony Music has struck a deal with a leading independent dance label, Ultra Music. The arrangement calls for the labels to share acts, and gives one of Sony’s divisions distribution rights to Ultra’s catalog in North America, which includes top D.J.’s like Deadmau5, Steve Aoki, Calvin Harris and Benny Benassi.

As part of the deal, announced on Wednesday, Sony will make an unspecific investment in Ultra, and Patrick Moxey, Ultra’s president, will be named Sony’s president for electronic music, reporting to Doug Morris, the chief executive of Sony’s music division.

The arrangement raises Ultra’s profile considerably, and will give it access to some of Sony’s vast resources: the label, for example, will be able to use Sony artists for its popular compilation albums, like “Ultra Weekend” and “Ultra Dubstep.”

Ultra, which has become a substantial dance-music empire, including an artist-mnagement arm, will also help promote Sony acts. With the distribution arrangement â€" through Sony’s Red division, which distributes recordings from many independent labels â€" sales of Ultra albums will also contribute to Sony’s market share, a source of constant competition between Sony and its biggest rival, the Universal Music Group.

The news was first reported earlier on Wednesday by The Financial Times.

EMI Takes Shape: Since Universal closed its $1.9 billion deal for EMI Music, the company has moved quickly to establish a management team for its labels in the United States, and with a pair of appointments announced this week, much of that team now appears to be in place.

On Wednesday, Universal announced that Ron Fair will be chief creative officer of Virgin Records, one of the flagship labels that will be part of EMI’s new Capitol Music Group. Mr. Fair, formerly of Universal’s Geffen label, is a hitmaker of long standing! . He signed Christina Aguilera and guided her early career, and has also worked with Black Eyed Peas and the Pussycat Dolls.

Universal also announced on Wednesday that Ashley Burns, an EMI employee for more than a decade, would be Virgin’s general manager. Earlier this week, it was announced that Greg Thompson, EMI’s top marketing and promotion executive, who is said to have been instrumental in many of the label’s successes in recent years, like Lady Antebellum and Coldplay, would be the executive vice president of the Capitol Music Group.

In November, Steve Barnett left his position as co-chairman of Columbia Records, a Sony label, to join EMI as the chairman of the Capitol group.

As a condition imposed by European regulators, Universal is selling about a third of EMI’s recorded music assets, including the rights to release music by major acts like Coldplay and Pink Floyd. That auction is under way.

Ben Sisario writes about the music industry. Follow < href="https://twitter.com/#!/sisario">@sisario on Twitter.



Rolling Stone Lays Off Two Noted Staff Members

Rolling Stone, amid a variety of magazines responding to a troubled advertising environment by trimming staff, laid off two of its bigger names this month.

Eric Bates, the magazine’s executive editor who had worked there for nearly a decade, was laid off on Jan. 4. And Mark Neschis, who previously worked in the Clinton administration, reported for his last day on Jan. 11.

Mr. Neschis was handling press for Wenner Media, which owns Rolling Stone, along with Us Weekly and Men’s Health. He did not respond to a request for comment on Wednesday. But Mr. Bates looked back at his tenure at the magazine fondly. He helped edit Rolling Stone’s article on Gen. Stanley McChrystal and was involved with visiting the White House with the company’s founder, Jann Wenner, to interview President Obama.

“I’m going to be rooting for them and looking forward to whatever is next for me,” said Mr. Bates. “We were really modeling the way journalism can be done, even in a time of cutbacks and shoing that there’s a real hunger for long-form journalism.”

Melissa Bruno, a spokeswoman for Wenner Media, declined to comment on the departures. But a December report issued by the rating agency Standard & Poor’s noted that Wenner Media had been assigned a negative rating when it tried to refinance a loan for the company.

The report called the company’s earnings profile “vulnerable” and said that the rating “reflects our expectation that leverage will remain high, given the structural pressures of declining newsstand and print advertising revenues facing the magazine publishing business.”

The rating agency was not hopeful that cuts could make much of a difference for Wenner, saying that “cost reductions may not fully offset the company’s weak revenue trends.”



Netflix Adds Subscribers, Posts Quarterly Profit

Netflix on Wednesday announced a surprise profit in the fourth quarter of 2012 and a new total of 27 million streaming subscribers in the United States, a jump of more than two million from the third quarter.

The company also added nearly two million new subscribers in other countries, though it continued to lose money overseas, as expected. Overall, however, the company reported $8 million in net income and $945 million in revenue. Analysts had expected a slight loss, not a profit, due to the rising costs of acquiring must-see streaming content.

Netflix’s fourth-quarter earnings exceeded not just Wall Street’s expectations but also its own, as the chief executive, Reed Hastings, and chief financial officer, David Wells, noted in a letter to investors. Revenues, they said, were driven in part by holiday season sales of new tablets and television sets.

Investors cheered the news, and at one point sent Netflix shares soaring more than 30 percent in after-hours trading.

The growthspurt in the fourth quarter attested to the popularity of on-demand libraries of television shows and movies. Streaming services by Amazon, Hulu, and Redbox are competing on the same playing field as Netflix, but for now Netflix is the biggest such service by far.

“The fact that our growth remains this strong despite intensifying competition, and our already substantial U.S. market penetration, underlines the large opportunity ahead,” Mr. Hastings and Mr. Wells wrote.

Netflix ended 2012 with 27.1 million streaming subscribers in the United States and 6.1 million elsewhere. On Wednesday it predicted that it would end the first quarter of 2013 with somewhere between 28.5 and 29.2 million in the United States and somewhere between 6.6 and 7.3 million elsewhere.

Net income will be about in line with the fourth quarter, Netflix said, since the revenue from new subscribers will be offset by licensing expenses and continuing declines in its DVD-by-mail business.



Fox Shelves \'Ben and Kate\' on Tuesdays

The dismal year for new television comedies continued Wednesday with Fox pulling “Ben and Kate” â€" one of the few modestly praised new comedies of the year â€" from its schedule

The show, about a brother and sister living together with her young daughter, has posted weak ratings all season, but Fox executives said earlier this month that they would remain committed to it. That was before this week, when “Ben and Kate” attracted only 2.6 million viewers and a low 1.2 rating in the audience group Fox most seeks, viewers between the ages of 18 and 49.

Numbers for “New Girl,” Fox’s strongest comedy from last season, which has followed “Ben and Kate” on Tuesdays, have deteriorated all season; they hit a new low Tuesday with just a 2.1 rating in that 18-to-49 audience and only four million viewers.

Starting next week, “Ben and Kate” will be replaced on Tuesdays by repeats of “Raising Hope,” another Fox comedy that is struggling in the ratings. (It drew only four millon viewers and a 1.7 rating in the 18-to-49 category this week). The night’s other Fox comedy, the new entry “The Mindy Project,” is also barely surviving. On Tuesday it reached just under three million viewers and scratched out only a 1.5 rating with the 18- to 49-year-old viewers.

Comedy on Tuesday appears to be nearing complete rejection: NBC’s two new series, “Go On” and “The New Normal,” both sank to new lows this week, even though Tuesday’s strongest network, CBS, was offering only repeats all night. Both new NBC comedies have had their ratings plunge since they were separated from the powerful lead-in of “The Voice.” Their once-secure status as shows set to survive the season could now be threatened.

Fox is promising to bring “Ben and Kate” back later in the season to finish its run of episodes, but its fate â€" cancellation â€" seems sealed.



InterMedia Forms Media Group Focusing on Puerto Rican Viewers

InterMedia Partners, the private equity firm that owns the Puerto Rican broadcast network WAPA Television and the cable channels WAPA America and Cine Latino, announced on Wednesday that it would merge its Spanish language properties under the Azteca Acquisition Corporation to form a new Hispanic media company called the Hemisphere Media Group.

The new company will have its headquarters in Miami, where the two largest Spanish language broadcasters in the United States, Univision and Telemundo, are also based.

Alan J. Sokol, a senior partner at InterMedia who will become the chief operating officer for Hemisphere Media, said the company’s goal was to offer alternative programming for Spanish speaking Puerto Ricans and other Latinos in the United States, not to compete directly with the Telemundo or Univision.

“Univision and Telemundo are primarily targeted to the Mexican population in the United  States,” Mr. Sokol said. “That leaves a significant part of the audience underserved”

Azteca Acquisition, a special purpose acquisition corporation, was set up by the private equity investor Gabriel Brener. It raised $100 million in an initial public offering of stock in July 2011. The transaction announced on Wednesday is valued at $400 million: $100 million from Azteca and $300 million from the combined value of the InterMedia properties.

InterMedia will continue to own a majority share in the company. The remaining shares will be publicly traded.

“We are thrilled to be merging with and taking public these exciting, highly profitable and complementary companies, which have performed exceptionally under the operational and industry expertise of Alan Sokol and his teams,” Mr. Brener, the chief executive of Azteca Acquisition, said in a statement. “Hemisphere will meet the growing media demands of Hispanic consumers.”

Mr. Sokol, who was the chief operating officer at Telemundo before joining InterMedia, said that u! nlike traditional private equity firms, which take over ailing companies and cut their budgets, InterMedia plans to build Hemisphere Media.

“We’re doubling down,” Mr Sokol said. “Our intent is to have a public platform that we can grow and create an even bigger Hispanic media media business.”

InterMedia bought WAPA in 2007 from LIN TV for $130 million.

“We’ve owned these assets for five years,” Mr. Sokol said. “We’ve built them. We’ve nurtured them. We’re big believers in them.”

WAPA TV had its share of controversy this fall, when La Comay, an outspoken puppet that hosted the network’s most highly rated show, SuperXclusivo, was accused of making derogatory remarks about a slain publicist.

Antulio Kobbo Santarrosa, the puppeteer who played La Comay, resigned from the show this month after guidelines were put in place to manage the content of the show. The network is working on a replacement for SuperXclusivo, Mr. Sokol said.



More Than 20 Million Viewers Watched Coverage of Inauguration

A total of 20.552 million viewers tuned in on 18 separate television networks to watch coverage of the second inauguration of President Obama, the Nielsen company reported Wednesday.

The number, which measured the hours between 10 a.m. and 4:30 p.m. Monday, was down sharply from the 37.793 million Nielsen recorded for Mr. Obama’s first Inauguration in 2009. That was the second-highest total since Nielsen began its accounting for television viewership of the event in 1969. The highest number was recorded in 1981 for the first inauguration of Ronald Reagan.

Second inaugurations are generally watched by fewer viewers, though Richard Nixon added viewers for his second in 1973, which came as the Watergate scandal was beginning to heat up.

Mr. Obama’s second fared far better than that of his predecessor, George W. Bush, which drew only 15.536 million viewers, easily the smallest number recorded by Nielsen.

It was, however, slightly lower than the viewing number for the second inaugurtion of Bill Clinton in 1997, which Nielsen reported at 21.583 million. The audience for this year’s event now stands as the second-lowest on Nielsen’s list for inaugurations since 1969.

The figures do not include viewing that took place over the Internet, which may be a growing factor.

The networks included on the list counted by Nielsen were: ABC, CBS, NBC, UNIVISION, TELEMUNDO, AZTECA, MundoFox, PBS, Fox News Channel, CNN Headline News, Fox Business Network, MSNBC, TV One, CNN, Current TV, CNBC, CENTRIC and BET.



The Breakfast Meeting: How ESPN Missed the Hoax Story and Hard Times at Sundance

ESPN had been trying to confirm the story that Manti Te’o’s girlfriend - whose apparent death from leukemia became a rallying cry for Notre Dame football and a selling-point for the linebacker’s Heisman candidacy - was a hoax. But the network was hoping for an interview with Mr. Te’o and lost the story to Deadspin.

The money was noticeably tight at Sundance Film Festival, where $6 million was considered a big acquisition price - sobering news for independent films, which still struggle to recoup production costs. Some of the big purchases so far: HBO bought the documentary “Pussy Riot - A Punk Prayer,” and Relativity Media bought “Don Jon’s Addiction,” a comdy about a man who watches too much Internet pornography.

CNN dominated ratings for the presidential inauguration, although ratings across the board were down from 2008. Surprisingly, Fox News beat out liberal rival MSNBC during prime time.

On Monday, Cumulus Media announced an end to the 17-year drought of country music radio in New York. The new station, WRXP at 94.7 FM, will feature a country format called Nash that will play some of the biggest hitmakers in music - country is one of the few bright spots for the industry - and promote the “country lifestyle” to city dwellers whose idea of a stampede is the Q train at rush hour.

Fox’s huge marketing push behind th! e gruesome serial killer procedural “The Following” paid off with a 3.1 rating in the 18- to 49-year-old demographic for the show’s premiere.

The Super Bowl ad juggernaut continues with the usual suspects - beer, cola and car companies - pouring money into this year’s broadcast.



The Breakfast Meeting: How ESPN Missed the Hoax Story and Hard Times at Sundance

ESPN had been trying to confirm the story that Manti Te’o’s girlfriend - whose apparent death from leukemia became a rallying cry for Notre Dame football and a selling-point for the linebacker’s Heisman candidacy - was a hoax. But the network was hoping for an interview with Mr. Te’o and lost the story to Deadspin.

The money was noticeably tight at Sundance Film Festival, where $6 million was considered a big acquisition price - sobering news for independent films, which still struggle to recoup production costs. Some of the big purchases so far: HBO bought the documentary “Pussy Riot - A Punk Prayer,” and Relativity Media bought “Don Jon’s Addiction,” a comdy about a man who watches too much Internet pornography.

CNN dominated ratings for the presidential inauguration, although ratings across the board were down from 2008. Surprisingly, Fox News beat out liberal rival MSNBC during prime time.

On Monday, Cumulus Media announced an end to the 17-year drought of country music radio in New York. The new station, WRXP at 94.7 FM, will feature a country format called Nash that will play some of the biggest hitmakers in music - country is one of the few bright spots for the industry - and promote the “country lifestyle” to city dwellers whose idea of a stampede is the Q train at rush hour.

Fox’s huge marketing push behind th! e gruesome serial killer procedural “The Following” paid off with a 3.1 rating in the 18- to 49-year-old demographic for the show’s premiere.

The Super Bowl ad juggernaut continues with the usual suspects - beer, cola and car companies - pouring money into this year’s broadcast.



Contemplating Obama\'s Place in History, Statistically

With President Obama’s second term under way, we have begun to see more reflections on how he might come to be regarded historically.

As common sense might dictate â€" and as the statistics will also reveal â€" it is far too soon to conclude very much about this. Second-term presidents may be derided as lame ducks, but it is often in the second term when reputations are won or lost.

Still, we can say this much: Mr. Obama ran for and won a second term, something only about half of the men to serve as president have done (the tally is 20 or 21 out of 43, depending on how you count Grover Cleveland). We can also note, however, that Mr. Obama’s re-election margin was relatively narrow. Do these simple facts provide any insight at all into how he might be regarded 20, 50 or 100 years from now

In fact, winning a second term is something of a prerequisite for presidential greatness, at least as historians have evluated the question. It is also no guarantee of it, as the case of Richard M. Nixon might attest. But the eight presidents who are currently regarded most favorably by historians were all two-termers (or four-termers, in Franklin D. Roosevelt’s case).

The rankings I will refer to here come from a composite of the four most recent surveys in which presidential scholars were asked to rank the presidents. (The surveys were conducted between 2008 and 2011). I’ve averaged the rankings among the four surveys and then re-ranked the presidents from 1 to 43 accordingly. (Ties are broken by the best m! edian ranking; Cleveland is counted only once for these purposes.)

We might divide the presidents into three basic groups: good (those who rank in the top 15), poor (those in the bottom 15) and average (everyone in between).

Of the 19 presidents before Mr. Obama to successfully defend their first term (this definition excludes Cleveland), 13 are regarded as good, four as average and just two as poor (Nixon and George W. Bush; Calvin Coolidge is a borderline case). So at first blush, Mr. Obama’s odds of being regarded well by history seem pretty favorable.

Another 10 presidents were nominated by their parties for a second term but lost in the general election. The highest-ranked among these is John Adams, the secod president and the first one to lose his re-election bid. But he rates as just the 16th-best president according to the historians, right on the fringe between average and good.

At the same time, while none of the presidents from this group are regarded as having been great, relatively few have terrible reputations. Only three of the 10 â€" Martin Van Buren, Benjamin Harrison and Herbert Hoover â€" have a ranking in the 30s, and none is lower than 35th place.

So where do we find the worst-rated presidents They instead come from the list of those who not only failed to win a second term, but who didn’t even bother to try, or were disallowed the opportunity to do so.

Eight presidents were alive at the end o! f their f! irst terms but either didn’t seek another nomination or weren’t chosen by their parties. Of these, only James K. Polk rates as an above-average president; the rest range from mediocre to terrible, including three of the worst-regarded presidents: Andrew Johnson, Franklin Pierce and James Buchanan.

Polk, who maintained a one-term pledge, doesn’t really deserve to be lumped in with this group. Nor, probably, does Chester A. Arthur, who was in poor health at the end of his term and died less than two years after it ended. More were like Pierce, who sought the Democratic nomination in 1856 and was denied it, despite having won in a near-landslide four years earlier. All eight of the presidents in this group served within a nrrow window of about 40 years between 1841 and 1885; the Civil War came right in the middle of that period. (Fortunately, so did Abraham Lincoln.)

Finally, there were five presidents who died during their first terms. It is hard to know how to rank them, particularly William Henry Harrison, who survived for just 32 days into his presidency. However, when asked to do so, historians have viewed four of the five unsympathetically. The exception is John F. Kennedy, whom the historians rank ninth overall.

I recognize this might be an unpopular position, but one can ask if there is some inconsistency here: whether Kennedy has been ranked so highly based more on his potential than his actual accomplishments.

No, th! ere is no! presidential equivalent to Value Over Replacement Player, the baseball statistic that accounts for both the quality of a player’s performance and the amount of time that he served. (I’d nominate Millard Fillmore as the presidential equivalent of Mario Mendoza). But the presidential scholars do implicitly seem to be applying something like that standard: Harrison, who accomplished almost literally nothing, is not regarded as average but instead as the fourth-worst president. (Put another way, only three presidents’ accomplishments are regarded as having been worse than nothing.) If that is the measure, it is hard to see how Kennedy is ranked similarly to Dwight D. Eisenhower by the historians, when Eisenhower had a very popular and productive presidency and served for almost three times as long.

Mr. Obama, barring tragedy or resignation, will get to serve eight years, ut his margin of victory last November was not overwhelming. He won 62 percent of the electoral vote, which ranks 16th among the 30 presidents who sought re-election after their first terms. Mr. Obama’s electoral vote percentage was better than any of the 10 first-term losers, of course â€" but among the 20 winners, it exceeded only James Madison in 1812, Woodrow Wilson in 1916, Harry Truman in 1948 and George W. Bush in 2004.

Most of the best-regraded presidents have won more overwhelmingly than that; four of the top five won at least 90 percent of the electoral vote in their second-term bid. (The one left out was Theodore Roosevelt, who won the popular vote by 19 percentage points in 1904 but lost almost all of the! South in! the Electoral College.)

However, there are some presidents who break the pattern. Nixon won re-election with 97 percent of the electoral vote in 1972, but is regarded as a poor president. Truman and Wilson won quite narrowly, but are now regarded as good ones.

Over all, there is a positive relationship between a president’s performance in the Electoral College when seeking a second term, and how the historians have ranked him. (The regression line in the chart below predicts that Mr. Obama will eventually come to be regarded as about the 17th-best president, somewhere on the boundary between good and average.) But it is an extremely rough guide â€" especially for the presidents who are successful in winning a second erm, and who have an opportunity to enhance or undermine their reputations. Voters may judge a president’s first term, but history will judge his second.