December 3rd, 2010 09:29 EST
Time Warner Skeptical of Netflix Plan
(Reuters) - Time Warner Inc Chief Executive Jeffrey Bewkes questioned whether Netflix Inc`s current business model of paying top dollar for rights to stream movies and TV shows over the Internet is sustainable in the long-term.
Bewkes told Reuters for a subscription service to work it would have to pay premiums for the best content soon after it is released in theaters or broadcast on television or risk devaluing the programing.
"It`s hard to see how that kind of economics can fit into a service that charges $8 or $10 a month because the math doesn`t work," he said at the Reuters Global Media Summit on Wednesday.
Founded in 1997 as a DVD rental-by-mail service, Netflix has surged in popularity after it began offering movies and TV programs over the Web in 2007.
Bewkes also told Reuters he sees the fast-growing Netflix as a direct competitor HBO, to his company`s premium priced pay-TV network.
The full text of the story is on Reuters.com at: http://www.reuters.com/article/idUSTRE6B10A520101202
Publicis wants to double China business
(Reuters) - Publicis (PUBP.PA), the world`s third-largest advertising group, wants to double its sales in China and expects to approve an investment plan for the country in the next two to three weeks, its chief executive told Reuters.
Publicis CEO Maurice Levy also told the Reuters Global Media Summit on Thursday he wanted to increase the dividend payout ratio to 40 percent over time from around 30 percent currently.
"We have not yet a clear plan for this 40 percent payout. We believe this is something which will take time because we want to do it progressively and cautiously," Levy said.
Publicis shares rose 1.68 percent to 35.69 euros by 1248 GMT, outperforming a 0.4 percent rise in the European media index .SXMP.
Legy told Reuters the China expansion plan, which would likely be finalized in the week before Christmas, would include small acquisitions, hiring and education programs. Publicis does not break out the size of its sales in China.
The full text of the story is on Reuters.com at: http://www.reuters.com/article/idUSTRE6B11GG20101202
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