Media Biz Cheat Sheet: Netflix Loses 1M Subscribers, Rupert Murdoch Gets 46.7% Pay Raise
Netflix (NASDAQ:NFLX) shares tumbled today after the streaming-video service announced that its controversial 60% price hike on one of its most popular plans might cost it 1 million subscribers. Today Netflix cut its subscriber estimates for the end of the third quarter to 24 million.
News Corp. (NASDAQ:NWSA) chairman and CEO Rupert Murdoch’s total compensation rose to $33.3 million during the current fiscal year, a 46.7% increase over the previous year, driven by a $12.5 million bonus after a year without a bonus and by stock awards that more than doubled. In 2010, Murdoch’s compensation was $22.7 million.
Hotfile, a popular cyberlocker currently under legal attack by Hollywood studios for allowing users to upload and share pirated media, has submitted counterclaims alleging that Warner Bros. (NYSE:TWX) has been abusing its anti-piracy tool. Hotfile filed the suit in Florida District Court, claiming that Warner has “knowingly made misrepresentations and it has engaged in DMCA abuse on an unprecedented scale by grossly misusing the powerful anti-piracy software tool that Hotfile specially created at Warner’s request.”
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Gerhard Zeiler, chief executive of Europe’s biggest free TV group RTL, says European broadcaster won’t do business with Hulu because of its content terms. Zeiler said that Hulu, the online streaming-video platform co-owned by NBC (NASDAQ:CMCSA), Fox (NASDAQ:NWSA), and ABC (NYSE:DIS) had “failed in Europe because it wanted to control the advertising for the programs it showed. Zeiler oversees more than 20 free to air networks across Europe.