—Mort Zuckerman on the internet: Zuckerman noted that classified advertising is moving on to the Internet, but not to the websites of newspapers but to new dedicated providers—and for the first time it may hit the profits of the Daily News, which up till now has always made a profit. While he is trying to develop new online business models, Zuckerman called it “substituting pennies for dollars”.

—Arthur Sulzberger Jr, chairman of the New York Times (NYSE: NYT) Company and publisher of the NYT, on the newspaper’s site: Sulzberger noted that while online ad revenues may be less than print ad revenues, the cost of producing Web news is cheaper. Scott Heekin-Canedy, president and general manager of the NYT, reported that for the first time at the company, new online growth is making up for lost advertising revenue from the paper during a recent month online revenue offset print, but that the expectation for online growth to offset print declines is farther off.  He attributed its growth on the web to its brand value and the NYT’s early entry into the web news business. (Ed. Note: The company says Heekin-Canedy was misquoted in the report and that they will ask the House of Lords for a correction. We’ve updated it accordingly.)

—Roger Ailes, CEO of Fox News, on the relationship between the TV channel and the Web: Ailes called it “hard to work” trying to figure out the relationship between the two—especially if one platform should push views to the other. It is also hard to balance the needs of young and old news audiences. Older audiences value accuracy; younger audiences want immediacy. But, as Ailes noted, if a breaking story is not immediately up on the web, “young visitors will never return.”

—Leonard Downie, Jr., executive editor of the Washington Post, (NYSE: WPO) on the newspaper’s “successful” web site: The web site has enormous reach with 82 percent of online readers from outside the DC area. Downie says that its audience is growing faster than the paper audience is shrinking, but that profits from the web site—once growing “steeply”—have begun to “slow down.”  He attributed this to aggressive competition for advertisers from new web entrants such as Facebook. Still, the web site only makes up 15 percent of the paper’s revenues, and according to Downie, “this was not enough.”

—Paul Slavin, SVP-news gathering, ABC News, on ABCNews.com: Web site traffic is increasing by 20 to 40 percent each year and ABC News expects its internet advertising revenue to double this year. But, while the web site may be growing, getting the web to drive audiences to their TV network was not easy. Slavin said he did not see “unregulated” internet sites and blogs as a threat as they “make people aware of the importance of trusted brands such as ABC.”

—Paul Friedman, SVP-CBS (NYSE: CBS) News, on the web: Friedman said “nobody knows” whether the internet will deliver on larger audiences and larger profits, adding that it was “clear” that younger audiences are not attracted to TV through the web.

—Rupert Murdoch, chairman and CEO of News Corp., (NYSE: NWS) on Sky News: The real reason that 24-hours news channel Sky News has not turned into a British version of right-leaning Fox News, is that “nobody at Sky listens to me”—not Ofcom impartiality laws. It was perhaps a tongue-in-cheek poke at his son James Murdoch, who runs Sky. But Murdoch was serious when he said that Sky News would be more popular if it were like Fox News, especially since in its current format it does not provide a “proper alternative to the BBC,” and hasn’t made the “presentational progress” that Fox News had.

—Murdoch on MySpace: Murdoch bought MySpace because it was “growing and enthusiastic” and after two years since the purchase makes “20 times more money than when he bought it.” After some investment into the site, MySpace can now give “advertisers access to very cheap, targeted opportunities,” and by the end of the year will have access to “thousands of differentiated groups” on the site.

—Murdoch on ITV: Murdoch called Britain “anti-success” and all but said that the UK regulators were mucking in just a bit too much. They had a pesky habit of continually “investigating” his purchases on the grounds of plurality, but he countered that he had invested in plurality by keeping the “Times alive” and putting 200 extra channels on Sky. He also called the government’s current investigation into his purchase of a 17.9 percent stake in ITV (LSE: ITV) “paranoia.”