NBCU-News Corp.: Chernin, Zucker Talk

After all the chatter, speculation and months of reporting, finally the top execs involved are on the record. The conference call with News Corp (NSDQ: NWS). COO Peter Chernin and NBCU (NYSE: GE) CEO Jeff Zucker from the Fox lot is underway. Chernin started by explaining that when the two first met about a possible venture months ago, the mission was to meet the needs of the different stakeholders — consumers, content providers, advertisers. The result, he said, is “a genuine Web 2.0 orientation to distribution of content.”
Zucker: Within hours of word getting out yesterday they had five charter advertisers and two more came in this morning. (One is Royal Carribean.) There will be a separate ad sales force for Newco.
YouTube: Chernin: “This is obviously not a YouTube killer. It it were .. we’d obviously have a standalone site … We’re obviously willing to meet with anybody” who meets business and copyright requirements. They have already talked to Google (NSDQ: GOOG) (CEO Eric Schmidt) this morning.
Zucker: “We are open for business with everyone.”
The two pointed out that you can’t have ubiquitous distribution — the key to this — without being willing to talk with everyone.
Asked about comparisons to Disney’s Go and effort to have synergy, Zucker reminded the questioner it’s a different internet environment now. Chernin pointed out that Go and AOL (NYSE: AOL) were both walled gardens (I don’t recall Go as walled) and this is ubiquitous distribution.
Windowing: Zucker: “Several hours after it clears Hawaii it’s up.” Chernin: Next day. Zucker said that so far additional distribution has not cannibalized from the networks and has increased programming.
American Idol: Chernin said American Idol is not on the table for the new venture; Fox doesn’t control the web rights.
Chernin: “We believe this will be a state-of-the-art revenue split.”
Chernin: Both NBC and Fox are committed with making this content exclusive to our distributors with the exceptions of our own sites.
Branding: It will have Newco single branding where ever it lives.
Content for sale: Most movies will be electronic sell-thru as will some TV. Zucker said anything on iTunes will be available for EST.
No favoritism: Chernin and Zucker said all the content providers will be treated the same. Zucker said the company will have independent management. Chernin: “You