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Watch Shelly’s commentary on NBC’s (NYSE: GE) coverage of the Beijing Olympics and whether or not the ratings will prove to be worth the investment.
WARNER MUSIC GROUP (NYSE: WMG) CEO Edgar Bronfman Jr. wants to increase the licensing fees for music used in interactive music games like ROCK BAND and GUITAR HERO. Bronfman wants higher royalty fees and a share of sales of digital downloads purchased through video game consoles. While games like Guitar Hero have become essential marketing tools for record companies, Bronfman says WMG will not continue to license songs to games unless they agree to pay increased rates for content.
CLEARWIRE’s (NASD: CLWR) second quarter numbers were crushed by its plans to merge with SPRINT NEXTEL (NYSE: S). Clearwire, who is waiting on a $3.2 billion infusion of capital to roll out its WiMax network, reported a net loss of $199.1 million, compared to a net loss of $118.1 million the year before. Clearwire’s fate is currently tied to its deal with the beleaguered Sprint and whether or not WiMax will live up to its billing.
In a related story, SPRINT (NYSE: S) canceled a $3 billion stock sale intended to reduce its debt. A spokesmen said that Sprint would’ve had to pay interest between 4.75% and 5.25% and that the company didn’t need the money that badly. The convertible sale of stock would have gone directly towards parring down the companies mounting debt.
DIRECTV (NASD: DTV) announced solid second quarter numbers, with profit up 1.6%. CEO Chase Carey noted the companies expanded HD programming as the reason for its steady growth. Unlike the Dish Network, DirecTV took in 129,000 new customers during the second quarter.