‘Zero Dark Thirty,’ ‘Silver Linings’ get box-office boost






LOS ANGELES (Reuters) – “Zero Dark Thirty” made the most of its expansion this weekend, running up a very strong $ 45,834 per-screen average from 60 locations in 11 U.S. cities.


Kathryn Bigelow‘s tale of the hunt for Osama bin Laden brought in $ 2.75 million, after expanding from five locations in two markets this weekend in the wake of several nominations from the Producers Guild (PGA) and Writers Guild (WGA).






Its overall total after three weeks is $ 4.4 million. Sony plans to go wide next week, after Thursday’s Oscar nominations.


The Weinstein Company‘s “Silver Linings Playbook,” which also earned nominations from the PGA and WGA, appeared to have received a boost, too.


It dropped just 11 percent – the best of any film in wide release – and brought in $ 3.6 million from 745 screens, a $ 4,847 per theater. It has now brought in $ 34.6 million over its eight weeks.


“We think we’re positioned very well for the long haul,” Erik Lomis, Weinstein’s head of distribution said. The studio plans to go wide with the dark comedy from David O. Russell on January 18, the Martin Luther King holiday weekend.


Sony Classics’ “Amour” averaged $ 21,199 after taking in $ 63,596 from three screens. The overall gross for Michael Haneke’s dark and unsparing look at old age and death, a front-runner in Oscar’s Best Foreign Language race, is now $ 315,011 after 17 days.


Movies News Headlines – Yahoo! News





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Alarm in Albuquerque Over Plan to End Methadone for Inmates


Mark Holm for The New York Times


Officials at New Mexico’s largest jail want to end its methadone program. Addicts like Penny Strayer hope otherwise.







ALBUQUERQUE — It has been almost four decades since Betty Jo Lopez started using heroin.




Her face gray and wizened well beyond her 59 years, Ms. Lopez would almost certainly still be addicted, if not for the fact that she is locked away in jail, not to mention the cup of pinkish liquid she downs every morning.


“It’s the only thing that allows me to live a normal life,” Ms. Lopez said of the concoction, which contains methadone, a drug used to treat opiate dependence. “These nurses that give it to me, they’re like my guardian angels.”


For the last six years, the Metropolitan Detention Center, New Mexico’s largest jail, has been administering methadone to inmates with drug addictions, one of a small number of jails and prisons around the country that do so.


At this vast complex, sprawled out among the mesas west of downtown Albuquerque, any inmate who was enrolled at a methadone clinic just before being arrested can get the drug behind bars. Pregnant inmates addicted to heroin are also eligible.


Here in New Mexico, which has long been plagued by one of the nation’s worst heroin scourges, there is no shortage of participants — hundreds each year — who have gone through the program.


In November, however, the jail’s warden, Ramon Rustin, said he wanted to stop treating inmates with methadone. Mr. Rustin said the program, which had been costing Bernalillo County about $10,000 a month, was too expensive.


Moreover, Mr. Rustin, a former warden of the Allegheny County Jail in Pennsylvania and a 32-year veteran of corrections work, said he did not believe that the program truly worked.


Of the hundred or so inmates receiving daily methadone doses, he said, there was little evidence of a reduction in recidivism, one of the program’s main selling points.


“My concern is that the courts and other authorities think that jail has become a treatment program, that it has become the community provider,” he said. “But jail is not the answer. Methadone programs belong in the community, not here.”


Mr. Rustin’s public stance has angered many in Albuquerque, where drug addiction has been passed down through generations in impoverished pockets of the city, as it has elsewhere across New Mexico.


Recovery advocates and community members argue that cutting people off from methadone is too dangerous, akin to taking insulin from a diabetic.


The New Mexico office of the Drug Policy Alliance, which promotes an overhaul to drug policy, has implored Mr. Rustin to reconsider his stance, saying in a letter that he did not have the medical expertise to make such a decision.


Last month, the Bernalillo County Commission ordered Mr. Rustin to extend the program, which also relies on about $200,000 in state financing annually, for two months until its results could be studied further.


“Addiction needs to be treated like any other health issue,” said Maggie Hart Stebbins, a county commissioner who supports the program.


“If we can treat addiction at the jail to the point where they stay clean and don’t reoffend, that saves us the cost of reincarcerating that person,” she said.


Hard data, though, is difficult to come by — hence the county’s coming review.


Darren Webb, the director of Recovery Services of New Mexico, a private contractor that runs the methadone program, said inmates were tracked after their release to ensure that they remained enrolled at outside methadone clinics.


While the outcome was never certain, Mr. Webb said, he maintained that providing methadone to inmates would give them a better chance of staying out of jail once they were released. “When they get out, they won’t be committing the same crimes they would if they were using,” he said. “They are functioning adults.”


In a study published in 2009 in The Journal of Substance Abuse Treatment, researchers found that male inmates in Baltimore who were treated with methadone were far more likely to continue their treatment in the community than inmates who received only counseling.


Those who received methadone behind bars were also more likely to be free of opioids and cocaine than those who received only counseling or started methadone treatment after their release.


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At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales)





ORLANDO, Fla. — Imagine Walt Disney World with no entry turnstiles. Cash? Passé: Visitors would wear rubber bracelets encoded with credit card information, snapping up corn dogs and Mickey Mouse ears with a tap of the wrist. Smartphone alerts would signal when it is time to ride Space Mountain without standing in line.




Fantasyland? Hardly. It happens starting this spring.


Disney in the coming months plans to begin introducing a vacation management system called MyMagic+ that will drastically change the way Disney World visitors — some 30 million people a year — do just about everything.


The initiative is part of a broader effort, estimated by analysts to cost between $800 million and $1 billion, to make visiting Disney parks less daunting and more amenable to modern consumer behavior. Disney is betting that happier guests will spend more money.


“If we can enhance the experience, more people will spend more of their leisure time with us,” said Thomas O. Staggs, chairman of Disney Parks and Resorts.


The ambitious plan moves Disney deeper into the hotly debated terrain of personal data collection. Like most major companies, Disney wants to have as much information about its customers’ preferences as it can get, so it can appeal to them more efficiently. The company already collects data to use in future sales campaigns, but parts of MyMagic+ will allow Disney for the first time to track guest behavior in minute detail.


Did you buy a balloon? What attractions did you ride and when? Did you shake Goofy’s hand, but snub Snow White? If you fully use MyMagic+, databases will be watching, allowing Disney to refine its offerings and customize its marketing messages.


Disney is aware of potential privacy concerns, especially regarding children. The plan, which comes as the federal government is trying to strengthen online privacy protections, could be troublesome for a company that some consumers worry is already too controlling.


But Disney has decided that MyMagic+ is essential. The company must aggressively weave new technology into its parks — without damaging the sense of nostalgia on which the experience depends — or risk becoming irrelevant to future generations, Mr. Staggs said. From a business perspective, he added, MyMagic+ could be “transformational.”


Aside from benefiting Disney’s bottom line, the initiative could alter the global theme parks business. Disney is not the first vacation company to use wristbands equipped with radio frequency identification, or RFID, chips. Great Wolf Resorts, an operator of 11 water parks in North America, has been using them since 2006. But Disney’s global parks operation, which has an estimated 121.4 million admissions a year and generates $12.9 billion in revenue, is so huge that it can greatly influence consumer behavior.


“When Disney makes a move, it moves the culture,” said Steve Brown, chief operating officer for Lo-Q, a British company that provides line management and ticketing systems for theme parks and zoos.


Disney World guests currently plod through entrance turnstiles, redeeming paper tickets, and then decide what to ride; food and merchandise are bought with cash or credit cards. (Disney hotel key cards can also be used to charge items.) People race to FastPass kiosks, which dispense a limited number of free line-skipping tickets. But gridlock quickly sets in and most people wait. And wait.


In contrast, MyMagic+ will allow users of a new Web site and app — called My Disney Experience — to preselect three FastPasses before they leave home for rides or V.I.P. seating for parades, fireworks and character meet-and-greets. Orlando-bound guests can also preregister for RFID bracelets. These so-called MagicBands will function as room key, park ticket, FastPass and credit card.


MagicBands can also be encoded with all sorts of personal details, allowing for more personalized interaction with Disney employees. Before, the employee playing Cinderella could say hello only in a general way. Now — if parents opt in — hidden sensors will read MagicBand data, providing information needed for a personalized greeting: “Hi, Angie,” the character might say without prompting. “I understand it’s your birthday.”


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Alleged maternity hotel now appears to be vacant









An alleged maternity hotel operating out of a hilltop mansion in Chino Hills has apparently shut down after city officials obtained a temporary restraining order against its owners.


The mansion allegedly housed women from China who traveled to California to give birth to American citizen babies.


In a Dec. 7 court filing, Chino Hills officials describe a seven-bedroom house divided into 17 bedrooms and 17 bathrooms, with mothers and their babies staying in 10 of the rooms. The owners did not obtain permits to remodel the property, nor were they allowed to operate a business in a residential zone, the complaint stated.








Neighbors on Woodglen Drive complained of cars speeding in and out of the mansion's driveway. In September, about 2,000 gallons of raw sewage spilled down the hill because of an overloaded septic system.


Last month, a group called Not in Chino Hills staged a protest against the facility.


City officials who inspected the alleged hotel said conditions inside were dangerous, with exposed wiring, missing smoke alarms and holes in the bedroom floors. They found brochures titled "USA Los Angeles Hermas International Club Guidance on How to Have an American Baby," according to the Dec. 7 complaint. One woman said she paid $150 a day for her room. A receipt from another guest totaled $27,000 for a stay of several months, the complaint said.


So-called birth tourism is widespread in the San Gabriel Valley, with Chinese-language websites advertising rooms in single-family homes or luxury apartment complexes. The women typically enter the country on tourist visas and stay for about a month after giving birth. The child has the option of returning to the U.S. for schooling, and the parents may petition for a green card when the child turns 21.


The practice does not violate federal immigration laws, but some maternity hotels have run afoul of local ordinances.


On Dec. 27, San Bernardino County Superior Court Judge Ben Kayashima granted Chino Hills' request for a temporary restraining order. A hearing is scheduled for Jan. 17 to determine whether the order should be extended.


The Woodglen Drive house now appears to be unoccupied, city spokeswoman Denise Cattern said Thursday.


Hai Yong Wu, one of the owners, could not be reached for comment.


"It's about time. This thing should have shut down a long time ago," said Rossana Mitchell, a founder of Not in Chino Hills. "I'm glad to hear it."


cindy.chang@latimes.com





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Leader of Online Movie Group IMAGiNE Gets five Years for Piracy






LOS ANGELES (TheWrap.com) – Jeremiah B. Perkins, the former leader of internet movie group IMAGiNE, was sentenced to five years in prison on a piracy charge, the U.S. Department of Justice said Thursday.


Perkins, 40, pleaded guilty to one count of conspiracy to commit criminal copyright infringement in August.






In addition to the prison sentence, Perkins was sentenced to three years of supervised release and ordered to pay $ 15,000 in restitution.


The five-year prison sentence and three years supervised release represent the maximum sentence that Perkins faced, but he could have received a maximum fine of $ 250,000.


According to the Justice Department, IMAGiNE specialized in pirating movies playing in theaters. Court documents indicated that Perkins, of Portsmouth, Va., and his cohorts used receivers and recording devices to capture the audio tracks for movies in theaters, then sync the audio tracks to illegally recorded video files. The group would then share the completed files with members of the IMAGiNE Group and others.


ExtraTorrent reports that the recipients of IMAGiNE’s pirated movies included buyers in Asia, who would then make copies and distribute the pirated films in the Asian underground market.


During Perkins’ trial, an MPAA representative testified that IMAGiNE was “the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011,” the Justice Department said.


The Justice Department said that Perkins admitted to renting computer servers in France and other locations for IMAGiNE’s use, and also to registering internet domains for IMAGiNE and setting up PayPal and email accounts to facilitate the group’s transactions.


Three of Perkins’ co-defendants – Sean M. Lovelady, Willie O. Lambert and Gregory A. Cherwonik – also pleaded guilty to one count each of conspiracy to commit criminal copyright infringement and received sentences ranging from 23 to 40 months.


A fifth co-defendant, Javier E. Ferrer, was charged in September and also pleaded guilty to the charge. His sentencing is scheduled for March.


Perkins and his co-defendants were arrested by the Immigration and Customs Enforcement’s Homeland Security Investigations division, which also conducted the investigation.


Internet News Headlines – Yahoo! News





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French actor Depardieu in Russia to meet Putin






MOSCOW (Reuters) – French film star Gerard Depardieu arrived in Russia on Saturday to meet President Vladimir Putin, who granted him citizenship after a public spat in France over his efforts to avoid a potential 75 percent income tax.


Putin’s spokesman Dmitry Peskov said the two would meet in the Black Sea resort of Sochi, where Putin was spending part of the 10-day New Year and Russian Orthodox Christmas holiday.






He said it was possible Putin would hand Depardieu his Russian passport during the meeting.


“It is a private meeting, we will not be releasing any other details,” Peskov said by phone.


Russian media quoted him as saying the meeting would take place on Saturday. Depardieu’s spokesman could not immediately be reached for comment.


On Thursday, the Kremlin announced that Putin had signed a decree granting Russian citizenship to Depardieu, who objected to Socialist president Francois Hollande’s plan to impose a 75 percent tax rate on millionaires.


Depardieu is a popular figure in Russia, where he has appeared in many advertising campaigns, including for ketchup. He also worked there in 2011 on a film about the eccentric Russian monk Grigory Rasputin.


The star of the movies “Cyrano de Bergerac” and “Green Card” was also among the Western celebrities invited in 2012 to celebrate the birthday of Ramzan Kadyrov, the Kremlin-backed strongman leader of Russia’s Chechnya province who is accused by rights groups of crushing dissent.


Some of Putin’s critics called the passport move a stunt and pointed out that Putin last month announced a campaign to prevent rich Russians keeping their money offshore.


At a press conference on December 20 during which he offered Depardieu a passport, Putin said Russia had a close, special relationship with France and that he had developed warm ties with the actor, even though they had rarely met.


But Moscow suffered a blow in November when it was forced to suspend its bid to build an Orthodox church with five domes in the heart of Paris, whose mayor called the plan “ostentatious”.


Russia has a flat-rate income tax of 13 percent compared to the 75 percent rate that French President Francois Hollande wants to introduce on income over 1 million euros ($ 1.32 million).


Depardieu has already bought a house in Belgium to establish Belgian residency in protest at Hollande’s tax plans.


Hollande’s original proposal was struck down by France’s Constitutional Court in December, but he has pledged to press ahead with a redrafted tax on the wealthy.


French Prime Minister Jean-Marc Ayrault called Depardieu’s decision to seek Belgian residency “pathetic” and unpatriotic, prompting an angry reply from the actor.


Russia does not require people to hand in their foreign passports once they acquire a Russian one. But it is rare for people from the European Union or the United States to seek Russian citizenship unless they have recent Russian roots.


(Additional reporting by John Irish in Paris; Writing by Gabriela Baczynska and Steve Gutterman; Editing by Kevin Liffey)


Celebrity News Headlines – Yahoo! News





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Despite New Health Law, Some See Sharp Rise in Premiums





Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.







Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.







Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.


In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.


 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.


The proposed increases compare with about 4 percent for families with employer-based policies.


Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.


The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.


New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.


The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.


Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.


“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.


While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.


The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.


Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.


“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.


Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.


“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.


As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.


Read More..

Despite New Health Law, Some See Sharp Rise in Premiums





Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.







Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.







Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.


In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.


 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.


The proposed increases compare with about 4 percent for families with employer-based policies.


Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.


The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.


New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.


The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.


Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.


“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.


While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.


The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.


Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.


“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.


Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.


“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.


As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.


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7.6 quake jolts Alaska, triggers tsunami warning













Anchorage


Low clouds blanket Anchorage, Alaska. The tsunami waves are expected to hit Cordova and Craig, which are southeast of Anchorage.
(Marc Lester / AP Photo/The Anchorage Daily News / January 5, 2013)





































































JUNEAU, Alaska—





A tsunami warning is in effect for parts of southern Alaska and coastal Canada after a strong earthquake shook the region at midnight Friday.

The warning area includes coastal areas from about 75 miles southeast of Cordova, Alaska, to the north tip of Vancouver Island, Canada, the Alaska Tsunami Warning Center said. The warning area extends for about 475 miles.

The magnitude 7.5 quake struck at midnight Friday (1 a.m. PST Saturday) and was centered about 60 miles west of Craig, Alaska, the U.S. Geological Survey said.

A tsunami with a “significant widespread inundation of land is expected,” the center said in a statement.

The first wave was expected around 1:15 a.m. (2:15 a.m. PST) in Craig, and 2:50 a.m. in Cordova, further to the north.

The center said widespread dangerous coastal flooding is possible.

In addition to the warning, a tsunami advisory is in effect for coastal Alaska from Cape Suckling to 75 miles southeast of Cordova and from the Washington state border to the tip of Vancouver Island.

A tsunami warning means an area is likely to be hit by a wave, while an advisory means there may be strong currents, but that widespread inundation is not expected to occur.


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After much speculation, CEO Kilar to leave Hulu






(Reuters) – Hulu Chief Executive Jason Kilar will leave the streaming TV company this quarter, he wrote in a blog post on the company’s website on Friday, raising more questions about its future path under multiple owners.


Kilar has long been rumored to be exiting the company as it faces stiff competition from Netflix Inc, Amazon.com Inc as well as Google Inc and Apple Inc.






Hulu chief technology officer Rich Tom is also leaving, according to the post.


Kilar gave no reason for his departure or indicate his future plans. Hulu did not name a replacement for the executives.


Kilar, Hulu CEO since July 2007, last year steered the company to $ 700 million in revenue and grew subscribers to 3 million. More than 200,000 new subscribers have signed up with the service in the last seven days, he noted.


“My decision to depart has been one of the toughest I’ve ever made,” Kilar wrote. “The things that have clearly brought the most joy to my heart (and what I believe to be the most important inputs in our business) have been this team and the values and principles we hold dear.”


Still, the popular service, which started primarily as a free site for people to catch up on television shows they might have missed, has had a rocky path over the last five years.


Part of the problem stems from its complicated ownership structure involving media conglomerates Walt Disney Co, News Corp and Comcast NBC Universal, and how much content each should make available to Hulu.


The owners face a dilemma: The success of Hulu could potentially eat away at the lucrative business of getting cable companies to pay for programming. Furthermore, it is now building out its own stable of original content exclusive to Hulu.


Disney CEO Bob Iger said in a statement that Kilar had been “an integral part of the Hulu story, transforming it from an interesting idea into an innovative business model that continues to evolve… We appreciate what he’s built, and we share his confidence in his team’s ability to drive Hulu forward from here.”


A statement from News Corp CEO Rupert Murdoch said Kilar had helped build Hulu into one of the leading online video services and called the company “incredibly well positioned for the road ahead.”


BTIG analyst Richard Greenfield expects News Corp’s Fox to buy out its partners in the venture this year.


“With full ownership of Hulu, FOX accelerates Hulu‘s push into original programming and explores adding cable network content to create a virtual MVPD (multichannel video programmer distributor) service,” Greenfield said in a January 3 research note.


Comcast, the third partner in the venture declined to comment on Kilar’s departure. Unlike Disney and News Corp, Comcast does not have any management control of Hulu, which was a regulatory condition related to its acquisition of NBC Universal in 2011.


Hulu put itself on the block in 2011 with suitors including Google, Amazon, DirecTV Group and Dish Network Corp, Reuters reported at the time. Talks collapsed over the price of the deal.


Private equity firm Providence Equity Partners said in October last year that it had sold its 10 percent stake in Hulu to the remaining owners.


Kilar’s name surfaced as a potential candidate for the top job at Yahoo Inc after Scott Thompson resigned last year but Kilar removed himself from consideration.


(Reporting By Jennifer Saba and Liana Baker in New York; Editing by Gunna Dickson and Tim Dobbyn)


Tech News Headlines – Yahoo! News





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