Business

BBC buys remainder of DVD firm

Top Gear

BBC Worldwide – the commercial arm of the BBC – has agreed to pay £17m to secure full ownership of DVD publishing firm 2Entertain.

It is buying the 40% of 2Entertain which it did not already own from the administrators of failed High Street giant Woolworths.

BBC Worldwide said the move "ended a period of uncertainty triggered by the collapse of Woolworths".

Programmes published by 2Entertain include Planet Earth and Top Gear.

"This ensures that consumers can continue to enjoy their favourite BBC titles on DVD and Blu-ray as well as protecting the investment made by BBC Worldwide in 2Entertain over the past six years," BBC Worldwide added.

It said the funds for the deal did not come from television licence fees. and that the sale offered stability to 2Entertain’s retail partners.

Paul Dempsey, boss of 2Entertain, said the firm looked forward "to a more settled period and playing an important role in BBC Worldwide’s future plans".

Woolworths entered administration in November 2008 with debts of £385m.

But the DVD publishing firm did not go into administration and remained profitable throughout.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

ITV makes profit after cost cuts

X Factor judges and 2009 winner Joe McElderry

ITV has returned to an annual profit thanks to cost-cutting work and increasing its share of a declining television advertising market.

The broadcaster made a pre-tax profit of £25m in 2009, compared with a loss of £2.7bn in 2008.

ITV said that while its advertising revenues for the year were down 9%, the wider market fell by 11%.

It says the advertising market is now recovering, and it expects a 7% rise in advertising revenues for January-March.

‘Different business’

"Faced with the worst television advertising downturn on record, we took decisive action to improve our operational performance, deliver substantial cost savings and strengthen our balance sheet," said John Cresswell, ITV’s interim chief executive.

ITV also announced that Adam Crozier will take up the chief executive role on 26 April. Mr Crozier is joining the broadcaster from the Royal Mail, which he returned to profitability.

ITV chairman Archie Norman said that under Mr Crozier’s leadership, ITV would "become a very different business over the next five years".

"ITV’s challenge is to reduce its dependence on a free-to-air model threatened by digital media and besieged by legacy regulation," said Mr Norman.

The company’s overall revenues for 2009 totalled £1.88bn, down 7% from £2.03bn in 2008.

Meanwhile, it said it had achieved cost savings of £169m during the year, as it streamlined its operations, and also reduced its spending on programme making.

At the same time, its share of peak time UK television viewing measured 28.2% for the year, up from 27.8% in 2008.

Share sale

ITV last year asked the Competition Commission if it could have greater flexibility in charging more for advertisements.

However, the Commission has so far rejected this call, saying the current limits should remain in place to prevent ITV from abusing its dominant market position.

ITV argues that it no longer has such a dominant position because of the big growth in digital rivals, led by Sky.

Last month, Sky’s owner BSkyB sold a 10% stake in ITV for £196m ($305m).

The Competition Commission had forced BSkyB to sell the stake after it ruled that it gave the company undue influence in the UK media.

BSkyB bought a 17.5% stake in ITV in 2006, but denied the purchase was aimed at blocking a proposed takeover of ITV by rival Virgin Media. BSkyB stills owns a 7.5% stake in ITV. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Buyer interest in Reader’s Digest

Reader's Digest

There is "significant interest" in Reader’s Digest from potential buyers, the magazine’s administrators said.

They also confirmed the magazine would be published until at least April. The 72-year-old British edition went into administration earlier this month.

Administrator Philip Sykes said he was "reasonably optimistic" and that negotiations with investors had begun.

The magazine’s US parent company became unable to support it following a crisis in its pension fund.

The administrators said the Reader’s Digest Association’s (RDA) sales team was marketing advertising space to media agencies for the May issue.

They also said future campaigns were being reviewed and that prize draws were continuing.

Reader’s Digest employs 117 staff in the UK and has a circulation of 465,028, with offices in Canary Wharf in London, and Swindon in Wiltshire.

Reader’s Digest UK called in administrators after it failed to secure regulatory backing for a funding deal for its pension scheme, which has a £125m shortfall.

The US parent group, Reader’s Digest Association (RDA), filed for bankruptcy protection last year after struggling with interest payments on a $2.2bn (£1.4bn) debt.

Reader’s Digest publishes more than 50 editions worldwide and has offices in 44 countries.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Charity may buy Abbey Road

The graffitied sign at the entrance to the studios

The National Trust has confirmed that it may launch a campaign to buy the threatened Abbey Road Studios.

The charity said in a statement that "if there is enough momentum, we may launch a campaign to save the studios".

It said members of the public had got in touch to back the idea after it was discussed on Chris Evans’ BBC Radio 2 show, and on BBC Radio 5 live.

The announcement follows reports record company EMI has put the famous recording studios up for sale.

However, EMI has yet to confirm this.

‘Spontaneous suggestion’

The National Trust – which owns and preserves historic buildings across England, Wales and Northern Ireland – is now asking people to contact it with their thoughts, either via e-mail, or though social networking websites Facebook and Twitter.

"It’s not often that the public spontaneously suggests that we should acquire a famous building," said a National Trust spokesman.

"However, Abbey Road recording studios appear to be very dear to the nation’s heart – to the extent that we will take soundings as to whether a campaign is desirable or even feasible."

Abbey Road Studios is best known as the place where the Beatles recorded their albums.

The National Trust already has a connection with the band, as it owns the Liverpool childhood homes of Sir Paul McCartney and the late John Lennon.

Music industry analysts say cash-strapped EMI is putting Abbey Road Studios up for sale as it needs the money.

It recently revealed that it needs to raise more than £100m from investors to prevent it from breaching its banking arrangements with US lending giant Citigroup.

And earlier this month it also reported a pre-tax loss of £1.75bn for the year to 31 March 2009.

Abbey Road Studios could be worth as much as £30m.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Reader’s Digest in administration

Reader's Digest

Reader’s Digest has gone into administration in the UK, putting 117 jobs at risk.

The decision comes after negotiations between the company’s US parent group, and the UK Pensions Regulator broke down over its UK pension fund.

The dispute centred on how to fund its £125m pension fund deficit.

As a deal could not be done, the UK publisher would not be able to meet those obligations and would not be able to continue operations, it said.

It had offered

The administrators will now look for a buyer for the UK firm which was established in 1938.

The pensions crisis is just the latest problem to hit the publisher.

Reader’s Digest Association (RDA), the US parent group, filed for bankruptcy protection last year after struggling with interest payments on a $2.2bn (£1.4bn) debt. It now expects to come out of Chapter 11 shortly.

The UK arm has had a cash flow problem for some time, a company spokesman said, and this was exacerbated by higher-than-normal contributions to the severely underfunded pension fund.

Its world-famous magazine has just over 500,000 subscribers in the UK. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

McCartney hopeful of Abbey deal

Abbey Road Studios

Sir Paul McCartney has told the BBC he hopes the famous Abbey Road Studios can be saved, after reports that it has been put up for sale by owner EMI.

Selling the studios, best known for being the place where the Beatles recorded their albums, could raise £30m for the debt-stricken record company.

Sir Paul told the Newsnight programme some people associated with the studio may be "mounting some bid to save it".

EMI and its private equity owner Terra Firma have declined to comment.

It is not known if any sale would see the site continue as a record studios or be converted for another use.

"There are a few people who have been associated with the studio for a long time who were talking about mounting some bid to save it," said Sir Paul.

"I sympathise with them. I hope they can do something, it’d be great."

Zebra crossing

EMI recently revealed that it needs to raise more than £100m from investors to prevent it from breaching its banking arrangements with US lending giant Citigroup.

Sir Paul McCartney

Earlier this month, the record company also reported a pre-tax loss of £1.75bn for the year to 31 March 2009.

Abbey Road Studios still draws Beatles fans from around the world, many of whom pose for photographs on the nearby zebra crossing to imitate the front cover of the Beatles’ last recorded album, Abbey Road.

The building in the St John’s Wood area of London is a converted 1831 Georgian townhouse. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Stuff happens

By Robert Plummer
Business reporter, BBC News

What happens to record shops after they die

Stuff indoor market in Croydon

We all know how downloads, supermarket CD offers and online shopping are making life tough for music retailers.

But every independent store is a small business in its own right, with a long-suffering owner, knowledgeable staff and a diehard band of loyal customers.

In times past, a good record shop was also a hangout for an entire generation and a focal point for fans’ passions, as well as a place to hear the latest music and a barometer of new trends.

So can any of that be preserved when the shop closes down

And do the owners keep trading in music by other means or do they find something else to do

The south London suburb of Croydon used to have more than its fair share of notable record shops. But two of the biggest and best-known second-hand outlets have reached the end of the line recently.

"I liken record shops to antique shops," says Duncan Barnes of 101 Records, which is set to close its doors for the last time in the next few months. "Every town had an antique shop once, maybe two or three. They don’t now."

But there is more than one way forward after the big shutdown – and another venture just a few streets away is blazing an unexpected trail.

Trading roles

Weaving in between the fruit-and-veg stalls of Surrey Street market, a grey-haired figure with a megaphone is braving the winter cold dressed in a T-shirt with a bright pink logo. "Roll up! Roll up! Come to Stuff!" he shouts.

Fired up with enthusiasm, he strides into the Dog and Bull pub, but forgets to put down the megaphone.

"A bottle of Holsten and a pint of ordinary, please," he bellows at the startled barman.

Stuff owner David Lashmar

Not all the customers are amused. "I could tell you where to put that thing, if you like," says one curmudgeonly drinker. "Trust me, I’d make it fit."

The man making all the noise is David Lashmar, who spent more than three decades building his shop Beanos into the biggest second-hand record business in Europe, if not the world.

At one time, he had more than two million records in stock and 24 employees.

But Beanos is now a fading memory, having finally closed down last August after a long period on the critical list.

To stay in business, David has made a big transition, abandoning the retail sector and becoming a landlord instead.

In the shop’s old premises in Middle Street, his new project, the Stuff indoor market, is facing its opening weekend.

Where racks of LPs, singles and CDs once sprawled, there is now a three-storey labyrinth of multi-coloured booths, stalls and shoplets, operated by tenants who pay a fixed rent.

On sale are flowers, chocolates, jewellery, baby clothes, candles, craft items. Anything, in fact, but records.

"It’s bizarre, but I’ve never been offered more records in all the time I was trading than I am now," says David, adding that he misses "the lure of the chase" in trying to track down vintage vinyl for his old shop.

However, in a further sign of how music retail has declined, he was unable to find anyone prepared to continue the Beanos tradition by setting up a record stall.

Community spirit

Stuff’s initial tenants are an intriguing mixture of market veterans and people who have never run any kind of retail venture before. But their general level of enthusiasm for the project is high.

"It’s like Harry Potter-land in here, isn’t it" says Josie Carter, who runs the Wags Ooh La La dog boutique on the ground floor.

Stuff promotional postcards

Her stock consists of all manner of canine bling, from coats to sparkly accessories – everything you need, as she puts it, to "pimp your pet".

Josie has experience of breeding and grooming dogs, but it took the advent of Stuff to persuade her to become a stallholder.

"It’s a lovely atmosphere," she says. "Shopping malls are all sterile, but it’s a real community in here."

That community ethos incorporates a strong sense of humour. As part of a promotional campaign in the run-up to Stuff’s opening, a series of 1970s-style postcards were produced featuring town landmarks and the cheeky slogan, "Stuff Croydon".

The local council failed to get the joke and took umbrage. "I had to explain to them that the word ’stuff’ in the slogan was a noun and not a verb," says David.

Moving online

Back at 101 Records in nearby Keeley Road, Duncan Barnes has also been in the record retail business more than three decades.

His firm has a long-established local pedigree, having been formed out of the ashes of Croydon’s much-loved Bonaparte Records, which rose to fame nationally in the late 1970s as a wholesale supplier of punk and new wave records before collapsing in 1982.

Interior of 101 Records, Keeley Road, Croydon

It also spawned 101cd.com, one of the challengers to Amazon in the online CD sales sector, which is now a separate company based in Jersey.

Like Beanos, 101 Records is set to close in the first half of 2010, but Duncan is determined to continue trading as a second-hand record dealer.

"The majority of my living comes from the internet now through third-party sites like Amazon and eBay," he says.

"There will still be premises here if people want to visit, but it’ll really be by prior arrangement only.

"We’re still very much in the market for decent record collections. If somebody phones up, if they’re miles and miles away, if it sounds good, I’ll be there."

As for the building itself, Duncan has ambitious plans to host record fairs.

"We’ve got large premises here and we’ve had initial talks with the landlords," he says.

"It’s in the early stages, but hopefully by early summer we’ll be having our first record fair here."

Specialise to succeed

Meanwhile, independent record shops are finding new ways to fight back. A new website, indierecordshop, is dedicated to promoting non-chainstore outlets that sell new releases.

So what are the prospects for anyone brave enough to go into music retail today David Lashmar has some advice.

"There is a market, very definitely, on vinyl," he says. "I think your digital formats are gone and CDs will make a poor man of you.

"But specialise and get it very finely honed. If you’re just going to do northern soul, do northern soul – don’t get tempted into doing punk or reggae.

"Become an expert. But you’ve got to go online to do it, you’ve got to sell online – you’ll never get enough people through your door." </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Misterland

Created nearly 40 years ago by Roger Hargreaves, the colourful lives of the Mr Men and Little Misses have helped establish one of the most influential brands in the world of children’s books.

For Radio 4, the BBC Economics Editor Stephanie Flanders takes a closer look at the business, its growth over the years, and the characters’ enduring popularity.

Let’s Go to Misterlandwill be broadcast on Radio 4 at 1330 GMT on Sunday 14 February 2010.
It will also be theRadio 4 Choicepodcast of the week, available to download from 19-26 February.

All Mr Men and Little Miss™ material kind permission and © 2010 THOIP (a Chorion Company). All rights reserved.
Other images courtesy PA and Getty Images. Slideshow production by Paul Kerley. Publication date 11 February 2010.


More audio slideshows from BBC Radio 4

Portraits of the fallen

Shaped by War

Gladstone’s legacy

Houses and highways
</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Redknapp adverts boost holiday sales

Thomas Cook advert featuring Jamie and Louise Redknapp

Travel firm Thomas Cook has credited its latest TV advertising campaign for helping to boost holiday bookings for this summer by 15%.

The adverts feature former footballer Jamie Redknapp and his wife Louise.

The company said it was concentrating on "higher margin, medium haul" destinations in its summer deals.

Thomas Cook also reported a loss before tax of £81.5m for the October to December period. The firm usually makes most of its money in the summer months.

Group chief executive Manny Fontenia-Novoa said he was "confident" that Thomas Cook would meet its full-year targets.

Speaking to reporters, Mr Fontenia-Novoa said: "I think the worst is behind us. However, I’m not sure there’s going to be a tremendous bounce back this year. I think it will be a fairly good year but I don’t think it’s boom time".

On Wednesday, rival travel firm TUI also updated the market. It also reported increased first quarter losses of £107m ($167m).

TUI’s boss Peter Long said that the harsh weather had helped boost bookings from the UK, which rose by 6%, and from the Nordic countries, which saw a 40% increase.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Poor sales push EMI to heavy loss

<img src="http://newsimg.bbc.co.uk/media/images/46916000/jpg/_46916332_emi_ap_226.jpg" align="left" width="226" height="170" alt="Sign outside EMI offices in London” border=”0″ vspace=”4″ hspace=”4″>

Record company EMI has reported an annual pre-tax loss of £1.75bn in the year to 31 March 2009 and said it needed more money to stay afloat.

The results for EMI, which has deals with Robbie Williams and Coldplay, include more than £1bn in write-offs.

The firm has been hit by illegal downloading and the move away from album sales to single digital tracks.

EMI is at the centre of a legal dispute between private equity owner Terra Firma and US bank Citigroup.

Terra Firma is seeking billions in damages linked to its £4bn purchase of EMI in 2007.

It accuses the bank of inflating the price of the firm by not revealing that the only other bidder, Cerberus Capital Management, had withdrawn.

"Every single cent of Terra Firma’s equity has been wiped out."

Robert Peston
BBC Business Editor

Read Robert’s blog

EMI and its Beatles reliance

Citigroup is contesting the claim, saying it will defend its role in the proceedings "vigorously".

Shortfall

EMI is now the smallest of the four major record labels, and has launched a turn-around plan to try to cut costs and boosting internet sales to compete against the likes of Universal and Warner.

It has also cut about 2,000 jobs but lost some of its acts, including Radiohead, in the row that followed.

BBC business editor Robert Peston said the results showed "one of the biggest ever losses on a private equity investment".

EMI was sold at the height of the private equity buyout bubble in 2007. The business has been battered by its high debt levels and a weak performance as record companies struggle to make cash .

The group warned of a "likely significant" shortfall when it had to meet covenants on its £2.6bn debt at the end of March 2010.

Excluding its huge one-off write-offs, EMI saw operating profits of £143m, compared with £101m the previous year.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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