Beastly Cuts: Troubled Website Dumps Two Dozen Writers & Editors

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Nostalgia isn't  always a good thing, as The Daily Beast staffers will attest, after massive layoffs last week restored the Web site to staff levels five years ago, according to a story in The Hollywood Reporter.

Two dozen editors and reporters were sacked, leaving the Beast workforce at approximately 65, THR.com reported. Reductions hit bureaus in New York and Washington, D.C. and decimated the Los Angeles staff, which now consists solely of one senior writer.

The Daily Beast, which is owned by Barry Diller's IAC/InterActiveCorp., is feeling the pain created by the parent company's ill-fated purchase of Newsweek in 2010.

Anyone Wanna Buy a Debt-Laden, Subscriber-Deprived, Digital-Only News Journal?

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Maybe three times will be the charm for beleaguered IAC-owned Newsweek.

Once boasting a circulation of three million, Newsweek has changed hands twice in the past three years. Acquired in 2010 from The Washington Post Co. for $1 plus assumption of its considerable debt by the late audio magnate Sidney Harman, Newsweek merged with the Daily Beast in 2012 and its present majority owner, Barry Diller's IAC, is looking to unload the forlorn digital-only publication, Variety reports.

Online traffic reportedly has reportedly shrunk by one million unique visitors over the past four months and its subscription base has plunged from 1.5 million to 470,000, according to the Variety article. The magazine renamed its digital version Newsweek Global, even though, unlike in the U.S., print editions of the newsweekly are still available around the world pursuant to royalty arrangements.

Newsweek debuted a revamped Web site this month, and Variety reported the publication has plans to unveil a paywall that will charge Web site visitors $2.99 a month to subscribe. Diller has been quoted in the press recently as saying he regrets purchasing the 80-year-old publication.

Digital TV Streamer Asks Court to Dismiss Broadcast Networks Copyright Suit

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In a 31-page motion for summary judgment, digital tv streaming service Aereo has asked United States District Court for the Southern District of New York Judge Alison Nathan to dismiss copyright infringement claims brought by commercial public broadcasters. 

In American Broadcasting Cos. et al v. Aereo (Case No. 1:12-cv-01540), Aereo, which is financially backed by media mogul Barry Diller (see "TUOL" post 8/14/12), argues the March 2012, copyright infringement suit brought by commercial broadcasters CBS, ABC, NBC and Fox should be dismissed following the networks' failure to persuade the United States Court of Appeals for the Second Circuit to overturn Judge Nathan's earlier ruling not to issue a permanent injunction against Aereo for allegedly violating the broadcasters' right to public performance of its programming by not securing a license from the networks.

Aereo, which digitally streams broadcasters' programming over the Internet one-on-one to subscribers' computers and Web-enabled devices, contends its transmission to individuals' miniature antennae is nonpublic and in any case, protected by the fair use defense to copyright infringement, as reported by BloombergBusinessWeek(www.businessweek.com) and the Hollywood Reporter's legal blog THR, Esq. The networks counter that Aereo capturing their over-the-air signals and transmitting its programming constitutes a public performance that infringes on their copyrights.

It's About Times: Ask.com Bolsters SEO Capabilities

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The New York Times has unloaded About.com, its south-headed search engine optimization ("SEO") investment, to Barry Diller's IAC/InterActive Corp. for $300 million in cash, The Wall St. Journal reported today.

The Times doled out $410 million in 2005 to acquire About.com, but took a $195 million write-down on its investment last month. IAC also owns  the Ask.com SEO, and outbid SEO Answers.com, which offered $270 million to the Times earlier this month, according to the Journal story. Ask draws 87 million unique monthly visitors, compared to About's 52 million, comScore indicates (way more than "TUOL", but who's counting?).

Barry Diller Sues BarryDriller

(Photo credit: Wikipedia)Pity the docket and courtroom clerks at the United States District Court for the Central District of California, who are trying not to confuse separate Barry Diller and BarryDriller lawsuits.

A little more than a week after a copyright and trademark infringement suit, Fox Television Services, Inc. et al. v. BarryDriller Content Systems Plc (Case No. 12-cv-6921), was filed in the federal court in Los Angeles (see "TUOL" post 8/14/12), along comes Barry Diller v. BarryDriller Content Systems Plc (Case No. 12-cv-7200). Diller, one-time head of Paramount Pictures and Fox and an investor in Aereo, a rival of the defendant that also streams broadcast television signals on Internet-enabled devices, has sued the defendant, which is owned by Alki David, for cybersquatting, alleged violation of his right to publicity, and for trademark abuse under the Lanham Act [15 U.S.C. sec. 1125].

As reported in The Los Angeles Times, THR, Esq. CNN.com and elsewhere, Diller accuses David's company of implying a false endorsement by him by adopting the name "BarryDriller."  The Complaint alleges the defendant is using his name in its business to: "(1) associate their service with Plaintiff and (2) mislead the public into believing that Defendants' service has been judicially sanctioned." The Complaint immodestly refers to the plaintiff as one of the best-known business leaders in the U.S. Diller is asking Judge Margaret M. Morrow for punitive damages and injunctive relief against the Defendant.

The concerned staff of "TUOL" hopes for the sake of the court's personnel that no litigation ensues over the Estate of comedian Phyllis Diller, as "TUOL" already has had its fill-er of Diller & Driller lawsuits.

'Streaming Mad' Fox Files Copyright & Trademark Suit Against BarryDriller

(Photo credit: Wikipedia)An offensive against television streaming services was launched last week in the United States District Court for the Central District of California via a four-count, 17-page complaint, Fox Television Services, Inc. et al. v. BarryDriller Content Systems PLC (Case No. 12-cv-6921), that alleges copyright and trademark infringement.

According to accounts by CNN Money and THR, Esq., the plaintiffs claim the signal of  KTTV, Fox's Los Angeles affiliate, is being streamed by the defendant without permission. The complaint alleges the defendant is capturing live broadcast programming and then copying the programming and streaming it over the Internet where the public may view it on Web-enabled devices.

The plaintiffs are seeking monetary damages and injunctive relief against the defendant streaming service, which set up shop on August 7 under the aegis of Alki David. BarryDriller charges users $5.95 monthly to transmit the free tv signals to subscribers' personal antennas.

On the East Coast, free tv broadcasters and content owners are waging war against the digital  tv streaming service Aereo (one of whose financial backers is media maven Barry Diller). A New York judge rejected an injunction request against Aereo in a case that turns, in part, on the issue of whether Aereo's one-on-one streaming transmittal to an individual's miniature antenna constitutes public broadcasting.

Newsweek & The Daily Beast Merge

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Beleaguered news magazine Newsweek, which 92-year-old audio magnate Sidney Harmon acquired for $1 in September [see "TUOL" post 8/2/10], has merged with The Daily Beast Web site to create The Newsweek Daily Beast Co. that will be co-owned by Harmon and Beast financier Barry Diller, chair of  IAC/Interactive Corp. Tina Brown will serve as editor-in-chief of both entities.


As initially reported by The New York Observer and confirmed in today's The New York Times, under the 50/50 merger, the editorial staffs of  The Beast and Newsweek will combine under the control of Brown, who, nine days shy of her 57th birthday,  re-enters the print magazine industry after a decade-long hiatus. The flamboyant Brown previously served as editor of The New Yorker, Vanity Fair, and the defunct Talk magazine.


The Beast will act as the digital operation of Newsweek, though for the time being, each entity will retain its name.  A wise decision, as neither NewsBeast nor The Daily Week  inspire confidence. It's a May/December wedding of a stodgy 77-year-old news magazine and an edgy 2-year-old Web site.