BRIAN'S $15 BILLION BET

First, let's review the terms of the bet:

* Comcast is wagering about $15 billion (approximately half in cash and half in equity shares in its cable networks) in exchange for half of the New NBC Universal.

* If Comcast gets more than $15 billion back from the New NBC Universal in a reasonable timeframe, the bet will have paid off.

Comcast gets to keep half of the cash flow of the new NBC Universal each year, less interest costs. In 2009, a crappy year, New NBC Universal will generate about $3 billion of cash flow. Subtract, say, $1 billion of interest payments (on $9 billion of debt), and you're left with net cash flow of about $2 billion a year. Comcast's share of that, therefore, will be about $1 billion a year.

Some scenarios:

* Let's assume the New NBC continues to grow. Comcast will get its money back in 10 years. Any more cash or remaining value in NBC from then on will be upside.

* Let's assume that the new NBC Universal never grows again. Comcast will get its money back in 15 years.

* Let's assume that the New NBC Universal starts shrinking but doesn't completely fall apart. Comcast will get its money back in 20 years.

* Let's assume that the New NBC Universal completely collapses. Brian Roberts will be proven to have been an idiot.

So that's the bet.

Now, what is Brian Roberts really thinking?

He's thinking: I've got cash coming out of my ears, I know the world is changing, and I've decided to buy myself a hedge.

A hedge against what?

A hedge against two things:

* Further extortionist increases in cable content carriage fees
* The gradual conversion of cable into dumb pipes that just deliver Internet access and IP-video

THE HEDGE AGAINST CABLE PROGRAMMING FEE INCREASES

Specifically, Brian Roberts is thinking that he's sick to death of that bastard Bob Iger at Disney holding him up for higher carriage fees on ESPN, et al, every few years. And, before he bought NBC, Brian was sick to death of that bastard Jeff Zucker holding him up for higher fees on CNBC, et al. Etc.

Now, in the future, if anyone does any holding up, Brian Roberts is:

1) going to cash in, too (because now he owns a lot of cable programming), and

2) going to have more leverage in telling Bob Iger, et al, to take a hike. Until now, if Brian Roberts wanted to tell Bob Iger to take his ESPN and stuff it, he would risk losing a significant percentage of cable subs who are sports addicts. Now, Brian Roberts will be able to say to Bob Iger, "Actually, we've decided to make ESPN a premium channel, because most of our subs are happy with the many offerings of NBC Sports, including our new NBC Sports ESPN-killer. So if you want to jack up your fees, that's fine, we'll ask our subs to pay you for ESPN directly." At which time, Bob Iger, no fool, might say, "I think we'll stick with our current fees."

Either way, Brian Roberts is okay.

Those two hedges, by the way, may well help either the New NBC or the Old Comcast drive more dollars to the bottom line. If this happens, Brian Roberts will get his money back even faster.

THE HEDGE AGAINST CABLE BECOMING A DUMB PIPE AND PROGRAMMING GOING A LA CARTE

Eventually, the current cable TV business is toast. There is NO WAY today's teenagers are going to be shelling out $150 a month to get 500 channels they don't watch when what they do watch is available for free over the Internet. Eventually, therefore, this whole "carriage fee" game is done—or at least radically changed.

But it's going to take a while. At least 10 years.

And all those future adults who are going to be watching TV for free over the Internet in 10 years are still going to need Internet access (or else how are they going to watch?). And Comcast is in a great position to keep providing it.

So, regardless of what happens, Comcast won't go to zero. But if programming goes a la carte, providers like Comcast won't get to mark up channels by buying them at wholesale prices, bundling them together, and selling them at retail anymore. Instead, they'll have to settle for getting, say, $50 a month for providing your Internet access and phone and just letting all the video providers sell to you directly.

Now, providing a fat dumb pipe is not a bad business. And Internet access might be so important at that point that Comcast might be able to jack up prices to, say, $75, with no programming fees (which would be less than you pay for your internet access and phone now).

But it might be a worse business than the one cable has today. In which case, Brian will have hedged his bets by taking a big chunk of cash and buying something else with it.

OF COURSE, THERE'S NO SUCH THING AS A GUARANTEE

How can Brian Roberts lose?

A couple of ways.

First, he can blow the execution, like AOL Time Warner did. But this is a business that Brian already knows, and it won't involve smashing two completely different cultures that hate each other together. So the execution risk is less.

Second, cable can become a dumb pipe AND the TV programming business can blow up like the newspaper business—causing Brian Roberts to lose on both sides.

If that happens, Brian Roberts would have been better off selling the whole thing and buying a fertilizer company.

But Brian Roberts is a media mogul. And there isn't a media mogul on earth who would give up being a media mogul to run a fertilizer company.

Click to zoom in.

Too much fat, not enough flavor, and a tongue-itching texture. No, I don't want this in my diet, thank you very much. [Freepress via BoingBoing]

In claiming the Hulu is safe from potential fees, Burke is speaking of behalf of the Comcast's recently absorbed NBC Universal, which has a 27% stake in the Hulu venture—the same as News Corp and ABC. In other words, while Comcast execs are now privy to whatever discussions are going inside Hulu, they can't really guarantee anything without cooperation from the site's other partners. Including the one that's loudly demanding that Hulu develop some kind of pay service, soon.

In other words, Burke's answer assures one thing: that nobody, especially Hulu, knows exactly how the site will change over the next year. [Silicon Alley Insider]

NBC, Hulu, USA, Bravo, Syfy, Oxygen, Versus, CNBC, MSNBC, Universal Pictures movie studio, Telemundo, Universal Studios parks, Focus Features, and broadcast rights to the 2012 Olympics.

No, I can't see why this might be a bad idea at all.

PRESS RELEASE
COMCAST AND GE TO CREATE LEADING ENTERTAINMENT COMPANY Positions Comcast and NBCU to Lead the Next Phase of Media Industry's Evolution
Builds on Diverse Cable Portfolio, Accelerates Digital Offerings and Expands Customer Choice Entity Will Deliver Strong Cash Flow With Conservative Capital Structure NBCU Businesses Valued at $30 Billion, Comcast to Contribute Businesses Valued at $7.25 Billion Comcast To Own 51%, GE 49% Interest in NBCU Jeff Zucker to Lead New York-based Venture _______________________________________________
PHILADELPHIA, PA and FAIRFIELD, CT – Dec. 3, 2009 – Comcast (NASDAQ: CMCSA, CMCSK) and General Electric (NYSE: GE) announced today that they have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast. The joint venture, which will consist of the NBC Universal (NBCU) businesses and Comcast's cable networks, regional sports networks and certain digital properties and certain unconsolidated investments, will be well positioned to compete in an increasingly dynamic and competitive media and digital environment.
The combination of assets creates a leading media and entertainment company with the proven capability to provide some of the world's most popular entertainment, news and sports content, movies and film libraries to consumers anytime, anywhere. The joint venture will provide consumers the broadest possible access to content, and support high-quality, award-winning content development across all platforms including film, television, and online. It will be anchored by an outstanding portfolio of cable networks and regional sports networks that will account for about 80 percent of its cash flow, including USA, Bravo, Syfy, E!, Versus, CNBC and MSNBC. The joint venture will be financially strong with a robust cash-flow-generation capability.
Under the terms of the transaction, GE will contribute to the joint venture NBCU's businesses valued at $30 billion, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments, subject to $9.1 billion in debt to third party lenders. Comcast will contribute its cable networks including E!, Versus and the Golf Channel, its ten regional sports networks, and certain digital media properties, collectively valued at $7.25 billion, and make a payment to GE of approximately $6.5 billion of cash subject to certain adjustments based on various events between signing and closing.
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Comcast Chairman and Chief Executive Officer Brian Roberts said, "This deal is a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform ‘anytime, anywhere' media that American consumers are demanding. In particular, NBCU's fast- growing, highly profitable cable networks are a great complement to our industry-leading distribution business. Today's announced transaction will increase our capabilities in content and cable networks. At the same time, it will enhance consumer choice and accelerate the development of new digital products and services. GE has provided NBCU with a great home and has dramatically and positively transformed the business. We are honored that under this agreement Comcast would take over the stewardship of this important collection of assets and are absolutely committed to investing in NBCU and ensuring that it is a vibrant, financially strong company able to thrive in a rapidly evolving marketplace by delivering innovative programming. We are particularly pleased to be creating this new joint venture with GE and Jeff Immelt and to have their continued involvement.
"For Comcast, this transaction is strategically compelling and will generate attractive financial returns and build shareholder value," continued Roberts. "It is also expected to be immediately accretive and will also allow us to maintain our strong commitment to returning capital to shareholders– all while increasing the scale, capabilities and value of our cable distribution, content and digital assets. Significantly, it is entirely consistent with our intense focus on value creation and our disciplined strategy of pursuing profitable growth in areas complementary to our distribution business."
GE Chairman and CEO Jeff Immelt said, "The combination of Comcast's cable and regional sports networks and digital media properties and NBCU will deliver strong returns for GE shareholders and business partners. NBCU has been a great business for GE over the past two decades. We have generated an average annual return of 11 percent, while expanding into cable, movies, parks and international media. We are reducing our ownership stake from 80 percent to 49 percent of a more valuable entity. By doing so, GE gets a good value for NBCU. This transaction will generate approximately $8 billion of cash at closing with an expected small after-tax gain. We have many opportunities to invest in our high-technology infrastructure businesses at attractive returns. I believe that the new NBCU will deliver value for both Comcast and GE in the future. We will give consumers and advertisers more choice and our cable and digital assets will be second to none. I am confident Brian Roberts and his team at Comcast will be great partners."
Comcast also announced the creation of Comcast Entertainment Group (CEG), which will house Comcast's interest in the joint venture and will stand alongside Comcast Cable, which operates the company's traditional cable business.
Comcast Chief Operating Officer Steve Burke said, "Both Comcast and NBCU have excellent track records of integrating and growing multi-billion dollar businesses, including significant content acquisitions. In addition, we have both developed some of the country's most popular programming and built many of the most watched and valued networks in the industry. We are confident that we'll be even stronger together, and look forward to working with Jeff Zucker and the NBCU team to deliver the best consumer experience."
Jeff Zucker, current president and CEO of NBCU, will be CEO of the new joint venture and will report to Burke. Zucker said, "Combining the assets of NBCU, ranging from our suite of cable properties and two broadcast networks to a legendary film studio and global theme park business, with the content assets and resources of Comcast, will enable us to continue to thrive in an ever-changing media landscape. Consumers of all of our products – on screens large and small – will have the benefit of
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enhanced content and experiences, delivered to them in new and better ways as a result of this transaction. This marks the start of a new era for NBCU, and I'm genuinely excited that I will be leading this wonderful organization, along with the Comcast team, at this important time in our history."
Headquarters for the business will remain in New York. The joint venture board will have three directors nominated by Comcast and two nominated by GE.
Key Elements Of The Transaction:
• NBCU will borrow approximately $9.1 billion from third-party lenders and distribute the cash to GE.
• NBCU, valued at $30 billion, will be contributed to the newly formed joint venture. Comcast will contribute its programming businesses and certain other properties valued at $7.25 billion.
• GE will acquire Vivendi's 20% interest in NBCU for $5.8 billion. GE will purchase approximately 38% of Vivendi's interest (or approximately 7.66% of all outstanding NBCU shares) from Vivendi for $2 billion in September 2010, if the Comcast transaction is not closed by then. GE will acquire the remaining 62% of Vivendi's interest (or approximately 12.34% of all outstanding NBCU shares) for $3.8 billion when the transaction closes.
• Comcast will make a payment to GE of approximately $6.5 billion in cash subject to certain adjustments based on various events between signing and closing.
• The new venture will be 51% owned by Comcast and 49% owned by GE. • GE expects to realize $9.8 billion pre-tax in cash before debt reduction and transaction fees and after buyout of the Vivendi stake. GE expects to realize approximately $8 billion in cash
after paying down the existing NBCU debt and transaction fees. • GE will be entitled to elect to cause the joint venture to redeem one-half of its interest at year
3 1⁄2 and its remaining interest at year 7. The joint venture's obligations to complete those purchases will be subject to the venture's leverage ratio not exceeding 2.75X EBITDA and the venture continuing to hold investment-grade ratings. Comcast also has certain rights to purchase GE's interest in the venture at specified times. All such transactions would be done at a 20% premium to public market value with 50% sharing of upside above the closing valuation.
• To the extent the joint venture is not required to meet GE's redemption requests, Comcast will provide a backstop up to a maximum of $2.875 billion for the first redemption and a total backstop of $5.750 billion.
The transaction has been approved by the Board of Directors of GE and Comcast. It is subject to receipt of various regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and approvals of the Federal Communications Commission and certain international agencies. The transaction is also subject to other customary closing conditions. NBCU has obtained $9.85 billion of committed financing through a consortium of banks led by J.P. Morgan, Goldman Sachs, Morgan Stanley, BofA Merrill Lynch and Citi. This financing is expected to receive solid investment-grade ratings from S&P and Moody's.
Comcast and GE intend to submit regulatory applications supporting the pro-competitive and strong public interest benefits of the transaction, including how the joint venture will better meet the entertainment, communications and information needs of the American public.
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"We are prepared to make affirmative commitments to ensure that the pro-consumer and public interest benefits of the transaction are realized," Roberts said. "Today, we have announced a number of initial commitments that expand on the capabilities that Comcast and NBCU have built over the years, and the new opportunities that this combination makes possible. These commitments address the needs of various audiences and stakeholders, and we will provide additional details on these and other commitments in our public interest filing with the Federal Communications Commission."
Advisors
Morgan Stanley is lead financial advisor to Comcast with UBS and BofA Merrill Lynch acting as co- advisors. Davis Polk & Wardwell LLP is Comcast's legal advisor. J.P. Morgan is lead financial advisor to GE with Goldman Sachs and Citi acting as co-advisors. Weil, Gotshal & Manges LLP is GE's and NBCU's legal advisor.
Teleconference and Webcast
Comcast will host a conference call with the financial community today, December 3, 2009, at 8:30 a.m. Eastern Time (ET) to discuss this morning's announcement with Comcast Chairman and CEO Brian L. Roberts, Comcast Chief Operating Officer Stephen B. Burke and Comcast Chief Financial Officer, Michael J. Angelakis. The conference call will be broadcast live via the Company's Investor Relations website at www.cmcsa.com or www.cmcsk.com. Those parties interested in participating via telephone should dial (800) 263- 8495 with the conference ID number 44380493. A telephone replay of the call will be available on the Investor Relations website starting at 12:30 p.m. Eastern Time on December 3, 2009 and will be available until December 8, 2009 at midnight Eastern Time. To access the rebroadcast, please dial (800) 642-1687 conference ID 44380493.
GE will also host a webcast with the financial community today, December 3, 2009, at 8:30 a.m. Eastern Time / 7:30 a.m. Central Time to discuss this morning's announcement with GE Chairman and CEO Jeff Immelt, GE Chief Financial Officer Keith Sherin and NBCU President and CEO Jeff Zucker. The webcast will be available at www.ge.com/investors. A replay will be available later in the day on the site.
Additional media materials are available at www.ge.com/newnbcu, www.comcast.com/nbcutransaction and https://www.nbcumv.com/mv/.
The description of this transaction included in this press release is qualified in its entirety by, and is subject to, the terms of the definitive documentation for the transaction to be filed by Comcast with the Securities and Exchange Commission on a Current Report on Form 8-K.
About GE
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA, CMCSK) (www.comcast.com) is one of the nation's leading providers of entertainment, information and communication products and services. With 23.8 million cable customers, 15.7 million high-speed Internet customers, and 7.4 million Comcast Digital Voice customers, Comcast is principally
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involved in the development, management and operation of cable systems and in the delivery of programming content.
Comcast's content networks and investments include E! Entertainment Television, Style Network, Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten sports networks operated by Comcast Sports Group and Comcast Interactive Media, which develops and operates Comcast's Internet businesses, including Comcast.net (www.comcast.net). Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.
About NBC Universal:
NBC Universal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80% owned by General Electric and 20% owned by Vivendi.
Combined Assets/Properties
The assets and properties owned or controlled by the new joint venture will include some of the best known brands in the entertainment industry, including:
• Several of television's most successful cable networks, including USA, Bravo, CNBC, MSNBC, Syfy, E!, Style, Versus and the Golf Channel;
• One of the nation's largest television groups, including:
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The NBC Television Network; Local broadcast TV stations in ten top U.S. markets including New York, Los Angeles, Chicago and Philadelphia; The national Telemundo Network and 16 Telemundo O&O stations in locations such as Los Angeles, New York, Miami, Houston, Chicago and Dallas/Ft.Worth;
• Preeminent television production operations that produce Emmy Award winning programs like The Office, 30 Rock, Law & Order, Heroes, Saturday Night Live and The Tonight Show, as well as syndicate operations through NBC Universal Domestic and International Distribution and a 3,000-title library of television episodes;
• NBC News, the leading source of global news and information in the United States with top-rated programs such as Nightly News with Brian Williams, Today and Meet the Press;
• A robust sports programming lineup featuring the Olympics (through 2012), NBC Sunday Night Football, NHL/Stanley Cup, PGA Tour, US Open, Ryder Cup, Wimbledon and the Kentucky Derby, Versus, Golf Channel and Comcast's 10 regional sports networks;
• Universal Pictures, which has produced Academy Award winners Atonement, The Bourne Ultimatum, Brokeback Mountain, Ray and A Beautiful Mind, Focus Features, which recently produced Away We Go, and an extensive movie library with more than 4,000 titles through Universal Studios Home Entertainment;
• Fast growing digital media properties including CNBC.com, iVillage, NBC.com, Fandango, and Daily Candy, which together generate more than 40 million unique users each month;
• Ownership of theme parks in Florida (50% interest), California (100% interest) and a financial interest in a theme park in Japan;
• A minority interest in A&E, Biography, The History Channel, The Weather Channel, Lifetime and Hulu.com.

This is hardly a surprise. After yesterday's news that GE would buy its NBC stake from Vivendi for $5.8 billion, the closing of the deal was basically a formality.

Now comes the next phase of hard work. The deal is expected to take a year to fully close, as the government scrutinizes it.

It's a media center type of application—like Front Row or Boxee or Netflix or Windows Media Center—that gives you full access to Hulu with an Apple Remote or Windows Media remote or just your keyboard and mouse. In other words, freed from the constraints of the browser, it's like real TV. The app is beautiful, fast, easy to navigate and simply amazing—everything you'd expect from Hulu, honestly.

There are thumbnail previews that pop up as you move alongside the scrubber, like Netflix's streaming app. You can queue episodes too—you need a Hulu account for this. There are bunch of different ways to find content: via search, Hulu channels, by studio alphabetically or just through suggestions.

There are ads, but that's part of it simulating TV, no? Also, all of the usual Hulu catches do apply—only a few episodes back catalog of current shows, your favorite shows could vanish at a corporate whim, that kind of thing, which keep it from totally replacing your cable subscription for some people. That said, it+Netflix have definitely helped me live without TV for the last couple of years, though I still miss being able to flop in front of the History Channel for a couple hours on weekends sometimes.

One other small gripe so far is that the onscreen keyboard looks a bit small to punch with a remote, but ideally, you won't need it very often. It's also not a light application, as you can see:

It's available for Mac and PC, though you need a relatively modern machine (2GHz processor, 2GB of RAM and 2Mbps internet connection). There are a few more goodies at Hulu Labs as well, like time-based browsing. Hulu Desktop's definitely gotten us pretty excited, but at the very least, it's worth checking out, and makes us even more hyped for that iPhone app, since it shows Hulu's not going to stop at just one screen. [Hulu Desktop]

[Hulu via TechCrunch]

You may know that Hulu and Boxee have been involved in an imbroglio of sorts over access to Hulu's sweet trove of free online video. Boxee's official Hulu implementation was shot down last month, after Hulu undoubtedly received a call or two from their bigwig content providers saying they would like to control the moment their Hulu shows and movies get piped into the liviing room, thank you very much. It was a sad day.

But as we reported last week, and which Boxee confirmed to us, the latest alpha of Boxee includes a Mozilla based XUL implementation (the part of a browser that parses and presents XML code to users) that looks exactly the same to Hulu as any other Mozilla-based browser. Thus rendering the new encoding, which scrambles direct URLs to video files and relies on a JavaScript translator to decrypt them in a browser, useless against stopping Boxee.

I just watched the A-Team with the new alpha, and it works fine and dandy. So we'll see exactly what Hulu is up to with this encoding (or, whether it was doing this all along, and no one noticed until now). The new Mozilla-equipped alpha of Boxee is available for OS X (and Apple TV) now, with the Linux and Windows version shortly to follow. [Boxee]

The Office/30 Rock hour is already an iFest—you can expect at least one App Store commercial to hit during each show almost without fail. Apple's obviously hitting a demographic sweetspot here, which lends a certain feel of suspicion to the serious iPhone placement in the last few episodes. Jack and Liz both are constantly showing photos to people on their iPhones, and even the Generalissimo gets to use one.

The kicker is that without fail, the tongue-in-cheek (but still for real money) product placements from the likes of Snapple, McDonalds or SoyJoy always get some kind of official mention in the credits, as you can see. But there's nary a mention of Apple. Some have spotted Apple shout-outs in episodes downloaded on iTunes, but there aren't any on the regular broadcast or on Hulu. This could be completely unrelated to the placement, since it's found on Apple's turf already.

So what do you guys think? An elaborate, somewhat covert and guerrilla marketing tactic? A sign that some of the smartest people on TV right now have similarly smart taste in phones? You tell us, and be on the lookout for an iPlacement tonight. [Shouts to our friends at Defamer for being on the same page]

Coverage of the game includes 35 high-end cameras, all focused on never missing even the smallest of details. They've rewired Tampa's stadium with 50 miles of fiber-optic cable to transmit the feeds from all of them, and are nearly doubling the on-site production crew compared to a typical Sunday Night Football broadcast. Aside from the expected overhead and goal line cameras, they've placed a camera in each goal post and in the hallway leading to each locker room for reasons I wouldn't want a football fan to explain to me.

The main cameras are Sony HDC-900/950s, with HD Canon lenses, and several "X-Mo" cameras for frame-by-frame analysis of the sidelines and goal lines. And just to be on the safe side, NBC is bringing along "several" 450-kilowatt backup generators.

Luckily, NBC won't be carrying over Fox's horrible dancing robot. Thank god for that. [Broadcasting and Cable]

Thankfully, Woz was extremely respectful of Steve Jobs, choosing to focus on the good that could come of his absence, instead of focusing on speculation and hypotheses. But really, did we expect anything less from Woz? Of course not.

Some transcribed excerpts (apologies in advance for a few missed words here and there) from the five-minute video are below.

On Jobs and what the time off might mean for Apple: "In the shower this morning I was thinking, well you know what he sort of said he was taking a leave of absence. To me, you know, if that's what he says then I take it at face value. He wants a rest. The rest and peacefulness. What do you so when you rest? Sometimes your mind floats. A person like him works out better concepts and products and ways the future could be and way we live or lives better than any individual could. Probably a great thing for Apple."

On a disturbance in Apple product releases: "The products coming out of Apple, out of tech companies, have a long tech pipeline... they work their way through for a year, year and a half... Those products are in the pipeline, they're not going to be disturbed."

Woz concludes with a few thoughts on the culture of Apple, most notably the secrecy the company is know for today. In short, he supports it. Spreading rumors in the past was harmful to the product and the bottom line, Woz said. "That privacy I am very glad of," he said. "People at Apple will talk about a lot of things, but not about products." [NBC Los Angeles]

As examples, Kim mentions watching pro sports games on the Xbox while chatting with your friends, and reveals that they're thinking about adding a music service. (Zune? Hopefully not another service.)

Here's where it gets interesting—Kim says they're not planning on a browser or anything that completely busts open the Xbox. Rather, Kim says "“We are about delivering higher quality experience, not having the most varied experiences." Bits (unfortunately) paraphrases the next part:

He argued that while there may be hundreds of video sites, most of the activity is concentrating on a handful of sites like Hulu and YouTube. So his first instinct is cut a handful of deals that integrate the Xbox more deeply into such sites.

Hulu on the Xbox 360 totally would be a "higher quality experience"—one that would blow our mind. The deal would make sense for both parties too: It's no different than the integrated Netflix service on Microsoft's end, and it would turn the system into the most serious, fantastic video box around (important, since PS3 has the Blu-ray advantage on the video front). For Hulu, it would be a huge opportunity to blow up their audience and advertising revenue.

Of course, it's entirely possible, if not probable Kim was just spouting off examples and no Hulu deal is in works. But, if Microsoft really is looking at every good option, surely they're looking at Hulu. They've already done tons of deals with Hulu parent NBC, and they've never been afraid to pay up to get what they want. We know it's what we want, so we hope where's the smoke, there's hot, streaming fire. [Bits]

Instead, CBS is looking to redesign TV.com into a Hulu-like streaming site, all while keeping the community that's grown there in place. They're hoping that by incorporating their streaming catalogue into an established site with lots of community features that they'll entice people into sticking around a little while after that episode of How I Met Your Mother is over.

The new TV.com is set to launch sometime next month. And really, it's awesome news, as the more places that offer free, legit streams of TV shows the better. As if I needed yet another reason to make me feel like a smart guy for not paying for cable. [Ars Technica]

"I've constructed this great looking Guitar Hero double-necked guitar thing here because there's a lot of kids out there that think this is actually how you play guitar now — that you just press a series of four or five buttons and and sort of different sort of sequences and it makes every sound that the guitar can make," Uncle Wayne says (will you be my uncle?) in this video for Entertainment Weekly (fast forward to the 2:00 mark). The Kaoss pad (a cool touchscreen-powered effects/sampler/sound processor, famously used by Radiohead on "Everything In Its Right Place" among others) is used to control a pretty gnarly synth tone, which can be modulated in true Guitar Hero fashion by the five colored neck buttons.

Whether he's using this on tour or not I'm not sure (anyone seen the Lips recently?), but it looks like it will be showing up playing the three-note NBC chime in a promo spot to be played during, hopefully, the two NBC shows I actually watch—The Office and 30 Rock. Now if we could just have a Schrute/Coyne duet, please. [EW Video - Direct Link via Listening Post]