News Corp enters Yahoo discussions

RUPERT Murdoch’s News Corporation has entered discussions with Yahoo about an alliance that would combine the News-owned MySpace with the internet giant, according to a Wall Street Journal report.

The talks add both flavour and drama to what is becoming a fight for Yahoo. The WSJ says the discussions are part of a strategy to thwart Microsoft’s US$45 billion (A$49.9 billion) unsolicited bid for Yahoo.

According to unnamed sources, the deal would involve News Corp getting a stake of 20 per cent or more in Yahoo. The IT industry blog TechCrunch is also reporting the discussions.

News and Yahoo have held discussions about a tie-up in the past that focused on the MySpace property being used to swap for Yahoo equity, but those talks have previously broken down over the valuation of MySpace.

But since Microsoft’s hostile takeover bid earlier this month, Yahoo has aggressively pursued other strategic alliances that would keep the company outside of Redmond’s grip.

The Yahoo board formally rejected the Microsoft earlier this week saying it undervalued the company. But Microsoft responded saying it would take all necessary steps to consummate the deal, and is likely to come back with a revised offer.

Meanwhile, TechCrunch is reporting that the first of the “inevitable” lawsuits have started to be filed against Yahoo from shareholders unhappy that the company rejected the Microsoft offer.

The web site reports that more shareholders are expected “to pile on board” legal actions as Yahoo further resists the Microsoft overtures.

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Opel funding may be at risk: IDC

THE $900 million in Federal funding for the Opel consortium to build telecommunications infrastructure in the bush may be at risk of being cut because of Telstra’s plan to switch on its ADSL2+ network, according to research group IDC.

The group says that inflationary pressures, and the Rudd Government’s commitment to trimming Federal budgets, means the Commonwealth might decide against going ahead with the funding plan.

It says that the Telstra decision to switch on ADSL2+ in 900 exchanges nationwide means that rural and regional telecommunications will be substantially improved regardless of the Opel funding plans.

“We believe that the announcement from Telstra to activate their remaining ADSL2+ ready exchanges as a result of Ministerial assurance and the Government’s requirement to cull more than $10 billion dollars of funding are related,” said IDC telecommunications program manager David Cannon.

“As a result the Opel Pty Ltd funding will potentially be a casualty of larger macro economic inflation management processes,” he said.

“The activation of the ADSL2+ exchanges gives regional and rural communities metro-like broadband services and will counterbalance any negative public sentiment should the Opel funding be withdrawn,” said Cannon.

Opel is a joint-venture between Optus and Elders.

But with Optus already saying will not build its 3G network to cover 96 per cent of the population – instead rolling out only to major metropolitan and regional areas – and Vodafone apparently under pressure to reassess its own 3G plans, IDC says a lack of competition in the bush will mean continued higher prices for regional and rural Australia.

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Yahoo spurns Microsoft offer as too little

GLOBAL Internet pioneer Yahoo has rejected Microsoft’s US$42 billion unsolicited takeover offer, saying the bid was too low and not in the best interests of shareholders.

“The Yahoo board of directors has carefully reviewed Microsoft's unsolicited proposal with Yahoo's management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo and our stockholders,” the company said in a statement.

“After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo, including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects,” it said.

The rejection had been largely expected by both the finance and technology community. But in dismissing Microsoft’s initial overtures, the carefully-worded Yahoo statement was in no way antagonistic toward a future, larger offer from Microsoft.

It did not cite anti-trust concerns, not allude to any misgivings about Microsoft’s intentions for the company and its technology.

“The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximise value for all stockholders,” the Yahoo statement said.

Microsoft issued a statement describing the rejection as “unfortunate,” and left the door open to further pursuit of Yahoo, saying “moving forward to consummate the transaction” was best for all concerned.

“A Microsoft-Yahoo combination will create a more effective company that would provide greater value and service to our customers,” Microsoft said.

“Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.”

“The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”

Reports from the US say one option that Yahoo is exploring is a possible merger with struggling internet firm AOL, a part of the Time Warner media behemoth.

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Yahoo to reject Microsoft offer: Report

ONLINE giant Yahoo’s board of directors is preparing to reject Microsoft’s hostile US$45 billion (A$50 billion) acquisition proposal, according to reports from the United States.

Reports through the Wall Street Journal and wires services say the Yahoo board believes the Microsoft offer greatly undervalues the internet pioneer.

The reports say that Microsoft’s US$31 per share bid for the company does not take into account the risks that face Yahoo if it pursues a deal that may ultimately be shot down by regulators.

It is thought the board also believes Microsoft is simply trying to take advantage of Yahoo soft share price – the number two search company has struggled in recent months – to pick up a bargain.

Yahoo management is thought to be seeking closer to $40 per share – an offer than would cost Microsoft a further US$15 billion.

A rejection by Yahoo would set the scene for a potentially ugly takeover battle that may ultimately sink any hope for a quick deal. Critics of the tie-up already point to the vastly different corporate cultures in Yahoo and Microsoft and say integrating the businesses would be extremely difficult.

Yahoo chief executive officer Jerry Yang last week wrote to staff indicating the company’s board was investigating “strategic alternatives” to the Microsoft takeover – the first indication that the company was did not altogether welcome the bid.

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Music labels target China’s Baidu

THREE global music labels have initiated legal proceedings against China’s largest internet company, Baidu, claiming the company is violating copyright of its members in order to drive advertising revenue.

Universal Music, Sony BMG Music Entertainment and Warner Music have filed claims against Baidu in the Beijing No. 1 Intermediate People's Court. The companies say the action was taken after “months of fruitless negotiation.”

Separate actions have also been brought against internet company Sohu and its associate company Sogou. And Yahoo China faces fresh proceedings following its refusal to comply with a landmark ruling in December confirming it violated Chinese law by “committing mass copyright infringement.”

All of the Chinese companies involved operate similar services based on delivering music to their users via “deep links” to hundreds of thousands of infringing tracks on third party sites, with the aim of driving their own advertising revenue.

“The music industry in China wants partnership with the technology companies – but you cannot build partnership on the basis of systemic theft of copyrighted music and that is why we have been forced to take further actions,” International Federation of the Phonographic Industry chairman and chief executive John Kennedy said.

“It’s a matter of great regret that, despite the clear precedent laid down by the Yahoo China judgment, those internet companies are instead choosing blatant violation of copyright, with the inevitable and unwanted litigation that follows in its wake,” Mr Kennedy said.

China has potentially the largest online music-buying public in the world with as many broadband connections as the United States, the IFPI said.

It claims more than 99 per cent of all music files currently distributed China are pirate and China’s total legitimate music market, at US$76 million, accounts for less than one per cent of global recorded music sales.

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Privacy chief wants mandatory reporting

SHAKEN by a series of significant data breaches in the UK, Australian Privacy Commissioner Karen Curtis has renewed calls for mandatory reporting of security breaches at Australian companies and government agencies.

Ms Curtis's call for mandatory reporting was made in a 786-page submission to the Australian Law Reform Commission’s (ALRC) review of Australian privacy law.

“While reporting would need to be proportional to the severity of the breach, it would provide organisations with a strong market incentive to adequately secure their databases,” Ms Curtis said.

“It would also give people an opportunity to take any necessary steps to protect their personal information.”

Ms Curtis also called for powers that would allow the Office of the Privacy Commissioner to conduct privacy performance assessments on private sector organisations in special circumstances to ensure they were in compliance with data protection regulations.

Other recommendations in the submission included maintaining a principles-based and technology neutral approach to privacy, to provide flexibility and responsiveness to change.

Ms Curtis also urged lawmakers to minimise exemptions to from the Privacy Act.

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EU backs downloader privacy

THE European Union’s top court has backed the privacy rights of internet users, ruling that content owners cannot demand that ISPs hand over the personal information of users suspected of illegal downloading.

The Brussels-based Court of Justice ruled that even where an IP address was suspected of illegally downloading copyrighted material, record labels and film companies could not demand that the telecommunications carriers’ hand over details of that users’ name and address.

But it said EU member states could, if they felt it necessary, introduce laws that would oblige telco’s to hand over personal information in civil cases.

The decision relates to case involving the Spanish communications giant Telefonica.

An anti-piracy group called Promusicae had applied through the Spanish courts for an order that Telefonica hand over the identities and physical address of customers whose IP address and date and time of connection were known.

According to Promusicae, those persons were using the KaZaA file exchange program and providing access in shared files of personal computers to content that belonged to its industry members.

Telefonica had argued that under Spanish law, it was only allowed to share personal data in cases involving criminal prosecution or matters of public safety or security.

The Court points out that the present reference for a preliminary ruling raises the question of the need to reconcile the requirements of the protection of different fundamental rights, namely the right to respect for private life on the one hand and the rights to protection of property and to an effective remedy on the other.

The International Federation of the Phonographic Industry, an anti-priacry group, said the recording industry would continue its enforcement campaign against internet piracy, despite the ruling. It applauded the courts ruling that member states could still compel telcos to hand over personal data.

“Copyright theft on the internet is the single biggest obstacle to the growth of the music business today, IFPI chairman and chief executive John Kennedy said in a statement.

“The European Court has confirmed the need to have effective tools to tackle piracy. The judgment means that music rights owners can still take actions to enforce their civil rights, and it has sent out a clear signal that Member States have to get the right balance between privacy and enforcement of intellectual property rights and that intellectual property rights can neither be ignored nor neglected.”

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Newspapers’ online readership surge

JUST as the closure of The Bulletin magazine ended a 120-year publishing run, some good news has finally arrived for traditional media.

Newspaper web sites – as opposed to online newspapers – in the United States are enjoying a readership surge, suggesting that traditional media is handling the transition from paper to web.

A new report from Nielsen Online for the Newspaper Association of America found the average monthly audience figures for newspaper web sites grew by more than 3.6 million in 2007 to 62.8 million.

The numbers represented an increase of more than six per cent over the previous year. They are not staggeringly large numbers, but an improvement publishers have seized as good news regardless.

“Newspapers continue to successfully transform themselves into multimedia companies, offering unparalleled content that reaches an audience growing in both size and sophistication,” said NAA president and CEO John F. Sturm.

“Newspapers’ expanding print and digital portfolio offers value to advertisers by providing a targeted, comprehensive menu of choices for today’s discriminating consumer. As our industry’s transition accelerates, it is clear consumers recognize newspapers as their trusted source of information in an increasingly digital environment.”

For the year’s fourth quarter, 39 per cent of all active web users visited newspaper web sites, with visits averaging 44 minutes a month. Users generated more than three billion page impressions on average, a 7.3 per cent increase over the same period a year ago.

Meanwhile, News Corporation chairman Rupert Murdoch has told the World Economic Forum in Davos that plans to make the Wall Street Journal online free would not include all of the newspaper’s content.

Mr Murdoch said that while information that users can get “more or less as a commodity on different sites about finance” would be free on the WSJ site.

But the more specialist information, and the more specialist insights from the Journal about business and finance would remain a part of a subscription service.

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Hollywood hails Vic pirate bust

HOLLYWOOD movie production houses have hailed a Victorian Police operation that netted the largest ever haul of pirated DVD’s ever found in Australia.

The Victorian Police operation, conducted in conjunction with the Australian Federation Against Copyright Theft (AFACT), the local anti-piracy lobby, seized more than 250,000 copied DVDs and 100 DVD-R burners.

The operation shut down the largest known piracy operation in Australia.
The Motion Picture Association of America (MPAA), the industry lobby represent Hollywood studios, applauded the action.

“The Australian authorities have done it again … their aggressive enforcement efforts send a clear message that piracy will not be tolerated,” said the MPAA’s Asia-Pacific senior vice-president Mike Ellis. “We congratulate them on another successful raid and look forward to working with them on the next one.”

Last November, AFACT joined the MPAA’s Operation Blackout, an aggressive anti-piracy enforcement initiative scheduled to run until the end of January in 13 countries Asia-Pacific countries including Australia.

Operation Blackout is focused on the prevention of illegal camcording of newly released titles in cinemas, internet piracy, and the continued production, distribution and sale of pirated DVDs.

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Number of internet users in China

THE number of internet users in China has jumped to more than 210 million, and the nation will surpass the US this year as the largest single online community.

The Chinese registration organisation, the China Internet Network Information Center (CNNIC) reported that the number of net users grew 53 per cent in the past year from 137 million.

The official Xinhua News Agency said this means China is just 5 million users behind the United States.

China still has a lot of room to grow, Xinhua said the country has an internet penetration rate of just 16 per cent – about the level Australian penetration was at a decade ago. In the US, about 75 per cent of Adults are online.

The rate of computer ownership in China also remains low. The main access point for the internet in China remains Cybercafes, whereas in the US 93 per cent of users have access to the net through home computers.

The CNNIC has also reported the numbers of blogs in China had grown to nearly 73 million at the end of November, with the number of bloggers measured at 47 million.

The organisation said blogging was a fast growing phenomenon. A year ago there were just 17.5 million bloggers – meaning 30 million new bloggers had joined the blogosphere in just 12 months.

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Yahoo saddles up OpenID 2.0

INTERNET giant Yahoo! has announced its support for the OpenID 2.0 digital identity framework for all of its 248 million active registered users worldwide.

The OpenID service means that a Yahoo can use their Yahoo ID to register with any other site using OpenID 2.0, eliminating the need to create many separate IDs and log-ins for different web sites.

The initial OpenID service will be available for public beta on January 30. Web sites that accept OpenID 2.0 will be able to add a simple “Sign-in with Your Yahoo! ID” button to their login pages that will make it even easier for their users.

“A Yahoo ID is one of the most recognisable and useful accounts to have on the internet and with our support of OpenID, it will become even more powerful,” said Yahoo executive vice-president for platforms and infrastructure Ash Patel.

“Supporting OpenID gives our users the freedom to leverage their Yahoo! ID both on and off the Yahoo! network, reducing the number of usernames and passwords they need to remember and offering a single, trusted partner for managing their online identity,” Mr Patel said.

OpenID is an open, decentralised, free framework for user-centric digital identity, which eliminates the need for multiple usernames across different websites. OpenID is still in the adoption phase, but is becoming more popular as large organisations like AOL, Microsoft, Sun, Novell and others begin to accept and provide OpenIDs.

Today it is estimated that there are over 120 million OpenID-enabled URLs with nine thousand sites supporting OpenID logins.

“Today’s announcement by Yahoo supporting OpenID is the realisation of three years of hard work from this extremely passionate community of developers,” said Scott Kveton, chairman of the OpenID board of directors. “I have never met a more committed set of people focused on doing “the right thing” all the time.”

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CD slump, EMI chops 2,000 jobs

THE UK-based music label EMI has announced a massive restructuring, with plans to sack 1,500 to 2,000 staff as the company tries to come to grips with the digital economy.

EMI Group chairman Guy Hands said the changes were a fundamental reshaping of the company’s Recorded Music division to reflect the changing nature of the industry.

The company is struggling in an industry where global sales of recorded music have fallen 20 per cent since 2000.

And though the company says it will put in place a plan to open new revenue streams like enhanced digital services. It also wants to improve its relationship with artists, based on transparency and trust.

But Mr Hands has been accused by one of its biggest selling artists, Robbie Williams – who has sold more than 70 million albums – of behaving like a “plantation owner”. Williams says he is “on strike” over the way he says the company treats artists.

The restructuring involves a lot of consolidation and old-fashioned cost-cutting. It would let the group “capture significant efficiencies.” The company will fire between 1,500 and 2,000 staff.

“We have spent a long time looking intensely at EMI and the problems faced by its Recorded Music division which, like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment, Mr Hands said.

We believe we have devised a new revolutionary structure for the group etc etc blah blah, he said.

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Yahoo unveils new mobile interface

YAHOO! founder Jerry Yang used a keynote address at the giant Consumer Electronic Show in Las Vegas to describe a corporate vision that puts mobile technology at the heart of Yahoo’s plans.

Mr Yang unveiled Yahoo! Go 3.0, an early beta of the company’s flagship, all-in-one mobile platform. The Go 3.0 interface promises open access to vast array mobile “Widgets” from all over the web.

To reinvigorate the company in its on-going battle with Google, Mr Yang said the company planned to focus on being the preferred “starting point for anything and everything users need online.”

That meant pouring resources into opening “the Yahoo experience” to any device, anywhere and any time.

“To be the best starting point, it's clear that we need to open the Yahoo! experience to any device or user. Mobile is a perfect example since more consumers are soon expected to come and go from the Net via their phones rather than desktops,” Mr Yang said.

“We're committed to creating the best and richest mobile experience for all consumers - making it extremely personalized to their individual style and needs while opening up the Yahoo! mobile platform to allow anyone to participate.”

Yahoo! Connected Life executive vice-president Marco Boerries called Yahoo Go 3.0 a game-changing mobile development.

“This new open environment provides consumers with a highly-compelling user experience and robust, personalised starting point to the mobile internet,” Mr Boerries said.

“We are providing users with increased control over their experiences as well as increased choice in getting the content and services they want while on the go.”

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Apple scraps European iTunes policy

APPLE has sidestepped a potentially costly battle with European competition regulators, announcing it will charge the same amount for iTunes music throughout the European Union.

The company has instead set up a possible showdown with record labels in the UK over wholesale pricing.

Apple has been charging about nine US cents per song more for music on its UK iTunes store compared to the standard prices its charges for iTunes music across the rest of Europe.

The European Commission had begun an investigation of the pricing differences after it received a complaint from the UK consumer protection organisation Which?

Apple announced yesterday that within six months it will lower the prices it charges for music on its UK iTunes store to match the already standardized pricing on iTunes across Europe.

It said it would now reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months.

Commenting on the outcome, European Competition Commissioner Neelie Kroes said “The Commission is very much in favour of solutions which allow consumers to benefit from a truly Single Market for music downloads.”

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Li Ka-shing buys Facebook stake

HONGKONG billionaire tycoon Li Ka-shing, Asia’s richest man, has acquired a 0.4 per cent sliver of equity in the social networking site Facebook for a reported US$60 million (A$68.1 million).

Wire reports say the investment was made through the Li Ka-shing Foundation, and did not involve his flagship companies Cheung Kong or Hutchison Whampoa.

79-year-old Mr Li is a much-loved business superstar in Hongkong, a genuine rags-to-riches success in the former British colony.

The investment follows a series of high-profile stakes taken in Facebook in recent months. In October, Microsoft paid UA$240 million (A$272.5 million) for a 1.6 per cent chunk of Facebook.

Forbes magazine puts Mr Li’s personal fortune at about US$23 billion, making him the ninth wealthiest man in the world.

Mr Li and Microsoft’s investments value the privately-held Facebook at US$15 billion.

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AIIA welcomes change of Government

POLICY implemented in the next three to five years will largely determine how successfully the nation engages with the global information economy, according the Australian Information Industry Association (AIIA).

The top priority for the Rudd Labor government should be to give the ICT industry and the wider community “clear plans and a concrete timetable” for the nationwide broadband roll-out, AIIA chief executive Sheryle Moon said.

Welcoming the change, Ms Moon said the AIIA looked forward to working with the new government during what will be a “pivotal” three years.

“The leadership and policy delivered to the industry over the next three to five years will to a large degree define our future stake in the international information economy as well as our ability to successfully meet Australia’s most pressing domestic issues.” Ms Moon said.

In other areas the AIIA said that the government has presented strong policies addressing a number of significant industry concerns.

“In particular, we look forward to working with the new government to address ICT workforce pressures and reinvigorate the R&D sector,” said said.

However, more will be required if ICT is to maintain a viable contribution to the economy and wider issues affecting Australia.

“The ALP’s Innovation Future for Australian Industry … recognises many of the imperatives that must be addressed if the ICT industry is to maintain a vibrant contribution to Australia and its interests,” said Ms Moon.

“The challenges it identifies are significant, however, and the clock is ticking,” she said.

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Amazon kindles e-book device market

IN a bid to kick-start the e-book market, online retailer Amazon.com has launched a wireless reader device with “electronic paper” features for downloading books, blogs, newspapers and magazines.

Called the Amazon Kindle, the device has a high-resolution electronic paper display that looks and reads like paper – even in bright sunlight – and is priced at US$399 (A$452).

“Our top design objective was for Kindle to disappear in your hands – to get out of the way – so you can enjoy your reading,” Amazon.com founder and chief executive Jeff Bezos said.

“We also wanted to go beyond the physical book. Kindle is wireless, so whether you're lying in bed or riding a train, you can think of a book, and have it in less than 60 seconds,” Mr Bezos said.

“No computer is needed – you do your shopping directly from the device.”
Kindle is lighter and thinner than a typical paperback and fits in one hand. Its built-in memory stores more than 200 titles, and hundreds more can be stored with an optional SD memory card.

The Amazon wireless delivery model in the US uses the mobile phone network, and books can be downloaded in less than a minute, while newspapers and blogs are delivered automatically to subscribers.

Amazon pays for the wireless connectivity bills for Kindle, so there are no monthly wireless fees, data plans, or service commitments for customers.

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Marvel unlocks comic vault online

COMICS have long been an undervalued and under-appreciated art form. Aficionados will tell you, though, that the influence of comic styles on the broader art community is far reaching.

It has taken a while, but mainstream comics are becoming more accessible online. Comic traditionalists needed to be convinced that online versions could match the back pocket feel of paper comic books.

One of the world’s largest comic publishers, Marvel Entertainment, has launched a new back catalogue subscription site that

“We wanted to make sure we presented a site that would set the standard in digital comics and offer readers an affordable way to experience our vast archive of content,” Marvel Publishing president Dan Buckley said.

“With Marvel Digital Comics Unlimited, we believe we have built a state-of-the-art online destination that will not only engage comic book readers of all ages, but also serve as the ultimate complement to our primary comic hobby market print business through which all new Marvel Comics monthly titles will continue to be released before their availability in digital format,” Mr Buckley said.

At launch, Marvel Digital Comics Unlimited offers more than 2,500 comic books. Each week, Marvel will add at least 20 additional titles to the site that will be chosen based on editors’ picks and subscriber requests.

The initial offering includes the first 100 issues of the Amazing Spider-Man and The Fantastic Four; the initial 66-issue run of Uncanny X-Men, the first 50 issues of The Avengers, and Joss Whedon's Astonishing X-Men.

There are also issues with the first appearances of Spider-Man, The Fantastic Four, Captain America, The Incredible Hulk, Wolverine, Thor, Daredevil, and Silver Surfer, as well as Dr. Octopus, Sandman, Lizard, Dr. Doom, and, for wardrobe fans, the first time Spider-Man's black costume is shown.

Yankee Group analyst Mike Goodman called the online archive a great idea, saying if online newspapers worked, then the model should work for comics too.

As the digital age moved completely into the mainstream, Mr Goodman said content companies “have to give consumers the flexibility to watch or listen to what they want, when they want,” from a variety of devices or formats.

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Hackers discover extra Manhunt violence

COMPUTER hackers in the US have uncovered ultra-violent content in the game “Manhunt 2” which the publisher had hidden in order to get it through the ratings authority.

The Entertainment Software Rating Board in the US had originally given the game an “Adult’s Only” rating. But when the game went on sale a week ago, it carried a “Mature” rating.

Reports in the US say hackers have broken the blurring of some of the more violent scenes in the game. The game’s publisher had blurred the ultra-violent content in order to get a more marketable rating.

The reports say the hackers had defeated blurring on the Playstation Portable version of the game, which is also available on PlayStation 2 and Nintendo’s Wii consoles.

The Manhunt 2 publisher Take Two Interactive Software have hit headlines in Australia previsouly, both for the previous version of ManHunt and for its Grand Theft Auto franchise. Ultra-violence and graphic sex scenes have been the complaint.

The Manhunt 2 hack is said to roll-back only some of the changes that were made to give the game a more accessible rating. The hack also requires considerable technical expertise, as well as a PlayStation Portable that has itself been hacked to allow it to play modified software.

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News, NBC sends Hulu video to beta

MEDIA giants News Corporation and NBC have begun beta-testing a digital video delivery platform called Hulu.com that aims to distribute television programming online.

The new company will use News Corp – owners of the Fox network – and NBC television shows as its core content, but has also signed licensing deals with Sony Pictures Television and MGM.

Hulu.com said the service would let people access popular TV shows on-demand, anywhere and anytime via the internet. The service will be ad-supported and free to users, the company said.

“Consumers are clearly interested in easily accessing a broad spectrum of programming,” News Corporation's president and chief operating officer Peter Chernin said.

Hulu chief executive Jason Kilar said the service would deliver full episodes and clips of popular shows like The Simpsons, House and The Office.

“You'll also find a large number of classic television series, including Arrested Development, Miami Vice, Buffy the Vampire Slayer, and The A-Team,” Mr Kilar said on the Hulu.com blog.

“We're also going into beta with an initial selection of feature films that includes Conan the Barbarian, Sideways and The Blues Brothers,” he said.

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