Like it or not, "American Idol" season seven champion David Cook is off to an impressive start with 11 songs entering Billboard's Hot 100 chart this week, and 14 songs enter the magazine's Hot Digital Songs, both records. Billboard notes that the Hot 100 placing is the most any artist has enjoyed on that chart since The Beatles scored 14 hits in 1964. Cook's record is the first in Billboard's Nielson Soundscan "era" (i.e. since 1991) and shatters Miley Cyrus's 6-song debut in November 2006. Cook's digital debut is also a record and beats out Cyrus again. According to Billboard, Apple Inc. 's (NASDAQ: AAPL) iTunes Store withheld reporting digital sales until the show had ended.

Cook is also ready to enter the studio, according to E! Online. The winner signed to RCA Records, a Sony BMG label, and 19 Recordings for a new album in the fall. E! erroneously calls the new album Cook's "debut", when he released an independent album in 2006, but that album and its songs were pulled from Amazon.com (NASDAQ: AMZN) as he worked his way through "American Idol" competition.

Simon Fuller, "American Idol" creator, told E! that he "honestly believes that David has the potential to go on to become one of the most successful Idols of all time." If early success and an independent album can hold fans until the fall, then Cook will certainly enjoy a huge release. Regardless, "American Idol" winners and finalists albums always seem to do well at first. It's only later that they lose steam or interest from their supposed fans. Still though, 11 chart debuts is impressive and Cook may never be in the same league as The Beatles, but his success may well come close to duplicating the Fab Four.

About every 10 seconds or so this season, "American Idol" host Ryan Seacrest or one of the judges brags about how this group of contestants is the most talented in the show's history. They speak about the huge number of votes being cast and the huge number of song downloads sold on iTunes. Well, as the Associated Press points out, the American people would beg to differ.

"The 21.8 million people who watched last Tuesday's competition was the show's smallest Tuesday audience in more than five years," the AP said. "The show did better the next night, with 22.9 million, but that was the smallest Wednesday audience in three years, according to Nielsen Media Research."

But Idol fans and shareholders of News Corp. (NYSE: NWS) should not get too down since the show can be saved if producers follow my advice:

News Corp.'s (NWS) FOX broadcasts American Idol -- which gets 24 million viewers a show -- but is the judging fair and balanced? The New York Times suggests maybe not so much. That's because a major slip-up by judge Paula Abdul this week revealed that the judges watch rehearsals two hours before the live performances and their comments -- which may influence the public vote on the contestants -- are not spontaneous reactions to the live performances.

This week performers sang two songs but the judges were supposed to withhold their remarks until after the second performance. On Tuesday, Abdul watched one of the contestants, Jason Castro, give one live performance but when asked to offer a comment on it by Ryan Seacrest, she gave her thoughts on two performances -- the second of which she had seen in the rehearsal. When Abdul started talking about that second performance, I thought that she had a few too many before the show.

However, the explanation in the Times makes it clear that she was flustered because Seacrest had initially said that the judges would not comment until the performers had completed both of their songs. However, executive producer Nigel Lythgoe changed things up at the last minute, demanding that Seacrest get the judges to give a quick assessment of the performances after their first song.

With news that American Idol contestant David Hernandez (I personally think Kady is the next idol) will remain in the singing contest despite reports that he used to be a nude performer at a male strip club in Phoenix, the question is whether the show itself should get rid of him, like they have done in the past, as well as how should investors treat publicly traded companies like Ricks Cabaret Int'l Inc. (NASDAQ: RICK)?

American Idol executive producer Ken Warwick told TVGuide.com he was unaware of the singer's past before the news report but that it would have made no difference. "We're never judgmental about what people do to earn a living. They've got to put food in people's mouths," he said. Historically, the way the show deals with these kind of controversies is a mixed bag. Last year, Antonella Barba appeared in provocative online photos and she remained. But Frenchie Davis, a Season 2 singer, was dropped after reports that as a 19-year-old she appeared on a website designed to appeal to men interested in underage girls.

There is an obvious difference. Neither Hernandez nor Barba ever did anything illegal. Though many viewers believe that what they have done is morally reprehensible, it is still not a crime, and why shouldn't they have an opportunity to try and change their lives.

According to The Hollywood Reporter, CBS (NYSE: CBS) has greenlit a reality program that should turn out to be pretty funny. The show is titled Splitsville, and its premise centers on divorcing couples vying for assets via sundry competitions.

You know, just when you think they've covered every conceivable angle for a reality show, they come up with one that makes you say, "I should have thought of that!" Of course -- find divorcing people who really hate each other and then see how far they are willing to go to fight for the stuff generated during their union. I have no idea what the format the show is, but I can tell you that I dearly hope the producers utilize a few tricks from Fear Factor. Imagine allowing a dozen large tarantulas to crawl over your body so you can take the family toaster!

Those scamps at Vote for the Worst continue to wreak havoc on Fox's "American Idol." This season the snarky Web site is encouraging its fans to support the dreadful Danny Noriega, a contestant who makes the hapless Sanjaya Malakar from last season seem talented.

That groaning sound you heard last night was the late Elvis Presley voicing his disapproval of Noriega's dreadful performance of "Jailhouse Rock" on yesterday's telecast. Even stranger was the fact that Noriega picked the song, which debuted in 1957, for 60's night. Vote for the Worst urges its readers to "vote as much as you can for the fierce and fabulous Danny Noriega. Simon [Cowell] obviously hated him the most, which is why we love him the most."

Noriega, like Malakar, erodes fans' confidence in Idol, which should alarm Fox's parent News Corp (NYSE: NWS). There are some other weird developments that will tax viewers' patience even further. Idol contestant Carly Smithson was signed to MCA records when judge Randy Jackson worked there. Allowing contestants to participate who have had record deals dilutes the spirit of the contest.

Apple (NASDAQ: AAPL) and American Idol -- it's got a ring to it, doesn't it? According to The Hollywood Reporter, Apple's iTunes has passed the audition and become the official online supplier of content from the show. Fans will now be able to purchase music performances and videos for 99 cents and $1.99, respectively.

Such a pairing seems eminently logical. Combining the phenomenon of American Idol, currently making waves yet again on News Corp.'s (NYSE: NWS) Fox network, with the musical juggernaut of iTunes will be mutually beneficial for both parties. Idol is, without a doubt, a show that attracts the iPod generation -- the youthful demographic that walks around with earbuds blocking out the world with music popularized by MTV, as well as the program itself. As for iTunes, the partnership validates once again the incredible dominance of the brand and its effect on the distribution of music. The potential for marketing synergy here is obvious.

According to the Associated Press, mighty mouse Disney (NYSE: DIS) wants in on the American Idol action. I don't blame the company one bit -- even though I'm not a huge Idol fan, and thought that the fad might wear out by now, there's no question that hooking up with the equity tied to this incredible broadcast brand is a good strategic move.

Disney's Hollywood Studios theme park plans on hatching an attraction that will allow guests the opportunity to audition in a park stage. There probably will be several shows during the day, and the guests who perform in them will receive some sort of evaluation, although I hope there won't be any evil Simon-like judges handing out the critiques; in fact, the Associated Press article indicates that the judges might actually be members selected from the actual show audience.

I honestly see this as a great value-added to the Disney theme-park experience. And the cool thing is that Disney gets exposure to the success of American Idol even though its arch competitor, News Corp. (NYSE: NWS), obviously derives the most benefit by programming the show as a part of Fox Broadcast's portfolio. It's also a great way to make up for past mistakes -- ABC apparently could have had Idol on its schedule if it had wanted to, according to this past article from the Motley Fool. No matter, Disney can now make amends by thrilling its tourists with the fantasy of Hollywood and its tinsel fame. And, in case you were wondering, Disney didn't need to get Fox's permission to do this; all it had to do was negotiate with 19 Entertainment and FreemantleMedia, the entities behind Idol. Kind of a neat trick, huh?

"I can't believe I won," cried Jordin Sparks, winner of last year's American Idol. Within seconds, industry and non-industry drones alike began formulating ways to attach themselves to her in some way, crazy in anticipation of the inevitable riches.

Months later, several Wall Street types were overheard saying, "I can't believe oil keeps going higher, alternative energy stocks are going to be hot, hot, hot," and thousands of investors went wild buying shares of the dozen or so solar stocks, crazy in anticipation of the inevitable riches.

Each industry has its stars: Kelly Clarkson, Carrie Underwood and Clay Aiken -- as determined by album sales -- for American Idol, First Solar (NASDAQ: FSLR), Sunpower (NASDAQ: SPWR) and MEMC Electronic Materials (NYSE: WFR) -- as determined by stock performance -- for the solar industry.

Dick Clark's New Year's Rockin' Eve is a tradition for many Americans. Some tune in to catch a particular musical act; some just keep it on mute to watch the ball drop. The program has aired every December 31 since 1972 on The Walt Disney Company (NYSE: DIS)'s ABC Network and is typically a high ratings draw for the network, particularly at a time when so many regularly scheduled programs are in reruns.

Living legend Dick Clark has served as host or co-host for every broadcast with two exceptions, the most recent being 2004, as he recovered from a stroke. The last two years, Ryan Seacrest, of American Idol hosting fame, has helped man the mic in Times Square. In 2005, it was announced that Seacrest will be handed the hosting torch should the 77-year-old Clark be unable to perform his time-honored role.

But count on ringing in 2008 with the Idol emcee and the "America's Oldest Teenager." It was announced this week that the pair will again share hosting duties for the 36th edition of the broadcast. The show will run 3-1/2 hours and begin at 10 p.m. Eastern time on - when else? December 31 (it's a Monday this year).

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

According to today's U.K. Guardian, Google (NASDAQ: GOOG) has been meeting with American Idol guru Simon Fuller about partnering on an internet project that he says is a "big idea on a global scale." While no details were disclosed, Fuller compared the impact of the project to that of iTunes on the music industry.

My first thought was that Google was going into original programming, for which Fuller has been a cash machine. However, a couple of shows, even if very successful, do not the foundations of entertainment shake. Google has also crapped out on a pay-per-view models, and I'd be surprised if that resurfaced. With its purchase of YouTube, though, it owns the mother of all footprints in online video.

As a WAG, perhaps the plan might be more along these lines: A producer creates a show, partners with Google to market it for internet delivery. The show is delivered with advertising content via the Google/YouTube network. For each viewing, advertisers pay a fixed rate, and Google divvies up the ad revenue with the producer. In essence, Google replaces the television network's role, using its ubiquitousness to market content to those it identifies as the most likely to view.

Any plans coming from the Google/Simon confab need to be taken seriously. They are, after all, two American Idols.

Love him or hate him, (I'm ... ahem ... in the first camp), there's no denying that Ryan Seacrest is among the hardest working men in show business. From his exhausting gig as the face of American Idol every spring to collaborations with the E! cable channel, a weekly hosting turn of the American Top 40 countdown program, and a morning radio show in the Los Angeles market, the diminutive media linchpin is carving out his claims to be the country's next Dick Clark.

News Corp.'s (NYSE: NWS) FOX Network, which airs American Idol, announced that Seacrest will serve as host for the 59th Primetime Emmy Awards, to be aired live on Sunday, September 16. In a press release from the network, FOX's president of alternative entertainment, Mike Darnell, asserted that "Ryan Seacrest is known and loved by television audiences around the world ... he's a consummate host of major live broadcast events and a proven talent who always makes it look easy..."

Ken Ehlrich, executive producer of the Emmy broadcast this year, promises that Seacrest will help infuse this year's Emmys with a "freshness, enthusiasm and professionalism [into] some of the innovative things we have planned."
Personally, I'll be even more likely to tune into the awards show with Seacrest hosting. He's quick on his feet, sharp, and funny in a manner often stifled by his Idol gig (or so I allow myself to believe). And like it or not, Seacrest is also an indelible part of today's TV fabric.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

As computer graphics and interfaces grow increasingly sophisticated, it's only a matter of time before the television broadcasters latch onto the concept and graft it into shows such as American Idol.

In fact, Electronic Arts (NASDAQ: ERTS) recently inked a deal with reality show developer Endemol Group (Big Brother, Fear Factor, Deal or No Deal) to create a virtual playground in which game players could take on a virtual guise and compete with others in the electronic realm. At the same time, those avatars could become contestants in broadcast shows for the entertainment of viewers.

If you think Sanjaya was an outré character, imagine how far out of orbit created personas could fly? Once loosened from their fleshy prisons and the barrier of geography, the imagination of the world would be loosened on these stages.

Imagine Dancing with the Stars, in which a contestant in Bangladesh with a Nintendo Wii strapped to her leg and a USB-ported dance pad under her feet dances the rumba with Brad Pitt. Imagine an American Idol contestant, the spitting image of Elvis Presley, trying to match his timbre on Heartbreak Hotel. Imagine the catfights and carnage among a dozen avatars forced to stay on an island together, 24/7, until only one remains.

The merger of virtual reality and televised entertainment lacks only an interface, and EA is one company jumping into the breach. Success could bring profits that are more than virtual.

Lyric Jeans, an apparel company inspired by music and lyrics (the real things, not the Hugh Grant romantic comedy) has inked a licensing agreement with FremantleMedia, co-producer and licensor of American Idol. According to the press release, the lyric-inspired clothing line will initially target juniors and girls and then expand into other departments, including children's.

The president of Lyric, available for trading only on an over-the-counter basis, noted that "American Idol is the most powerful and iconic music brand in popular culture today and the perfect tie-in for our creative concept ... we couldn't have dreamt of a better partner."

Current offerings from the company are available online, in specialty boutiques, and at Saks Fifth Avenue (NYSE: SKS). Some threads include T-shirts inspired by artists such as Janis Joplin, The Beatles, and Marvin Gaye. I'm not sure what confuses me more ... how Taylor Hicks fits into this esteemed lineup, or why these T-shirts cost $90. That Lennon/McCartney catalog ain't cheap.

Is it a sign that Idol, a ratings juggernaut for News Corp's (NYSE: NWS) Fox network for the past six seasons, has hit the peak of its success? Jumped the shark, as it were? Just ask the New Kids on the Block or the newly reunited Spice Girls -- once the merchandising reaches extreme levels, the end could be around the corner. Then again, ratings were at a record high last season despite some truly mediocre singers in the mix -- Ryan Seacrest may just have a job forever.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Dow Jones(NYSE:DJ) volatility collapses on expectations of a deal. Dow Jones is recently up $7.76 to $61.12 on speculation Rupert Murdoch's News Corp(NYSE: NWS) will raise his $60 cash bid made on 5/1/07. Dow Jones controlling shareholders, the Bancroft family, agreed to meet with Murdoch. General Electric Company (NYSE:GE)has been speculated as submitting a stock for stock bid for Dow Jones. GE's stock for stock bid could be attractive to the Bancroft family because of GE's low beta of 0.85 compared to News Corp's beta of 1.54 if Murdoch would add a stock component to his bid. Dow Jones June option implied volatility has collapsed to 45 from 70 according to Track Data, suggesting decreasing risk.

New York Times(NYSE:NYT) implied volatility suggests non-directional Risk. NYT is recently up .71 to $25.82. NYT over all option implied volatility of 24 is near its 26-week average according to Track Data, suggesting non-directional price risk.

Option volume leaders today are: Dendreon (NASDAQ-DNDN), Apple, Inc.(NASDAQ:AAPL), Dell (NASDAQ:DELL) and Cisco (NASDAQ:CSCO).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.