Warner Brothers, Time Warner's (TWX) movie entertainment arm, is going to launch part 2 of Harry Potter and the Deathly Hollows in 3D during 2011. We take this opportunity to estimate the value of such movies from Time Warner's perspective. Time Warner competes with Viacom (VIA), News Corp. (NWS), CBS (CBS) and Disney (DIS) in the media and entertainment business.

Our price estimate for Time Warner's stock stands at $35.51, in line with market price.

Time Warner (TWX) probably thought it had the weekend all wrapped up. Sucker Punch looked like it would debut at the top in its opening frame. I don't blame the execs behind this fantasy piece; in theory, it should have brought in all the youthful demographics hungry for a big spring hit to feast upon.

Didn't happen. Instead, News Corp.'s (NWS) Diary of Wimpy Kid: Rodrick Rules was number one with a gross of well over $23 million, according to domestic-theater data at Box Office Mojo. Punch came in second with $19 million.

CBS Corporation (CBS) issued its fourth-quarter report after the bell today. The results should make shareholders happy. Adjusted net income rose an incredible 77% to 46 cents per share, according to the press release. That number went beyond the estimate by two pennies as indicated by TheFly.

Considering how the stock has fared over the past twelve months, one would have expected a good earnings report. The 52-week low for the shares is $12.26 while the 52-week high is $22.25. The chart communicates a company backed by some solid momentum.

News Corp. (NWS) issued its fiscal second-quarter report on Wednesday after the bell. The stock rose 2.5% to $17.51 on active volume by the end of the regular session. The reaction in the after-hours session was, to be honest, dreadfully boring. The shares finished up fractionally to $17.55 at the conclusion of that trading period. Guess the market wasn't too impressed by the earnings news; either that, or it figured that the rise before the posting of the numbers was good enough.

According to the corporate press release, adjusted net income calculated out to 29 cents per share in Q2. That was four pennies above the year-ago profit. Marketwatch says that the 29-cent figure was one penny ahead of the overall estimate.

According to an item highlighted by TheFly, it appears as if News Corp. (NWS) may be interested in selling MySpace. There are no guarantees, of course, but I'll tell you this: I hope a sale happens. And the sooner the better.

Sure, in theory, MySpace was a great acquisition. It was the hot destination on the web for a while. Reality, however, has a way of interfering with even the best ideas. The Internet can evolve very quickly; CEOs need to be extremely cautious about what they decide to buy when they are playing this part of the media game.

CBS (CBS) reported third-quarter earnings last Thursday after the bell. On Friday, the shares closed down 3.7% to $17.01. The 52-week high for the stock is $18.20. Although the one-year chart doesn't show a smooth uptrend, it does indicate that the shares have exhibited a certain amount of strength. But does the sell-off on Friday, which was backed by strong volume, tell us that the stock should be avoided?

I've been cautious about this company. I have to admit, though, that it delivered a decent Q3. The press release says that adjusted profit jumped 40% to 35 cents per share. According to the Associated Press, that figure beat projections by four pennies. The AP article also mentioned something not so surprising: advertising dedicated to political races helped the period.

Last weekend's box-office race went to News Corp. (NWS). The media conglomerate released the sequel to Wall Street. The project, entitled Wall Street: Money Never Sleeps, stars Michael Douglas and Shia LaBeouf. When you think of the iconic equity the original possesses, and combine it with the current financial zeitgeist (maybe I should have written current negative financial zeitgeist, considering the state we're in), you might have expected a huge hit.

I did. And I was wrong. Sure, according to Box Office Mojo, the second Wall Street captured the top spot. But take a look at the actual domestic gross for the three-day debut: $19 million. Does that sound like a blockbuster? Even in the more sedate September period, I had higher hopes for a more exciting debut.

Media companies like Disney (DIS), News Corp. (NWS), and Time Warner (TWX) are dependent on a healthy celluloid industry. As times have changed, the industry has become more challenging. Home video, for example, is mired in a complex conundrum: how does one grow physical media revenue in the digital age? How does video-on-demand fit into the picture? What about online downloads? When you think about it, theatrical exhibition is becoming more important than ever before as post-multiplex channels of distribution undergo radical changes to keep up with the times.

Unfortunately, the following article from the Associated Press indicates that there's a lot of marketing work to be done in Hollywood. You see, while summer box-office sales are up, the quantity of admission transactions has declined.

Distribution of content fascinates me. So does compensation for the talent that generates the content. In my mind, talent is extremely overcompensated via pricey salaries and overgenerous profit-participation schemes. The demands of talent constitute a friction working against the goal of increasing shareholder value in the media industry. Time and time again, we see evidence of the thesis.

These were my thoughts as I checked out Steve Levitan's comments on streaming practices at ABC.com and Hulu that were made in an interview at The Hollywood Reporter. Levitan is one of the creators of the excellent Modern Family series. That really is a quality show, and I'm glad ABC possesses it in its programming portfolio. I'm a shareholder of Disney (DIS), as you might have guessed.

I've been thinking about the whole Jersey Shore zeitgeist. You know the show. It's on Viacom's (VIA) MTV. It's a huge hit, everyone is talking about it and its stars (Snooki, The Situation, etc.). It also was mentioned in a recent conference call the media company had with investors.

It was reported that the cast was able to significantly increase its salary for the reality series. When I first heard about the demands, I mused to myself that this was a grand opportunity for Hollywood to say no to minor celebrities. After all, it's just a reality show, folks. Even though Snooki is immensely popular, there are many more Snooki-type individuals out there. Dime-a-dozen comes to mind when thinking of the goofy girl with the poofy coif.