Lord of the Rings fans, rejoice: Warner Bros. has reached a settlement with the estate of J.R.R. Tolkien over who owns the film rights to the story, and now production can start on The Hobbit, the prequel to the series that has been a massive success both as a series of books and as a series of movies.

The trouble started in February of 2008 when Tolkien's heirs sued Warner Bros.' New Line Cinema arm, accusing the company of shortchanging the estate on royalties. The suit sought in excess of $150 million and sought to rescind the studio's right to make Lord of the Rings movies. Bonnie Eskenazi, an attorney for the Tolkien estate, told the Wall Street Journal (subscription required) that while $150 million was the initial claim, "that demand increased after we got closer to a trial because discovery revealed additional financial impropriety."

Dark Knight, the Batman movie starring Heath Ledger, did boffo box office: $158.3 million, according to Defamer. But this blockbuster will not just benefit Warner Brothers and DC Comics, which share parent Time Warner Inc. (NYSE: TWX) with BloggingStocks. There are at least six companies that will benefit from Dark Knight's success. According to Seeking Alpha, these companies include:

• Time Warner -- through its Warner Brothers and DC Comics subsidiaries are profiting most directly.
• Comcast Corporation (NYSE: CMCSA) partnered with Warner Bros. to offer "behind-the-scenes footage, trailers, and mini movies on demand"
• Verizon Communications, Inc. (NYSE: VZ) and Nokia Corporation (NYSE: NOK) collaborated in creating the Nokia6205 The Dark Knight Edition. Seeking Alpha reports that "This batphone targets superfans, with bat wallpaper, voice tones, screensavers, and the film's trailer pre-loaded."

Time Warner's (NYSE: TWX) ownership of Superman is no longer absolute.

Some 70 years ago, Superman co-creator Jerome Siegel sold the rights to the hero to Detective Comics for $130. Detective Comics is now DC Comics and is owned by Time Warner unit Warner Bros.

Superman has been the subject of much legal wrangling over the years, a brief summary of which can be found on Wikipedia. On Wednesday, a federal judge ruled that Siegel's heirs were entitled to share of the copyright, but left Time Warner's international rights intact. How this will effect the future of Superman remains to be seen, as there is still much more legal wrangling to come.

It gets more complicated. According to the New York Times, "A similar ruling in 2006 allowed the Siegels to recapture their rights in the Superboy character, without determining whether Superboy was, in fact, the basis for Warner Brothers's 'Smallville' television series. The decision was later challenged in a case that has yet to be resolved, said Mr. Toberoff, who represented the family in that action."

If you're interested in learning more about the legal issues involved in comic book cases, check out this story from The National Law Journal.

Warner Brothers, part of Time Warner Inc. (NYSE: TWX), has decided that its HD material will only be released on the Sony (NYSE: SNE) supported Blu-ray format. That is bad news for Toshiba, which has championed the rival HD-DVD technology. According to Reuters "Warner Bros., Hollywood's biggest seller of DVDs, represents about 18 to 20 percent of sales in the United States and was one of the few studios that backed both formats."

While the news is good for Sony, it is hard to say whether it will speed high definition DVD adoption. The fact that there are two formats has confused consumers. This has likely kept them out of the market and forced them to rely on HD content delivered over cable and satellite. As a matter of fact, it may be a key to improved satellite TV subscription numbers.

The presence of two formats has likely also helped the new fiber-to-the-home products from telephone companies like Verizon Communications (NYSE: VZ). They have enough bandwidth to support a number of HDTV channels.

Sony may have gotten some good news, but consumers may have already turned elsewhere for high definition content.

Douglas A. McIntyre is an editor at 247wallst.com.

Well, looks like Time Warner Inc.'s (NYSE: TWX) Warner Bros. has a new movie that is being hyped: Batman, The Dark Knight. You can watch the first trailer here. There's just one small problem -- it is the most searched movie trailer out there, but the release is not until the SUMMER of 2008.

To make matters a bit odder, there is no film preview, only a few voice-overs and a black screen video with a bat emblem crumbling and turning into light. At least there is a brief narration of Michael Caine (as Alfred), if that is the sort of thing fans are looking for. Maybe that's all the hype Warner Bros. wants to or is willing to give, as the movie is presently being filmed. CNN also has a video demo of a scene filmed in Chicago showing the old Brach's Candy factory being blown up. But other than a humdinger of a blow-up, it's hard to tell what the scene is.

As for the lineup: Christian Bale returns as Batman and Bruce Wayne, Maggie Gyllenhaal replaces Katie Holmes as Rachel (since Katie has been abducted by aliens), and Heath Ledger is playing The Joker. Hopefully, The Joker won't tell Batman, "I wish I could quit you!" This cast seems a bit odd, but since Batman Begins turned out pretty well, it's going to be hard not to give this one the benefit of the doubt.

According to Variety Magazine (subscription), Time Warner (NYSE: TWX) has purchased the rights to the 15 Oz (the fantasy land, not the prison) stories of L. Frank Baum from Ted Turner. In partnership with Village Roadshow Pictures, the company's Warner Bros. division plans to bring the world back to the big screen. Among those involved in the project are Todd McFarlane of "Spawn" and screenwriter Josh Olson.

The movie industry has found a great deal of success with franchises such as Batman and Spiderman, as well as Lord of the Rings, so reaching into the past for another iconic work seems like a shrewd move.

McFarlane and Olson are looking to bring the cinematic version closer to the tone of the original series, which were darker than the Judy Garland classic. Variety quotes Olson as saying "I want this to be 'Harry Potter' dark, not 'Seven' dark.

Not as dark, I hope, as the vision behind McFarlane's 2003 McFarlane Toys Twisted Land of Oz Action Figures, a disturbing reimagining of the world featuring Dorothy in bondage and other gruesome scenes and characters.

Nonetheless, I'm counting the days, my pretty, until flying monkeys return to the screen.

Thanks to SliceofSciFi for the lead.

Time Warner Inc.'s (NYSE: TWX) Warner Bros. Entertainment division revealed the look of actor Heath Ledger as the Joker in The Dark Knight, the upcoming sequel to 2005's Batman Begins, last week on one of three new websites designed to promote the film: www.ibelieveinharveydenttoo.com. The image has since been removed from the site and a disclaimer reads "Page not found" but if you highlight the page you can read several hundred "ha ha's," with displaced letters throughout the text reading "see you in December."

The sequel planned for release in the United States in July 2008, follows the $372 million blockbuster Batman Begins, which showed a young Bruce Wayne struggling to deal with his parents murder and vowing to clean-up Gotham City as Batman. In The Dark Knight, Batman will purportedly continue his fight to clean-up Gotham while the Joker, his comic book arch-nemesis, comes into the picture and causes more chaos. If this image and its grotesque indications are any sign, the new film is going to follow the first nicely and add more to the realistic tones set down by director Christopher Nolan and writer David S. Goyer. Fans and summer blockbuster viewers will have to wait another fourteen months to see though.

Time Warner, which closed at $21.56 yesterday, will have a hard road in those months to sell this new Joker to kids and families like it has sold products for every Batman film since 1989, which featured Jack Nicholson as the Joker. While this new incarnation is showing no sign of being connected to Nicholson's portrayal, it seems hard to determine how or if Time Warner will even attempt to market the character. Certainly a Heath Ledger Joker action figure will be produced, but who will purchase it? Kids (the parents for the kids), or the fans and collectors that jump on the dark nature of the acting, character, and ultimately film.

Time Warner Inc. (NYSE: TWX) will report earnings tomorrow morning. Analysts expect earnings of 20 cents a share, a 5% increase over a year ago, on sales of 11.5 billion (5% higher than a year ago), according to CNN/Money. Bloomberg quotes several analysts who say the strong performance is driven by cable.

According to Factset, most analysts have not changed the 2007 forecasts while the stock has gone up. So why is the stock moving North?

Over the weekend, the "Breaking Views" section of the Wall Street Journal recited the laundry list of reasons that Time Warner Inc. (NYSE:TWX) stock has moved to over $20 for the first time in four years. Investors appear to be waiting for a spin-off of the cable unit, and some improvement at AOL, or, perhaps, even its sale.

It would also appear that investors hope Time Warner will have something of a "November surprise" when earnings are released tomorrow.The surprise would have to be of a significant enough magnitude to move the shares up through the end of the year.

What are the possibilities? Time Warner management might announce that it is looking at a major acquisition in cable, perhaps Cablevision, but the dilution or debt that such a move might add could send the shares down.

Or perhaps the company could announce it is shedding another division. Time Warner's two troubled divisions are the studio operations, anchored by Warner Bros, and Time, Inc., the company's flagship magazine operation. Wall Street is enamored of neither. Both have been drags on earnings.

I think if Time Warner really wants to earn another round of applause from Wall Street, it would have to tell investors that the bankers have arrived and that it will part company with one of these two divisions.

Get up early November 1. You never know what you might hear.

Douglas McIntyre is a partner at 24/7 Wall St.

Not long ago, media empires sued file sharers. Now, they strike partnerships.

The latest is from Time Warner's Warner Bros. The deal calls for distribution of Warner Bros.' rich content library of TV shows and movies on Guba.com.

OK, in this deal, "sharing" means selling the movie downloads. Interestingly enough, like other video sites, Guba.com shared copyrighted content for free.  Well, it is changing its ways.

Actually, Warner Bros. has been quite visionary.  The company recently struck a similar deal with another file sharer, BitTorrent.

Warner Bros. also realizes that – if it wants to find its customers – it must move to the Web.  Why not go to places where huge numbers of users gather? Yes, it's not brain surgery.  But, in the entertainment business, often the first inclination is to sue, not partner.

Other news from the Milken Conference: AOL Chairman and Chief Exec Jonathan Miller let the cat out of the bag that AOL is considering an online model that makes content -- such as television reruns from Time Warner sister company Warner Bros. -- available for an extended period to let the audience accumulate.

While you may think of Warner Bros. as that benign force that brought us ER, Friends, and The O.C., don't forget that we also owe Warner Bros. for such made-for-TV movies as Dukes of Hazzard: Reunion!  and Terror in the Mall, as well as the sitcom Full House.

As for prospects of looking deep into my computer monitor and seeing Bob Saget reprise his Full House role as cherubic widower Danny Tanner -- something I thought I'd left, along with my "Members Only" jackets and Thriller cassette, safely in the 1980's -- well, Minesweeper is looking better and better...

Warner Bros., the television-and-movies subsidiary of Time Warner, is stepping up efforts to cash in on the big-money, low-budget industry of Reality -- reality television, that is. The company intends to launch a TV production unit, called Warner Horizon Television, to produce even lower budget reality television programs.

And how does Warner Horizon Television plan to lower the cost of the already pathetically cheap reality television shows?

Well, according to Peter Roth, President of Warner Bros. Television, the studio will limit taping days, shooting locations and "talent" pay. This new production model will reduce costs to about $500,000 less per episode than what a "traditional" (read: watchable) TV show costs per episode.

If you're interested, Warner Horizon, I have a couple of ideas for some very low-budget reality shows: