Thursday morning headlines

NBC Universal cuts: The WSJ details the $750 million in cost cuts that will impact most every division. For openers, about 700 jobs, or 5 percent of the workforce, will be eliminated. The network is also eliminating expensive dramas and comedies in the 8 p.m. to 9 p.m. time slot, replacing them, most likely, with game shows or reality programming (that doesn't bode well for many of the new shows already struggling with low ratings). And the news divisions will be hard hit with layoffs (LAO has been reporting as much for the last week or two). A regional "hub" will be created in Los Angeles that will serve NBC, MSNBC, CNBC and the three local stations - an effort at reducing redundancies. This sounds a lot like the strategy of Dean Singleton's MediaNews, whose Socal papers have been sharing reporters and stories. And it's clearly what Tribune Co. wants to do with its papers, including the Times. There's coverage by almost everybody this morning, but the WSJ seems to have the most information, with NBC Chairman Bob Wright laying out the details in an interview. A couple of key points in the Journal story.

NBC Universal Chairman Bob Wright said the streamlining, known internally as NBCU 2.0, will return the unit to double-digit growth in 2007. "As we reprioritize ourselves toward digital, we've got to be as efficient in our current businesses as possible," Mr. Wright said in an interview. "We can't have new digital expenses and the same analog expenses."

The plan marks the starkest recognition yet that established TV networks can't keep carrying the high costs they were accustomed to in earlier decades, when they faced less competition for viewers' attention. Although the networks have been discussing radical prescriptions for years, they have often hesitated to take steps that would disrupt not only their own employees but also longtime business partners in Hollywood such as programming studios, talent agencies and syndicators of reruns.

Foreclosure risk: Lenders sent out 26,705 default notices in the third quarter to California households, compared with 12,606 for the like period a year earlier. As the LAT points out, the numbers are still well below the peak level of nearly 60,000 in the first three months of 1996. But it's clearly a sign that the housing slowdown is bound to take a toll on some homeowners.

What about renting?: When home sales slow, rents are sure to rise. Average third-quarter rents in L.A. and Orange Counties rose 7.4 percent, to $1,546. And apparently, there's no shortage of available renters. One broker told the LAT that "if I lose one tenant, there are three more behind them."

Tribune earnings up: Well, yes and no. The Chicago-based parent of the LAT reported third-quarter net income of $162.2 million, compared with $21.9 million for the like period a year earlier. However, that includes a one-time tax gain from the restructuring of those Chandler partnerships that have been such a headache for Tribune's restructuring efforts. Take away that one-time gain and earnings were actually below Wall Street expectations. Ad revenue from the publishing side fell 2 percent. "Our third quarter financial results reflect the continued soft advertising environment," said Tribune CEO Dennis FitzSimons.

Residual resentment: Writers and actors keep looking for a piece of the digital action, now that so many TV shows are being made available for downloading. The standard contracts have been vague on compensation for digital distribution - in part because this stuff is so new. But the guilds say that the studios and networks have been ducking the issue (what a surprise!). It could well escalate into strike talk.

Game measuring: Nielsen introduces a new service called GamePlay Metrics that will track the time people spend playing video games. The measuring will be used to set the standard for buying and selling advertising in video games, which is expected to be a hot market in a few years.

The $52 million house: It's the priciest listing Pasadena has ever seen. OK, but what do you get? The 35,000-square-foot house on 4.7 acres includes a man-made lake and waterfall; topiary zoo; a ballroom, naturally; your own spa (with his and hers locker rooms); four master suites among a total of 15 bedrooms and 19 bathrooms; a guest house; a guard house; unfinished drywall; and a Corinthian column facade. The listing agent claims he's getting inquiries from all over the world.

Location gripes: Residents in the city of El Segundo - the place that was recently honored as the most business-friendly city in L.A. County - are fed up with the noise and traffic that's resulted from an increase in filming. So the City Council is re-evaluating permitting and other costs. Location scouts apparently like El Segundo's small-town look.