Anxious New Yorkers grapple with second subway death in a month

NEW YORK — As police continued searching Friday for a woman who witnesses say sent a man to his death by pushing him into an oncoming subway train in Queens, anxious New Yorkers spoke with a mix of shock, horror and nonchalance as they grappled with the second such death in a month along the city's massive transit system.

Police identified the victim in Thursday night's incident as Sunando Sen, a 46-year-old Queens resident and native of India who worked at a printing business.

Police said the woman — described as a heavyset Latina and approximately 5 feet 5 — fled after the pushing. Surveillance video recorded shortly after the incident shows a heavyset woman running through an intersection near the station platform. A $12,000 reward is being offered and police have released a sketch of the suspect.

At the above-ground station where the main died, in the Sunnyside neighborhood of Queens, police officers were stationed inside the entrance, while some riders said they kept closer to the walls than usual as trains rolled into the station early Friday afternoon.

Maria Roquete, 55, promptly took a seat on a wooden bench as she waited for her train.

"Even if this station is empty, I have to sit down," said Roquete, who moved to New York from Brazil 13 years ago. "I'm scared."

Other commuters questioned whether enough was being done to ensure safety on the subway. One rider suggested police should have more cameras or officers on the platforms.

Thursday's death occurred just after 8 p.m., when a woman, who witnesses said appeared to be mumbling to herself, suddenly pushed a man from behind as he waited for the No. 7 elevated train to arrive at the station, police said.

"Witnesses said she was walking back and forth on the platform, talking to herself, before taking a seat alone on a wooden bench near the north end of the platform," Paul J. Browne, the NYPD's deputy commissioner, said in a statement. "When the train pulled into the station, the suspect rose from the bench and pushed the man, who was standing with his back to her, onto the tracks into the path of the train. The victim appeared not to notice her, according to witnesses."

For some, Thursday's death on the tracks served to underscore such urban dangers, especially with a transit system that carries 5.3 million riders daily.

On Dec. 3, Ki-Suck Han was crushed by an oncoming train at a subway station in Midtown Manhattan. Han, 58, had been on his way to the South Korean Consulate to renew his passport when, witnesses said, he began arguing with a man who had been harassing people on the platform.

The man, later identified as 30-year-old Naeem Davis, is accused of pushing Han onto the tracks. Han's final moments were captured by a nearby photographer, whose picture ran on the front page of the New York Post. Publication of the photo launched a media controversy over whether the photographer should have tried to help. Davis, who is homeless, has been charged with murder,

Despite the nearly back-to-back subway deaths, Pete Martinez recalled how he used to "subway surf" on top of cars while growing up in the Bronx. He shrugged off Thursday's homicide as "everyday life in the city."

Martinez, 51, said he even witnessed a woman die on subway tracks two years ago. "Every time you leave home you're taking a chance," he said, leaning against a stairway railing as he waited for an uptown train at New York's Penn Station in Manhattan.

Others' nerves were more frayed.

"It's horrible," Elena Rodriguez, a 46-year-old accountant, said as she waited for a downtown express train on the Upper West Side. "We're feeling so insecure now to be in the subway."

Rodriguez said that one of her clients, a yoga instructor, took a cab to work Friday because of Thursday's death. And the fact that a similar death happened less than four weeks ago is making her question whether she wants to stay in New York.

"Now with this, I'm thinking twice," the Upper East Side resident said. "Do I want to risk my life living in New York? No."

Although the two December deaths have left some riders frightened, such pushing incidents are considered rare in the 24-hour subway system.

In separate incidents earlier this year, two people were pushed onto tracks, and both survived. In a third incident, a man died after falling onto tracks during a fight with another commuter. The man was struck by a train and killed.

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning friends who drew concern from government officials and her own entourage.

But the records, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the files show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Surgery Returns to NYU Langone Medical Center

Chang W. Lee/The New York Times

Senator Charles E. Schumer spoke at a news conference Thursday about the reopening of NYU Langone Medical Center.

NYU Langone Medical Center opened its doors to surgical patients on Thursday, almost two months after Hurricane Sandy overflowed the banks of the East River and forced the evacuation of hundreds of patients.

While the medical center had been treating many outpatients, it had farmed out surgery to other hospitals, which created scheduling problems that forced many patients to have their operations on nights and weekends, when staffing is traditionally low. Some patients and doctors had to postpone not just elective but also necessary operations for lack of space at other hospitals.

The medical center’s Tisch Hospital, its major hospital for inpatient services, between 30th and 34th Streets on First Avenue, had been closed since the hurricane knocked out power and forced the evacuation of more than 300 patients, some on sleds brought down darkened flights of stairs.

“I think it’s a little bit of a miracle on 34th Street that this happened so quickly,” Senator Charles E. Schumer of New York said Thursday.

Mr. Schumer credited the medical center’s leadership and esprit de corps, and also a tour of the damaged hospital on Nov. 9 by the administrator of the Federal Emergency Management Agency, W. Craig Fugate, whom he and others escorted through watery basement hallways.

“Every time I talk to Fugate there are a lot of questions, but one is, ‘How are you doing at NYU?’ ” the senator said.

The reopening of Tisch to surgery patients and associated services, like intensive care, some types of radiology and recovery room anesthesia, was part of a phased restoration that will continue. Besides providing an essential service, surgery is among the more lucrative of hospital services.

The hospital’s emergency department is expected to delay its reopening for about 11 months, in part to accommodate an expansion in capacity to 65,000 patient visits a year, from 43,000, said Dr. Andrew W. Brotman, its senior vice president and vice dean for clinical affairs and strategy.

In the meantime, NYU Langone is setting up an urgent care center with 31 bays and an observation unit, which will be able to treat some emergency patients. It will initially not accept ambulances, but might be able to later, Dr. Brotman said. Nearby Bellevue Hospital Center, which was also evacuated, opened its emergency department to noncritical injuries on Monday.

Labor and delivery, the cancer floor, epilepsy treatment and pediatrics and neurology beyond surgery are expected to open in mid-January, Langone officials said. While some radiology equipment, which was in the basement, has been restored, other equipment — including a Gamma Knife, a device using radiation to treat brain tumors — is not back.

The flooded basement is still being worked on, and electrical gear has temporarily been moved upstairs. Mr. Schumer, a Democrat, said that a $60 billion bill to pay for hurricane losses and recovery in New York and New Jersey was nearing a vote, and that he was optimistic it would pass in the Senate with bipartisan support. But the measure’s fate in the Republican-controlled House is far less certain.

The bill includes $1.2 billion for damage and lost revenue at NYU Langone, including some money from the National Institutes of Health to restore research projects. It would also cover Long Beach Medical Center in Nassau County, Bellevue, Coney Island Hospital and the Veterans Affairs hospital in Manhattan.

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Individual mandate in healthcare was year's top consumer story

This was the year of the healthcare mandate. No other consumer story of 2012 comes close.

In a split decision, with Chief Justice John G. Roberts Jr. casting the deciding vote, the U.S. Supreme Court upheld the cornerstone of President Obama's healthcare reform law, the most sweeping overhaul of our dysfunctional medical system in decades.

The so-called individual mandate requires that most people have health insurance. It's the trade-off for the insurance industry's agreement to stop denying coverage to people with preexisting conditions and to stop charging higher rates if you get sick.

It's also the trade-off for insurers to remove limits on how much treatment they'll cover annually or over your lifetime.

"It's a huge deal," said Lee Goldberg, vice president of health policy for the National Academy of Social Insurance, a Washington think tank. "Without the mandate, you're much more likely to have spiraling healthcare costs and an unsustainable market for coverage."

Critics of the mandate, and there are plenty of them, say it represents a government takeover of healthcare, a socializing of medicine. The government, they say, can't make you buy something you don't want.

But that's not how the mandate works. No one's forcing you to buy insurance. No one's forcing you to be covered.

However, there will be a tax penalty if you decide that you want to take your chances. And there's a very good reason for this: Taking your chances is foolish.

Unless you're Superman, you're going to need healthcare at some point in your life. That's just a fact.

"No one's going to throw you in jail if you don't have insurance," said Richard Curtis, president of the Institute for Health Policy Solutions. "But if you ever have an accident and have to use the [emergency room], that tax penalty will help to defray the cost that will be covered by those who do have insurance."

Beginning in 2014, the penalty for going uninsured will be no more than $285 per family or 1% of income, whichever is greater. The cap rises to $975 or 2% of income a year later, and then up to $2,085 per family or 2.5% of income by 2016.

Opponents of healthcare reform conveniently ignore the basic economics of the insurance business. Insurers aren't service providers. They're risk managers. They examine the risk they face by covering a group or individual and price their policies accordingly.

The larger the risk pool, obviously, the cheaper the coverage. That's because the risk to health insurers goes down if younger and healthier people are included in the mix. The result: more affordable coverage for everyone.

Taken to its logical extreme, the most effective and efficient health insurance system for the United States would be something like a Medicare-for-all approach in which the risk pool comprises everybody in the country — young and old, healthy and sick.

In fact, we're already well down that road. Federal and state programs such as Medicare, Medicaid and veterans' assistance accounted for about 45% of total U.S. healthcare spending in 2010, according to a recent study by the National Institute for Health Care Management Foundation.

The amount of public money spent on healthcare should serve as a wake-up call to all those who think the world would end if the U.S. followed Britain, France, Canada and other developed countries in enacting a national health insurance system.

For the U.S., it would simply be an expansion of a system that already exists but is hobbled by the inefficiency of denying Medicare and other programs access to healthier members of the population, thus saddling taxpayers with a disproportionately large number of higher-risk people.

The individual mandate won't radically change things. The healthcare insurance system will remain divided between a public sector that focuses primarily on aging and sick people and a private sector that, for purely financial reasons, provides increasingly less access to affordable coverage.

Average premiums for employer-sponsored family health insurance plans rose 62% from 2003 to 2011 to $15,022 a year, according to a recent report by the Commonwealth Fund.

Health insurance costs far outpaced people's incomes in all states during that time, the report found, with workers' average share of premiums for family plans soaring 74% and deductibles more than doubling, while the median household income rose only about 10%.

Still, the mandate is a big step toward remedying the system's economic irrationality. By extending coverage to about 30 million of the 50 million people who now lack insurance, the mandate will place medical care within reach of many who previously may have sought treatment only in emergencies.

As a result, national wellness will improve and, presumably, healthcare costs will go down, or at least will be better controlled as fewer people put off medical attention until an easily treated ailment becomes an expensive catastrophe.

"The mandate is the key to making this all work," said Devon Herrick, a healthcare economist at the National Center for Policy Analysis. "Otherwise people would just wait until they got sick before buying insurance and premiums would skyrocket."

There's still much to be done. The reform law's insurance exchanges are a work in progress, and it's unclear at this point how much coverage will be offered and how much it will cost.

But the Supreme Court has kept the ball rolling by maintaining the mandate as part of the equation. It was a decision that will change all our lives, probably for the better, and move us closer to a system under which all people can obtain affordable healthcare.

David Lazarus' column runs Tuesdays and Fridays. he also can be seen daily on KTLA-TV Channel 5 and followed on Twitter @Davidlaz. Send tips or feedback to david.lazarus@latimes.com.

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L.A. gun buyback program breaks a record

A one-day gun buyback event in Los Angeles on Wednesday gathered 2,037 firearms, including 75 assault weapons and two rocket launchers, officials said. The total was nearly 400 more weapons than were collected in a similar buyback earlier this year.

Mayor Antonio Villaraigosa said the collection at two locations was so successful that the city ran out of money for supermarket gift cards and got a private donation through the city controller to bolster the pot.

The gun buyback was moved up from its usual Mother's Day date in response to the massacre Dec. 14 that claimed the lives of 26 people, including 20 students, at Sandy Hook Elementary School in Newtown, Conn.

"As you can see to my right and left, these weren't just guns that weren't functioning anymore," Villaraigosa said at a news conference Thursday morning. "These were serious guns — semiautomatic weapons, guns that have no place on the streets of Los Angeles or any other city."

The mayor described the event as a success, but acknowledged that there were still many guns on the streets.

Hundreds lined up in cars to get Ralphs gift cards in exchange for different types of guns. Villaraigosa said the LAPD collected 901 handguns, 698 rifles, 363 shotguns and 75 assault weapons. The weapons will be melted down.

He said that nearly three-quarters of those turning in the weapons said in an informal survey that they felt safer with the weapons off the street.

"Perhaps the most honest testament to the success of yesterday's program can be seen in the 166 weapons that were surrendered for nothing," Villaraigosa said.

Police Chief Charlie Beck said it was the most successful gun buyback event since the city began the program.

"Those are weapons of war, weapons of death," Beck said, motioning to a selection of military-style weapons on a display table. "These are not hunting guns. These are not target guns. These are made to put high-velocity, extremely deadly, long-range rounds down-range as quickly as possible, and they have no place in our great city."

Beck acknowledged that the weapons would not be checked for connections to crimes before being melted down. He said the sheer number would make that difficult, and he does not want to deter people from turning in firearms.

Villaraigosa again Thursday called for a national assault weapons ban and for strengthening the California assault weapons law to close loopholes.

richard.winton@latimes.com

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It's husband No. 3 for actress Kate Winslet

NEW YORK (AP) — Kate Winslet has tied the knot again.

The Oscar-winning actress wed Ned Rocknroll in New York earlier this month. The private ceremony was attended by Winslet's two children as well as a few friends and family members, her representative said Thursday.

It is the third marriage for the 37-year-old Winslet. She was previously married to film directors Jim Threapleton and Sam Mendes.

The 34-year-old Rocknroll, who was born Abel Smith, is a nephew of billionaire Virgin Group founder Richard Branson.

The couple had been engaged since last summer.

Winslet won a Best Actress Oscar for her performance in the 2008 film "The Reader."

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7-Eleven Stores Focus on Healthier Food Options

The chain that is home of the Slurpee, Big Gulp and self-serve nachos with chili and cheese is betting that consumers will stop in for yogurt parfaits, crudité and lean turkey on whole wheat bread.

7-Eleven, the convenience store chain, is restocking its shelves with an eye toward health. Over the last year, the retailer has introduced a line of fresh foods for the calorie conscious and trimmed down its more indulgent fare by creating portion-size items.

The change is as much about consumers’ expanding waistlines as the company’s bottom line. By 2015, the retailer aims to have 20 percent of sales come from fresh foods in its American and Canadian stores, up from about 10 percent currently, according to a company spokesman.

“We’re aspiring to be more of a food and beverage company, and that aligns with what the consumer now wants, which is more tasty, healthy, fresh food choices,” said Joseph M. DePinto, the chief executive of 7-Eleven, a subsidiary of the Japanese company, Seven & i Holdings.

Convenience stores have typically been among the most nimble of retailers. In the 1980s, they added Pac-Man arcade games as a way to keep customers in stores longer and to buy more merchandise. They installed A.T.M.’s a decade later, taking a slice of the transaction fees. More recently, they built refrigerated dairy cases, with milk, eggs, cheese and other staples.

But just as they have taken business from traditional supermarkets, convenience stores have faced increased competition from the likes of Dunkin’ Donuts and Starbucks, which offer a basic menu of fresh foods for consumers on the go.

At the same time, a major profit driver for convenience stores — cigarettes — has been in steady decline over the last decade as the rate of smoking has dropped in the United States.

Fresh foods can help offset some of those losses. The markup on such merchandise can be significant, bolstering a store’s overall profits. It’s also a fast-growing category.

“If you can figure out how to deliver consistent quality and the products consumers want, fresh food is attractive because margins are higher, and it addresses some of the competitive issues you’re facing,” said Richard Meyer, a longtime consultant for the convenience store industry. “But it’s not easy to do.”

7-Eleven has been selling fresh food since the late 1990s. But much of its innovation has been limited to the variety of hot dogs spinning on the roller grill or the breakfast sandwiches languishing beneath a heating lamp.

As 7-Eleven refocuses its lineup, the retail chain has assembled a team of culinary and food science experts to study industry trends and develop new products. Such groups have been around for a while at fast-food restaurants like McDonald’s and packaged-goods manufacturers like Kraft. But it’s a relatively new concept for players like 7-Eleven, which have typically relied on their suppliers to provide product innovation.

“We’re working to create a portfolio of fresh foods,” said Anne Readhimer, senior director of fresh food innovation, who joined the company in May from Yum Brands, where she had worked on the KFC and Pizza Hut brands. “Some will be for snacking, some for a quick meal, but we hope everything we offer our guests is convenient and tasty.”

One new menu item just hitting stores is a Bistro Snack Protein Pack, which includes mini pita rounds, cheddar cheese cubes, grapes, celery, baby carrots and hummus. The meal in a box, similar to one carried by Starbucks, is part of a broader menu with healthier items under 400 calories.

The company is also taking existing products and retooling them for single portions. For example, customers can now buy jelly doughnuts and tacos, in mini sizes.

“There are definitely customers who want healthy options, but there are also lots of customers who are excited about the new sandwich options that aren’t low calorie — and minidoughnuts are doing very well,” said Lori Primavera, senior manager of fresh food innovation at 7-Eleven, who previously worked for Food and Drink Resources, a consulting firm for restaurant companies.

Norman Jemal, a franchisee, said sales of the new products are growing steadily in the three 7-Eleven stores that he owns in Manhattan. “At first, people are surprised when they come in here and see a bag of carrots and celery,” Mr. Jemal said. “They say, ‘I came in here for a bag of chips — I can’t believe you have fruit cups or yogurt cups.’ ”

He said the Yoplait Parfait, a cup of vanilla yogurt topped with fresh strawberries or blueberries and granola, is his best-selling fresh food item, while the 7 Smart turkey sandwich is his top sandwich.

The fresh food in Mr. Jemal’s stores and other locations around the country are supplied from a system of 29 commissaries and bakeries that fulfill orders from 7-Eleven. They tailor menu items for specific markets. In the Miami area, they produce a hot Cuban sandwich with ham, cheese, pickles and mustard. The Turkey Gobbler with turkey, stuffing and cranberry sauce sells in Northeastern stores around the holidays.

Each store has a data system that allows it to see exactly what is selling, which helps manage waste. Stores can track consumers’ purchase habits over a month, and adjust their orders based on those behaviors.

“In this 28-day cycle, I know I sold 3,563 bananas to customers in this store,” said Todd Ferguson, who owns five 7-Eleven locations in Las Vegas.

Mr. Ferguson has owned 7-Eleven franchises since 1986, and he said the variety of fresh food options in the stores is far better than before. The category already accounts for 20 percent of his sales, and his goal is to reach a quarter of sales volume.

“We used to be a place for people to buy beer, wine, cigarettes, candy and chips, and people would occasionally ask where they could go to get something to eat,” Mr. Ferguson said. “We’re no longer getting that question because now you can get something to eat right here.”

This article has been revised to reflect the following correction:

Correction: December 27, 2012

An earlier version of this article incorrectly identified a 7-Eleven franchisee in Las Vegas. He is Todd Ferguson, not Tom Ferguson.

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Starz will face new, challenging world as public company

Pay-TV channel Starz is trying to chart a new orbit.

Early next year, its parent company, Liberty Media, plans to spin off the premium network and its sister channel Encore into a new, stand-alone, publicly traded company.

Such a move would normally be cause for celebration. But for Starz, the separation comes amid uncertainty.

Its track record producing original shows has been mixed. The market is getting increasingly crowded not only from Starz's traditional competitors, HBO and Showtime, but also from new rivals including Netflix, Amazon and Redbox. And, starting in 2017, the network will lose one of its key suppliers of movies — Walt Disney Studios — to Netflix.

"It's an interesting time for Starz," said Matthew Harrigan, a media analyst with Wunderlich Securities. "Losing those Disney movies makes life a little more difficult, and it becomes even more important for them to create successful original programming."

STORY: On Location

Liberty Media is spinning off Starz in part to make it more attractive to potential buyers. Companies mentioned by analysts as possible suitors include Comcast Corp., parent of Universal Pictures. Other deep-pocketed prospective buyers could be News Corp., Walt Disney Co. and Viacom Inc. HBO and Showtime probably would face anti-trust issues if either of them made a run at Starz.

The shift also raises the stakes for Starz and its chief executive, Chris Albrecht, who has been given the task of building an original programming pipeline. Albrecht, who joined Starz nearly three years ago, has the experience. As the former head of HBO, he was a key architect of that network's success by helping nurture such culture-defining hits as "Sex and the City" and "The Sopranos."

Achieving those heights again, this time at Starz, has proved more elusive. Starz made a splash with its gladiator series "Spartacus," but another high-profile drama, "Boss," about a corrupt Chicago mayor played by Kelsey Grammer ("Frasier"), failed to deliver ratings to match its critical acclaim. "Boss" was canceled after two seasons. Last year's "Camelot," about a young King Arthur, started strong but then fell on its sword.

Starz, which has 20.8 million subscribers in the U.S., has spent the last few years playing catch-up. The network began developing original dramas much later than industry leaders HBO and Showtime, and also lags behind basic cable channels FX, AMC and USA Network.

At the same time, the availability of movies through other venues has increased dramatically, and film fans can just as easily get their fix by buying or renting DVDs — online or at supermarket kiosks — or through Internet streaming services. That makes the need for strong original content even greater.

Starz executives declined to comment for this story, citing the "quiet period" mandated by regulators before the public stock offering.

Hollywood movie studios have a strong incentive to protect the premium channels, which have long served as their unofficial ATMs. The channels, including HBO, Starz and Showtime, spit out hundreds of millions of dollars each year to movie studios in exchange for the first-run TV rights to recent releases. The fees — which can approach $30 million for a single blockbuster film — have helped studios turn deficits into profits for many movies.

The parent companies of HBO (Time Warner), Showtime (CBS Corp.) and Starz (Liberty Media), also have long collected hundreds of millions of dollars each year in profit from the channels in distribution fees from cable and satellite operators. According to consulting firm SNL Kagan, Starz and sister channel Encore this year will generate revenue of $1.34 billion and $414 million in cash flow, a metric similar to operating income.

Just a few years ago, Starz trailed HBO as the No. 2 movie channel in terms of distribution. But it has since been surpassed by Showtime. The CBS Corp. network has staged a string of hits including "Weeds," the serial killer drama "Dexter," the pill-popping dark comedy "Nurse Jackie" and its latest hit, the terrorist thriller "Homeland," which this fall won the Emmy for TV's best drama.

According to SNL Kagan, Showtime has 21 million subscribers and 2012 revenue of $1.6 billion. Cash flow for Showtime and its sister channels TMC and Flix should approach $690 million combined for this year. Showtime's programming expenses are slightly less because it ended its relationships with movie studios several years ago.

"Showtime has been doing something similar [to Starz] with their strategy, but they have programming that people are talking about," said BTIG analyst Richard Greenfield said. "The question is how does Starz stack up?"

Its shows have largely failed to attract the buzz that can drive subscriptions and ratings. "Spartacus" was Starz's most popular show, averaging more than 5 million viewers an episode during the third season when viewing on all platforms was counted. "Magic City," the channel's stylistic drama about Miami gangsters in the 1950s, averaged 3.1 million viewers an episode when it debuted this year, while "Boss" collared just 2.2 million an episode.

Starz is betting heavily on its lineup for next two years, which includes the second season of "Magic City" and the new prospects "Da Vinci's Demons," a drama about Leonardo's early days from David S. Goyer, a co-writer of the "Dark Knight Rises" film trilogy, and "Black Sails," a swashbuckling adventure from "Transformers" and "Pirates of the Caribbean" filmmaker Michael Bay.

The company this year is spending about $692 million on programming, with four-fifths of that amount earmarked for buying products from Disney and Sony Pictures Entertainment, according to SNL Kagan, which said Starz spends less than $100 million annually creating original series.

"They still need the movies to fill their schedule, but at the same time Starz needs some unique programs to define the channel," said Deana Myers, an SNL Kagan television analyst. "It's not an easy market to get into because a lot of other networks are doing original productions."

Although Starz will continue to receive the Disney movies for three years, the eventual loss puts pressure on the company to keep Sony as a supplier beyond 2016, when the parties' current arrangement ends. The loss of Disney movies and the coming end of the Sony contract could also complicate the picture as Starz tries to attract a new owner.

Potential suitor Viacom already has a presence in the premium channel business. The parent of Paramount Pictures teamed in 2009 with two other studios, Lions Gate Entertainment Corp. and Metro-Goldwyn-Mayer Studios Inc., to launch the movie service Epix. The upstart has struggled to make distribution deals with leading cable and satellite TV systems. That could make a merger between Epix and Starz enticing. Given that Epix is not nearly as powerful as HBO and Showtime, such a deal may also be able to pass regulatory muster.

meg.james@latimes.com

joe.flint@latimes.com

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Toyota to pay big to settle suits

Toyota Motor Corp., moving to put years of legal problems behind it, has agreed to pay more than $1 billion to settle dozens of lawsuits relating to sudden acceleration.

The proposed deal, filed Wednesday in federal court, would be among the largest ever paid out by an automaker. It applies to numerous suits claiming economic damages caused by safety defects in the automaker's vehicles, but does not cover dozens of personal injury and wrongful-death suits that are still pending around the nation.

The suits were filed over the last three years by Toyota and Lexus owners who claimed that the value of their vehicles had been hurt by the potential for defects, including floor mats that could cause the vehicles to surge out of control.

ROAD TO RECALL: Read The Times' award winning coverage

In addition, Toyota said it is close to settling suits filed by the Orange County district attorney and a coalition of state attorneys general who had accused the automaker of deceptive business practices. The costs of those agreements would be included in a $1.1-billion charge the Japanese automaker said it will take against earnings to cover the actions.

"We concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers," Christopher Reynolds, Toyota's chief counsel in the U.S., said in a statement.

Toyota's lengthy history of sudden acceleration was the subject of a series of Los Angeles Times articles in 2009, after a horrific crash outside San Diego that took the life of an off-duty California Highway Patrol officer and his family.

Under terms of the agreement, which has not yet been approved in court, Toyota would install brake override systems in numerous models and provide cash payments from a $250-million fund to owners whose vehicles cannot be modified to incorporate that safety measure.

In addition, the automaker plans to offer extended repair coverage on throttle systems in 16 million vehicles and offer cash payments from a separate $250-million fund to Toyota and Lexus owners who sold their vehicles or turned them in at the end of a lease in 2009 or 2010. The total value of the settlement could reach $1.4 billion, according to Steve Berman, the lead plaintiff attorney in the case.

The lawsuits, filed over the last several years, had been seeking class certification.

News of the agreement comes scarcely a week after Toyota agreed to pay a record $17.35-million fine to the National Highway Traffic Safety Administration for failing to report a potential floor mat defect in a Lexus SUV. Those come on top of almost $50 million in fines paid by Toyota for other violations related to sudden acceleration since 2010.

The massive settlement does not, however, put Toyota's legal woes to rest. The automaker still faces numerous injury and wrongful death claims around the country, including a group of cases that have been consolidated in federal court in Santa Ana, and other cases awaiting trial in Los Angeles County.

The first of the federal cases, involving a Utah man who was killed in a Camry that slammed into a wall in 2010, is slated for trial in mid-February.

The California cases are set to begin in April, among them a suit involving a 66-year-old Upland woman who was killed after her vehicle allegedly reached 100 miles per hour and slammed into a tree.

Edgar Heiskell III, a West Virginia attorney who has a dozen pending suits against Toyota, said he is preparing to go to trial this summer in a case that involved a Flint, Mich., woman who was killed when her 2005 Camry suddenly accelerated near her home.

"We are proceeding with absolute confidence that we can get our cases heard on the merits and that we expect to prove defects in Toyota's electronic control system," he said.

Toyota spokesman Mike Michels said the settlement would have no bearing on the personal injury cases.

"All carmakers face these kinds of suits," he said. "We'll defend those as we normally would."

The giant automaker's sudden acceleration problems first gained widespread attention after the August 2009 crash of a Lexus ES outside San Diego.

That accident set off a string of recalls, an unprecedented decision to temporarily stop sales of all Toyota vehicles and a string of investigations, including a highly unusual apology by Toyota President Akio Toyoda before a congressional committee. Eventually Toyota recalled more than 10 million vehicles worldwide and has since spent huge sums — estimated at more than $2 billion, not including Wednesday's proposed settlement — to repair both its automobiles and public image.

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Analysis: Amazon’s Christmas faux pas shows risks in the cloud

(Reuters) – A Christmas Eve glitch traced to Amazon.com Inc that shuttered Netflix for users from Canada to South America highlights the risks that companies take when they move their datacenter operations to the cloud.

While the high-profile failure – at least the third this year – may cause some Amazon Web Services customers to consider alternatives, it is unlikely to severely hurt a fast-growing business for the cloud-computing pioneer that got into the sector in 2006 and has historically experienced few outages.

“The benefits still outweigh the risks,” said Global Equities Research analyst Trip Chowdhry.

“When it comes to the cloud, Amazon has got it right.”

The latest service failure comes at a critical time for Amazon, which is betting that AWS can become a significant profit generator even if the economy continues to stagnate. Moreover, it is increasingly targeting larger corporate clients that have traditionally shied away from moving critical applications onto AWS.

AWS, which Amazon started more than six years ago, provides data storage, computing power and other technology services from remote locations that group thousands of servers across areas than can span whole football fields. Their early investment made it a pioneer in what is now known as cloud computing.

Executives said last month at an Amazon conference in Las Vegas they could envision the division, which lists Pinterest, Shazam and Spotify among its fast-growing clients, becoming its biggest business, outpacing even its online retail juggernaut. Evercore analyst Ken Sena expects AWS revenue to jump 45 percent a year, from about $ 2 billion this year to $ 20 billion in 2018.

The service has boomed because it is cheap, relatively easy to use, and can be shut off, scaled back or ramped up quickly depending on companies’ needs. As the longest-running player in the game, Amazon now boasts the widest array of datacenter products and services, plus a broader stable of clients than rivals like Google Inc, Rackspace Inc and Salesforce.com Inc.

Outages such as the one that took down Netflix and other websites on the eve of one of the biggest U.S. holidays are part and parcel of the nascent business, analysts say. Moreover, outages have been a problem long before the age of cloud computing, with glitches within corporate datacenters and telecommunications hubs triggering myriad service disruptions.

COMING SOON: POST-MORTEM

Amazon’s latest service failure comes months after two high-profile outages that hit Netflix and other popular websites such as photo-sharing service Instagram and Pinterest. Industry executives, however, say its downtimes tend to attract more attention because of its outsized market footprint.

Netflix – which CEO Reed Hastings said relies on AWS for 95 percent of its datacenter needs – would not comment on whether they were pondering alternatives. Analysts say the video streaming giant is unlikely to try a large-scale switch, partly because all cloud providers experience outages.

“Despite a steady stream of these service outages, the demand for cloud services offered by AWS, Google, etc. continues to escalate because these services are still reliable enough to satisfy customer expectations,” said Jeff Kaplan, managing director of consultancy ThinkStrategies Inc.

“They offer cost-savings and elasticities that are too attractive for companies to ignore.”

But “Netflix and other organizations which rely on AWS will have to reexamine how they configure their services and allocate their service requirements across multiple providers to mitigate over-dependency and risks.”

AWS spokeswoman Rena Lunak said the outage was traced to a problem affecting customers at its oldest data center, run out of northern Virginia, which was linked also to the June failure.

The latest glitch involved a service known as Elastic Load Balancing, which automatically allocates incoming Web traffic across multiple servers in order to boost the performance of a website. She declined to provide further details about the outage, saying the company would be publishing a full post-mortem within days.

AWS has traditionally been used by start-up tech companies and smaller businesses that anticipate rapid growth in online traffic but are unwilling or unable to shell out on IT equipment and management upfront.

The company has more recently started winning more and more business from larger corporations. It has also set up a unit that caters to government agencies.

Regardless, Amazon’s clientele would do well not to put all their eggs in one basket, analysts say.

“Service outages do occur, but they are not common enough to cause users of these services to abandon today’s Cloud service providers at significant rates. In fact, every major Cloud service provider has experienced outages,” Kaplan said.

“Therefore, organizations that rely on these services are putting backup and recovery systems and protocols in place to mitigate the risks of future outages.”

(Additional reporting; editing by Edwin Chan and Richard Chang)

Tech News Headlines – Yahoo! News

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