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Hardest hit was feature-film production, which had been steadily falling over much of the last decade as L.A. lost jobs to Canada and, increasingly, other states such as New Mexico, Louisiana and Michigan that offer lucrative tax credits and rebates to filmmakers. California's newly adopted film tax credit program helped to blunt the downturn, with production activity increasing by double digits in the second half of the year. About 50 productions have qualified to receive about $100 million in tax credits since the state program debuted this summer

But it could be a face-saving way to exit a market where Google has made surprisingly little progress. Most research companies agree Google controls at most one-quarter of China's search market. That's hard to swallow, given Google's dominant position in the U.S. and many other major markets.

Google has never been a big believer in traditional marketing anywhere, including China, while Baidu is an active advertiser in TV, out-of-home and digital media.

"Their chief problem was the idea they could come into the market without doing marketing and expect to replicate the miraculous success they had enjoyed in the U.S. They did no marketing," said Kaiser Kuo, a Beijing-based consultant for Youku.com and the former of head of digital strategy at Ogilvy & Mather in China.

Google said on Tuesday that it was considering shutting down Google.cn and closing its offices in China after a cyber attack on its corporate infrastructure resulted in intellectual property loss. Google also said it would stop censoring search results on Google.cn. For the first time, reports and images of the Tiananmen Square massacre and other events could be seen through Google searches in China.

Chinese American media rushing to provide their analysis in the context of U.S.-China relations. “Google, Don’t become a tool in the political fight between the U.S. and China” read the headline of an editorial published Friday in China Press. “Though Obama tried to adapt to China’s increasingly powerful role in the world with a new attitude and said the United States would not repress China’s development, the differences in ideology between the countries continue to prohibit the U.S.-China relationship from moving forward,” the editorial argued.

“If the Chinese government just let it go, Google could stop its financial losses in China, which would be beneficial to its share price. If the Chinese government is willing to compromise, Google will become the ‘hero’ that breaks China’s strict control over Internet information.” Chinese investors, Leung noted, believe the absence of Google will actually benefit the local Internet market; the stock prices of Chinese Internet companies rose right after the announcement was made.

For the better part of 50 years, advertisers have used live-only as their currency. In the last few years, Nielsen has added new streams of program data to account for time-shifting. But few, if any, advertisers made deals on these other metrics.

From a TV station's perspective, Thomas says, live-plus-same-day viewing "is more reflective of the way people are consuming TV these days." About 60% of time-shifted viewing occurred during the same day, usually within a few minutes of the live airing.

Affordability is the hard part — because there is no competition pushing down prices. The plan acknowledges that only 15 percent of homes will have a choice in providers, and then only between Verizon’s FiOS fiber-optic network and the local cable company. (AT&T’s “fiber” offering is merely souped-up DSL transmitted partly over its old copper wires, which can’t compete at these higher speeds.) The remaining 85 percent will have no choice at all.

significant reason that other countries had managed to both expand access and lower rates over the last decade was a commitment to open-access policies, requiring companies that build networks to sell access to rivals that then invest in, and compete on, the network.

These countries realize that innovation happens in electronics and services — not in laying cable.