Facebook co-founder and CEO Mark Zuckerberg spoke to the Reuters Global Technology Summit on Tuesday and while he wouldn’t touch TechCrunch’s report about financing and valuation, he did opine about a few of Facebook’s Web peers:

On the difference between Facebook and MySpace:

I think MySpace defines themselves as more of a media company and a media portal. A way to see the different content that is going on, or a way for a News Corp parent company to spread content through the network. Facebook has always been more focused on helping people build out their identity, helping people maintain their relationships and communicate really efficiently. We have talked about ourselves as a technology company a lot as opposed to a media company.

On the difference between Facebook and Twitter:

We respect Twitter and we think they are a great company. I think Twitter’s focus different is markedly different from Facebook’s. They are not really at all about a user’s identity. They are more about real time communication. People are sharing more and more information…and on a more frequent basis. If you extend that out then there is a good amount of information that is being shared in real time. That’s where a service like Twitter comes in, and that’s why that’s also one piece of what we want to do. If your friend does something important…there is no reason why you don’t want that update immediately. Real time is clearly one of the growing trends but i don’t think it’s the whole picture.

Photo: Reuters

Someone stealing your identity? Using your credit card to buy a flat screen TV…in Germany? Credit card companies often catch those shopping anomalies and quickly alert you. But Sybase CEO John Chen says that increasingly you may not get a phone call asking “are you in Germany right now?”

That’s because companies are trying to save money by using new technology. So rather than staff a room full of people to call you when they detect a problem — they will automate the process. You’ll simply get a text message.

Because everybody is trying to save money, they are trying to get rid of the call center and use mobile messaging instead. We have a major account with Citibank - we ran all of their  mobile fraud alerts. Let’s say you are here right now, and somebody is using your credit card to buy a washer and dryer in Brazil. Normally what they would do is call you on the phone and…make sure that you are the (right) person, to confirm. We are now rolling out with Citibank cards around the world that they are now texting you. And they say if this is not a right thing, you should call us or text back to us. The good news about that is it will reach you around the world 7/24.

He noted that this does not portend the end of the call center as we know it, and certain demographics will never fully embrace the idea that your bank — you know, where you keep your money –  might “text” you.

It’s a very generational thing. Like with my kids; they are more comfortable doing that — more comfortable (even) than with email.

How do entertainment retailers come up with the prices they charge? Why is a movie theater ticket $10, a music CD $15, a rental DVD $3-$5 and a top video game $60?

We asked Strauss Zelnick, executive chairman of game publisher Take-Two. He says it's simple math, based upon the value of that experience.

Prices are determined by the marketplace -- if folks stopped buying stuff, prices would fall, etc. (Think gasoline). Balance that with cost. A game like Halo or Grand Theft Auto takes years to develop and costs as much to make as a Hollywood film.

Here's Zelnick in his own words:

The reason the consumer is willing to pay $60 for front-line product is because they are going to get 20-plus hours of game play out of that product.

I'm a big believer that there is an equation for the pricing of front-line entertainment products, which is: The hours of expected consumption times the value per hour, plus the catalog value.

The price per hour is pretty stable across media. For example, a motion picture: You have two hours of experience in the theater, a very high-quality experience, zero catalog value. So what's that worth? I guess about $5 an hour (on a per capita basis). If you apply that to a video rental, also zero catalog value, there's multiple people watching typically, it's a lower quality experience, that's how you get a video rental of three bucks. Recorded music, you will listen to the album (up to 10 times -- or hours -- on average). The same equation applies.

There's more:

What's driving that front-line price point is the perceived quality of the experience, times the number of hours you are going to have that, so that the price per quality hour of the experience, times the hours, plus catalog value. And I understand why that number would be, for the sake of argument, $60, versus for sake of argument, $15 for an album, versus $3 for a video rental, versus 10 to see a front line movie.
They are not so far off.

So it's not that we came up with that price point out of the blue. If we came up with it out of the blue, we wouldn't be selling anything at that price point.

For the record, the industry walks the walk. Take-Two's Grand Theft Auto has sold more than 10 million units in less than a year. And other huge industry sellers such as Metal Gear Solid, Fable, Halo, Madden NFL, Rock Band and Guitar Hero? Most have sold more than a million copies -- at $60 a pop, or more.

I admit that I've bought $5 DVDs, cheered, and watched them only once. I've also paid $60 for games, grumbled about it, and played them for months. Now I'm thinking about buying Rock Band 2 ($189) or Guitar Hero: World Tour (also $189) for the holidays. (grumble grumble grumble)

So what do you think? Are video games fairly priced?

(Photos: Screenshot from Amazon.com; Zelnick, Reuters)

In tough times, perhaps the maxim “beauty is in the eye of the beholder” is even more true.

In the eyes of Blockbuster CEO Jim Keyes, your local video rental joint is a kind of temple for story-loving consumers anxious to find just the cinematic gem they most desire, so they can “Go Home Happy.” That’s what makes it different than online video rental shop Netflix, right, Jim?

Reuters:

Given the economic concerns, and as you eye staff costs, might you perhaps automate the in-store movie checkout process? Maybe eliminate the kid behind the counter?

Jim Keyes:

This is an art - it’s movie matchmaking. It’s a very important art that we are trying to bring back into our culture, rather than replace with a computer. And we think actually it represents a point of differentiation for Blockbuster to have that person at point of sale to talk to…  So it’s actually quite the opposite. Much of the savings that we have found in other areas we have been trying to redeploy back into the store to enhance the store labor.

What’s that you say, dear reader? Your local Blockbuster’s employees are more like teenage mallrats than movie matchmakers? Tell it to his boss. Or in our case, his boss’s boss’s boss.

Reuters: But my guy at my blockbuster isn’t quite there yet…

Jim Keyes:

He’s not there yet? We’ve got a little training opportunity? (he laughs, while quietly pulling out his Blackberry). Which store is it?

Reuters: Forest Hill, New York (just east of Manhattan)

Second Reuters Reporter: Yeah that’s not a very good one…

Keyes: (Still smiling, but quickly thumbing his Blackberry)

I think we can handle that.

(Dear Forest Hills Blockbuster employees: Ummm, Sorry. All the best, Reuters)

(Photos: Keyes, Reuters; Employees, Blockbuster.com)

It’s easy to tell that Bud Selig, Major League Baseball’s commissioner, is a lifer, a true old-school fan with his dream job. He tells great stories about being a fan, a lifelong friend of icons like Hank Aaron, and is famous for being energetic when watching games live.

He loves it so much that this year he re-upped for 4 more years as its top dog, even after he said he would not. But at the Reuters Media Summit, he says that in 2012, he’s done. It’s over. Seriously. Done. Selig, signing off. Over and out. Right Bud?

Reuters: Two years ago you told us that none of your cohorts would believe you when you said that in two years time when your contract was up, that you were going to walk away…

Selig: (interrupting) I am done this time. I’m going to be 78 years old — if anybody thinks I’m doing it after that… I know, I’ve said it seven times and I understand all the concerns, and you are right to have them, but this time (pounding his fist on the table) I’m done. I’ve got four more years. That’s enough. “

For what it’s worth, the next few years won’t be so easy, with a troubled economy threatening to shrink ticket sales and advertising revenue. He’s cautiously optimistic, and hopes to leave the game is good shape, when he (ahem) leaves in a few years.

“The sport has had remarkable growth. And it’s more popular than it’s ever been. I look at my job…. I just want to keep it on an even keel as we go through some very troubled waters.”

(Photo: Reuters)

The NFL is getting a lot of gruff over the fact that some of its players have been taking the “bad boy” persona a wee bit too far. But the league says that most of its players know that violence belongs on the field; not at home, in bars or, say, crossing state lines.

Eric Grubman, the NFL’s top business executive, declined to comment on the incident involving New York Giants receiver Plaxico Burress — who shot himself this past weekend.

But Grubman told the Reuters Media Summit that most of the league’s other players behave themselves.

Bad behavior hurts all of us. The fans don’t like it, our sponsors don’t like it, and you know what? The players don’t like it. The vast majority of players are hard working.
We hear about a few players a week, out of 1,600 players, many of them have been out of college a couple of years. To have so few incidents out of the total is really astonishing.

Of course, his “so few” is “so many” to others, particularly bloggers. One site counts the number of days since an NFL player has been arrested. Today, in light of Burress, it’s set at Zero.

I don’t want to comment on that case, because I don’t know what the facts are and I’m not the commissioner, but our policy in regard to firearms and other things are abundantly clear, and every player’s responsibility to adhere to those policies. Yeah these things are bad, but I would really emphasize that it’s a small minority of players (who get in trouble).

He added that the league avoids any real backlash from sponsors by quickly identifying and taking action against bad behavior.

I would say it’s the other way. Commisioner Goodell has gotten extraordinary kudos from sponsors from the fans and the media, from politicians for taking a strong consistant line and identifying where the boundaries are. The boundaries are not grey, (they are) very, very clear. He thinks it’s a vital part of the NFL to hold those boundaries.

For what its worth, here is NFL’s Gun Policy, and here is the part that might apply to Mr. Burress:

Discipline

If you violate this policy on guns and other weapons, you are subject to discipline, including suspension from playing. And if you violate a public law covering weapons, for example possession of an unlicensed firearm, you are not only subject to discipline, including suspension from playing, but also subject to criminal prosecution.

(Photos: Top: Eric Grubman; Bottom: Plaxico Burress, Reuters)

With the white noise of MicroHoo ringing in everyone ears, we asked Adobe Systems CEO Shantanu Narayen why he thinks “royal weddings” — idylic mergers between multi-billion dollar companies — in Silicon Valley are few and far between.

You know, because, giant Deathstars are better for everybody, right?

The answer: Even though some merger adviser is probably ringing to talk about “strategic alternatives” (we suppose), Silicon Valley entrepreneur-types are, like, you know, obsessed with minding their own beeswax.

I think the Valley is all about innovation and about charting your own course. And companies seeing opportunities for themselves. I’m focused on how do I continue to drive great new products and deliver value to my shareholders.

I think the zen or the DNA of people there is all about growth and all about driving new innovation.

He was speaking in New York at the Reuters Global Technology, Media and Telecom Summit, where he spoke of his own company’s appetite for mergers.

(Photo: Reuters)

With one high-profile female Silicon Valley CEO swapping her executive office for a more political challenge, another — VMWare co-founder Diane Greene — says she’s sticking around.

I have built VMware. I am really excited about where we are going to be able to take this company and I am quite engaged in doing that. I am here for the foreseeable future.

I feel like we have been through several stages in VMware’s existence. Products-wise we are in a position now where every CIO appreciates what we do and knows that they can trust us, and puts us in a position where we have a pretty exciting future.

However, after running the show at VMWare since founding it a decade ago, its hard to avoid the comparison between Green and Meg Whitman, the former CEO of eBay.

Whitman stepped down this year, sticking to her mantra that any CEO in charge for more than 10 years has overstayed their usefulness.

Whitman has since been running her family’s foundation, and continues to be talked about as a possible candidate for anything from the California Governor’s seat to a higher office in Washington.

Not so for Greene. At the Reuters Technology Media and Telecoms Summit, she stated plainly…

…I am not planning to be Governor of California.

(Photo: Reuters)

Advertising in its many forms takes the lead on the fourth day of the Reuters Media Summit in New York. Speakers include David Sanderson, head of Bain & Company’s Global Media Practice, where he helps a wide range of clients drive significant improvement in financial performance.

His view will be contrasted by Rino Scanzoni, chief investment officer at Group M.

Finally, the Summit will host John Riccitiello, chief executive officer of Electronic Arts, the leading maker of interactive game software, a platform that increasingly is a home for advertising.

Here are some of the highlights from Tuesday:
- Major League Baseball Commissioner Bud Selig said he expects the league to set revenue and attendance records in 2008 despite the specter of a long-awaited report on players’ use of banned performance-enhancing drugs.

- The commissioner of U.S. Major League Soccer, Don Garber, said soccer star David Beckham should make $250 million from his five-year deal with Los Angeles Galaxy.

- Federal Communications Commissioner Robert McDowell said it was unlikely the FCC’s planned closer look at cable TV subscriber levels would trigger tougher regulations of the industry.

- MTV Networks plans to make every clip from every episode of hit animated comedy “South Park” available for free online next year.

-  Discovery Communications expects its upcoming Planet Green cable channel to expand its reach within three years of its 2008 launch, with potentially 70 million homes hooked into its eco-friendly programming.

(In addition, check out video interviews with these executives)

Keep an eye on:

• Warner Music, the world’s third-largest record company, posted a fall in quarterly profit, hurt by an industry-wide slump in CD sales. (Reuters)
• Broadway theaters and the striking stagehands union have reached a deal to end a strike which has kept most of the premier U.S. theater district dark since Nov. 10. Performance for all shows could begin today. (Reuters)
• “Metal Gear Solid 4″ is not only one of the most eagerly awaited games for Sony’s PlayStation 3, it is also among the last of a dying breed — games designed exclusively for one gaming console. (Reuters)
• The New York Times newspaper has frozen new hiring and has cut a small number of newsroom jobs as it tries to rein in spending. (Reuters )

(Photo: Electronic Arts’ Madden NFL 08 video game)

Former NBC chief Randy Falco has some advice for TV and advertising industry bigwigs: be more experimental and mindful of the opinions of your viewers and customers.

Falco, now Chairman and Chief Executive Officer of AOL LLC, told the Reuters Technology Media and Telecoms Summit that TV and advertising decisionmakers must have the “guts” to listen to the opinions of their customers, especially as the ways they experience media change.

I came from a business [where] you were a one-way publisher. And so are advertisers by the way. They came up with a show… and you just published it. You didn’t expect to hear back from your customers (or) your viewers. It was a supply economy, and we are so much now into a demand economy.

[Consumers] are not just going to sit there and take it. They are not just going to sit there and watch a 30-second spot if they have an alternative. They are in control. What’s great about the Internet is that it is a constant two-way conversation, and if you have guts enough to listen, you can iterate your way to sucess.

The broadcast side of the business has to open itself up to its customers. Advertisers have to open themselves up to customers, and they have to let go a little bit. Everybody wants to hold to everything and the Web is telling them that in order to be successful, you have to let go. You have to get it out there and let people play with it.You have to let people tell you what they think of it. And you actually have to listen.