From KCRW and KCRW.com, I'm Kim Masters, and this is The Business.

You listen, if you listen and learn, then you're going to be able to do anything you want next time.

Everybody takes his own business, business really, really, all white life.

What's with him?

Oh, I'm afraid he's gone Hollywood.

This week on the business, 2012 was a big year for the industry.

There was the News Corp hacking and bribery scandal.

Disney bought Lucasfilm, making it the new home of Star Wars.

And in TV, some cable shows are now drawing bigger ratings than their competition in broadcast.

We've got the year in review with John Horn of the L.A. Times and TV Guide magazine's Michael Schneider.

Stick around. It's the business from KCRW.

You can imagine Hollywood. Everything is really driven by making money.

What's with him?

I'm joined in the studio by my regular banter buddy, John Horn, at the Los Angeles Times,

and Michael Schneider of TV Guide magazine.

Okay, so starting with television, Mike, if there is a big, one big story,

is there one big story that you think we should start talking about for TV?

Because there are certainly a number of contenders.

Well, I think you know, you can't talk about 2012 and not talk about how much the broadcast TV networks were disrupted this year by several factors.

But key was DVR penetration. So the digital video recorder now is in almost 50% of homes, which, you know, we've been waiting for this sort of through the looking glass moment.

And I think we're finally here where it's really impacting everything from ratings to deciding whether or not a show should be canceled or not.

So the networks this fall were really sort of just up in the air in terms of

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