Higher theatrical and cable TV financial results lifted News Corp. net income 11% to $571 million in the third quarter. Quarterly revenues were also higher: 9% to $1.04 billion.

Film entertainment -- bolstered by big worldwide theatrical sales of "Ice Age: Dawn of the Dinosaurs" -- witnessed an improvement in operating income, from $251 million to $391 million.

Cable network operating income -- the biggest contributor to operating income -- rose to $495 million from $350 million a year ago.

Cable gains came from its Fox News Channel, Fox International Channels, STAR, Fox's Regional Sports Networks and its Big Ten Network. Total operating income was at $1.04 billion, against $953 million.

Fox's television business continues to get beaten up, especially from lower advertising sales for its local TV stations. Operating income declined to $38 million, from $45 million in the same period a year ago.

But the Fox network business continues to improve. Chase Carey, deputy chairman, president and COO of News Corp., said on the call with analysts: "The scatter market is stronger now versus a month or two ago. It's tough to get out in front of it because advertisers are buying later."

This could help Fox if advertising spending continues to thrive, since it will have more ratings points to sell.

Fox has been the perennial leader among all broadcast networks with 18-49 viewers for the entire season. But its main push for that top spot doesn't rev up until after the first of the year, when "American Idol" gets going.

Rupert Murdoch, chairman and CEO for News Corp, said for the first time, Fox has gained the top position as of this fall. He also noted that World Series ratings are 36% higher than a year ago.

Ad categories that have seen improvement are movies, fast food, financial and automotive. Still, Fox says sports revenue declined, principally due to fewer National Football League games broadcast and lower Major League Baseball revenue.

Concerning NBC Universal -- which is in play -- Rupert Murdoch, chairman and CEO for News Corp., reiterated what he has said before: "We are not interested in NBC. [But] when things come around, we kick the tires."

Regarding the possible acquisition of The Travel Channel, a Cox Communications-owned network, Carey said the company had no comment.

Fox's Digital Media Group, which included MySpace, saw earnings decrease by $22 million, mostly from lower search and advertising revenue. The Digital Media Group is in News Corp.'s "Other" segment, which reported a first-quarter operating loss of $128 million -- $27 million greater than the prior year.

Newspaper and information services operating income sank to $25 million from $134 million in the previous period. The fall came from lower advertising revenues. Revenues were at $1.4 billion, against $1.7 billion.