Kim Masters, John Horn and Michael Schneider review the top entertainment business stories of 2012 like Disney becoming the new home to Star Wars and The Walking Dead being the biggest hit on television. Other TV news from the year include the renaissance of NBC and the increased use of DVR's affecting what shows get made or renewed. On the film side, 2012 saw a few big bets fail, like Battleship and John Carter while "adult dramas" like Lincoln, Argo and Life of Pi succeeded. Looking ahead to 2013, we consider how Hollywood will respond to the Newtown shootings, going forward in terms of violence in TV and movies. We also look at the Netflix effect and it's 2013 experiment into original programming with the revived Arrested Development and the series House of Cards. Plus, the chance that more consumers will consider "cord cutting" -- people cancelling their cable or satellite subscriptions. In film, one or two movie studios possibly up for sale in the coming year; a Chinese company could very well be a buyer.