Rupert Murdoch says News Corp intends to charge for online news

August 6, 2009

(ChattahBox) — News Corporation chief Rupert Murdoch indicated plans to charge for all online content of his newspaper and TV empire, to boost revenue from online news, by stating the mastheads could no longer afford to simply give away information on the internet. If so the impact will be felt across the globe as Murdoch’s News Corp empire includes the Wall Street Journal, the New York Post, The Sun, News of The World, Sky, Fox News and basically anything ever published in Australia. Murdoch said during the company’s June-quarter earnings teleconference yesterday that the change was likely to happen by June next year. He cited online subscriptions to The Wall Street Journal since its acquisition in 2007, as a paid digital content model. Not sure Murdoch’s other publications are of WSJ caliber though, i.e. it may be the exception, not the rule. But he seems serious to try anyway saying:

“We’re very hopeful we can produce significant revenues from the sale of digital delivery of newspaper content,” he said.

“I believe that if we’re successful, we’ll be followed by all the media.”

It’s a scary proposition to consider if this became a widespread practice. But really will readers remain loyal or follow the path of least inconvenience? After all it’s awfully hard to compete against free.

As for its earnings report, News Corp. reported full year adjusted operating income of $3.6 billion, a 32.5% decrease from a year ago. For the fourth quarter, the company posted a $203 million loss, compared with earnings of $1.1 billion in 2008.


Comments

7 Responses to “Rupert Murdoch says News Corp intends to charge for online news”

  1. Old Man Dotes on August 6th, 2009 11:48 am

    Yeah, well, good luck with that, Rupert. It will be a great way to eliminate traffic to your Web sites, anyhow.

  2. Chris R on August 6th, 2009 1:19 pm

    I don’t think he will actually go through with it. It is currently in the talking stage. I suspect he is simply testing the water.

  3. Ronk on August 6th, 2009 1:20 pm

    Brand loyalty is a thing of the past. If someone can get something somewhere else for free, why would they pay for it?

    Not to mention; if it is on the Internet, it can be stolen.

  4. Dan Smith on August 6th, 2009 2:28 pm

    I agree that brand loyalty is over, especially when a lot of people don’t even know what all a particular entity owns. Still, at the end of the day, a journalist/editor/etc needs to be paid, so the question then is how to make that happen if ad sales aren’t working.

  5. Vinceint Apellego on August 6th, 2009 3:46 pm

    wow, this is bad news for all the people reading the news now…soon blogs will officially take over..

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