Wednesday, August 05, 2009

News Corp (FOX) to charge for all news websites

Business Spectator

Media giant News Corporation Ltd intends to charge for all its news websites in a bid to lift revenues, as the transition towards online media permanently changes the advertising landscape.

News Corp chairman Rupert Murdoch told analysts in a conference call after News Corp released its full year results that the traditional newspaper business model has to change.

"The digital revolution has opened many new and inexpensive methods of distribution," Mr Murdoch said.

"But it has not made content free. Accordingly we intend to charge for all our news websites," he said.

He said News Corp would use the Wall Street Journal's online vehicle as a model.

"The extended downturn has only increased the drumbeat for change," he said, arguing that classified advertising for online news would never reach the levels once offered by print.

"Quality journalism is not cheap, and an industry that gives away its content, is simply cannibalising its ability to produce good reporting," Mr Murdoch said.

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