Mail & Guardian Online
THE SMART NEWS SOURCE | Nov 29 2009 06:53 | LAST UPDATED Nov 29 2009 06:53
News | World | North America

Murdoch: Plan to charge for online news content delayed

WASHINGTON, UNITED STATES Nov 05 2009 07:36
comments 6 comments | Post your comment


News Corp chairperson and chief executive Rupert Murdoch said on Wednesday that a plan to begin charging readers of his newspapers online may be delayed.

Murdoch had previously outlined plans to erect pay walls around his vast newspaper empire by the end of News Corp's current fiscal year in June, but he indicated that was now unlikely.

"We are working all very, very hard at this but I wouldn't promise that we're going to meet that date," he told reporters in a conference call after releasing News Corp's first-quarter results.

Asked what was causing the delay, he said: "Everything."

"It's a work in progress and there's a huge amount of work going on not just with our sites but with other people," Murdoch said.

The Wall Street Journal is currently the only newspaper in the News Corp group to charge readers for access to all of its content. Other News Corp properties include the Australian, the New York Post and the Times of London.

A slump in newspaper revenue was offset in the first quarter by strong results from News Corp's movie, cable television and book publishing divisions as the company posted an 11% rise in quarterly net profit.

Murdoch welcomed what he called "exceptionally strong results" despite "continued macro-economic challenges".

"The strategic steps we took last year to ensure stability during the downturn have proven successful, with significant cost reductions offsetting much of the revenue declines in our television and newspapers and information services segments," Murdoch said.

CONTINUES BELOW


"The economies in which we do business are clearly in better shape than they were a year ago, and we have further positioned our operations to take advantage of the improvements we are seeing globally," he said.

Newspaper division revenue declined 81% to $25-million.

Newspapers are struggling with plunging print advertising revenue, steadily declining circulation and the migration of readers to free news online, and Murdoch has announced plans to start charging online readers. -- AFP

TOPICS IN THIS ARTICLE

Related Articles

People

Comments

Information WANTS to be free.

Rupert is stuck on old mindset and old business models. Not willing to adapt. Just like the music industry and online music distribution.
Sinudeity @gmail.com on November 5, 2009, 10:16 am
Unlike music, art, photographs and so on, news events are not a copyright item ... so good luck Murdoch, I suspect your market will simply find a different, and free, source for exactly the same information.

Sinudeity, if you're suggesting that music should be available online for free, let me ask you, do you do your work for free? Should any employer be entitled to take the labour of employees without paying them?
Ray Ives on November 5, 2009, 11:36 am
Ray,

Do you appreciate the difference between theft and piracy?

If the fruit of my labour is taken by someone else and I no longer benefit from it, that is theft, and that would clearly be wrong.

If the fruit of my labour is taken by someone else, but I continue to benefit from it and so do many thousands of others, that would be piracy, and that is not clearly wrong. It is a case of my work fulfilling its potential of benefitting many more people than the person who claims copyright on it (which is not me, the maker of the music, but the large record company whose claims to it are morally dubious).
Paddy II on November 5, 2009, 12:15 pm
@ Ives, I agree. I haven't paid for news in years, because it's all readily available online, and the internet is much more environmentally friendly. Websites like the Huffingtonpost have taken most respectability out of the news business anyway. No one turns to the paper for up-to date information anymore. I suppose he's hoping that the influential titles will encourage readers to pay for subscriptions, but I doubt that will work.
Mimi Mak on November 5, 2009, 12:37 pm
Ives: With regards to music, every $2mill, that an album makes from album sales, the artists only receive $14,000.

Artists make their cash from live concerts.

How about paying R500 annually, and I can download as much as I want to?

Or, artists release the music for free, and I support them by going to gigs.

Or follow the Radiohead model, and download for free, but choose how much you want to donate to the band ($1 and up).

Or the NIN model, where you download the album for free, but if you choose to purchase an album, you get a collectors edition CD/Vinyl, and a colour booklet.

And the proceeds go directly to the artists, not the corporate fat cats. Piracy in the end, equals to free marketing for the band.

As another example, District 9, is one of the most pirated movies this year. Blomkamp aint complaining. Free marketing for him, plus, the fanboys will buy the DVD (even if they pirated the movie).

If companies start charging for their online news, then the public will simply get their news from bloggers and such.

My opinion though.
Further debate on this will be awesome.
Sinudeity @gmail.com on November 5, 2009, 12:38 pm
Debating copyright law in the comments to this article is probably somewhat off-topic. Regardless, I think I'll add something since this is an issue close to my heart.

Always keep in mind that morally right and wrong does not necessary align itself with legal and illegal. For example: most people would agree that Apartheid was morally wrong, but the system was upheld by laws that were legally right. Thus, any action taken in terms of those laws was legal, and yet wrong.

It is similar with copyright law. It is a man-made law (or more cynically, a corporation-made law). Infringing copyright is illegal, but that doesn't necessarily make it immoral.

What is the point of copyright anyway?

Supposedly to grant the creators of works an exclusive right to what they create in order for them to profit from it and to encourage the creation of more such works. Ultimately though, copyrighted material should return to the public domain for the greater good of society as a whole.

In practice, copyright does more to limit innovation. Content creators, if successful, can rest on their laurels and just collect royalties without doing any more work. The same goes for the big corporates that monopolise the content, and take their cut.

The artists can always do shows or sell their work in their personal capacity -- but the corporates cannot gain anything from shows. When new tech comes along, they baulk at having to innovatively adapt their business models, and instead put effort into retarding innovation in technology and art.

The corporates spew out a lot of propaganda. It's been going on for years. But artists keep creating. They must be making money somehow, despite all these supposedly massive losses to piracy.
Neil Robinson on November 6, 2009, 12:47 pm
You must be logged in to comment. Log in or sign up to comment
click here to log in
Advertising Links



LATEST ARTICLES IN THIS SECTION
POPULAR ARTICLES IN THIS SECTION
Kalahari.net
Up to 30% Off ALL Books. 2.3 million titles on SALE.
iPod nano 16GB - Black, Was R2,499.00 Now R2,299.00! Save R200!
46 000 DVDs and Blu-Ray on sale now! Pre-order Up and District 9!
100s of festive new releases now in stock! Now, Bump 25, Bon Jovi & more!
Lots of Toys, free gift wrap, lowest prices on Lego Mindstorm, Ben 10, Hannah Montana & more!




Follow the Mail & Guardian on Twitter!


Direct message us on our mailandguardian account to chat to the M&G Online team.
THIS WEEK'S PAPER

Advertisements


Advertising links