Murdoch urges newspapers to charge for online content
WASHINGTON - News Corporation chief executive Rupert Murdoch has said newspapers must find ways to charge for online content to offset plummeting ad revenue, revealing that his company is investing in a mobile newspaper reading device, similar to Amazon's Kindle.
Murdoch, who owns the Wall Street Journal, one of the few national titles to charge for its digital content, said online advertising simply can no longer cover the costs associated with double-digit revenue declines in print advertising.
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Speaking at a cable television event in Washington, Murdoch said: "People are used to reading everything on the net for free, and that's going to have to change."
Murdoch said time is running out for publishers, such as the New York Times Company, which provides its digital content for free but cannot possibly sell enough advertising online to keep carrying its print division.
As publishers across the US struggle with falling revenues, with major publishers such as Tribune filing for bankruptcy, many remain hesitant to charge readers for online content, fearing they will simply go elsewhere for free content.
Murdoch said other options are available to beleaguered newspaper publishers. He revealed that News Corp is investing in an electronic newspaper reading device, like Amazon's Kindle or the Sony Reader, but was scant on further details, including whether the device would be proprietary and only carry News Corp publications.
Reuters reports that some newspapers are already heading down this route. National titles the Financial Times and USA Today are reportedly working with technology company Plastic Logic to develop a newspaper reading device, which could be launched next year.
Murdoch also had harsh words for search engines Google and Yahoo!, which aggregate links to stories in exchange for advertising revenue.
Murdoch said: "The question is, should we be allowing Google to steal all our copyright... not steal, but take."
Blog posts of the newspaper crises:
- US newspaper crises accelerates as Senator bids to keep business afloat
- Free lunch is over says The Economist as Indy talks charging.
- This is not a newspaper website (Seattle Post-Intelligencer goes digital).
- Would you buy a failing newspaper?
- Paid for content high on Guardian wish list.
- Time Inc considers charging subscription fees.
- How US newspapers are failing and the local future.
- Newsday -- beginning of the end for free content?
- Is it time for newspapers to start charging for content?
- Could the New York Times go under?
- The end of print for the Independent.
Murdoch: looking for ways to charge for online news
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