News Corp. carried by digital, loyal to print

Posted by Jean Yves Chainon on February 9, 2007 at 4:58 PM

News Corp. Chairman and CEO Rupert Murdoch, in a speech on Feb. 8, reiterated concerns for newspapers’ vulnerability, although he still values their importance. Clearly though, digital operations have supported News Corp. continuous strong results.

Revenues from Fox Interactive Media alone (including MySpace and IGN gaming news network), could reach $1 billion next fiscal year (ending June 2008). News Corp.’s Fox studio, just with the movie Borat, grossed above $128 million in the US.

On the other hand, "newspapers are very vulnerable. We have got to be neutral about what platform we sell them on," he said. "The old lifestyle of families reading a newspaper over breakfast is gone."

Still, Murdoch has no plans to part with his newspaper division.

He is actually still interested in purchasing Long-Island (New York) Newsday, to combine its operations with already owned New York Post.

Murdoch remains loyal to the print industry, but he is certainly hatching ways to make it more profitable again.

Source: CNN Money