US: Murdoch on the future of newspapers

Posted by Lauren Drablier on September 15, 2008 at 12:08 PM

Rupert Murdoch was recently declared one of Esquire's 75 most influential people of the 21st Century, in an issue of the monthly magazine that included a special e-Ink cover.

In an interview with Esquire, Murdoch discussed his personal history, the effects of growing up in a journalistic family, and his first foray into the US market with the purchase of the tabloid daily, The Star. He also talked about the challenges faced by newspapers, competition between the Wall Street Journal and the New York Times, and the age of the Internet and social networking.

The Future of Newspapers

Murdoch admitted that he "did not know the future" but that he was sure that knowledge is going to become increasingly more valuable. He went on to discuss the changing business models of old newspapers and even admitted that "if you look at the readership of newspapers...its worrying." But went on to talk about the future of the Internet and its "tremendous" use.

As far as brand names, Murdoch understands the necessity of having a trusted one. "There are a huge number of people in this country who don't trust The New York Times. There are a huge number that trust The Wall Street Journal and have, in varying degrees, loyalties to their local newspapers." Murdoch claimed that creating a bond of loyalty "is the job of a newspaper, to be able to keep people, to stay with them, and to make them satisfied with what they get from one place as much as possible."

The Future of the WSJ

On the future of the WSJ, Murdoch refuted his critics by claiming, "It's bullshit to say we're going to dumb down The Wall Street Journal. We didn't dumb down the London Times -- we made the London Times. The Sunday Times, too. Are they a little more popular than they were? Yes. They are populist papers. You've got to listen to readers."

He went on to describe the WSJ as a "unique opportunity" that he intents to keep at a "very high intelligence level" in order to "get the most affluent and influential audience in America."

The New York Times

Murdoch had some mixed messages for his new rival, the New York Times, but maintained that the Times remains an important institution. "Everyone can see that The New York Times is a magnificent paper in many ways, lots of ways, but you can also see that they choose stories, very often for page 1, based on an agenda. I think that Arthur Sulzberger, over the years, has made it very clear that he wants a very liberal paper, and that he wants a staff that reflects that community. For five years, he didn't want any white, heterosexual men hired. He was sending a clear message."

"Don't get me wrong -- I don't think for a minute that we're going to put The New York Times out of business. I think they have a future, too. But I think there's certainly room for an alternative, a strong alternative."

The Internet

Murdoch discussed how he expanded to the Internet after recognizing the potential for revenue and future opportunities. "We looked around at a lot of things and rejected most of them as too expensive or limited in their capacity to expand. And then we found MySpace." The purchase proved to be a huge success as MySpace quickly became the world's largest social networking site.

In conclusion, Murdoch made it known where he stands in the world of business, simply stating, "I love competition. And I want to win."

Sources: Esquire