Murdoch wants to charge for his News websites

Murdoch wants to charge for his News websites

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Don

Original Poster:

28,377 posts

290 months

Thursday 6th August 2009
quotequote all
http://www.telegraph.co.uk/finance/newsbysector/me...

Telegraph said:
Rupert Murdoch to charge to view News Corp's online news

News Corp chairman plans to charge readers of the websites of all his newspapers within the next 12 months.

By James Quinn
Published: 7:58AM BST 06 Aug 2009

Rupert Murdoch said: If we're successful, we'll be followed by other media.

Mr Murdoch, chairman of News Corporation, pledged that the media conglomerate would “assert its copyright” over all its newspapers online, including the Sun and the News of the World (NOTW), to prevent stories and photographs being copied elsewhere.

The septuagenarian media mogul said that readers could expect to pay for its newspaper and television news websites within the current fiscal year, which ends next June.

Mr Murdoch singled out The Daily Telegraph's revelations on MPs expenses as an example of news for which readers would be willing to pay, describing it as a "great scoop".

"I'm sure pople would be very happy to pay for that," he said, adding that eventually the only “free competition” in the UK is likely to come from the BBC.

Although he gave no idea of how users might be charged – whether per article or by some form of subscription – he said he did not think charging was a risk, and that each of News Corp’s major papers had enough strengths to succeed online.

In the UK, it is already known that the Sunday Times is recruiting specialists to launch a separate stand-alone website from The Times. Mr Murdoch stressed that both the Sun and the NOTW played well online, especially when it came to celebrity scoops.

He gave a serious commitment to all four UK titles, saying he wants to “come out of this with much stronger franchises than we had before” and that in spite of significant cuts at some titles, journalism would not be touched.

“There’s already signs of pain and possible closures of one or two of our competitors,” said Mr Murdoch.

When asked if he might be interested in The Observer if it were to close, he responded “Hell no. Why?”

He made the comments as he unveiled a fourth quarter News Corp loss of $203m (£119m), due to a $680m write-down on its MySpace business, compared to a $1.1bn profit in the same period last year.

For the full financial year to the end of June, News Corp made a net loss of $3.38bn as a result of write-downs, against a profit of $5.4bn in the year to June 2008.

Meanwhile, network equipment maker Cisco saw fourth-quarter profits fall by 46pc to $1.1bn as corporate customers refrained from spending money on network equipment. Chairman John Chambers said however he was seeing positive trends in the coming quarters.
Dear Mr Murdoch.

The great war between Quality and Free was fought out in the early days of the WWW.

Free won.

You can roll with it or you can die.

I look forward to your vile publications going spectacularly bust. Why would you pay for The Sun when you can read a different paper for nothing?

You're not an idiot. So why on earth are you trying this? Are you that out of touch?

Don

theaxe

3,566 posts

228 months

Thursday 6th August 2009
quotequote all
Don said:
Why would you pay for The Sun when you can read a different paper for nothing?
I'm not sure that's a fair argument since there are loads of free papers out there but people still buy the Sun.

Really this move shows a lack of understanding about how the internet works. If I want a paper and there are no free ones around I might pay for one but on the internet there are thousands of alternatives, for free, just a click away.

Fittster

20,120 posts

219 months

Thursday 6th August 2009
quotequote all
Don said:
The great war between Quality and Free was fought out in the early days of the WWW.

Free won.

You can roll with it or you can die.

I look forward to your vile publications going spectacularly bust. Why would you pay for The Sun when you can read a different paper for nothing?

You're not an idiot. So why on earth are you trying this? Are you that out of touch?

Don
Please explain the FT and Wall Street journal?

The problem in the UK is the government undermines private sector media via the taxpayer supported BBC.

SJobson

13,081 posts

270 months

Thursday 6th August 2009
quotequote all
Don said:
Rupert Murdoch said: If we're successful, we'll be followed by other media.
And if you're not...?

Surely anyone who wants to read news online is simply going to look at the BBC or The Guardian rather than Sky or the Times.

FourWheelDrift

89,435 posts

290 months

Thursday 6th August 2009
quotequote all
Or going by the hysteria of some threads the Daily Mail.

Zod

35,295 posts

264 months

Thursday 6th August 2009
quotequote all
Fittster said:
Don said:
The great war between Quality and Free was fought out in the early days of the WWW.

Free won.

You can roll with it or you can die.

I look forward to your vile publications going spectacularly bust. Why would you pay for The Sun when you can read a different paper for nothing?

You're not an idiot. So why on earth are you trying this? Are you that out of touch?

Don
Please explain the FT and Wall Street journal?

The problem in the UK is the government undermines private sector media via the taxpayer supported BBC.
The FT and the WSJ provide quality content, not available elsewhere, for which sufficient people are prepared to pay (although lots of corporate subscriptions have been cancelled this year in cost-cutting rounds).

You are absolutely right about the BBC. It is a monster that smothers other media sources.

Martin Keene

9,838 posts

231 months

Thursday 6th August 2009
quotequote all
I think this shows a great misunderstanding on his part as to how and why I believe people buy newspapers.

There is so much 'news' around this days it is simply not necessary to buy a newspaper to keep up to date. I believe that most people buy a paper for something to read, sounds obvious, but bare with me, read as in pass the time with, not for the news article's.

I personlly buy very few papers, because as I have said, you don't need to buy one to keep up to date with the news and I have enough of a reading back log not to need the reading material. When I do buy a paper it will be something with a broad spectrum of articles, etc such as the Sunday Times.

So if people don't buy newspapers to keep up with the news, why are they going to pay to do the same on a medium which is essentially based on being free.

Puggit

48,768 posts

254 months

Thursday 6th August 2009
quotequote all
I do look at Skynews.com daily - mainly to see the front covers of the papers.

If he charges, I'll have to make do with the Biased Broadcasting Corporation - but I'm not paying!

thinfourth2

32,414 posts

210 months

Thursday 6th August 2009
quotequote all
Well they would have to pay me to read most of his websites

Semi hemi

1,800 posts

204 months

Thursday 6th August 2009
quotequote all
Someone needs to point out to the twunts on Sky News that those "newsbites" from their website that they show constantly, are not News if they have been on for over 24hrs.. they are history,
And to have Liam Gallagher telling us that he watches Sky News all the time... rolleyes

Marf

22,907 posts

247 months

Thursday 6th August 2009
quotequote all
Fittster said:
Don said:
The great war between Quality and Free was fought out in the early days of the WWW.

Free won.

You can roll with it or you can die.

I look forward to your vile publications going spectacularly bust. Why would you pay for The Sun when you can read a different paper for nothing?

You're not an idiot. So why on earth are you trying this? Are you that out of touch?

Don
Please explain the FT and Wall Street journal?

The problem in the UK is the government undermines private sector media via the taxpayer supported BBC.
And there is the rub.

People will only pay for specialist stuff, the BBC is a good enough source of news for the general populous not to even consider paying for online content.

fadeaway

1,463 posts

232 months

Thursday 6th August 2009
quotequote all
but free isn't sustainable.

someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.

Scraggles

7,619 posts

230 months

Thursday 6th August 2009
quotequote all
tend to use google news, anyone that charges me to look at their news site will probably be blocked at the router level smile

Fittster

20,120 posts

219 months

Thursday 6th August 2009
quotequote all
fadeaway said:
but free isn't sustainable.

someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.
Remove the compulsory licence fee and commercial media organisation would be able to compete.

Don

Original Poster:

28,377 posts

290 months

Thursday 6th August 2009
quotequote all
fadeaway said:
but free isn't sustainable.
Of course it is. Google is free, for example. Pistonheads is free. It's paid for via advertising.

Canny businessmen like Murdoch are used to selling you the goddamn paper (or tv channel etc) and STILL putting advertising in it. The problem they have is that the "free (paid for by advertising)" business model is here to stay. It's profits are lower per subscriber but you get loads more of them - if you're any good.

fadeaway said:
someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.
I do see why they want to try. It would really boost profits. It's just that it's not the way the 'net works. The net's tradition is that everything is free. Try to move away from that and you are fighting a losing battle.

fadeaway

1,463 posts

232 months

Thursday 6th August 2009
quotequote all
Fittster said:
fadeaway said:
but free isn't sustainable.

someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.
Remove the compulsory licence fee and commercial media organisation would be able to compete.
I can see that the license fee might be confusing things, but I don't think it's really such a big issue - there are plenty of other free news sources on the net (like almost all newspapers and TV news stations!), killing of the BBC News site won't make any difference to that.

Fittster

20,120 posts

219 months

Thursday 6th August 2009
quotequote all
Don said:
fadeaway said:
but free isn't sustainable.
Of course it is. Google is free, for example. Pistonheads is free. It's paid for via advertising.
Google just compilers other providers news. If those providers withdraw there services google news won't have much content.

The news on here is little more than manufactures press releases.

Halb

53,012 posts

189 months

Thursday 6th August 2009
quotequote all
fadeaway said:
Fittster said:
fadeaway said:
but free isn't sustainable.

someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.
Remove the compulsory licence fee and commercial media organisation would be able to compete.
I can see that the license fee might be confusing things, but I don't think it's really such a big issue - there are plenty of other free news sources on the net (like almost all newspapers and TV news stations!), killing of the BBC News site won't make any difference to that.
Exactly.
Personally I like the BBC...but I do not rely on it for everything. I use a myriad of forums and other news outlets...there are many many out there. And it doesn't take long to find them.

fadeaway

1,463 posts

232 months

Thursday 6th August 2009
quotequote all
Halb said:
fadeaway said:
Fittster said:
fadeaway said:
but free isn't sustainable.

someones got to pay for stuff (be it movies, music, or journalism), the hard bit is figuring out a business model that works (ie one that people will except).

This idea isn't going to fly, but you can see why they want/need to try.
Remove the compulsory licence fee and commercial media organisation would be able to compete.
I can see that the license fee might be confusing things, but I don't think it's really such a big issue - there are plenty of other free news sources on the net (like almost all newspapers and TV news stations!), killing of the BBC News site won't make any difference to that.
Exactly.
Personally I like the BBC...but I do not rely on it for everything. I use a myriad of forums and other news outlets...there are many many out there. And it doesn't take long to find them.
I think people are getting hung up on the BBC and Google. Paid for newspapers and TV news stations/networks from lots of countries all have their own free websites at the moment. There doesn't seem to be enough available advertising revenue to keep these being free, so the question is how do they remain (or probably get) profitable. Especially as the companies traditional revenue streams decrease (less sells and less money for adverts in papers/tv).

Unless every news web sites (r at least every site of a similar standard) starts charging on the same day, why would people pay for a particular one?

Halb

53,012 posts

189 months

Thursday 6th August 2009
quotequote all
fadeaway said:
I think people are getting hung up on the BBC and Google. Paid for newspapers and TV news stations/networks from lots of countries all have their own free websites at the moment. There doesn't seem to be enough available advertising revenue to keep these being free, so the question is how do they remain (or probably get) profitable. Especially as the companies traditional revenue streams decrease (less sells and less money for adverts in papers/tv).

Unless every news web sites (r at least every site of a similar standard) starts charging on the same day, why would people pay for a particular one?
I concur!biggrin
I think people's view of what is and what is not biased sometimes leads them into an argument. The BBC (news outlet) and google (search engine) are free...but they both are specks in the ocean, they are just the most successful and best run specks.
Murdoch is making a mistake here I think, because there will always be someone willing to supply news on the net for 'free'. I think this is another example of a businessman not understanding how proletariat the net actually is.