Rupert Murdoch expects to start charging for access to his
newspapers' websites, with plans set to be put in motion within a
year.
Publishing companies are facing plunging advertising revenues
and falling reader numbers, leading to a desperate need for a new
business model. While internet advertising can plug some of the
gap, companies are increasingly finding it won't be enough.
Murdoch's vast media empire, which includes The Sun and
The Times, has not been immune, with News Corporation's
quarterly operating profits falling by 47% to £755m. Sales of
assets boosted pre-tax profits to $1.7bn.
Murdoch thinks the worst of the recession could be over, with
parts of his business "beginning to look healthier". But the
newspaper division struggled, with many titles, including the
Sunday Times, only just in profit. Television advertising
was also hit.
The recession has
hit the media hard, with many vulnerable regional newspapers
weathering drastic cuts and with some even folding. Paid-for
internet content may turn out to be the only option open to some
titles if they are to turn the industry's fortunes around.
Some optimism has been kindled by the success of the Wall
Street Journal, which charges for its content on the web. The
Financial Times also charges for access to many of its
stories.