Online charges to recoup losses: News Corp
Posted
Updated
Rupert Murdoch announced a 30 per cent decline on last year's performance. (Reuters: Mike Segar )
The global economic downturn has had a huge impact on News Corporation's results, and it says charging for internet content is likely to become more widespread to support the costs of quality journalism.
Rupert Murdoch announced that his company suffered a 30 per cent decline on last year's performance.
News Corp reported a fourth quarter loss of $US203 million ($241 million), in line with its forecasts.
Across the fiscal year the company recorded a $US3.4 billion ($4 billion) loss.
Mr Murdoch says newspapers have been hit particularly hard, with classified advertising never expected to return to previous levels.
"The last year has been one of the toughest in our history and the results today outlined for fiscal 2009 clearly reflect the sour economic environment that affected our businesses throughout the year," he said.
But Mr Murdoch says he is confident the worst is behind the company.
Online charges
Mr Murdoch has also indicated that access to News Corp material on the internet may soon come at a price.
"The extended downturn has only increased the drum beat for change, but the secular challenge is clear," he said.
"Classified advertising revenues will never again reach the levels that print once offered.
"Quality journalism is not cheap and an industry that gives away its content is simply cannibalising its ability to produce good reporting."
