Old mogul, new media (Rupert Murdoch, News Corporation)

Strategic Direction

ISSN: 0258-0543

Publication date: 1 July 2006

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Citation

(2006), "Old mogul, new media (Rupert Murdoch, News Corporation)", Strategic Direction, Vol. 22 No. 7. https://doi.org/10.1108/sd.2006.05622gad.006

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited


Old mogul, new media (Rupert Murdoch, News Corporation)

Old mogul, new media (Rupert Murdoch, News Corporation)

The Economist, 21-27 January 2006, Vol. 378 No. 8461, Start page: 67, No. of pages: 3

Purpose – To explore the challenges facing News Corporation – Rupert Murdoch’s communications empire. Design/methodology/approach – Features News Corporation and the man still at its helm – Rupert Murdoch; outlines the corporation’s two main challenges – the internet and digitization; highlights that although News Corporations still shows healthy profits, investors remain unimpressed due to their gloomy prognosis for the prospects of traditional media. Looks at those sectors of the corporation that are particularly vulnerable to competition from alternative technologies; presents the example of how digital television is threatening News Corporation’s satellite TV platform and describes how News Corporation is hitting back. Draws attention to how the internet is undercutting the corporation’s newspaper business and reports that in spite of pressure to reduce News Corporation’s newspaper portfolio, Murdoch is determined to maintain his interests in this area. Spells out how the company is embracing the internet, buying a number of sites including MySpac.com that allows people to design their own content; refers to its level of profitability; concludes that although News Corporation’s newly acquired web communities are important it will be News Corporation’s big legacy businesses that will mostly determine whether the company can adapt to a new era for the media industry. Highlights the issue of who will be Rupert Murdoch successor; identifies some of those in the running. Originality/value – Looks at the threats facing the News Corporation and investigates how Rupert Murdoch is tackling them.ISSN: 0013-0613Reference: 35AE651

Keywords: Business performance, Digital communication systems, Financial performance, Internet, News Corp, Newspaper publishers, Rupert Murdoch, Television