NEWS Corporation chief executive Rupert Murdoch said today that US advertising markets were “very much better than they were four months ago,” adding momentum to the improving sentiment on Wall Street and in the media industry.
Separately, Mr Murdoch said The Wall Street Journal would start charging users for accessing the paper on mobile devices and newspaper subscribers would pay $US1 ($1.16) a week for mobile access, while others would pay $US2 a week.
Newscorp, said Murdoch, was contemplating charging for online subscriptions for Hulu, the popular video website it launched with big media partners such as NBC Universal.
As for ad spending, Mr Murdoch said it remained nowhere near where it was in 2007, noting that revenue from News Corp’s local broadcast stations were down 20 per cent from last year, but he said the results have been “getting better every month and getting better every week”.
“I’m not an economist, but my guess is that the consensus is about right, and (the economy is) going to get a nice bump, and then it will settle back to a fairly slow recovery,” Mr Murdoch said at a media conference sponsored by Goldman Sachs Group.
Mr Murdoch was pleased the company didn’t listen to Wall Street analysts and hedge-fund managers who encouraged the company to take on debt and buy back shares when the economy was booming, saying that News Corp was likely to hold on to its cash flows.
“If we had followed their advice, we’d be billions (of dollars) more in debt now,” Mr Murdoch said. “We’re feeling very safe now.”
In its stable, News Corp owns The Australian and Dow Jones & Co, publisher of The Wall Street Journal and Dow Jones Newswires. It had suffered financially from a weak line-up of movies in the first half, but he indicated that the film business was changing.
“We have a great slate of films lined up,” Mr Murdoch said. “The film business is a place where I feel very confident.”
Mr Murdoch said the DVD retail market remained in decline, but that the video-on-demand business from cable and satellite companies was growing, although it wasn’t yet making up the difference to film studios.
“These are very complex times, and news is more valuable to people than it has ever been,” Mr Murdoch said, so News Corp would remain focused on news as a valuable media product to consumers, despite the turmoil that has been created by the internet in the economics of the news business.
See the full story at The Australian.