Summary: News Corp, owned by Rupert Murdoch is pinning its survival hopes on its real estate websites as full year earnings were dragged down by 28% by its newspaper publishing business. However, since the company was split into entertainment and publishing business revenue from the property operation rose as News Corp benefited from the booming housing market, says Robert Thomson who is a chief executive. Though, success in the real estate part of News Corp could potentially send things spiraling out of control in terms of the news and books side of the organisation. So far profits are steady at the newspapers (9th August 2016). Advertising revenues have declined but circulation and subscription revenues have increased.
Advertising has decreased because we are getting news through other means but when we get news online we are blocking advertisements which means that corporations like News Corp are not making any money.
Key Statistics
- Worldwide pre tax earnings at Murdoch's media empire for the 12 months to 30th June were $US684m (£531.60) down from $US945m (£734.44 - 1 US dollar = 0.78 British Pounds)
- Profits from a stable of newspapers including The Australian, The Times and The New York Post fell by 65% to $US214m.
- Thomson hailed the success of subscriptions to the Wall Street Journal which rose to 948,000 from 753,000 the previous year
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