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Online Journalism News

Murdoch predicts profits for web-savvy newspapers

Posted: 06/02/06 By: Jemima Kiss
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Rupert Murdoch has predicted that electronic delivery will finally generate increased profits for newspaper businesses as they embrace opportunities presented by the internet.

In an interview with Newsweek, Mr Murdoch said the web had broadened the opportunities for media companies which can build on their resources in news, sports and entertainment.

"It's going to force a lot of change in the business models. But the absolute demand for content won't change. We believe that puts us on the eve of a new era of opportunity."

News Corporation's acquisition of popular websites last year, including social networking site MySpace, has given the network the sixth largest global web audience.

MySpace alone now has 50 million registered users and Mr Murdoch said the group plans to introduce video content to the site within the next six months.

He also said that newspaper companies had been caught out by the rapid increase in web video and still "have their heads in the sand".