Sunday, November 17, 2013

News Corp's Advertising Revenue Also on the Decline

By Rabin Man Shakya

Lately.  American newspaper industry is plagued by continuous decline in advertising revenue. The major chunk of newspaper industry's advertising revenue has been diverted to internet juggernauts and social media behemoths.

News Corporation, global media tycoon Rupert Murdoch's powerful and affluent media empire could not remain untouched by the internet and social media onslaught.

Throwing light on the News Corporation's revenue falls, the New York Times quoting the Reuters reported on Nov 12, 2013:"The News Corporation, controlled by Rupert Murdoch, reported a steeper-than-expected 3 percent decline in revenue in the first quarter that it was split from Fox, its more profitable sibling entertainment business."

The NYT story under the headline "News Corp. Revenue Falls Well Short of Forecasts" went on to say:" A steep drop in Australian newspapers took its toll on the company, which publishes The Wall Street Journal and The Times of London. News Corporation said net income attributable to common shareholders was $27 million for the quarter ended Sept 30, the first of its fiscal year.That compared with a loss of $92 million in the same quarter last year."

"Shares of the company fell more than 2 percent in after-hours trading on disappointment over the $2.07 billion revenue figure, which missed a Thompson Reuters forecast for $2.2 billion in revenue", added the NYT story.

Even the Wall Street Journal said in a news story on Nov 12, 2013:"The results highlight how newspaper publishers continue to grapple with a steady decline in print advertising revenue, as advertisers and readers defect to the Web."

Well, the challenges facing the newspaper industry in the advanced countries like US, Britain, Canada, Australia and so on are indeed formidable, since the fourth estate in these countries has to compete with the emerging but already ubiquitous fifth estate (social media).

It looks like the newspaper industry in the advanced countries  is fighting a losing battle against the social media.

The newspaper industry in these advanced countries was on the crest of a wave until the first decade of the 21-st century.

The newspaper industry of developing countries like Nepal, is, however, still safe from the social media and blog journalism, although they are already making inroads in the Nepalese journalism.

Well,  the equation may change in favour of the social media and blog journalism even in countries like Nepal on the third decade of this century, if laptops, tablets and i-phones become cheap and ubiquitous.

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