Thursday, 6 August 2009

End Game

Rupert Murdoch's extraordinary decision to charge for content on ALL News International websites, effectively forces an End Game in newspaper ad revenues.

If he succeeds, he can potentially solve the revenue stream crisis on Fleet St and across the world. If he fails, then he could potentially drive ad rates down and bring about the early demise of several national newspapers.

Revenue aside, he is also gambling that media consumers will pay for content that they can receive elsewhere for free, such as BBC News and google feeds.

It's a full circle turn for the industry, after early paid for content was phased out.

From my PR perspective, Murdoch's decision seems odd because surely he will expect to lose a large percentage of the people who consume his online media. If this % is high enough, it could play into the hands of his rivals. The Telegraph and the Mail, who many believe have the best British online offer, will be rubbing their hands with glee at his decision.

You never right Murdoch off but I think he has made a very bad decision. Time will tell.

No comments:

Post a Comment