Global Real Estate | Why Rupert Murdoch Can Afford To Run Loss-Making Papers
For most of the 20th century, newspapers in large metropolitan centres were able to make money from their control over classified advertising: automobiles, real estate and employment advertising in particular. Consumer advertising has also been a key force for the last 150 years.
Throughout the 20th century, many media organizations, particularly in television, were able to maintain an unprofitable and expensive news division as a brand-building loss-leader.
They did so knowing that the political influence of news credibility was worth the profits foregone. The commercial, political and cultural influence that came with a respected media property is one reason why Rupert Murdoch could afford to run loss-making papers like The Times in London, The Post in New York and for many years The Australian.
However, all this has changed in the last decade. In some cases, the traditional agenda setting function of professional journalism and corporate news organizations is being overrun by public relations practitioners, citizen journalism newbies reporting and even platforms such as Twitter and YouTube. At the same time, there has been a significant decline in revenues as broadsheets, radio and television lose their audience share to the new information highway.
While figures suggest that the overall readership and circulation of newspapers is remaining relatively steady, even with the perceived domination of Web-related news sources, this is of small comfort when the latest figures also show a rapid decline in advertising rates for those same papers.
The 2009 data from Media Post revealed a 24 per cent decrease in overall advertising revenue between 2006 to 2009, which covered Internet, classified and traditional print advertising.
While all revenue streams have decreased, the most significant decline is seen within traditional media (radio, television and newspapers). At the same time, online advertising increased by 27.5 per cent in 2005, and 17.5 per cent in 2007 until finally dropping 1.7 per cent in 2008, reflecting the global downturn in consumer and business activity.
Traditional media, on the other hand, fell 3.2 per cent in 2006, 7.5 per cent in 2007 and a hefty 22 per cent in 2008. At the time of writing, 2010 figures were showing some improvement, but without any clear signs of a permanent turnaround.
In the UK, Rupert Murdoch?s strategy for paywalling the Times group seems to be a version of bundling.
As well as access to subscriber-only news content, for a $50 annual fee users join the Times ?club?, whose benefits include value-added extras such as discounts on events, wine, food and travel and other commercial contra-deals from Murdoch?s business partners.
While this idea seems aimed at individual consumers, there is another version of bundling that works at a wider level and is perhaps more likely to be embraced.
Seek4media is an independent voice on the web. We report today?s news responsibly and truthfully so that readers can improve their own lives and increase their understanding and respect for their neighbors next door and around the globe. In our approach and in our content, we uphold universal human values, rights, and freedoms. We are a business that puts our readers? interests first, in all that we do.
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ByLiza Mathers
|
For most of the 20th century, newspapers in large metropolitan centres were able to make money from their control over classified advertising: automobiles, real estate and employment advertising in particular. Consumer advertising has also been a key force for the last 150 years.
Throughout the 20th century, many media organizations, particularly in television, were able to maintain an unprofitable and expensive news division as a brand-building loss-leader.
They did so knowing that the political influence of news credibility was worth the profits foregone. The commercial, political and cultural influence that came with a respected media property is one reason why Rupert Murdoch could afford to run loss-making papers like The Times in London, The Post in New York and for many years The Australian.
However, all this has changed in the last decade. In some cases, the traditional agenda setting function of professional journalism and corporate news organizations is being overrun by public relations practitioners, citizen journalism newbies reporting and even platforms such as Twitter and YouTube. At the same time, there has been a significant decline in revenues as broadsheets, radio and television lose their audience share to the new information highway.
While figures suggest that the overall readership and circulation of newspapers is remaining relatively steady, even with the perceived domination of Web-related news sources, this is of small comfort when the latest figures also show a rapid decline in advertising rates for those same papers.
The 2009 data from Media Post revealed a 24 per cent decrease in overall advertising revenue between 2006 to 2009, which covered Internet, classified and traditional print advertising.
While all revenue streams have decreased, the most significant decline is seen within traditional media (radio, television and newspapers). At the same time, online advertising increased by 27.5 per cent in 2005, and 17.5 per cent in 2007 until finally dropping 1.7 per cent in 2008, reflecting the global downturn in consumer and business activity.
Traditional media, on the other hand, fell 3.2 per cent in 2006, 7.5 per cent in 2007 and a hefty 22 per cent in 2008. At the time of writing, 2010 figures were showing some improvement, but without any clear signs of a permanent turnaround.
In the UK, Rupert Murdoch?s strategy for paywalling the Times group seems to be a version of bundling.
As well as access to subscriber-only news content, for a $50 annual fee users join the Times ?club?, whose benefits include value-added extras such as discounts on events, wine, food and travel and other commercial contra-deals from Murdoch?s business partners.
While this idea seems aimed at individual consumers, there is another version of bundling that works at a wider level and is perhaps more likely to be embraced.
Seek4media is an independent voice on the web. We report today?s news responsibly and truthfully so that readers can improve their own lives and increase their understanding and respect for their neighbors next door and around the globe. In our approach and in our content, we uphold universal human values, rights, and freedoms. We are a business that puts our readers? interests first, in all that we do.
Article Source:http://EzineArticles.com/?expert=Liza_Mathers
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Mathers, Liza?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.25 Aug. 2011EzineArticles.com.7 Sep. 2011 http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807>.
Mathers, L. (2011, August 25). Why Rupert Murdoch Can Afford to Run Loss-Making Papers. Retrieved September 7, 2011, from http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807
Mathers, Liza ?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.? Why Rupert Murdoch Can Afford to Run Loss-Making PapersEzineArticles.com. http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807
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Global Real Estate | Why Rupert Murdoch Can Afford To Run Loss-Making Papers
For most of the 20th century, newspapers in large metropolitan centres were able to make money from their control over classified advertising: automobiles, real estate and employment advertising in particular. Consumer advertising has also been a key force for the last 150 years.
Throughout the 20th century, many media organizations, particularly in television, were able to maintain an unprofitable and expensive news division as a brand-building loss-leader.
They did so knowing that the political influence of news credibility was worth the profits foregone. The commercial, political and cultural influence that came with a respected media property is one reason why Rupert Murdoch could afford to run loss-making papers like The Times in London, The Post in New York and for many years The Australian.
However, all this has changed in the last decade. In some cases, the traditional agenda setting function of professional journalism and corporate news organizations is being overrun by public relations practitioners, citizen journalism newbies reporting and even platforms such as Twitter and YouTube. At the same time, there has been a significant decline in revenues as broadsheets, radio and television lose their audience share to the new information highway.
While figures suggest that the overall readership and circulation of newspapers is remaining relatively steady, even with the perceived domination of Web-related news sources, this is of small comfort when the latest figures also show a rapid decline in advertising rates for those same papers.
The 2009 data from Media Post revealed a 24 per cent decrease in overall advertising revenue between 2006 to 2009, which covered Internet, classified and traditional print advertising.
While all revenue streams have decreased, the most significant decline is seen within traditional media (radio, television and newspapers). At the same time, online advertising increased by 27.5 per cent in 2005, and 17.5 per cent in 2007 until finally dropping 1.7 per cent in 2008, reflecting the global downturn in consumer and business activity.
Traditional media, on the other hand, fell 3.2 per cent in 2006, 7.5 per cent in 2007 and a hefty 22 per cent in 2008. At the time of writing, 2010 figures were showing some improvement, but without any clear signs of a permanent turnaround.
In the UK, Rupert Murdoch?s strategy for paywalling the Times group seems to be a version of bundling.
As well as access to subscriber-only news content, for a $50 annual fee users join the Times ?club?, whose benefits include value-added extras such as discounts on events, wine, food and travel and other commercial contra-deals from Murdoch?s business partners.
While this idea seems aimed at individual consumers, there is another version of bundling that works at a wider level and is perhaps more likely to be embraced.
Seek4media is an independent voice on the web. We report today?s news responsibly and truthfully so that readers can improve their own lives and increase their understanding and respect for their neighbors next door and around the globe. In our approach and in our content, we uphold universal human values, rights, and freedoms. We are a business that puts our readers? interests first, in all that we do.
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About the Author:
0){parent.location.href = self.document.location;}]]>
Home
? News and Society
? Pure Opinion
Ads By Google?);for(i=0;i
?);}]]>]]>Liza Mathers
PlatinumAuthor|178 Articles
Joined: December 17, 2007Was this article helpful?00 0) { var s0 = ?;s0 += ?Ads by Google
?;for(i = 0; i = google_ads.length) { break; }s0 += ?? +?? + google_ads[i].line1 + ? ? +?? + google_ads[i].line2 + ? ? + google_ads[i].line3 + ? ? +?? + google_ads[i].visible_url + ?
?;}s0 = ? + s0 + ?
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? +?? + google_ads[i].visible_url + ?
?;}s1 = ? + s1 + ?
?; if(document.getElementById(?ad-4?)) { document.getElementById(?ad-4?).innerHTML = s1;}} }]]>]]>
ByLiza Mathers
|
For most of the 20th century, newspapers in large metropolitan centres were able to make money from their control over classified advertising: automobiles, real estate and employment advertising in particular. Consumer advertising has also been a key force for the last 150 years.
Throughout the 20th century, many media organizations, particularly in television, were able to maintain an unprofitable and expensive news division as a brand-building loss-leader.
They did so knowing that the political influence of news credibility was worth the profits foregone. The commercial, political and cultural influence that came with a respected media property is one reason why Rupert Murdoch could afford to run loss-making papers like The Times in London, The Post in New York and for many years The Australian.
However, all this has changed in the last decade. In some cases, the traditional agenda setting function of professional journalism and corporate news organizations is being overrun by public relations practitioners, citizen journalism newbies reporting and even platforms such as Twitter and YouTube. At the same time, there has been a significant decline in revenues as broadsheets, radio and television lose their audience share to the new information highway.
While figures suggest that the overall readership and circulation of newspapers is remaining relatively steady, even with the perceived domination of Web-related news sources, this is of small comfort when the latest figures also show a rapid decline in advertising rates for those same papers.
The 2009 data from Media Post revealed a 24 per cent decrease in overall advertising revenue between 2006 to 2009, which covered Internet, classified and traditional print advertising.
While all revenue streams have decreased, the most significant decline is seen within traditional media (radio, television and newspapers). At the same time, online advertising increased by 27.5 per cent in 2005, and 17.5 per cent in 2007 until finally dropping 1.7 per cent in 2008, reflecting the global downturn in consumer and business activity.
Traditional media, on the other hand, fell 3.2 per cent in 2006, 7.5 per cent in 2007 and a hefty 22 per cent in 2008. At the time of writing, 2010 figures were showing some improvement, but without any clear signs of a permanent turnaround.
In the UK, Rupert Murdoch?s strategy for paywalling the Times group seems to be a version of bundling.
As well as access to subscriber-only news content, for a $50 annual fee users join the Times ?club?, whose benefits include value-added extras such as discounts on events, wine, food and travel and other commercial contra-deals from Murdoch?s business partners.
While this idea seems aimed at individual consumers, there is another version of bundling that works at a wider level and is perhaps more likely to be embraced.
Seek4media is an independent voice on the web. We report today?s news responsibly and truthfully so that readers can improve their own lives and increase their understanding and respect for their neighbors next door and around the globe. In our approach and in our content, we uphold universal human values, rights, and freedoms. We are a business that puts our readers? interests first, in all that we do.
Article Source:http://EzineArticles.com/?expert=Liza_Mathers
Did you find this article helpful?00
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?); return;}google_ad_client = ?pub-3754405753000444?;//EA-News and Society Pure Opinion 160google_ad_channel = ?7011432355?;google_ad_output = ?js?;google_max_num_ads = ?7?;google_ad_type = ?text?;google_feedback = ?on?;google_hints = ?cent advertising news media times time were traditional figures?;google_ad_region = ?test?;// ?>]]>Get Involved0 commentsSuggest a topicArticle ToolsPrint this articleE-mail to a friendEzinePublisherReport this articleCite this articleStay InformedGet notified by email when new articles are added to this category or written by this author.
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Ads By Google?);for(i=0;i ?);}]]>]]>Ads by Google ?;s += ? ?);return;}google_ad_client = ?pub-3754405753000444?;//2008-03-18: EA- ROS google_ad_channel = ?1904239528?;google_ad_output = ?js?;google_ad_type = ?image?;google_image_size = ?300?250?;google_feedback = ?on?;google_hints = ?rupert murdoch afford loss making papers, rupert murdoch,run loss-making papers, news, todays news is tomorrows headlines, media, loss makin?;google_ad_region = ?test?;// ?>]]> ? 2011 EzineArticles.com Click here to view rest of article from original site Tags: news, run loss-making papers, rupert murdoch Linux s1.agrohost.com 2.6.18-164.11.1.el5.028stab068.5 #1 SMP Mon Mar 15 19:26:36 MSK 2010 x86_64Recent Articles
?; document.write(?+s+?
Mathers, Liza?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.25 Aug. 2011EzineArticles.com.7 Sep. 2011 http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807>.
Mathers, L. (2011, August 25). Why Rupert Murdoch Can Afford to Run Loss-Making Papers. Retrieved September 7, 2011, from http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807
Mathers, Liza ?Why Rupert Murdoch Can Afford to Run Loss-Making Papers.? Why Rupert Murdoch Can Afford to Run Loss-Making PapersEzineArticles.com. http://ezinearticles.com/?Why-?Rupert-?Murdoch-?Can-?Afford-?to-?Run-?Loss-?Making-?Papers&id=6518807EzineArticles.com
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