ZUCC USQ 经济学作业：默多克——报业大亨.doc

Keith Rupert MurdochThe Introduction of Murdoch Murdoch is a great man of the United States.He is famous as the media tycoon.The News Corporation that he created is the worlds largest and highest level of international integrated media companies, the net assets of News Corporation has reached 40 billion dollars, while Murdochs personal property has reached 11 billion dollars.It is Murdochsmedia Empire. Newspaper industry is still the News Corporations pillar industries. As the worlds largest publisher of English newspaper, News Corporation has distribution 175 kinds of different newspapers, including the UKs Times, Sun, Australias Australian, the United States, New York Post and so on. However, the Western mainstream media thinks Murdoch to be as much praised as blamed.There are two reasons: first, Murdoch pursuit commercial interests endless.Another reason is that he weaken the ideological. He is active in strengthening the relation with China and expanding their business in China.The impact of financial crisis on Murdoch The number of subscribers and advertisers of the newspapers had fell down with the impact of new media.Because of the financial crisis,in the last 7months this year, the United States had 105 newspapers factories shut down.The newspaper industry of the U.S. was facing a serious and unprecedented crisis of survival,The News Corporations first-quarter of this fiscal year of the financial report showed:although the income of its newspaper sector reduced greatly to 25 million dollars,while the income of its film sector, cable television sector, book publishing sector and other sectors reduced greatly.It not only offset the loss of the newspaper sector,but also made the News Corporations net profit achieve 11% growth.The net profit had achieved 571 million dollars.But,the profits of the two biggest financial giants, The Wall Street Journal and “Financial Times” was rising,not cutting down.The circulation and the advertising revenue had arised different degrees of growth.Especially the The Wall Street Journal acquired by Murdochs News Corporation. The Wall Street Journal won the growth of advertising and sales volume.Since the financial crisis,its sales volume increased 20%in the newsstands,and the views of the newspaper web site increased by 20 million passengers,the profits from the Internet subscribers and advertising agencies was rising too. Because the advertising revenue and circulation decreased day by day,the readers were favor of the free online news,the survival of the newspaper was more and more hard.However Google and other news aggregation sites let the readers read the news freely,which made News Corporations revenue reduce.So providing electronic newspaper freely caused the traditional newspapers getting into hot water.In the past 5 or 6months,Murdoch said:the average newspaper advertising revenues decreased 10%-30%.Although he was confident in the prospect of such a national newspaper ,such as The Wall Street Journal .He also said the city newspapers would have to accept a 10% margin rather than 30%.He predicted that some newspapers would disappear.How to revenue the decline in the newspaper industry and further profit for shareholders in this period are still big risks and challenges to him. What did Murdoch do and Why he did so Murdoch accused the conduct that Google and other news aggregator cited the News Corporations news was theft.Because Google made good use of these information products to add advertising revenue,and did not make amends to news organizations.So far,since the Wall Street Journal has carried out to charge network news,the scope of the paying users has reached 1 million. There are indications that News Corporation has already started to take measures to shield Google search. Statistics show that Googles index of web pages in News Corporation-owned site has fell down from 192 million to 12 million. At the same time, Google said they would upgrade the First Click Free project,it would allow news publishing organization to limit the readers can only view no more than 5 news that is gratis.It is reported that in mid-November the News Corporation had talked with Microsoft to explore that they should use technical means to prevent Google indexing their website and some other things. The financial crisic made the depression news industry even worse.Up to June 30 of the 2008-2009 fiscal year, News Corporations net loss has reached 3.4 billion. Last year, News Corporation laid off 3,000 people around the world.This month News Corporation announced that they planed to close the free newspaper-the London newspaper.And he said he would search new jobs for the employees of “London newspaper,but he could not promise that every person would has a new job. In addition, Murdoch had ordered that he would cut off 40% wage in 2009 fiscal year in order to solve the companys profit decline and the decline in the price of the shares. News Corporation shareholders proxy showed that Murdochs wage was 18 million dollars,compared to the previous year of the 30.1 million dollars,it decreased by 40%. Facing the impact of the new media on traditional media, Murdoch is not conservative.He shot frequently in the aspect of network media. News Corporation spend 580 million dollars in buying MySpace parent company.And they despited that general public would take over the media,and still bought The Times and The Wall Street Journal which were controlled by the talented person for more than a century. Because of the impact of the financial crisis, recently,there was many print media of the U.S. carrying out the tactics that sold the display ads on the front page. At present, Wall Street Journal, USA Today, The New York Times, Los Angeles Times has sold the display ads on the front page.The Wall Street Journal in the practice of advertising on the front page was: first, advertising only on the bottom of the front page of a newspaper.Second,the area of the ads no more than one-eighth of the whole area.At last,distinguishing news and advertising interface strictly.Selling the front page of the ads played a certain part in buffering the impact of financial crisis.Murdoch made more effort in expanding and improving the aspect of viewing the contents gratis of the Wall Street Journal web site.He wanted to attract the relatively young readers and potential future readers. Since the inception of the Wall Street Journal web site in 1996,the web site has been using a paid to attract more readers and increase advertising revenue. At present, more and more contentbegin to enter the ranks of no charging. Initially, Murdoch would have preferred the implementation of a completely free site.It would expect to make The Wall Street Journal website readers increase from 1 million to 10 million 15 million, while advertising agencies would get many rich and influential force readers. However, if the Wall Street Journal web site was free of charge to read,they earn the membership fees of the members.Because of the chance of abolishing the paid subscription model had not ripe,finally they took a compromise.They continued to retain part of the premium content,and they would expand and improve the “Wall Street Journal web site on the free access to the content. Wall Street Journal web site will add more free content, at the same time,they will also provide more value-added services to paid subscribers.The “Wall Street Journal web site will struggle to promote paid subscription and promote free advertising pattern growth.Facts have proved that the effect of this initiative is clear.The web site views increased significantly when the free content increased.Under the law of traffic = advertising = profit,the network version of the advertising volume increased significantly.The impact of Murdoch on financial crisis and What he will do in the futureBecause of the Challenges of new media, many newspapers are facing crisis of survival. Analysts pointed out that they provided electronic versions of newspapers free of charge leading to the predicament of traditional newspapers. News Corporation want to stop providing such a free lunch.They planed to charge from the newspaper web site readers next year in June, that is to say before the end of 2009-2010 financial year.In the future,the news industrys only way to earn money is pay by the readers. The future of the traditional newspapers will not lead to decline.Murdoch thinks the future of the news industry is more promising than ever before, the network will allow the traditional newspaper industry rebirth.The the digital era will breed a huge market with the new form of the news industry, and it will let the number of the readers of the newspaper double. However, if the newspapers and news agencies can not adapt to this digital transition, it will fail sooner or later. The traditional advertising-funded business model is being phased out.In the future, news organizations must provide high-quality news content which the readers are willing to pay,and make it becoming the main path to earn money. Murdoch predicted that newspapers would transform physical form into news brand.He stressed that the core business of newspapers is not depend on printing any more, but to give readers quality news and judgments. Therefore, he believes that the current challenge is through the newspapers brands to give readers access to personalized news, and send the news to them.Then its circulation will increase, this circulation includes Web traffic, RSS subscribers number, e-mail list of subscribers, mobile phone newspapers and so on,it will also benefit the adsBecause Google and other search engines free of charge to provide news for users,Murdoch planed to resume to charge overall in newspaper web site, only the long-term subscribers can read the text on the site,at the appointed time he will prohibit Google to obtain and index his own web pages.Some competitive newspaper of the News Corporation will begin a trial to charge money from the newspaper web site readers within 12 months.Murdoch owns many newspaper, including Wall Street Journal, New York Post, London Times ,The Sun and Australian and so on.Murduch has created a very great impression on American news media,once Murdochs plan carries out,it will be an unprecedented war between the largest traditional paper media group and the largest search engine in the world.It will make Google give way to the News Corporation.The financial crisis made the News Corporation had a hard time, so News Corporation wants to sell Dow Jones index business. News Corporation is careful in buying day by day while the income patterns are more manifold.In order to make its Wall Street Journal to get more profits, Wall Street Journal will charge money from Blackberry, iPhone and other mobile phone users who read newspaper in their phones within two months,the maximum fee is 2 dollars per week. At present,the revenue