News Corp.'s James Murdoch Bets on Paid Model

James Murdoch has no use for the Internet-is-free crowd. The CEO of News Corp. Europe and Asia said finding a business model for news in the digital era isn't all that complicated.

"If you're going to monetize something, you should probably not give it away for free," he said during a Q&A at the Monaco Media Forum. "I think digital newspapers' economics will look a lot more like cable channels."

It's a long road to get there. The Wall Street Journal has been able to charge for access because most of its subscribers are using corporate credit cards. But the jury is out on subscriptions elsewhere in the empire. The Times and Sunday Times were put behind a pay wall in July. News Corp. last week crowed it has sold 105,000 digital products, a roll-up that doesn't break out monthly subscriptions. Some estimates put that figure at just 10,000 per month at the expense of most of its Web traffic.

Murdoch said publishers need to be willing to sacrifice wide reach in the process. The upside is those that pay tend to spend much more time with the publication, he added.

"We're happy to invest more and price it fairly and accept the fact that not everyone will pay," he said.

The belief in free is an article of faith for the tech world. Chris Anderson, the editor of Wired, even wrote an entire book on the economics of business models based around technology enabling free services. Those views aren't in tune with reality when it comes to media, Murdoch said. They rarely, for example, take into account the chain of professionals that need to get paid along the way for the production of quality content.

"There's no new technology that makes athletes less greedy," he said.

The invitation-only Monaco Media Forum, which continues through Nov. 12, gathers approximately 300 global leaders in traditional and new media for discussions about the future of online, broadcast and print.

Journal Starts Monthly Magazine

The Wall Street Journal will announce today that it is launching a monthly glossy magazine called Pursuits, designed to explore "the world of wealth," according to the Journal's publisher, Dow Jones & Co.

Aimed at building the Journal's consumer advertising revenue, including from luxury-goods and travel advertisers, the new magazine is expected to launch next September, distributed with the Journal's Saturday edition. Its content will be made available free online, outside the Journal's paid subscription wall.

Plans for the new magazine were completed last week at a meeting between Dow Jones executives and Rupert Murdoch, chief executive and chairman of News Corp., which has agreed to buy Dow Jones for more than $5 billion.

The Journal has used the Pursuits name as the title of the lifestyle section of its Saturday edition since launching the Saturday paper two years ago, but it dropped the name this past weekend. The name Weekend Journal now appears on the lifestyle section of the Saturday paper, in addition to the Friday edition.

The Journal didn't name an editor for the magazine, but Robert Frank, the paper's wealth reporter and author of the book "Richistan," about lifestyles of rich people, has been heavily involved in its conception and is expected to play a senior role in the magazine.

Murdoch Deal to Send Ripples Through Media World

Under Rupert Murdoch, a more aggressive Wall Street Journal could pose a greater threat to BusinessWeek, Forbes and Fortune, as well as the New York Times and the Financial Times. The Journal could develop a dominant online financial-news portal, or a MySpace-like social-networking site.

Wall Street Journal has the full story.

Rupert Murdoch's Victory

NEW YORK (AdAge.com) -- Rupert Murdoch's victory in winning approval for New Corp.'s acquisition of Dow Jones and its flagship Wall Street Journal is a historic event with far-reaching implications for journalism, the media business, the competitive landscape and advertisers, says Ad Age media reporter Nat Ives in this video interview. The changes are likely to be most significant for the Journal because, he says, "Rupert Murdoch is going to come in as a purpose-driven, hands-on manager with an agenda. The Journal and Dow Jones for years have been almost drifting. ... The Bancroft family that controls the company has certainly been hands off and unsure about the quality of their own executives and now we have someone who really has a vision coming in to take control."

AdAge has published an online videoreport, which can be viewed here.

Murdoch Sends Second Letter to Bancroft Family

AdAge announced today that Rupert Murdoch has sent a second letter to the Bancroft family trying to earn their support for his $5 billion bid to buy Dow Jones.

In his letter to the Bancroft family, Rupert Murdoch writes: 'I would like to express my regret if you have been placed in an uncomfortable position.'

"In the weeks since our proposal was made public on Tuesday, May 1, there has been much written about a potential combination and News Corporation's intentions," he writes later. "I would like to express my regret if you have been placed in an uncomfortable position by the events of the past week."

A News Corp. acquisition of Dow Jones would have no effect on the journalistic independence and integrity that belong to company brands, including The Wall Street Journal, he said. To provide some assurance, he would give a Bancroft family member a seat on the News Corp. board and create an independent, autonomous editorial board to ensure the integrity of Dow Jones properties.

Read the full article here

Murdoch Woos Bancrofts With Flattery, Not Higher Bid

Rupert Murdoch is trying to persuade the Bancroft family to sell him Dow Jones by offering appeals to their pride -- but not more money. "We admire the Bancroft family," he says. Wall Street firms are becoming pessimistic that Murdoch will succeed. A competing bid is seen as unlikely.

Bloomberg has the full story