Murdoch Predicts Internet Future

Rupert Murdoch, speaking yesterday at the News Corporation AGM said that within a year all of News Corporations’ newspapers will be on the Internet; they are investing millions of dollars into their on-line services. He said that on-line services are “spreading like a rash throughout the globe.” He warned however that this is a new form of media which no-one has worked out how to make any profits from, and although they are preparing for it, they are not intending to rush. He also issued a warning on profits due to the increase in paper costs; the cost of paper has risen by between 40 and 50 per cent everywhere, due to the increases in the Third World. This has cost News Corporation $350m in the past 12 months; he also predicted a 10% increase in paper costs in the next 12 mths.

British Newspapers are thriving; he said that the Times’ advertising is increasing dramatically, and he does not expect to raise its price from its current 25p “for some time”. He was also confident about the future of satellite vs cable; he said a few years ago satellite was considered transitory and that cable would take over; now he said, “there is practically nothing you cannot do with satellite communications.”