News Corp. profit off 30 percent, slashes outlook (Dinosaur Media DeathWatch™)

Yahoo Biz ^ | November 5, 2008 | Ryan Nakashima,

[abb]

News Corp. reported a 30 percent drop in quarterly profits on Wednesday and the media empire run by Rupert Murdoch said its operating profit for the current fiscal year will drop because of the U.S. dollar's strength overseas and a slowdown in advertising revenue.

Company executives said they expected a "low to mid-teens" percentage drop in operating profits in the fiscal year that began in July. The forecast was a major departure from analysts' expectations of profit growth.

Murdoch, the company's chief executive who controls more than a third of its shares, said the forecast was a "clear reflection of the economic downturn, which we believe will persist through fiscal 2009."

He added that the company is now "intensely focused on cost reductions."

Cost cutting moves include outsourcing the work of 10 of 17 plants that print the Wall Street Journal within two years, saving $3 million per plant annually, and merging the back-office functions of the Journal and the New York Post.

The fiscal 2009 forecast was based on $5.13 billion in operating profits from continuing operations in 2008.

The gloomy news came after the company said net income for the first quarter that ended Sept. 30 dropped to $515 million, or 20 cents per share, from $732 million, or 23 cents per share, a year ago.

Revenue rose 6.3 percent to $7.5 billion.

[abb]

From late yesterday.

[abb]

ping

[tobyhill]

Faux News only started reporting the truth on Obama in the later days of the election and by that time no nearly enough to make the truths stick.

[Gondring]

Cool. The "New Media" did such a great job in getting the word out to people this election, it shows there's no need for newspapers and investigative reporting anymore! Hurray for Liberalism!

>/sarc<

[abb]

http://www.nytimes.com/2008/11/06/business/media/06news.html?ref=business
Two Media Giants Report Sharply Differing Results

http://www.latimes.com/business/la-fi-indiefinance6-2008nov06,0,4347326.story
Global credit crunch hits independent filmmakers

http://online.wsj.com/article/SB122592543148702857.html
NFL Games Go Wireless

http://online.wsj.com/article/SB122593127277403293.html
News Corp. Downgrades Its Outlook; Profit Falls

http://www.adweek.com/aw/content_display/news/agency/e3if0ded1d484f712c4eb40da61d530b08a
Borrell: Political Ad Spend Disappoints

http://www.broadcastingcable.com/article/CA6611851.html
Schumer Comments Prompt New Fairness Doctrine Concerns
National Religious Broadcasters say his comments “foreshadowed an intolerance of ideas”

http://www.mediapost.com/blogs/research_brief/?p=1830
The Fractured Web Community Impacts Marketing Focus

http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=94198
Red Ink: ‘U.S. News’ Goes Monthly, Hearst and Rodale Cut Staff

[JoJo Gunn]

Fox can save a few nickels by cutting back on the crawls, on-screen flotsam, whooshing noises, and News Alerts for when some unknown celebrity breaks wind.

[OldBlondBabe]

I cancelled my subscription to my local paper just yesterday and told them why. Not sure how the loss of my $100+ a year will matter to them, but it made me feel a little better!

[abb]

I cancelled my subscription to my local paper just yesterday and told them why. Not sure how the loss of my $100+ a year will matter to them, but it made me feel a little better!

That good feeling is priceless! Now turn around and send that money in to Jim Rob. That will feel even better.

[Tribune7]

The gloomy news came after the company said net income

The bright side of course is that unlike the NYT and the Washington Post (newspaper) they still have a net income.

[Eagle50AE]

Good News , Especially with FAUX Tanking for o.

And the ever present “mole” Karl Kameron with his most inspiring commentary.. Makes me Barf.

E..S... FAUXNews

[mom3boys]

I haven’t subscribed to our newspaper here in AZ for years, but my habit has been to stop by a gas station after church and get a Sunday paper for the ads. I like “window shopping” the ads, and don’t even look at the “news” part of the paper. I use that to catch litter under the cat box.

I’ve decided not to get the Sunday paper anymore. Most stores have their weekly ads on their websites anyway. I refuse to give even pennies to the MSM anymore.

[Milhous]

For the first time Thursday, a National Football League game -- the Cleveland Browns vs. the Denver Broncos -- will be broadcast on Sprint mobile phones as part of the wireless company's exclusive partnership with the league.

Hey MikeHu (or anybody else who knows), you probably already posted this data a dozen times, but how much does a phone viewer typically pay for this service? How many fully charged spare batteries do viewers usually need to watch a game?

---

In other business it seems that (for better or worse) texting and portable media players inject an element of chaos into our local schools. The other day my nephew used ear buds to stealthily jack into his portable media player in order to opt out of a pro-Obama harangue delivered during class by a teacher.

[SoFloFreeper]

My Fox news watching has slowly drifted away. I watch Dave Ramsey and Fox Business channel occasionally still.

[abb]

http://www.theage.com.au/national/murdoch-to-slash-jobs-at-papers-nine-sheds-staff-20081106-5jdc.html
Murdoch to slash jobs at papers, Nine sheds staff

[abb]

http://cancelthebee.blogspot.com/
Kansas City Star looking for work-at-home individuals

http://www.medialifemagazine.com/artman2/publish/Magazines_22/Checking_in_on_the_endangered_list.asp
Checking in on the endangered list
Which consumer magazines are the next to fold?

http://business.theage.com.au/business/news-corp-walloped-on-outlook-20081106-5iq6.html
News Corp walloped on outlook

http://online.wsj.com/article/SB122591668654402317.html
Time (Magazine) Waits for No Man

http://www.foliomag.com/2008/more-layoffs-hearst-makes-company-wide-cuts
More Layoffs: Hearst Makes Company-Wide Cuts

http://www.bloomberg.com/apps/news?pid=20601109&sid=as4HoTjXVzZY
Magazine Ad Slump Sends Publishers Into Freefall

http://www.prweekus.com/Budget-cuts-push-outlets-to-online-efforts/article/120455/
Budget cuts push outlets to online efforts

[abb]

http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=94204
Sinclair, Gray TV See Big Cost Cuts In ‘09

[moose2004]

I’ve lived in NYC for over 15 years, and I used to buy the “New York Post” every single day, that was until 1 month ago. I think The Post’s news division has transformed itself over the past year or so from being centrist and objective to absolutely going in the tank for Obama. It’s made me sick. The funny thing is that the paper has a reputation for being on the conservative side, so very favorable coverage of Obama is not exactly what most of it’s readers are looking for, if they wanted that they would buy a copy of the “NYT.” In fact it’s hard to tell the difference these days between “The Post,” the “Daily News,” the “NYT” and “Newsday”. Stupid business decision in my opinion, and I doubt I’ll ever buy a copy again. I’ll miss the Sports Section.

[MikeHu]

A lot of people woke up on November 5 wondering how it could have happened that a person with no experience governing, could become the president of the United States.

It was all about the mass media proving they could sell anything they wanted to, if one had enough money to pay for it. This year, there was somebody out there who had unlimited deep pockets who could pretty much single-handedly buy the mass media — although the mass media will claim, it was not them who was used successfully, but the new media of grassroots internet fundraising. It was the worst of both.

Until this year, it was widely thought that although one could successfully market cigarettes, alcohol, cars, and credit using mass media, it was unthinkable that one could sell the presidency in that way — but nobody ever had the massive amounts of money that could buy the media in the one-sided manner it was.

Although some will insist that they have clear firewalls between editorial content, news (information) and advertising, the fact is, money corrupts absolutely just in being a sponsor of certain programming. And this year, mass media knew it had to prove its viability and relevance in an age of shrinking advertising revenues and subscriptions. They had to prove they were still relevant, and still had the power to sell anything one could pay for.

Usually people draw the line pretty clearly about what they will do — and what they won’t do, no matter how much money they are paid, but the new benchmark of desperation and ambition, is that one will do anything — and there is no line to cross anymore. One either wants the money or not.

In the old days, they would write plays, stories and movies about such dilemmas. Now there are no such barriers, and everything can be justified by whether it sells, and what sells, is what one will pay the marketers to sell. In politics, a few still believe they serve a higher cause — although those who concoct such campaigns, know they are just words meant to manipulate and deceive.

There has been this creeping ruthlessness and unscrupulousness willing to destroy whatever stands in their way of maximizing their wealth, power and fame.

And truly worthwhile, decent individuals of integrity, had no chance against this mass manipulation and deception.

http://repmikehu.blogspot.com/

[moose2004]

But the campaign is over, the $605 million, plus McCain’s and the RNC’s money, has been spent, no more dough from politicians for 2 years. I wonder how these “news” organizations are going to last? You can only write so many puff pieces about Obama’s “historic victory” before people start to ask the obvious, “Where’s the beef?”

[OldBlondBabe]

I told my dad that I’d cancelled my newspaper subscription and he said “good idea”. He’s not going to renew his subscription to the lefty rag, Detroit Free Press.