News Corp’s fires start to work, Bolting to conclusions, and McIlveen reassures Nine
News Corp Reports 3% Increase in Earnings as Digital Revenue Boosts Profits to $2.59 Billion
News Corp, the global media giant, has announced a 3% increase in earnings for the latest quarter, bringing its profits to an impressive $2.59 billion. The surge in profits is largely attributed to the company’s successful shift towards a digital and subscription-based revenue model, reducing its reliance on traditional advertising.
CEO Robert Thomson highlighted the company’s strategic focus on digital platforms as the driving force behind the revenue growth. The REA Group and the professional information business at the Dow Jones segment were cited as key contributors to the surge in revenues.
However, News Corp’s Australian division did not experience the same level of improvement. The company only managed to add 16,000 digital news subscriptions in 2023, in contrast to the significant growth seen by The Times in the United Kingdom and the Wall Street Journal in the United States. To compensate for this, News Corp Australia is exploring the potential of artificial intelligence (AI) to enhance the value offered to subscribers.
Thomson also emphasized News Corp’s commitment to becoming a leading content provider for Generative AI companies. He stressed the importance of high-quality content and announced advanced negotiations with AI companies for content access. Thomson vehemently condemned the unauthorized use of content, stating, Those who repurpose without approval are stealing and are undermining the very act of creativity. Counterfeiting is not creating, and the AI world is replete with content counterfeiters.
News Corp Australia’s recent redundancy of numerous editorial staff members has raised concerns about the company’s direction. The company’s local mastheads have been utilizing proprietary generative AI to produce up to 3,000 articles a week, often without disclosing the AI’s involvement.
In an unrelated incident, prominent columnist Andrew Bolt published an article in the Herald Sun, suggesting that flag-waving Aussies have become public enemy number one. Bolt recounted an incident where two individuals, Frank Strazdins and Di Thorley, were allegedly arrested by Victoria Police for wearing Australian flags on their heads. However, Victoria Police released a statement contradicting Bolt’s version of events, insisting that no arrest was made and that the officer in question had merely advised the individuals of potential provocations due to an upcoming protest.
Bolt’s story received substantial coverage from other media outlets, including Sky News and the Daily Mail. While the Daily Mail included the police statement in full, Sky News has yet to incorporate the statement or contact the police for comment.
Luke McIlveen, the newly-appointed Nine executive editor, sought to address concerns in an all-staff meeting. He dispelled fears of job cuts or a transition towards tabloid-style journalism, highlighting the significance of premium journalism offered by papers like The Age and The Sydney Morning Herald. McIlveen assured the staff that maintaining journalistic integrity and delivering exclusive stories would remain the primary focus.
News Corp’s positive financial results demonstrate the success of its shift towards digital revenue streams. However, challenges remain within the Australian market, necessitating a renewed focus on providing value to subscribers. The company’s aspirations to become a primary content provider for Generative AI companies symbolize its commitment to innovation and securing its position in the rapidly evolving media landscape.
As News Corp continues to navigate these changes, industry observers and stakeholders will be closely monitoring its progress and the impact on its global operations.
