READ about Piers Morgan's long career in journalism here.
Each day, we here at "Piers Morgan Tonight" put together the news you need to know – from what happened last night to what will happen today.
For April 24, 2012 – Mitt Romney moves to solidify lead, James Murdoch stands by phone-hacking denials and Jennifer Hudson testifies at trial of man accused of killing her relatives...
• Mitt Romney moves to solidify lead : "It's the biggest day of Republican primary voting since Super Tuesday back on March 6. But when five states hold contests Tuesday, the only drama left appears to be the size of the margins of victory for all-but-certain GOP presidential nominee Mitt Romney."
• James Murdoch stands by phone-hacking denials: "James Murdoch insisted Tuesday that he knew little about the scale of phone hacking by people working for the News of the World, as he continued his fight to limit the damage the scandal does to him and his family's media empire."
• Florida city commission rejects police chief's resignation in Trayvon Martin case: "City commissioners in Sanford, Florida, voted Monday to reject the proposed resignation of their embattled police chief, who has been under fire for the handling of the probe into Trayvon Martin's death in February."
• Netflix plunges on sales outlook: "Netflix's first-quarter financials came in better than expected after a dismal 2011, but it wasn't enough for investors to overlook a weak revenue outlook. Netflix announced late Monday that it lost 8 cents per share on $870 million in sales last quarter. Analysts polled by Thomson Reuters expected a much wider loss of 27 cents per share, and sales of $866 million."
• Jennifer Hudson testifies at trial of man accused of killing her relatives: "Proceedings are set to resume Tuesday morning in the trial of the man accused of killing the mother, brother and nephew of the actress and singer Jennifer Hudson. On Monday, Hudson - the prosecution's first witness - broke down in tears several times on the stand as she remembered her family."
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News Corp will be broken up, assets sold, money made. The situation is designed so that people can't come in and break it up and Murdoch has control, that is how it was structured. So people cannot do what he does to other companies to his. At the core there is a profitable company, but you have to use a sledgehammer to break off the shell. If you look at the allegations and say you had corporate governance, how unprofitable would the company be. And that is what led to this situation and where the pressure came from and they were cavalier. Carrying to much dead weight.
Now revenue for the print media is down due to classified and advertisement, now there is an assumption that the pay wall will make the newspaper arm profitable, once again it is 50/50 what you make up in subscriptions you lose in advertisements. The whole point of advertisements online is it redirects the customer from your own product. As interactive media you want the customer on your website, clicking away $$$$$$$. Then you effectively have people paying for the same product with slight differences across the whole news arm. A pay wall may save one or two print media from the axe, but not the whole the lot.
The first thing they do is lock up all content behind the wall and then depending on the traffic release more free access, why because the traffic stops coming. So they need to find the balance between paying customers and revenue via the hits to the site. So they let people have 5 to 20 free hit before you have to sign in, they are trying to find the balance. Then via search engine people if they no the policy is a pay wall they will skip it and a lot of revenue comes in that way.
That does not give a lot of confidence, it shows that they don't really know, they cannot tell you long term how they can be profitable and that is across the whole industry.
If the Ipad is to save the news paper business why is it Apple that thought of it and not a media company. There thinking is that the Ipad is a interactive news paper, the fact that such innervation have to come from outside the newspaper business shows lack of long term planning. If that is what is going to save them, then why did they not think of it, so if Steve Jobs did not think of the Ipad, they are all over. That is what they are saying. Hardly inspires confidence.
Who is to say that serious current affairs news media is not a niche market, in which case a pay wall is not going to make it profitable. And that brings you to the point of locked and unlocked content and finding a balance. Owning a lot of news papers is not smart anymore, they are add-ons that supplement other media.
This is an example CNN broadcasts and has website, it is the same product, they are not employing 10 people to do the same thing. and that is why it is profitable.
You can call things by different names but at the end of the day it is connect newspapers, websites, broadcast. If the website supplements the broadcast, then what is the worth of print media or even in a format on Ipad online. It is unprofitable.
And that is what it is all about and why the shareholders are revolting. If the pay wall fails then the shareholders are stuck with the print media. From a business sense it was good what happen to the News of the World, why pay two people to do the same thing. You are paying people that put a product out once a week, when for an extra days wage you can have people that put a product out everyday do one more days work. You are still putting out three Sunday papers 3 people to do the same thing.
Looks like you are right. News corp seems like its going to split up into 2 companys
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