Rupert Murdoch’s speech to the US FTC provides guidance to Australian newsagents
Rupert Murdoch, CEO of News Corporation, appeared before the US Federal Trade Commission’s Workshop: From Town Crier to Bloggers: How Will Journalism Survive the Internet Age? on Tuesday. His speech contains information which could be of interest to newsagents facing a decision as to whether to accept the new News Limited contracts.
Here is some of what Rupert Murdoch had to say to the FTC:
First up, on the trust between consumer and a newspaper:
From the beginning, newspapers have prospered for one reason: the trust that comes from representing their readers’ interests and giving them the news that’s important to them. That means covering the communities where they live … exposing government or business corruption … and standing up to the rich and powerful.
And on the future of newspapers:
The same is true with newspapers. More and more, our readers are using different technologies to access our papers during different parts of the day. For example, they might read some of their Wall Street Journal on their blackberries while commuting into the office … read it on the computer when they arrive … and read it on a larger and clearer e-reader wherever they may be.
Later, he adds:
I have often made the point about newspapers this way: by reminding people that we are in the news business, not the dead tree business. In other words, what makes a newspaper is its content and brand – not necessarily the form in which it is delivered.
He outlines the principles for the new world:
- Let news organizations innovate to give their customers the news they want, when they want it, and how they want it.
- Ask consumers to pay for the products they consume. Let aggregators desist – and start employing their own journalists.
- And ask the government to use its powers to ensure the most innovative companies are free to reach new customers instead of looking for ways to prop up failures or intervene in a constitutionally sensitive business sector.
I’d make several observations on this. Newsagents are distressed at the challenge of their individual small businesses negotiating with a global corporation on a contract which many see as the reason for their existence. News Limited has denied newsagents the opportunity to charge consumers fairly for the services they provide. Successive Governments in Australia have ignored calls by newsagents to give them genuine freedom in structuring their businesses around newspaper distribution in ways which are appropriate to their communities.
Looking at Rupert Murdoch’s speech more broadly, News Corp. is rightly positioning itself for the next generation channel. This will not be print, certainly not to the extent that it has been in the past. It is therefore, in my view, open to newsagents to decide the timing of their move out of newspaper print distribution . The contract on offer today is two years (one year in South Australia) for a reason. Newsagents need to understand that and not expect anything beyond this period.
Australian Newsagents ought to study this and other speeches by Rupert Murdoch and add them into the mix when considering what to do about the contracts.
