News corporation


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News corporation

  1. 1. + News Corporation History, Strengths, Weaknesses, Opportunities, and Threats by Michael Gordon, Kent Morrison, Melelani Petersen, Yus Marto,
  2. 2. + News Corporation News Corporation is a media conglomerate. It is global and has a considerable market share in just about every type of media imaginable. It own numerous broadcast television stations, television production companies, motion picture corporations, magazines, newspapers, satellite, cable, book publishing, advertising, digital broadcasting, and MySpace. It has numerous peripheral holdings such as sports teams. It is the third largest media giant in the world after Disney and Time Warner and holds about $54 billion in assets.
  3. 3. 1952 – Rupert Murdoch inherits The Adelaide News Within a few years Murdoch has an Australian newspaper empire By the early 60s he has moved into New Zealand A few years later he buys The Sun and News of the World in UK 1973 Murdoch enters the US market with+ the purchase of the San Antonio Express The History of News Corporation
  4. 4. +1980 Murdoch consolidateshis US and Australianholdings into NewsCorporationNext Murdoch buys theinfluential UK newspapersThe Times and The SundayTimesMurdoch uses his mediaempire to help politicianswho help himMurdock becomes a UScitizen so he can diversifyhis media holdings withtelevision and film
  5. 5. + Murdoch enters the 90s with huge debts and a huge media empire – a massive restructuring is undertakenThe empire emerges stronger than ever and diversified into every typeof media including book publishing, satellite and cable. Murdoch buysMySpace and puts newspapers online. His scheme of creating payportals for access to multiple websites’ content may be the future ofprofitability online.
  6. 6. + News Corps SWOT Strengths
  7. 7. + Longevity n  Rupert Murdoch is 80 years old and is close to stepping down. n  Rupert wants to keep the company News Corps in the bloodline. n  Rupert has two sons Lachlan and James, and workers feel they are both capable to be head of the company.
  8. 8. + Different Media n  Besides News, News Corps purchased different types of Media. n  News Corps has operations Through U.S. n  News Corps is one of the biggest motion picture distributer.
  9. 9. + Leading publisher n  News Corps is the leading publisher of the English-language. n  Four national news brands in the U.K. n  News Corps has a leading news app called “The Daily”.
  10. 10. + Education n  News Corps has a major voice in education as priority to the youth.
  11. 11. + News Corps SWOT Weaknesses
  12. 12. + No clear succession plan n  No successor has ever been named n  Lachlan, the eldest son, seemed to be in line but left the company and runs his own business in Australia n  James, the second son, is rising through the company and is a favorite with investors and stockholders n  Murdoch has recently remarried a much younger woman and had two children with her. She has been and business partner and devoted wife and mother.
  13. 13. + Murdoch is in sole control n  Murdoch has a history of not following sound business advice n  Murdoch bases many decisions on his own political and personal opinions n  Murdoch’s media supports politicians who support him n  Murdoch’s media supported China’s policies when he was wooing the Chinese government for access for his media outlets and continue to do so
  14. 14. + Acquisitions and start up costs are creating losses n  Network ventures in Poland, Turkey, and Serbia have created losses n  Recent purchases haven’t panned out, i.e., The Bit Ten Network and Fox Business
  15. 15. + Murdoch is determined to make the internet profitable n  MySpace has fallen from its popular position and Facebook continues to make inroads into their market share n  Murdoch’s decisions to charge for content have not always been successful n  Murdoch is investing a lot of money into internet acquisitions and start ups and may not sufficiently understand the environment
  16. 16. + News Corps SWOT Opportunities
  17. 17. + News Corp. expanding India’s entertainment industry n  News Corporation through Star TV has expanded and restructured in India n  They have branched into India’s movie industry n  Introduced pay television which has huge potential considering the number of people in India n  Recently struck a deal with pay television in South Africa for four of Star’s pay channels
  18. 18. + News Corp. buying into gaming industry n  Gaming is a huge market, particularly online gaming n  Murdoch sees gaming portals as a potentially huge profit stream – one fee allows users to access multiple sites
  19. 19. + News Corp. working to solve the declining print news industry n  Murdoch started and built his empire from newspapers and has never lost his passion for them n  Many of the newspapers have an online presence - online readership continues to grow, subscribers continue to drop n  Murdoch launched pay for newspaper content with The New York Times n  Intends to use the same model as gaming – one fee allows access to multiple sites n  Continues to support more localized and ad centered papers as well as tabloids
  20. 20. + News Corp. wants green, but why? n  Murdoch claims that his corporation is now carbon neutral n  Viewed by critics as a move to counteract his conservative bias and promote the corporation to new liberal audiences
  21. 21. + News Corps SWOT Threats
  22. 22. + Rising Popularity of DVRs n  The first threat to the growing network of News Corp is the rise of DVR consumers. DVR impact has been overestimated in the short term but underestimated in the long term. n  Even though its growth has been notably slow since its introduction in the late ‘90s, the increase of DVR adoption is steady every year. n  Viewers also can skip 50% of advertisings with certain DVRs, allowing them to watch pre- recorded broadcast without browsing limitations
  23. 23. + Economic Slowdown in US n  The continued migration of advertising to the Internet and economic slowdown took a toll on News Corp., where fourth-quarter revenue declined by $100 million to $1.3 billion and operating income declined 28 percent to $279 million. n  By2008, advertising revenue has fallen and companys share price went down. News Corp. is still facing a challenge to recover its past years success state.
  24. 24. + New Technology Has Cut the Profit Revenue for Printed Media With the advancement of technology nowadays, media n  interests have been redirected from printed publishing to live streaming. The rise of GoGreen campaigns around the world also n  change people’s opinion on printed media in general, as it takes with it the massacre of huge number of trees.
  25. 25. + Corporate Rivalry: John Malones Liberty Media n  On Friday, 22 December 2006, Rupert Murdoch, chief executive of News Corporation neutered a threat to his control of News Corp. with a $11 billion asset swap to eliminate 16% stake in his news empire held by rival tycoon John Malones Liberty Media. n  Liberty was also given 38% control share in DirecTV, which is the top ranking television service in America.