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Communacopia: Murdoch: We’ll Start Charging For WSJ Mobile Apps

The Wall Street Journal is ready to start charging for mobile access on the Blackberry and iPhone, News Corp (NYSE: NWS). CEO and chairman Rupert Murdoch told attendees at the Goldman Sachs Communacopia XVIII Conference. He didn’t offer a time frame for the charges, but indicated it would it start in a few months. Further down the road, Hulu can be expected to institute some sort of pay-per-view or subscription model, Murdoch said. The details there have yet to be worked out with NBC Universal (NYSE: GE) and Disney (NYSE: DIS), along with other content providers. Additionally, Murdoch expressed some displeasure with Amazon’s Kindle. He much prefers the terms with Sony (NYSE: SNE), though he didn’t offer specifics. Although Amazon (NSDQ: AMZN) hasn’t revealed its revenue split, it generally takes a 70 percent cut. (A recording of the webcast will be available here, later in the day).

Paid apps: Murdoch’s thoughts on Sony versus Amazon, and on charging for the Blackberry and iPhone when asked if the name “News Corp.” was something of a misnomer, since so much of the what the company earns comes from entertainment. Murdoch insisted that “news is more valuable than ever.” However, if his company were called “Newspaper Corp.” he would consider changing the name. He offered a look at how the business is trying to capitalize on the shift from paper to digital, specifically by saying that sometime in the next few months, WSJ readers on Blackberry and iPhone will be charged $2 per week, with print and online subscribers having to pay $1 per week. [Staci adds: I’ve just confirmed with WSJ that subscribers to both print and online won’t be charged extra.]

Kindle killer: As for the Kindle, Murdoch said it’s wonderful for books, but pretty terrible for newspapers. But he seemed glad and a bit surprised that over 25,000 users have decided to subscribe to the WSJ on the Kindle. He groused about the terms with Amazon, though he didn’t offer specifics, and said News Corp. will throw its support to Sony’s 3G wireless eReader, which is set to ship for the holiday season. “We’ll be doing everything we can to drive that one, the mobile one,” Murdoch said. He was otherwise unenthusiastic about Sony’s other two eReaders, which it unveiled last month.

Glorious, paperless future: As he has said before, all the new digital enhancements won’t cure newspapers’ problems over night. But Murdoch was practically rhapsodic when it comes to envisioning the future of the news business and digital devices. Murdoch: “More people will be buying their newspapers on portable, flexible devices instead of crushed trees. It won’t be soon, it could take 20 years. But there will be no paper, no printing plants, no unions. It will be a great future. For example, the Wall Street Journal has 17 plants, we’ve closed seven and will be outsourcing it. Each one we do, we reduce the cost of staffs and save a lot of money.”

B-movies, D-returns: On the DVD front, Murdoch said success is very simple: “When you put out a good movie, it will do very well. When you put out a B-level movie, you get killed.” As for the deep libraries that were once cash cows for the entertaiment companies, those days are over. Sales from Fox’s video library are down about 10 percent, Murdoch said. “On the other hand, the VOD market is developing very well. It’s not at the point when it can replace the lost revenue from DVDs, but it’s moving towards that. People sitting in their homes are happy to pay $3.99. The Red Boxes of this world, selling rentals for $1.00, is not something we like.”

Quick bump: Turning to the economy, Murdoch believes that in general, we can expect to “get a nice bump” in the short term, but then it will go back down to a slow recovery in the U.S. Murdoch’s native Australia particularly poised for a strong rise, thanks to China’s investment in the country. Even newspapers are doing pretty well there, as he said employment ads in newspapers there are trending up 20 percent—a big difference from where things stand in the U.S., as most newspapers have seen double-digit declines in help wanted classifieds. For the most part, News Corp. will continue to aim its own investing toward Asia. He mentioned that the WSJ.com is expanding its presence in China, where “hits have quadrupled in the past year. Although we’re not charging in China yet, we’re making money.”

Sep 15, 2009 11:52 AM ET

Rupert Murdoch Photo: AP Photo / Virginia Mayo

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Posted In: Entertainment, Media & Publishing, Newspapers, Social Media, Video, Companies, News Corp., Dow Jones, Wall Street Journal

  • Jamie Poitra

    @Staci and @Jon

    Truthfully I'd be OK with a small monthly fee if it meant I could get a few channels/shows that I can't currently.

    I've not had Cable or Satellite TV for a few years now but I'd be OK with a small fee per premium channel or such. 

    I'd love to get Food, Travel, Discovery, History, and maybe HBO and Showtime shows.  All being stations that are either barely testing the waters at Hulu (History) or just not interested in Hulu without getting more money out of it (Discovery).

  • eli bensky

    Soon, in addition to paying for wsj.com, Murdoch will have an extra charge if you actually want to read it.

  • Staci D. Kramer

    @Jon Hulu isn't going all pay. But I do expect subscription/download/premium sales to enter in the mix. For instance, if you can only get 5 episodes of something now, maybe you'd have access to a whole season at once. Or you'd be able to get movies sooner or you could get shows that aren't online now in any meaningful way ...

  • Jon Fish

    Start charging for Hulu and you will see that site lose so many viewers that it will become irrelevant.  Someone else will be able to pick up their slack.

  • George Wedding

    Also, what if I don't want the entire Wall Street Journal? I really only want to subscribe to technology sections at the Journal and The New York Times, but the news sections of the Sacramento Bee and Washington Post. These old school publishers have yet to figure out that grazing is the way media will be consumed in the future. This $2 per week business model doesn't account for that.

  • Rupert Murduck

    Hey I resent that.! Stop talking about me so meanly. jk i hate myself.


    DO u think CEO and chairman Rupert Murdoch even knows what a blog is?

  • Rupert M.

    BOYCOTT anything CEO and chairman Rupert Murdoch does. He just steals money and provides nothing for society except an old ugly nasty looking face. Thanks "JackASS" . I hope u die soon and all ur competitors take parts of your worthless company. PS ur kids and family hate u Murfuck

  • John Baribeault

    Great! More outsourcing, less,  jobs, and they will eventually be able to eliminate unions. Now, this is supposed to be a positive? What a great American.

    See ya WSJ. You just lost me.

  • George Wedding

    So, not so fast, Rupert…

  • George Wedding

    For a $2 per week fee, this subscription had better include the folloowing or it will NEVER work:
    - Cell phone, laptop and desktop access for each customer. My bottom line is that I demand access to the content I pay for on whatever machine I happen to be using at the time.
    - For $2 per week, this subscription probably should be a household subscription for 2-5 users (with their multiple devices).

  • Stephen Markus

    I already pay for the physical paper and WSJ.com…  now Murdoch wants to hit me up for more money just because I'm using my BlackBerry instead of my laptop?

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