Tumbling profits at newspaper giant News Corp has prompted an industry rethink of the free online news model, with the company's owner Rupert Murdoch warning that the days of free access to its news sites could soon be over.
The company's newspaper division saw profits plunge by 47% in the first quarter of 2009 to $755m, despite an increase in circulation revenue at all four of its UK titles.
Murdoch blamed the figures on the continuing decline in advertising revenue, although he did think that the present situation had been greatly exaggerated by the current recession.
He said that classified revenues from its print titles were undoubtedly migrating to the web and were unlikely to return, warning that the traditional newspaper business model was unsustainable and had to change.
And Murdoch hinted that some of his leading newspaper titles, such as The Sun, could convert to subscription-based access within the next year or so.
The possible implications for the PR industry are as yet unknown. But an even greater unknown is how Murdoch is going be able to convince readers to pay for content online when they've got used to getting it for free.
Nevertheless, few in history can be credited for transforming the news industry to the extent Murdoch has. So if anyone can do it, he can.
hello@octopuspr.co.uk 
01785
229530 
