Posted by Admin | December 1st, 2009

Rubert Murdoch has long been considered one of the most savvy minds in the media industry. He currently is chairman and President of NewsCorp, one of the largest media conglomerates in the United States. However, he is currently in the process of making a move which many find questionable from a business point of view. Newspapers’ goal have always been to expand readership which would afford them the ability to charge more for advertising. This basic scheme has kept newspapers in business for hundreds of years. Although subscriptions or sales of newspapers have always been a part of the profit schemes, it has never been the profit center. Rupert Murdoch said today at the U.S. Federal Trade Commission’s workshop on journalism in the Internet age that news aggregators, like Google, had no right to use his newspapers’ articles or materials and not pay for their production.

News Corp. is considering blocking Google Inc. from displaying its news articles and is talking to Microsoft Corp.’s Bing search engine about listing only on its site, people familiar with the matter said last week. Murdoch said last month he may stop Google from scanning and indexing stories from his newspapers, which include the Wall Street Journal and Times of London.

It seems to me that NewsCorp stands to lose a great deal of its traffic overnight by switching from one of the most well-known and respected search engines to a much lesser utilized one like Bing.