Rupert Murdoch, media mogul and news magnate, is about to go off the deep end. After creating the massively successful News Corp empire it seems that Murdoch wants to commit online suicide. Murdoch's decision to charge consumers for Internet news content will be akin to taking a bullet to the head or noose around the neck.
I predict this will be the undoing of Mr. Murdoch's empire. While News Corp has been having an abysmal year and is hemorrhaging money; attempting to charge the online community for access to it's news content is a step further down the rabbit hole towards implosion. When News Corp makes the switch to charging for Internet content, the majority of users will simply switch to other sources like CNN, Newsweek, Drudge, Christian Science Monitor, BBC, etc. etc. etc. to get their news content. This will flood the competitor sites with users thereby allowing them to charge online advertisers more to post ads on the sites thereby increasing their revenue exponentially. Meanwhile, News Corp will continue to hemorrhage capital and eventually either reverse course or begins to sell off assets.
Your humble writer is not a market analyst, an economist, or the CEO of a media corporation, so of course I could be wrong on this whole thing. If you'd like more information on this story, go here.
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