Murdoch: Readers, aggregators need to pay for online news

Posted by Erina Lin on December 1, 2009 at 4:06 PM

News Corp. chairman Rupert Murdoch stated in a workshop on journalism in the Internet age hosted by the Federal Trade Commission (FTC) Tuesday that the newspaper industry needs to convince readers to pay for online content, instead of hoping government to help, AFP reported.

"Warning that "government using its heavy hand to overregulate or to subsidise us," he said that publishers "need to a better job of persuading consumers that high quality reliable news and information does not come free," according to the AFP article posted on Google News.

"Good journalism is an expensive commodity." Murdoch added that government's role is to "reduce unnecessary regulation and eliminating obstacles to growth and investment." For example, setting up a rule prohibiting ownership of a paper and TV station in the same city, he said.

In addition, he also emphasised the importance of the digital realities, as well as the shift of business models.

"The old business model based on advertising only is dead. It cannot sustain newspapers over the long term," he said. "In the future, good journalism will depend on the ability of a news organisation to attract readers by providing news and information they're willing to pay for."

"Quality content is not free," he reiterated.

Murdoch said News Corp. will be charging consumers for online news, just like what they did, and successfully, - for the Wall Street Journal online.

Without stating specific names, he also bashed that news aggregator sites "are not investing in journalism, but feeding off the hard-earned efforts and investments of others," AFP reported.