News Corp. executives expect its book publishing revenue to stabilize because profit margins are higher for electronic books than for hard copies. For its news and information properties, company managers last month outlined a strategy centered around growing subscription revenue, which they believe will offset declines in advertising revenue. The company also plans to experiment with different online windows of availability for news content.
Some of Murdoch's weaker newspapers might be forced to scale back. Some of the publications have relied on News Corp.'s deep pockets and free-flowing profits from the television division to prop them up amid sliding circulation and advertising revenue.
"We will be relentless in our cost-cutting and in our pursuit of profits," Robert Thomson, former managing editor of the Wall Street Journal and incoming chief executive of the reconstituted News Corp., said late last month during a day of presentations to investors. "But we will also be a resolutely creative company — creativity will not be the preserve of the few but the mission of the many.”
Earlier this month, several of Murdoch's publications, including the Wall Street Journal, which remains profitable, and two money-losing newspapers, the New York Post and the Times of London, began shedding staff. The Wall Street Journal is expected to lose a handful of editorial employees, and the company plans to hire more reporters to cover such beats as technology and central banking.