News Corp Plans To Sell Web News Content, Breaks Off with Amazon

Revenue Decline Prompts Media Mogul to Seek Other e-Reader Provider

Summary: The CEO of News Corp, Rupert Murdoch, said that his company is now breaking off with Amazon.com’s Kindle e-reader following disappointing sales on its digital newspaper.

He also said that he is now looking for another deal with Sony Corp for the planned sale of its new feeds.

Global News Empire News Corp on Thursday announced plans of breaking off deal with Amazon Inc. following a huge decline in sales of its newspaper to the retail website’s Kindle e-reader.

In a statement, News Corp CEO Rupert Murdoch said that he is “unhappy” with the results of his empire’s newspaper sales and Kindle’s control over the subscribers.

Murdoch said that he is now seeking partnership with Kindle’s rival, Sony Corp. for the planned sale of newspaper in its new e-reader.

Earlier, News Corp’s revenue reportedly dropped 10.7 percent despite huge advertising offers in all its TV stations, movie studios, and newspapers.

Murdoch said that they are keeping realistic on the projection of its revenue by the end of 2009, adding that the worst may be over. But he said that this might change as they plan to sell news feeds on its internet site, when most of the users can get it free.

The media mogul also refused to further detail the said deal, hinting that it will start sale in the middle of next year.

Murdoch said that selling news content in its website can ensure good reporting and avoid “cannibalism” within the company.

Meanwhile, Amazon refused to comment on the issue.

News Corp Plans To Sell Web News Content, Breaks Off with Amazon

Revenue Decline Prompts Media Mogul to Seek Other e-Reader Provider

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