A goodly number of Murdoch’s newspapers run at a loss. This isn’t because he’s a bad businessman, it’s because of the industry. His competitors are doing worse.
However, Murdoch loves newspapers and news. Whatever else his failings, it’s rare to have a newspaper owner who actually loves the medium. So even though these companies lose money for him (and, in revenue terms, are a tiny proportion of an empire that is mainly about entertainment and media) he keeps them alive and well financed.
Say that the clusterfuck over the infractions of a small number of his newspapers (assuming this goes beyond just News of the World) results in him divesting of news entirely. Firstly, who’d buy them? Secondly, what happens if this leads to the final destruction of actual daily newspapers? Continue reading