Is Rupert Murdoch going to sue GOOGLE - a great way to commit professional suicide News Corp?

WalkyTalky reports that yesterday’s New York Magazine has published an article in which the author, citing a trusted source in News Corp, says Rupert Murdoch is going to sue Google if the company refuses to comply with its ultimatum. .



A well-known billionaire, concerned about the decline in popularity of print media and related advertising media, has recently made repeated attempts to monetize online versions of his magazines and newspapers. None of them can be called successful.

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However, its latest initiative is the forced removal of all references to News content. Corp. from the Google search directory - Murdoch turns into a crusade, almost a holy mission to save the mastodon ideology of the media business.



Hello weapon!

An article in the NYT can be considered the actual declaration of war between News Corp and Google: Murdoch makes it clear that if Google refuses to pay for publishing News Corp content in its search directories and / or does not withdraw it from them on demand, the media tycoon will follow immediate legal action.



The situation is very delicate - the victory of any of the parties will create a precedent on which all subsequent court decisions will be based. Murdoch's position looks completely flawed - the person does not understand the principles of the work of the modern Internet and content distribution technologies.



It is clear that the withdrawal of News Corp content. from Google, it only hurts News Corp .: Murdoch’s attendance will drop dramatically. With it, advertising revenue will fall. First, Google will also be in the red, losing some money on contextual advertising. But this failure will be temporary - the number of search queries will not decrease and the place of News Corp sites. gradually take up other news resources, especially blogs of professional journalists. Accordingly, the contextual advertising of Google will go there.



Murdoch's position is clear - professional production of news requires huge expenses: editors, consultants, managers, photographers, offices in all parts of the world, etc. etc. His position is “professional news costs money and users must pay for it.”







10 years ago nobody argued with this statement. But today the question of professional media holdings with annual operating expenses of several hundred million dollars does not bother the end user. The Internet allows any news to reach millions of readers in a split second - office buildings, huge bloated staffs of administrative staff are no longer needed. The quality of modern digital soap cases is more than enough to illustrate articles, photobank services have declined 100-500 times in recent years (instead of $ 1,000, you can buy a photo on the cover of the magazine for 5). As for professional journalists, they will not remain without work - a real authority in their field may well earn on a personal blog - his articles will be popular and regularly indexed in search engines and, therefore, attract advertising.

Blogs - New Media Gods

There are millions of people leading more or less professional blogs. Of these, according to Pareto’s law (Pareto’s law, or Pareto’s Principle, or 20/80 principle, a rule of thumb introduced by the sociologist Wilfredo Pareto, is most generally formulated as “20% of efforts give 80% of the result, and the remaining 80% of 20% of the result. ”It can be used as a basic principle for optimization of any activity: by choosing the minimum of the most important actions correctly, you can quickly get a significant part of the planned full result, while further improvements are ineffective and may not be justified (agreed clearly Pareto curve)) at least 20% -. gorgeous, popular and profitable.



Mr. Murdok, you are cutting the branch on which you are sitting. It may be easier to just give us your money :)



PS Of course, Murdoch himself is not strong in technology, which is excusable for an 80-year-old manager. Most likely, his decisions are based on the “tips” of numerous highly paid (!) Advisers, who, in turn, do not want to lose huge salaries just because they upset the boss with a stupid innovation idea. Something like - “Mr. Murdoch, can it be better to pay Google so that our links always occupy the first 20 lines of search results ?!” :)



Source: WalkyTalky



PPS Who are News Corp:

News Corporation (NYSE: NWS) - Rupert Murdoch's subsidiary, which owns, in particular, 20th Century Fox TV, Fox News, satellite DTH operators BSkyB, Sky Deutschland, Sky Italia, Foxtel, MySpace, Dow Jones news agency (including Service Factiva), Best FM, Nashe Radio, Ultra, the advertising agency News Outdoor, as well as The Wall Street Journal, The Times, The Sun and the New York Post. The revenue of News Corporation in 2006 exceeded $ 25 billion, net profit was $ 2.3 billion. During the election campaign, it supported the Republican Party of the United States.