U-Turn: Murdochs say they plan to go to Parliament

LONDON: Rupert and James Murdoch said on Thursday that they planned to appear before a parliamentary committee investigating Britain's phone hacking scandal – a sudden U-turn after an extraordinary rebuff of lawmakers seeking to question them.

A spokeswoman for Murdoch's New York-based News Corp. said that the pair were in the process of confirming their attendance on Tuesday.

“The intention is to go,” Miranda Higham said.

Hours earlier, the Murdochs refused to appear at the hearing before the culture, media and sport committee, which is probing allegations of phone hacking and bribery by employees of their newspapers.

The snub set up a confrontation between two of Britain's most powerful men and a Parliament once seen as easily bent to their will.

Britain's legislature had already forced the Murdochs to abandon their ambitions of purchasing highly profitable British Sky Broadcasting network on Wednesday after lawmakers from all parties united to demand that News Corp. withdraw its bid.

Witnesses are regularly called to appear before parliamentary committees, which quiz everyone from business leaders to prime ministers on a wide range of issues.

Defiance of a parliamentary summons is illegal, and can in theory be punished with a fine or jail time. In practice, such measures have been all but unknown in modern times; the House of Commons last punished a non-member in 1957.

Rebekah Brooks, the British chief executive of the Murdochs' British arm, News International, has already said she would appear before the committee Tuesday.

James Murdoch, the chief of his father's European and Asian operations, said he was not available Tuesday but offered to appear on Aug. 10 or 11, without explaining his inability to attend earlier. Rupert Murdoch said he would not appear at all, offering instead to speak before a separate inquiry initiated by Prime Minister David Cameron and led by a judge. He said he was willing to discuss alternative ways

of providing evidence to parliament.

John Whittingdale, who earlier said that the wait was “unjustifiable,” welcomed the change of course.

“It will be the first time that Rupert Murdoch and James Murdoch, and indeed, Rebekah Brooks will have answered questions about this,” he told Sky News television. “They will be appearing before a parliamentary committee so I would hope they would take it seriously and they will give us the answers that not just we want to hear but I think an awful lot of people will want to hear.”

Meanwhile, the criminal investigation into the Murdoch empire widenened as the former deputy editor of the News of the World was arrested by detectives probing phone hacking at the defunct tabloid.

The Metropolitan Police said Neil Wallis, deputy editor under Andy Coulson from 2003 to 2007, was arrested on suspicion of conspiring to intercept communications.

Police have so far arrested seven people for questioning in their investigation of phone hacking and two others in a separate investigation of alleged bribery of police officers. No one has been charged.

Coulson, Cameron's communications director from 2007 until January this year, was arrested on July 8.

Brooks was editor of News of the World in 2002 at the time of the most damaging allegation so far, that the paper hacked into the phone of teenage murder victim Milly Dowler in 2002 and may have impeded a police investigation into the 13-year-old's disappearance. Brooks has said she was unaware of any phone hacking at the time.

Murdoch's hope of making BSkyB a wholly owned part of his News Corp. empire collapsed on Wednesday in the face of what Cameron called a “firestorm” that has engulfed media, police and politicians.

Cameron has appointed a judge for a wide-ranging inquiry into the News of the World scandal and wider issues of media regulation, the relationship between politicians and media and the possibility that illegal practices are more widely employed in the industry.

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Hacking scam: Royals, Brown were victims

LONDON: The scandal engulfing Rupert Murdoch's media empire exploded in several directions on Monday, with fresh reports of phone hacking attacks against some of the nation's most powerful figures, including royals and former prime minister Gordon Brown.

Adding to the intrigue, Scotland Yard released an unusual statement accusing unidentified individuals of trying to sabotage its sprawling investigation. The police — themselves accused of accepting bribes from Murdoch's journalists — said somebody was deliberately planting distracting information in the press.

No one, it seems, had been safe from the prying eyes of corrupt journalists. Police officers betrayed members of the royal family to the News of The World, according to several reports. Other papers said Brown had his bank account broken into by a con man acting for Murdoch's Sunday Times.

The reports couldn't be confirmed, but they added to a sense of disbelief that has spread across Britain. “The events of last week shocked the nation,” Culture Secretary Jeremy Hunt told lawmakers Monday. He said Britain's proud press tradition had been “shaken by the revelation of what we now

know to have happened at the News of The World.”

The British press has been furiously reporting allegations that journalists at the News of the World tabloid may have hacked into phones of young murder victims, families of dead servicemen and terrorism victims. The widening scandal has prompted Murdoch's News Corp. to close the tabloid and withdraw its promise to spin off Sky News — a move that forced Hunt to refer its bid for British Sky Broadcasting to competition authorities. The decision will delay the bid, although it was not immediately clear whether Murdoch hoped to buy time with the ploy in the hope the scandal would die down, or whether it was an implicit acknowledgement that the bid was dead.

A failure to clinch the $19 billion takeover would represent a huge setback for Murdoch, but even as the mogul was in London to try to contain the damage, as allegations against his empire rushed in. Media reported that Brown was one of thousands targeted by News International, saying that his personal details — including his bank account and his son's medical records — had been targeted by people working for titles including the Sun and the Sunday Times.

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UK phone hacking: Probe may reach Murdoch door

LONDON: News Corp chairman Rupert Murdoch may personally get embroiled in the probe into the scandal involving his now defunct British tabloid the News of the World if it emerges that he knew about emails showing several of its journalists hacking mobile phones and making payments to police officers.

Murdoch’s UK subsidiary, News International, handed over the 2007 emails to police last week. The key question now is whether Les Hinton, one of Murdoch’s closest colleagues for 50 years, was aware of the emails in 2007, as a section of British media suspect he was. If that’s borne out, then Australia-born American media magnate would have been sure to know also.

It also emerged on Monday that the tabloid purchased royal family members’ personal contact details from a police officer deployed for their protection. In effect, Queen Elizabeth’s security was allegedly compromised. This is a serious offence under the UK law and anyone who knew about this and took no action is liable to prosecution and if found guilty likely to be imprisoned. This is apart from the serious criminality of tapping phones.

The tabloid hacked cell phones of a number of celebrities, including film stars, politicians and sports figures. The emails revealed the extent of hacking and also that the tabloid’s operatives reportedly deleted messages from a 13-year-old murder victim’s phone giving her parents false hope that she was still alive.

This particularly fuelled outrage and led to advertizers withdrawing ads forcing the 168-year-old tabloid’s closure.

News Corp chairman Rupert Murdoch’s son, James, too, is in danger of facing charges in the UK and the US under prevention of corruption laws. James Murdoch is News International’s executive chairman and Star TV head in Asia and is said to have authorized at least one settlement running into hundreds of thousands of pounds to a victim of phone interception in exchange for signing a gagging agreement.

Murdoch Sr is currently in London on a damage-control exercise. He is also attempting to hold on to his UK chief executive, Rebekah Brooks, even as British prime minister David Cameron also called for her resignation. Opposition leader Ed Miliband described News International’s inaction as a “cover up on a massive scale”. He also demanded that New International’s multi-billion bid to wholly own BSkyB, Britain’s leading DTH operator, from its current holding of 39%, be halted. He found support from the ruling coalition when deputy PM and Liberal Democrats leader Nick Clegg urged Murdoch to withdraw his proposal.

Even Cameron of the pro-Murdoch Conservative party was forced on to the defensive, as UK government referred Murdoch’s request to the independent regulator Ofcom for an opinion on whether News International can be a “fit and proper” 100% owner of BSkyB, with no time limit for a response. PM is somewhat embroiled in the scandal as he employed editor of the paper under whose watch many of wrongdoings occurred.

RPT-At Sun Valley, brighter moods may not mean big deals

NEW YORK, July 2 (Reuters) – As Rupert Murdoch, Bob Iger and other media honchos assemble in Sun Valley next week for some fly-fishing or white water rafting, spirits should be brighter than a year ago: stock prices are up by about a third, after all.

That alone provides the currency and freedom to get down to the real business of the media summit, one that boutique investment bank Allen & Co annually hosts in the shadow of the Pioneer Mountains in Idaho. For the past 27 years, the Sun Valley Lodge has been the spot where blockbuster media deals have been hatched.

Even in 2009, when advertising revenues nosedived, Comcast Corp’s (CMCSA.O) co-founder Ralph Roberts had the moxie to talk to General Electric Co (GE.N) Chief Executive Jeff Immelt about a deal for NBC Universal.

This year, it could be Walt Disney Co (DIS.N) CEO Iger who finds himself center stage amid speculation he may shop ABC — something Disney has denied [nN27132450]. Or veteran dealer Barry Diller from IAC/InterActiveCorp (IACI.O), who has said he would look at a deal involving his Ask.com search engine.

New media hotshots like Facebook, LinkedIn, and Zynga — on nearly everyone’s wish list — are also expected to attend. As are Google Inc (GOOG.O), Time Warner Inc (TWX.N), News Corp (NWSA.O), all flush with cash.

“You would think this is going to be a pretty exciting Allen event,” said Mike Vorhaus, managing director of consulting firm Frank N. Magid Associates. “Fundamentally, the people at that place, every single one of them, is worth 30 percent or 40 percent more than they were a year ago.”

Still, once they step off their private jets and settle in fireside, media chiefs may not be much in the mood for dealmaking, given jittery financial markets and fears the U.S. is heading into a double-dip recession.

Jonathan Knee, a media banker at Evercore Partners Inc (EVR.N), said most executives remain “gun-shy” and any dealmaking would likely involve cable channels or modest new media plays, rather than the blockbuster takeovers.

“The brief euphoria of the beginning of the year has been tempered dramatically both by the recent volatility in the economy and even the quarterly results,” said Knee.

“People are glad it’s not the bloodbath they thought it might be last year, but I don’t think that any believes they have permanently dodged a bullet.”

WHERE IS JOBS?

Among the concerns that could unnerve CEOs is consumer confidence, fragile European economies and, closer to home, a shift in media power from companies that produce entertainment, such as CBS Corp (CBS.N), to those that deliver it, such as Time Warner Cable (TWC.N) or Apple Inc (AAPL.O).

As head of Apple, Steve Jobs has become perhaps the most commanding and recognizable figure in media today. Jobs is on the guest list for the Sun Valley conference, but it was not clear if he will show up.

Present or not, Jobs will no doubt feature prominently in discussions about new media business models in the digital age, especially in the wake of the successful iPad launch. Apple has already sold more than 3 million of the multimedia tablets, even though it has struck relatively few content deals with the entertainment companies [nN22130761].

Paul Levinson, an author and professor of media studies at Fordham University, is among those who say that traditional content is no longer king, having given way to hot devices and popular digital media.

“Ultimately, what moves the industry forward is the new media and devices and the public’s love of them,” he said. “Remember, live theater was once the main entertainment.”

Others point out that critics have talked about traditional media companies turning into dinosaurs for years. But they have repeatedly shown their staying power — as evidenced by the attention they draw each summer at Sun Valley.

That is not to say that old school media chiefs will not be harboring new media dreams during cocktail hour at the lodge.

“They are all still looking, and they are all still hoping, and you will still see dabbling,” said Evercore’s Knee. “But if it is a halfway decent business they are unlikely to be the high bidder and if it’s a really large business they risk extraordinary shareholder wrath.” (Reporting by Paul Thomasch; Editing by Derek Caney)

News Corp seeks to reel in BSkyB

(Reuters) – Rupert Murdoch’s News Corp (NWSA.O) is proposing to pay $12 billion to take full control of British satellite broadcaster BSkyB (BSY.L) as it seeks to generate steadier earnings and make better use of its cash pile.

Deals | Inflows Outflows

But BSkyB, founded more than 20 years ago by Murdoch and still chaired by his son James, demanded a higher offer on Tuesday for the 61 percent of BSkyB that News Corp does not already own.

News Corp proposed to pay 700 pence per share for BSkyB, which dominates Britain’s pay-TV market thanks mainly to top sports offerings — representing a 17 percent premium to Monday’s closing price.

BSkyB’s independent directors unanimously rejected the bid as too low. They said they would be prepared to support an offer of above 800 pence per share.

Shares in BSkyB leapt as much as 22 percent, their biggest single-day jump for a decade, and were later up 17.15 percent at 703.5 pence on expectations a deal is likely. News Corp shares were up 7.24 percent at $14.07 on the Nasdaq at midday.

At 700 pence, News Corp — which has $8.2 billion in cash and equivalents — would be paying $11.6 billion for the 61 percent of BSkyB it does not already own.

News Corp President Chase Carey and Chief Financial Officer David DeVoe told analysts on a conference call that the company is focused on funding a deal with cash and debt. If News Corp and BSkyB are unable to reach a satisfactory agreement, News Corp executives indicated they had other options, but declined to say if that could include a future offer involving equity.

Until a potential deal is approved by regulators, however, neither side plans to negotiate further on price, according to sources close to the talks. Approval could take up to a year.

Last month, Murdoch told investors during an earnings call that the company’s balance sheet was inefficient and he was looking at uses for its cash, including dividends, buybacks and debt repayments as well as investments in the business. News Corp executives said on Tuesday that a stock buyback would be unlikely before the BSkyB deal is settled.

David Joyce, an analyst with Miller Tabak & Co, said investors had reacted warmly to the potential deal because it would give News Corp more recurring monthly revenue through subscriptions, reducing its exposure to advertising.

“Investors have really tended to like the media companies that have much more visibility,” he said.

Indeed, James Murdoch, who runs News Corp’s European and Asian operations, has made clear that pay-TV in Western Europe is a top priority.

News Corp — which includes the Fox television network, movie company 20th Century Fox and the Wall Street Journal — also owns 45 percent of German pay-TV broadcaster Sky Deutschland (SKYDn.DE), whose shares rose 9.6 percent.

BSkyB’s premium sports offerings include Premier League soccer, the Ashes Test cricket series and the Tri Nations rugby championship. It will become the first TV company in Britain to broadcast in 3D later this year, after pioneering HDTV.

The recent slide of Britain’s pound sterling, combined with the ending of significant investments by BSkyB in broadband and high-definition technology, make this an opportune time for News Corp to make its move, analysts argue.

London brokerage Numis said it expected a deal at between 700 and 800 pence, and raised its target price to 800 pence.

“News Corp is in robust financial health while the BSkyB valuation does not fully reflect its medium-term growth potential. Combined with the current weakness of sterling, we can certainly see the attractions of a bid,” its analysts wrote.

DISCIPLINED APPROACH

News Corp said outright ownership would make the value of its decades-old investment more transparent to its shareholders and increase its geographical diversification.

The company said its offer valued BSkyB at 11.8 times 2010 earnings before interest, tax, depreciation and amortization (EBITDA) — significantly more than the average multiple of seven for European pay-TV firms and six for U.S. counterparts.

Ratings agency Standard & Poor’s said the proposed deal would not change its BBB+ rating and stable outlook for News Corp.

News Corp’s ownership of The Times of London, Sunday Times, and The Sun could present regulatory obstacles to buying all of BSkyB, despite a new right-leaning UK government that is expected to be more sympathetic to BSkyB. News Corp executives said on the call they did not think the potential deal would necessitate the sale of its other U.K. media properties.

BSkyB said it would work with News Corp to seek clearances from the relevant authorities.

News Corp and BSkyB left the door open for friendly talks that could run until February 2012, and said any deal would have to be approved by shareholders of 70 percent of BSkyB’s stock.

Under the terms of the negotiations, News Corp agreed not to trigger a hostile approach by buying additional shares in BSkyB until two months after a deal receives regulatory clearance or after the end of 2011.

Should it want to break the terms, it would have to pay a fee of 38.5 million pounds.

BSKyB is being advised by Morgan Stanley and UBS. News Corp is being advised by Deutsche Bank and J.P. Morgan Cazenove.

(Additional reporting by Jennifer Saba in New York. Editing by Paul Hoskins, Louise Heavens and Matthew Lewis)

Bulldogs boss shaken by Murdoch remarks

Canterbury chief executive Todd Greenberg says the implications of Rupert Murdoch’s comments casting doubt over other NRL teams breaching the salary cap are “worrying”.

Speaking during a press conference to announce the company’s profit results, Murdoch admitted News Corporation and its Australian arm News Limited – which owns the Storm and half the NRL – had been embarrassed by the incident.

The Storm were stripped of two premierships and have been forced to play out the 2010 season for no competition points as punishment for salary cap breaches totalling $1.7 million over five years.

But Murdoch said he had suspicions over the financial practices of other NRL clubs.

The NRL refused to buy into Murdoch’s comments, which is hardly surprising considering News Limited holds a 50 per cent stake in the competition.

But Greenberg admitted the aspersions generated by Murdoch’s comments were “a worry.”

“There will always be people, no matter what industry they’re in, who will look to take short cuts or break the rules,” he said.

“What we’ve got to do is make sure the penalties are harsh if you’re going to try and break the rules.

“I think David’s (NRL chief executive David Gallop) shown his hand here – if you’re prepared to play by the rules that’s fine, if you’re not, you may not get caught initially but some big risks down the track.”

Murdoch’s claims came on the back of explosive evidence from former South Sydney coach Jason Taylor that a Rabbitohs official had raised the prospect of the club going outside the boundaries of the salary cap.

Taylor, who coached the Bunnies from 2007 before being sensationally sacked in 2009, said nothing came of the discussions, but admitted on the SBS’s Insight program they were talks that happened at other NRL clubs as well.

“If anyone thinks that Souths would be the only club where there would be a comment made in a meeting like that, well then they’re wrong,” Taylor said.

“Nothing went on from that point but other clubs are having those conversations.”

Describing Taylor’s comments as “surprising”, Greenberg said no such discussions had ever been held during his tenure at the Bulldogs.

“The only time we discuss payments outside the salary cap are when it’s in relation to third party agreements or possible marquee players agreements,” he said.

“We understand the rules of the cap, we understand the importance of the cap and we continue to adhere to it.”

Tories pull ahead in election endgame

As the UK election campaign enters its final days, two separate polls show that the Conservatives have raced ahead in public popularity.

The YouGov poll for The Sunday Times has the Conservatives inching forward on 35 per cent of the vote.

The Liberal Democrats claimed 28 per cent of the vote, closely followed by Labour on 27 per cent.

A ComRes poll for the Sunday Mirror and Independent on Sunday has the Conservative lead at 10 points – its highest since February.

The Conservatives held 38 per cent of the vote while Labour lagged on 28 per cent and the Liberal Democrats came in third with 25 per cent.

Rupert Murdoch’s Times newspaper, which has backed Labour since Tony Blair’s winning campaign in 1997, has switched its support to the Conservatives.

The Guardian, a long-time ally of Labour, is now publicly supporting the Liberal Democrats.

In the final weekend of campaigning, Liberal Democrats leader Nick Clegg tried to convince Labour supporters to switch their vote to his party.

Prime Minister Gordon Brown hit back, describing Mr Clegg as a “TV game show host”.

The UK goes to the polls on Thursday.

EXTRA! Wall Street Journal heads into NY hyperdrive

(Reuters) – The Wall Street Journal is offering some businesses firesale prices for full-page ads in its highly anticipated New York edition to seduce advertisers away from The New York Times.

U.S.

Wall Street Journal Managing Editor Robert Thomson and other executives plan to unveil the edition during a press briefing on Monday morning.

The section will cover local news, culture and sports, and will be incorporated within the Wall Street Journal. It will be circulated in the New York area.

Rupert Murdoch, whose News Corp owns the Journal, is betting that New Yorkers want an alternative to the Times, and he is willing to risk the ire of any shareholders not interested in pulp and ink.

David Joyce, an analyst at Miller Tabak, said investors “tend to hate” the newspaper assets of News Corp.

“They wish it could be spun out, but you have to go into News Corp assuming they’re going to be around. Newspapers, the power and influence that come along with (them), are integral to the News Corp strategy.”

To entice advertisers onto the pages of the New York edition, the Wall Street Journal is deeply cutting the cost of a full-page ad and, as a bonus, throwing in a full-page ad in the New York Post, also owned by News Corp.

Some local businesses can buy a full-page ad for $19,000, according to a Wall Street Journal presentation to advertisers that was shown to Reuters by a source. That is a steep discount to full-page print ads in large newspapers that can cost up to

$90,000.

A Dow Jones source, who spoke on condition of anonymity, said only a few New York area businesses not currently advertising in the Wall Street Journal or the New York Post were being offered the discount.

“With News Corp having a vast array of diversified assets, they can afford to essentially buy market share in the New York newspaper market by offering cut-rate advertising,” said Miller Tabak’s Joyce. “That could perhaps hurt New York Times’ finances.”

WHACKED BY RECESSION

The newspaper industry, already weakened by a migration of advertising to the Internet, has been roiled by one of the worst economic downturns in generations.

Days before the new edition of the Wall Street Journal was due to hit the streets, several newspaper companies, including the New York Times Co, published quarterly financial results that revealed it could be a long road back to ad revenue growth.

The Wall Street Journal, however, showed advertising revenue growth in the first quarter.

“Competitors have been accusing each other of rate cutting since the beginning of time,” Michael Rooney, chief revenue officer of the Wall Street Journal, said in an emailed statement. “The simple fact is that the Times’ ad revenue is down 12 percent and our ad revenue is up 25 percent in the latest quarter.”

Scott Heekin-Canedy, president of the New York Times, told analysts and investors on an earnings call on Thursday that the newspaper was feeling some heat in the New York advertising market. “We are seeing pressure, but we don’t believe it’s so far having any effect on our business,” he said.

On the call, Times Chief Executive Janet Robinson ticked off a litany of strengths, including higher online traffic and national advertising share, to explain why the New York Times was prepared to do battle over the city’s newspaper market.

“We don’t shy away from competition,” Robinson said. “We never have, we never will.”

In an interview on Friday, Heekin-Canedy said the New York Times relies on the strength of its relationships with advertisers. “We do smart discounting and come up with ways besides price to achieve objectives.”

HELLO AMERICA

The Wall Street Journal has long been viewed as a vehicle to reach national audiences.

“A number of our clients that run in the Wall Street Journal are happy for the broad reach against that core audience,” said Scott Kruse, managing director of GroupM, an advertising agency that places ads for clients such as Sprint Nextel Corp and Volkswagen. “A lot of our clients don’t just want New York.”

Kruse said the New York edition of the Wall Street Journal would have a daily circulation of 235,000, which he described as a small add-on for Journal advertisers. “The question is do you really need a local overlay on top of what you are doing.”

Sharon Enright, associate media director for advertising agency RPA, said the Wall Street Journal had approached them about the New York project but, “It doesn’t make sense for us.” Enright said that she and her colleague Marie Zymkowitz buy ads in the Wall Street Journal to reach a national upscale audience.

TODAY NEW YORK, TOMORROW?

Under Murdoch, the Journal has the coffers to fund the experiment. The newspaper already produces a weekly section dedicated to San Francisco and it cranked up distribution in Detroit when the Detroit Free Press and the Detroit News cut home delivery.

“I would not underestimate Mr. Murdoch because he is playing with a large sum of cash,” said Benchmark analyst Edward Atorino.

“Some people are waiting with bated breath, including Janet.”

(Reporting by Jennifer Saba, additional reporting by Yinka Adegoke; Editing by Tiffany Wu, Toni Reinhold)

Tablet news: newspaper of the future?

On Media Watch this week, we looked at whether pay-walls on the net, and paid-for apps on tablet computers, might come to the rescue of the beleaguered newspaper industry. The Apple iPad, and its competitor devices still in development, are causing intense excitement in the industry.

“A game-changer”, Marc Frons of the New York Times called it on our program.

“It may well be the saving of the newspaper industry,” Rupert Murdoch told the National Press Club in Washington this week.

Why? Well because, in the words of The Australian’s editor-in-chief, Chris Mitchell, a newspaper app on the iPad feels “very much like a traditional newspaper, so instead of just seeing a line on a website that refers to a story and you click on that, you’re getting display, you’re getting headlines that are not designed for search engine optimisation but have puns and traditional journalistic values in them…” And, of course, instead of hopping from one story to the next across cyberspace, you’ll be offered, for a price, a whole package – news, sport, fashion, gossip, opinion, the lot, all nicely wrapped up as The Australian, or The Herald Sun or The New York Times. Or so the newspapers hope.

But who will pay for this? Who wants it? Is this just the fantasy of old newspapermen (and women), desperate to salvage a way of packaging the news that has had its day? It’s electronic, yes. It may be convenient, yes. It’s energy efficient and cheap to deliver, yes. It will (eventually) have audio and video as well as print and pictures, yes. But in the end, it’s someone else’s (Chris Mitchell’s, for example) selection of what’s important that day served up to us for a few bucks a week.

Media commentator Frederic Filloux was adamant. “The idea of paying for news for a young person” he told me, “is just stupid.” The people who might be persuaded to pay will be “elderly, affluent, educated people – that’s it.”

But this isn’t just the difference between paying and not paying. It’s the difference between deciding on your own news agenda, or buying someone else’s.

Old news junkies like me, brought up with newspapers, might well love the tablet computer. We buy two or three newspapers now. We might well prefer to buy two or three newspaper apps instead, downloaded automatically to a tablet that we can prop up against the coffee pot and read over breakfast. Especially if it’s cheaper. We’ll just have to find something else to line the birdcage with.

But a lot of news junkies haven’t consumed media that way for years. Tech savvy young people use search engines, and social media, and a host of filters and applications to fashion their own news intake, from a wide variety of sources – ‘mainstream’ websites, and blogs, and aggregators, and friends.

Chris Mitchell gave a telling definition of what he saw as The Australian’s core function – the one that would survive, no matter what the technology. “The core of the business,” he told me in The Australian’s conference room, “is your ability to dream up ideas to create news – the things that we chase each day. We sit here every morning and we have an hour-long conference and we decide this is something we’re going to allocate a lot of resources to. And I think that the core of the newspaper that is involved in that will continue to be involved in that.”

And The Australian takes the business of ‘creating’ news – of deciding what stories to chase, and what to ignore, of what news to emphasise, and what emphasis to put on the news – very seriously. That’s evident on every front page.

But news editors in any mainstream medium – newspapers, radio, TV, even online – are in the business of selection. They decide what they think will most interest most readers each day.

Yet the true beauty of the internet, for those who know best how to use it (and that emphatically doesn’t include me), is that it allows news consumers to dispense with the services of gatekeepers like news editors. And I seriously wonder how many of them – and they, after all, are the consumers of the ‘quality news’ of the future, the people who are educated now, and in 30 years’ time will be elderly and affluent as well – will ever want to go back. If you cut yourself off from their daily intake, by putting your journalism behind a paywall, aren’t you simply cutting yourself off your own future?

And in that media future, perhaps, even more than the front-line journalist, it’s the editor whose job will be truly on the line. Publishers and editors everywhere desperately hope the iPad and its cousins will restore to them a power that’s gradually fading. In the immortal words of The Castle’s Dale Kerrigan, as his son read out ads from the pages of the Trading Post (long since transformed into an online only publication), “Tell ‘em they’re dreaming.”

Murdoch to limit Google, Microsoft

News Corp chairman Rupert Murdoch says Google and Microsoft’s access to his newspapers could be limited to a “headline or a sentence or two” once he erects a pay wall around his titles’ websites.

Mr Murdoch, in an interview with journalist Marvin Kalb for The Kalb Report, said he believed most US newspapers would eventually end up charging readers online, like he does with The Wall Street Journal and plans to do with his other properties, beginning with The Times of London.

“You’ll find, I think, most newspapers in this country are going to be putting up a pay wall,” he said.

“Now how high does it go? Does it allow [visitors] to have the first couple of paragraphs or certain feature articles? We’ll see. We’re experimenting with it ourselves.”

The News Corp chief said “we’re going to stop people like Google and Microsoft and whoever from taking our stories for nothing”.

Search advertising had produced a “river of gold” for Google, he said, “but those words are being taken mostly from the newspapers. And I think they ought to stop it, the newspapers ought to stand up and make them do their own reporting or whatever.”

Mr Murdoch said he did not expect search engines would pay for access to newspapers.

“We’ll be very happy if they just publish our headline or a sentence or two and that’s followed by a subscription form,” he said.

Mr Murdoch dismissed concerns that readers used to getting news on the internet for free would be reluctant to pay.

“I think when they’ve got nowhere else to go they’ll start paying,” he said.

Mr Murdoch was also asked about the rivalry between The New York Times and the Wall Street Journal, which has announced plans to launch an expanded New York edition later this month.

“I’ve got great respect for the Times, except it does have very clearly an agenda,” he said. “You can see it in the way they choose their stories, what they put on Page One – anything [President Barack] Obama wants.

“And the White House pays off by feeding them stories.”

UK papers to charge online readers

News Corp will charge readers for online versions of its UK Times and Sunday Times newspapers from June, becoming the first media firm to test consumers’ appetite to pay for mass-market news online.

Access to two new websites for both titles will cost 1 pound ($1.60) per day or 2 pounds ($3.20) a week. Subscribers to the print versions will get free access.

“This is just the start,” said Rebekah Brooks, chief executive of News Corp’s British newspaper unit News International which also publishes The Sun daily tabloid and sister paper The News of the World on Sundays.

“At a defining moment for journalism, this is a crucial step towards making the business of news an economically exciting proposition,” she said.

Newspapers in Western Europe and the United States have been battered by the recession while fighting a structural shift in their business from paid-for newspapers to largely free news on the internet.

Two business newspapers – the Financial Times and News Corp’s Wall Street Journal – charge readers for online access but consumer publications have so far not followed, fearing a massive loss of readers.

News Corp chief executive Rupert Murdoch has become a champion of paid-for online news, saying internet giant Google has deprived the industry of revenue by making news articles searchable for free.

In January, The New York Times said it would start charging readers for access to online articles from next year, acknowledging that advertising revenues were unlikely to be able to fund its journalism in the future.

The editors of The Times and Sunday Times promised interactive features to get readers more involved, personalised news feeds and coming versions for phones, e-readers, tablet computers and other mobile devices.

The Times and Sunday Times will launch new, separate websites in early May which will be free to registered customers for a trial period.

- Reuters

Dominic Mohan appointed editor of The Sun

London, Aug 27(ANI): Rupert Murdoch’s News International has promoted Dominic Mohan to replace Rebekah Brooks as the new editor of The Sun from September 2.

Mohan is currently the newspaper’s deputy editor and was a hot favourite for the job, following Brooks’s promotion to CEO of News International, the tabloid’s parent company, after spending six years at The Sun as editor.

“I believe The Sun is the best paper on the planet. It is a privilege to take over as editor and I cannot wait to get started,” The Times quoted Mohan, as saying.

Brooks said Mohan is the best replacement the company could have got and praised him for being an outstanding leader.

“Dominic has been an outstanding leader at the paper, supporting me with energy and enthusiasm. He has an unrivalled understanding of what makes the paper tick and a real grasp of what makes a great Sun headline.”

Mohan has been with The Sun since 1996, he had been working on the “Bizarre” column and became its editor two years later, before rising to become Deputy Editor and heir apparent in 2007. (ANI)

Murdoch shuts London Paper, quits free sheet war

London, Aug.21 (ANI): Rupert Murdoch’s News Corporation has retired from the free newspaper battlefield by announcing the closure of The London Paper.

In a rare and embarrassing admission of failure by the world’s most famous media mogul, his son James Murdoch, News Corp’s chairman and chief executive for Europe and Asia, declared the free-newspaper experiment, the subject of intense planning and major investment, had “fallen short of expectations”.

The paper, which has a staff of 60, is part of the News Corp subsidiary News International, based in Wapping, east London, and made a pre-tax loss of 12.9 million pounds in the year to June 2008.

The decision appeared to surprise executives at the rival Associated Newspapers, publisher of the free evening title London Lite as well as the nationally distributed free morning paper Metro.

There is a strong likelihood that London Lite, also a loss-making initiative, will close too, although the Standard, sold by Associated to the Russian media mogul Alexander Lebedev this year, may benefit from the shake-up.

News International launched The London Paper in the autumn of 2006 after market research by its then managing director, Clive Milner (now chief operating officer), and the newspaper’s editor, Stefano Hatfield.

“The strategy at News International over the past 18 months has been to streamline our operations and focus investment on our core titles,” said James Murdoch yesterday, in a statement that follows his father’s announcement this month of a drastic fall in profits.

The company’s UK papers suffered a 14 per cent drop in year-end advertising revenue, while profits across the global newspaper division fell from 786 million to 466 million dollars. (ANI)

Berlusconi’s paper rubbishes Britain

London, July 14 (ANI): A newspaper owned by Italian Prime Minister Silvio Berlusconi has severely criticized Britain by saying the country is in a sorry state of decline and overshadowed at every turn by Italy.

The verdict of the Il Giornale was published under the headline: “Dear Brits, we’ve beaten you at everything and it’s time you realised it.”

The Italian attack on all things British comes in the wake of Berlusconi’s claim that reports of his sexually charged antics have been fabricated as part of an elaborate British plot, The Times reports.

“We’re talking about the country that many people still consider to be a beacon of journalism, politics, economics and sport. But Great Britain is no longer great,” the paper wrote.

On Monday, Italy’s Opposition MPs demanded that Berlusconi appear before Parliament to explain allegations of escort girls at his parties.

His supporters blame the allegations on a conspiracy between the Italian Left and the foreign media.

In a front-page editorial, Il Giornale attacked Britain’s political management and handling of the economic crisis.

The report went on to compare British industry, crime rates, immigration, fashion, tourism and the media unfavourably with Italy’s.

It said that the British press – including newspapers owned by Rupert Murdoch, the chairman and chief executive of News Corporation, the parent company of The Times – had lost its reputation by fabricating stories, including predictions of chaos at the G8 summit.

“They have super-rich teams with champion players, but their most famous players are nearly all foreign and the national team has been in deep water for several years now. Things are so bad that they had to entrust the team to Fabio Capello, Italian miracle worker,” the write-up even mentioned Premier League football to support its claim. (ANI)

Former McCain running-mate Palin signs book deal

Former McCain running-mate Palin signs book dealSarah Palin, the Alaska governor pulled from the U.S. political periphery onto the 2008 Republican presidential ticket, has signed a deal to write her memoirs with HarperCollins.

Palin, who was Sen. John McCain’s vice presidential pick, did not disclose how much she would be paid by the publisher, which is owned by Rupert Murdoch’s News Corp.

“This is an incredible opportunity and I am excited to work with HarperCollins to tell my story and Alaska’s story,” Palin said in a statement.

“There have been so many things written and said through mainstream media that have not been accurate, and it will be nice through an unfiltered forum to get to speak truthfully about who we are and what we stand for and what Alaska is all about,” Palin said in an interview published on the Anchorage Daily News Web site earlier on Tuesday.

Palin complained during last year’s unsuccessful campaign about having her comments “filtered” by the mainstream media.

Readers worldwide willing to pay for online news content

Melbourne, May 11 (ANI): Readers worldwide do not mind paying for online news content, according to a survey.

Conducted by accounting giant PricewaterhouseCoopers, the survey has revealed that readers are willing to pay almost as much for some high-quality online newspapers as they do for print versions, particularly in specialist news areas.

According to The Australian, the study of 4900 respondents in the US and Europe has found that sport and business are the areas in which consumers are most ready to pay for content.

The surveyors claim that consumers would not mind paying 97 per cent of the purchase price of a traditional newspaper for online business content, provided there are no free online products of equal quality on the market.

As regards online sport content, consumers would be willing to fork out 77 per cent of the purchase price of a traditional paper if there were no free Internet equivalents.

The findings might boost up plans by a number of the world’s major newspaper publishers to find more ways to make money from online content.

News Corporation Chairman Rupert Murdoch said at the company’s third-quarter results briefing last week that they would charge for some mastheads’ online content “within the next 12 months”. (ANI)

Prince Charles to pen book on climate

Melbourne, Apr 22 (ANI): Prince Charles is set to pen a book on climate that will focus on the threat big business poses to the environment.

Publisher HarperCollins said that the Prince’s book would talk about how humans have become dangerously disconnected from nature through their unstoppable pursuit of economic growth and technological progress.

He will also be making a documentary due for release next year.

The project is named ‘Harmony and Charles’.

In a statement released by the Rupert Murdoch-owned publishing house, Prince Charles said people had “a sacred duty of stewardship of the natural order of things”.

“In some of our actions we now behave as if we were masters of nature and, in others, as mere bystanders,” News.com.au quoted him as saying.

“If we could rediscover that sense of harmony; that sense of being a part of, rather than apart from nature, we would perhaps be less likely to see the world as some sort of gigantic production system, capable of ever-increasing outputs for our benefit – at no cost,” he added. (ANI)

Jackman jumps off newspaper building for charity

Washington, Apr 17 (ANI): Hollywood actor Hugh Jackman, who is known for is heroic image in his action flicks, turned a real life hero when he jumped off a London Newspaper building to raise money for a charity.

The ‘X Men’ actor jumped off the headquarters of fellow Aussie Rupert Murdoch’s News International building to raise money for The Sun’s Help for Heroes campaign, which aids British soldiers wounded in conflict, reports Contactmusic.

The News International building is the home of newspapers The Sun, The Times and the News of the World.

Jackman was also joined in the abseil stunt by newspaper bosses Rebekah Wade, Dominic Mohan and Murdoch’s media mogul son James. (ANI)

UPDATE 2-Boston Globe union offers to talk cost cuts

Newspaper Guild open to cost cutting talks

* Guild wants revenue-sharing agreement with Globe

(Adds report that Mort Zuckerman eyes Boston Globe)

NEW YORK, April 14 (Reuters) – A key Boston Globe union offered to negotiate cost cuts at the money-losing paper with parent company The New York Times Co (NYT.N) on Tuesday in return for more power at the paper and a share of its revenue.

The Boston Newspaper Guild is open to negotiating “immediate, significant labor cost savings measures” with the Times Co and the Globe management, it said in a statement.

The statement comes after the Globe reported that it is on track to lose $85 million this year and that the Times Co may close the paper if it cannot wrest cost cuts from the union and the paper immediately.

The Newspaper Guild would agree to the talks if the Times Co and the Globe negotiate a revenue-sharing agreement with the union, and if the union gets a bigger decision-making role at the paper.

“This is a period of tremendous challenge to the entire media industry, and sacrifices will once again be necessary to help ensure a stable future for the Globe,” the union statement said.

A New York Times Co spokeswoman was not immediately available for comment.

The guild in its statement proposed to deal directly with a buyer for the Globe if the Times’ intent is to sell the paper.

It also said that there will be no changes in compensation or benefit levels provided by its contract unless the guild and management agree on labor costs. Any cuts would terminate at an agreed-upon date and be returned to previous levels, the guild added.

The guild also said negotiations should be conducted in public.

Separately, the Boston Herald reported that Mort Zuckerman, owner of the New York Daily News and the magazine U.S. News and World Report, was a potential candidate to bid for the Globe.

Zuckerman was unavailable for comment. A Times spokeswoman declined to comment on the report.

The Herald is owned by Patrick Purcell, who separately works for Rupert Murdoch’s News Corp (NWSA.O) as the chief of the Ottaway chain of local newspapers owned by News Corp unit Dow Jones and Co.

Zuckerman’s New York Daily News is a rival daily tabloid paper to Murdoch’s New York Post. (Reporting by Robert MacMillan, editing by Matthew Lewis, Leslie Gevirtz)

UPDATE 1-News Corp will share news across its properties

NEW YORK, April 14 (Reuters) – News Corp (NWSA.O) said on Tuesday that it has formed a new unit to share journalism across all its properties, including The Wall Street Journal, the New York Post, Fox News and The Times of London.

Rupert Murdoch’s international media conglomerate said that John Moody, executive vice president of news editorial at Fox News, will run the unit and report to Murdoch.

Michael Clemente, who joined Fox this year after 27 years at Walt Disney Co’s (DIS.N) ABC News, will report to Fox Chief Executive Roger Ailes.

News Corp did not offer examples of how the news-sharing unit will operate.

Moody will work with news chiefs at News Corp’s properties to improve News Corp’s newsgathering efficiency and find ways to cut costs, News Corp said in a statement. Moody said it was too early to provide examples of how this will work.

News Corp, which owns many other properties including the MySpace online social network, book publisher HarperCollins and satellite television provider Sky Italia, has been trying to cut costs as an economic recession crimps ad spending.

One early example of how news properties could share their work came last weekend.

Kara Swisher, proprietor of the Boomtown Blog on Dow Jones and Co’s All Things Digital technology news website broke the news that Yahoo Inc (YHOO.O) Chief Executive Carol Bartz and Microsoft Corp (MSFT.O) Chief Executive Steve Ballmer were discussing an advertising partnership.

Her exclusive news also ran as a top story on The Wall Street Journal’s website. A Journal article later replaced the news that Swisher broke.

Moody did not say whether all stories at one news site would be valid for inclusion on another.

Murdoch’s newspapers include the highbrow Journal as well as the racy New York Post. They also include The Sun in London, which features topless women on its famous Page 3 section.

It also could challenge editors at various outlets to reconcile policies about sourcing information, reporting on rumors and other issues that occupy journalism ethics experts. (Reporting by Robert MacMillan; editing by Richard Chang)