The fight of the Century!
Murdoch versus Sulzberger.
The news:
The new Wall Street Journal is working.
Murdoch and his new editorial and management team are going full-speed against The New York Times.
How?
Ron Grover explains the Murdoch strategy here.
Months after it formally came under Murdoch’s sharp eye and equally pointy editor’s pencil, the Journal is clearly aiming at The New York Times in both business and nonbusiness news…
On Aug. 5, Murdoch’s News Corp. (NWS) beat analyst estimates by announcing a 27% hike in net income, to $1.13 billion, for the fourth quarter that ended June 30.
The company highlighted a 21% gain in operating profits that it said included $24 million in operating income from Dow Jones.
The acquisition, which closed in December, has added $45 million of operating income since then, even after accounting for $47 million in acquisition costs, the company said…
“Other companies may be suffering,” Murdoch said in a telephone hookup with analysts from Beijing. “But our confidence and ambition is buttressed by a very healthy balance sheet.”
In July the paper raised its newsstand price to $2 from $1.50—which Murdoch had hinted he would do in a March conference call with analysts after having noted that the paper was spending $6 million annually to “add new features to its news and editorial pages.”
At the time, Murdoch also noted that the Journal was one of just two newspapers among the nation’s 10 largest to increase circulation, and was the only one to hike its number of paid subscribers.
“There are significant opportunities to raise advertising revenues, increase circulation volume and revenues, and to reduce subscriber churn in several markets around the world,” Murdoch said then.
At that time, Murdoch said the Journal’s paid subscriptions had increased by 1.6%, to nearly 1.5 million.
Where does Murdoch intend to take the Journal next?
He’s already expanded pages for U.S. and world news and added a weekly sports page and a new Currents page, which highlights trends in religion, science, and education. Murdoch’s aim, which he scarcely disguises, is to create a truly national newspaper, much as he’s done in Australia and Great Britain.
