TV Spectrum Could Help Newspapers, Murdoch Says
News Corp. is working on delivering TV programs and content from its newspapers to mobile devices using its broadcast TV spectrum, Chairman Rupert Murdoch told a conference at the Federal Trade Commission Tuesday. “For newspapers, the spectrum could well prove an economic vehicle,” he told the meeting on the future of the news industry. “Today’s news consumers do not want to be chained to a box in their homes or offices to get their favorite news and entertainment -- and our plan is to meet the needs of the next wave of TV viewing by going mobile.” His remarks come as the FCC looks at ways to reallocate some of the spectrum held by TV broadcasters. (See separate report in this issue.)
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Government shouldn’t over-regulate or subsidize the news industry, Murdoch said. The government has a role to play: It should do away with old regulations that don’t apply to the current media landscape, he said. “One example of outdated thinking is the FCC’s cross-ownership rule,” he said. “Many of these rules were written at a time when competition was limited because of the huge upfront costs. Unfortunately, in practice these restrictions stifled competitive newspaper markets.”
Government subsidies for journalism won’t help either, Murdoch said. “The growing drumbeat for government assistance for newspapers is as alarming as over-regulation.” It raises free speech concerns and could shield public officials from the scrutiny that the news media provides, he said.
One cure for the industry’s problems it to charge more money for news online, Murdoch said. “The old business model based on advertising-only is dead.” That model was founded on quasi-monopolies that no longer exist, he said. “In the new business model we will be charging consumers for the news we provide on our Internet sites.” Consumers will pay if they get something of value in return, he said.
The federal government should be ready to act on these issues if necessary, said FTC Chairman Jon Leibowitz. But first, he said, “we need to understand the changes in journalism much better than we do today before we begin making changes to the law.”