News Corp, which is trying to stem newspaper revenue declines, could charge for access to its news websites by the middle of next year, and might break off its relationship with Amazon.com Inc’s Kindle e-reader if it cannot get better terms.
Rupert Murdoch, chief executive of the global media empire, said on Thursday that he is unhappy with the Kindle’s control of relationships with newspaper subscribers, and might seek a better deal with rival e-reader maker Sony Corp.
Amazon officials did not return calls seeking comment.
Murdoch’s comments come after News Corp, whose properties include The Wall Street Journal, cable programmers, local TV stations and movie studios, reported a 10.7 percent drop in quarterly revenue to $7.67 billion, which was in line with expectations, according to Reuters Estimates.
It forecast operating revenue for fiscal 2010, which ends next June, would rise in the high single digits on 4 percent revenue growth.
“I think it looks reasonable,” said RBC Capital Markets analyst David Bank. “They gave a pretty realistic view of where the growth is coming from and where it is not going to come from, particularly the advertising-supported businesses.”
Source: Reuters