News Corporation's Digital Dilemma |
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News Corp's Internet InitiativesDuring late 1990s, News Corp's Internet strategy was to use its websites to promote its strengths in its newspapers and publishing businesses. The company's websites in Australia and the UK were based on this strategy. For the US market, it planned differently... Internet Beckons Murdoch AgainAfter the dot com crash, only a few dot com companies such as Amazon.com, eBay, MSN, Google and Yahoo!, survived. These companies slowly but steadily grew in size and their websites saw a gradual increase in revenues from online advertisements. By the end of 2004, online advertising became the fastest growing segment ahead of traditional media advertising...
Offering Triple Play ServicesIn October 2005, News Corp's BSkyB, the largest pay-television channel in the UK, acquired Easynet, an Internet Service Provider (ISP) with a significant broadband presence in the UK, in a deal worth US$ 385 million. This acquisition was undertaken in response to the competition that News Corp's satellite television was facing from the cable TV industry in the UK. The cable TV industry had invested heavily to offer triple play services to its customers... The Road AheadAnalysts termed the acquisition spree of News Corp aggressive and in the right direction. According to Greenfield, "They are aggressively buying their way into an Internet strategy from nowhere, three months ago." They felt that the popularity of IGN and MySpace.com would give News Corp. websites the necesssary traffic and it was up to the company to convert them into ad revenues and even profits... Exhibits
Exhibit I: Financial Performance of News Corporation (2001-05) |
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