http://www.vanityfair.com/business/features/2009/11/michael-wolff-200911<snip>
Rupert Murdoch is going to battle against the Internet, bent on making readers actually pay for online newspaper journalism–beginning with his London Sunday Times. History suggests he won’t back down; the experts suggest he’s crazy. Is he also ignoring his industry’s biggest problem?
By Michael Wolff
November 2009
War is Rupert Murdoch’s natural state. When he launched the Fox Broadcasting Company, in October 1986, he went to war against the hegemony of CBS, ABC, and NBC. With Fox News he crossed swords with CNN’s Ted Turner. At Sky, his satellite-TV system in the U.K., he went up against the BBC. He’s battled China, the F.C.C., the print unions in Great Britain, and, recently, most of the journalism community in his takeover of The Wall Street Journal. He relishes conflict and doesn’t back down—one reason why he’s won so many of his fights and so profoundly changed the nature of his industry.
Now he’s going to war with the Internet.
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Traditional media managers, who once rushed into the Internet hoping to establish new businesses as well as their new-media bona fides, have all now been chastened by its economic realities and want to take back their free content. “Obviously we will all be closely following Rupert’s efforts in this direction,” said John Huey, Time Inc.’s editor in chief, when I contacted him—a curious throwing up of the hands from Time Warner, the world’s largest magazine publisher and the world’s largest media company, which has tried more strategies on the Internet than any other traditional media company.
Almost all Internet professionals, on the other hand, think that charging for general-interest news online is fanciful—“Rubbish … bonkers … a crock … a form of madness,” in the description of Emily Bell, who has long run the Guardian newspaper’s Web site, one of the industry’s most successful—and, in fact, it has been tried before and failed. “It’s Groundhog Day,” adds Bell. The New York Times tried to levy a subscription charge for its columnists but reversed course and declared itself free again. Even Murdoch’s Wall Street Journal, the model of subscription content online, has made more and more of its site free.
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