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OFF THE GRID
Nov 10, 09 | 9:18 AM

Rupert Murdoch: The Internet Does Not Exist

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Rupert continues his war with the Internet. Over the weekend, he told an interviewer (the interviewer, on Sky News Australia, works for him) that as part of his campaign to charge users for reading his content, what he plans to do is to block Google from indexing his newspapers.

As of a year ago, Murdoch had never used Google—never once, by himself, run an Internet search—and so it might be reasonable to assume he doesn’t know what’s involved here.

It is quite possible he doesn’t realize—and can’t fathom—that removing News Corp.’s newspapers from Google means that, in the largest part of the information market, they would cease to count, cease to be a factor, that their absence would not register as a hole.

Nor, it is possible, does he realize that as much as 90% of his traffic comes from Google and other search engines, that even if his goal is to sell content, there is really no other way to direct people to it than through search engines.

So his idea is something like wanting to sell newspapers but not wanting to let people see them on the newsstand where they might read the headlines for free.

As it happens, Murdoch’s campaign to put content back in the tube and to have consumers pay to get it out is proving, in one sense, curiously successful. He has publishers all over Britain and America who say they are ready to back him in his plan. Of course, they all have nothing to lose by encouraging Rupert to lead this charge and have his papers disappear while their papers remain free a while longer and scoop up his online readers.

Rupert, in other words, doesn’t have the most rudimentary know-how about cause and effect when it comes to building an online news business, paid or otherwise. He is not, in this regard, quite compos mentis. He gets to sound off this way, to embarrass himself and confound everyone else, because of the rare nature of his company—he can’t be fired or even corrected (he doesn’t really listen). And he is not ridiculed by his fellow publishers because many of them too are vague on the business basics.

But what if, in fact, he actually knows what he’s doing? What if he doesn’t want to build an online business? What if his war with the Internet is of a much more fundamental nature? What if he wants his papers (that is, his wood pulp papers) to last, well, as long as he lasts?

It actually may be easier to get people inclined to buy his papers to buy them in wood pulp form than it is to get them to pay a subscription fee online. It actually may be more economical to have nobody come to his websites, for nobody to expect him to have a website, than to have to keep up the cursed programming of ever-cooler bells and whistles. Rupert may not know from Google, but he does know the truth that publishers have always known: Better to have no readers than readers who cost you more than you make on them.

Old-fashioned publishers, and there is no publisher more old fashioned than Rupert, are good at simple math. If you can only get a few more people to buy your paper, if you can just stop your circulation from falling as fast as it’s been falling, you can stay in business a while longer.

The Internet is going to put all of them out of business, but why help it?

More of Newser founder Michael Wolff's articles and commentary can be found at VanityFair.com, where he writes a regular column. He can be emailed at michael@newser.com. You can also follow him on Twitter: www.twitter.com/NewserColumns.
19 comments
VIEWING:
 
culchie
Nov 10, 09 11:16 AM CST
All of it? The New York Post? Fox "News"? Oh, yes. Godspeed, Rupert. Here's your hat. Reply
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drlarrymitchell
Nov 10, 09 11:23 AM CST
Innovating yourself right into total irrelevancy, huh, Rupert? Reply
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phil
Nov 10, 09 2:40 PM CST
good luck to him Reply
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phil
Nov 10, 09 2:40 PM CST
The internet has to change and evolve out of the hands of google. if this helps that happen then good. Reply
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BeatBlaster
Nov 10, 09 3:53 PM CST
Yeah it has to shift from being a commercial playground. I'm sick of the ads (yeah I use Adblock Plus already) and the constant sales pitches that I'm almost forced to sit through every single day.
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Snarfeh
Nov 10, 09 3:29 PM CST
If his fellow publishers are not ridiculing him, it's because they are equally ignorant of the power of the internet or they are pleased he is being so ignorant thus improving their competitive advantage. I look forward to him doing this and I fervently hope no one changes his mind. Reply
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tgroggel
Nov 10, 09 7:09 PM CST
You really wantg to bet against Murdock? Good luck - you're only hope it that he ceases to exist Reply
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rajanKazhmin
Nov 10, 09 9:16 PM CST
That is my only hope. My one wish, for him to evaporate.
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Deebles
Nov 11, 09 8:26 PM CST
Betting for Rupert now is like betting for Tesla then. Don't know him? Well, that's the weird thing about technology. Clever man wins. Edison and Tesla both had currents down, but Edison was clever and pushed Tesla's for the Electric Chair. Want to toast your bread on the same stuff at Sing Sing? Edison thought not, and that is why we know him and AC. Rupert didn't even invent newspapers--he inherited them, but like anyone who stares at Medusa, he is stone and therefore will be forgotten. His greatest fear. What was the name of that fat British publisher of papers who fell off his boat--see, forgotten already.
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bewilderbeast
Nov 11, 09 4:57 AM CST
Murdoch epitomises the old order whose "God-given" right (more correctly: stolen, annexed, grasped, cheated, arranged, finagled "right") was to get rich with a minimum of obstacles in their way. Obstacles were to be bullied, bought, threatened, legislated or eliminated out of the way. By force, influence, "lobbying", bribing, or whatever means their mafia minds could conjure up. When Murdoch does the right thing and dies, I hope he finds to his horror that his hell is wired to the WorldWideWeb 24/7. Reply
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Littleviews
Nov 11, 09 8:59 AM CST
While Google allows us to find everything, what we find is nameless in terms of brand. Twice daily I scan Google News, placing articles to read in separate tabs. Then I read them, never once noticing the publication that supports them. And those publication's ads? Don't notice them. The minute I finish reading, I click tabs shut. Will the WSJ disappear because Google doesn't find its articles? I think not. Perhaps what publishers don't understand is that Google is the new editor and the news and other information it runs it gets for free, paid for by others. As for ad revenue, yellow teeth and belly fat ads win. All else loses. Ad rates are the equivalent in quality to yellow teeth. This is not because Google (who essentially cuts down rain forests for the sake of kindling) is bad, but because publishers grab on to easy fixes (automated ad distribution) instead of hiring sales teams and relying on people to make their businesses grow. It is people who buy the things advertised in ads. If people are superceded by computer power, no one will have any spending power left. Check out the current Wired article on Demand Media (owns eHow). There you'll learn that the lowest common denominator articles attract the lowest common denominator ads from Goggle and make the most money in the industry. This is what will be left when everyone celebrates the business model "give it away for free so you will be noticed." Reply
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ahoving
Nov 11, 09 2:54 PM CST
print publications need to migrate online and monetize. multiple revenue streams will be needed. a tool that offers users "many ways to pay" will ease the transition. Reply
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foggedout
Nov 11, 09 4:49 PM CST
Neither pro nor anti-Murdoch, I would only ask, does anyone really need google to tell them that the new york times is a site at which they can find news? jason carapellotti http://www.absurdcreative.com Reply
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jebuff
Nov 11, 09 7:38 PM CST
Sorry Michael, but you're as far afield as Rupert. Fighting over which form the content arrives before us is meaningless. The issue isn't the medium, paper or electrons. The real question is "which model will pay for journalists to do their job, so democracy can struggle along?" Neither Murdoch's opinionated pop-swill, nor your 'steal and condense' formula will do the trick. Reply
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Deebles
Nov 11, 09 10:18 PM CST
And what journalists would that be? The ones who got a lead and followed Madoff before he wiped out billions? The ones who knew the truth about yellow cake and told Judith Miller to stop it? Don't you get it? There are no more journalists--you are the journalist and every lead and all your story is a click away.
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jebuff
Nov 12, 09 3:50 AM CST
Deebles - true enough, good journalism is too rare, but if the future of democracy rests on Joe Shmoe and uploads from his video phone, we're screwed. There's an important difference between live on the spot "whatever, dude" and learned ('ler-ned')analysis & perspective. Check the difference between CNN & Jim Lehrer. Reply
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ddad
Nov 12, 09 12:12 PM CST
I'm left with the belief that most of the posters here haven't read WSJ.com. It's a great website. Not sure if they can win a war with Google, it's unlikely, but WSJ.com is charging a subscription fee online and gets it. Reply
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Reader83547364
Nov 15, 09 4:08 PM CST
Wolff, You are missing the point. This is a play by Microsoft Bing. You need to do more research. I almost feel you are making a political statement about Murdoch. Google almost has a monopoly on search. I think it's great to shake things up. Murdoch's idea is one of the most brilliant potential moves in years. Reply
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thoms
Nov 16, 09 10:32 PM CST
...writes the founder of a site that republishes news stories. I'm not disagreeing with the argument -- I just think you owe readers a reminder of the context you are writing in. Reply
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