[opendtv] News: Murdoch says U.S. TV advertising good; eyes Asia
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 4 Aug 2008 09:45:06 -0400
http://www.reuters.com/article/ousiv/idUSDEL20074020080804?sp=true
Murdoch says U.S. TV advertising good; eyes Asia
Mon Aug 4, 2008 6:21am EDT
By Rina Chandran
MUMBAI (Reuters) - News Corp chief Rupert Murdoch said television
advertising in the United States was good, despite a slowing economy,
while Asia was a long-term bet driven by the emergence of a wealthy
middle class.
During a visit to Mumbai on Monday, Murdoch told reporters
advertising for News Corp's television properties in the United
States was very good.
"Our advertisement on television and the Internet is very, very good,
except for local television," he said. "Cable networks are all sold
out for 12 months," he said, adding that Britain was holding up "very
well".
Murdoch has repeatedly warned a slowdown in advertising on U.S. local
television stations and newspapers would have a severe impact on
media businesses.
Shares of News Corp, which owns media properties including the 20th
Century Fox movie studios, Internet social network MySpace and the
Times of London newspaper, are among the worst hit media stocks this
year on concerns the sector will be hurt by an economic slowdown.
Murdoch, who created a global media empire from a pair of newspapers
in Australia, said he remained convinced of the long-term opportunity
in Asia, where India is set to become the top pay-TV market by 2012,
despite increasing fragmentation.
"In the long term, the media and advertising outlook for Asia is
tremendous as wealth is created and people get educated and you see
the emergence of a wealthy middle class," he said.
Murdoch said the U.S. media conglomerate plans to invest $100 million
in six regional-language television channels in India, where News
Corp is the leading broadcaster.
But Murdoch, who has been one of the most aggressive buyers of media
companies, including last year's acquisition of Dow Jones & Co for
about $5.6 billion, said he would only enter the Indian print space
if rules on foreign investment were relaxed.
"We don't see ourselves taking a stake in print -- because it is not
available and because we won't want to take just a 26 percent stake,"
Murdoch said, referring to the cap on foreign investment in news
media in India.
GOING REGIONAL
In India, where News Corp controls top broadcaster Star, and has
ventures for cable distribution and satellite, it is facing a tougher
fight from local firms such as Zee Entertainment Enterprises and
ventures of global rivals such as Walt Disney, Viacom and Turner
International.
Annual revenue for television in India, which is seeing an explosion
of new channel launches, is forecast to more than double to $11.6
billion by 2012, according to research firm Media Partners Asia.
But price controls and intense competition will slow the growth of
average revenue per user, it has said, while the cost of production,
distribution, content and technology will rise.
Murdoch said News Corp will launch channels in six Indian regional
languages over 12 months, and will expand its presence in movies, and
the digital and mobile space, with greater collaboration between Dow
Jones Newswires and the Star network.
News Corp will more than double Dow Jones Newswires' editorial staff
in India to 60-70 in the next six months.
"We are happy here; the slower expansion of the economy may slow
growth a bit, but in the long term there is a lot of growth to be
had," said Murdoch, who on Monday unveiled the 'Global Dow' index,
with an additional index called India Titans 30 Index.
Murdoch said he was hopeful restrictions on foreign investment in
media in India will eventually ease.
"A lot of countries have restrictions in the media, but with the
expansion of the Internet, the rules are getting ridiculous."
"I think in time these rules will be done away with."
(Editing by Ranjit Gangadharan and Anshuman Daga)
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