November 9, 2009
Posted: 01:19 PM ET
In a recent Sky News interview, News Corporation chairman and CEO Rupert Murdoch announced that News Corp websites such as The Wall Street Journal may be removed from search engines.
News Corporation chairman and CEO Rupert Murdoch
Websites typically rely on search engines to index their content so users can find them. Search engine optimization (SEO), or the process of increasing a site's presence on search engines, is big business. But Murdoch would prefer News Corp sites weren't indexed at all.
In the interview, Murdoch criticized Google and other news aggregates for taking content without permission. When asked about the value of traffic generated from search engines, Murdoch claimed readers who use search engines to find articles have little value to advertisers.
Murdoch continued by attacking the ad-based model that much of the Internet is built upon, "There are no Web sites anywhere in the world that are making serious money ... there's not enough advertising in the world to go around to make all the Web sites profitable."
While not every site can rely on advertising, Google may disagree with the suggestion that ads can't generate serious money.
Murdoch's plan is to charge a subscription fee to readers of News Corp.'s Internet content, similar to a subscription for a newspaper. He admits this business model will decrease traffic, but believes a pay wall is necessary to protect content from news aggregators: "We'd rather have fewer people come to our website and pay."
I can't see the future, but Murdoch's plan for News Corp. sites sounds like a big bag of fail to me. The subscription-based business model is not worth reviving. Internet content, especially news, should remain free for everyone.
Watch the full interview below.
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