News Corp. puts Myspace on notice

Rupert Murdoch's News Corp.put Myspace on notice on Wednesday, saying the losses at the ailing social network were unsustainable and there needs to be improvement in the next few quarters.


 


 

"We've been clear that Myspace is a problem," News Corp. president and chief operating officer Chase Carey said during a conference call with analysts after the media and entertainment giant released its quarterly earnings.

"The current losses are not acceptable or sustainable," Carey said. "Our current management did not create these losses but they know we have to address them."

The News Corp. executive said last week's redesign of Myspace "has been generally well received by the opinionmakers in the business but we recognize the critical issue is building interest with consumers.

"We also recognize the challenges we face in doing so," he said.

News Corp. bought Myspace for 580 million dollars in 2005 but it has been eclipsed by Facebook in recent years, which has grown to more than 500 million members while Myspace's numbers have dwindled.

With tens of millions of users, Carey said Myspace still "has the potential to be an exciting business for us" but "we need to make real headway in the coming quarters to get this business to a sustainable level."

"Our traffic numbers are still not going in the right direction and we have to stabilize that and have a predictable path forward, the right cost structure and a clear path to be a profitable business," he said.

Asked how much time News Corp. would give Myspace to show improvement, Carey declined to give a deadline.

"These are fluid businesses... I think it is something we look to judge in quarters not in years," he said.

Aside from Myspace, rebounding advertising helped News Corp. report a solid quarter with net profit growing 36 percent to 775 million dollars, beating the expectations of Wall Street analysts.

Revenue rose to 7.4 billion dollars in the first quarter of its 2011 fiscal year from 7.2 billion dollars a year ago.

"Our global cable network programming business continues to lead News Corporation's financial and operational momentum," Murdoch, News Corp.'s chairman and chief executive, said in a statement.

"With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25 percent of our revenues," he added.

"Our publishing segment also showed expanded operating income, benefiting from greater advertising revenue and operational efficiencies at our newspapers."

News Corp.'s publishing empire includes The Wall Street Journal, New York Post, Britain's The Times and The Sunday Times and newspapers in Australia.

Other News Corp. properties include the Fox Broadcasting Co., 20th Century Fox movie studio, Dow Jones and Sky Italia.

Earlier Wednesday, News Corp. notified European Commission competition regulators of its takeover plans for British pay-TV giant BSkyB.

News Corp. shares were up 3.10 percent to 15.30 dollars in after-hours trading.

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: IT Support Engineer - 2nd & 3rd Line

    £25000 per annum: Recruitment Genius: The IT Support Engineer is needed to ass...

    Recruitment Genius: Junior / Mid Software Developer

    £22000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

    Recruitment Genius: IT Service Desk Manager

    £35000 - £40000 per annum: Recruitment Genius: A great opportunity to join a p...

    Recruitment Genius: Graphic and Motion Designer

    Negotiable: Recruitment Genius: Do you get a buzz from thinking up new ideas a...

    Day In a Page

    The long walk west: they fled war in Syria, only to get held up in Hungary – now hundreds of refugees have set off on foot for Austria

    They fled war in Syria...

    ...only to get stuck and sidetracked in Hungary
    From The Prisoner to Mad Men, elaborate title sequences are one of the keys to a great TV series

    Title sequences: From The Prisoner to Mad Men

    Elaborate title sequences are one of the keys to a great TV series. But why does the art form have such a chequered history?
    Giorgio Armani Beauty's fabric-inspired foundations: Get back to basics this autumn

    Giorgio Armani Beauty's foundations

    Sumptuous fabrics meet luscious cosmetics for this elegant look
    From stowaways to Operation Stack: Life in a transcontinental lorry cab

    Life from the inside of a trucker's cab

    From stowaways to Operation Stack, it's a challenging time to be a trucker heading to and from the Continent
    Kelis interview: The songwriter and sauce-maker on cooking for Pharrell and crying over potatoes

    Kelis interview

    The singer and sauce-maker on cooking for Pharrell
    Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

    Cameron lowered the flag for the dead king of Saudi Arabia...

    But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
    Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

    Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

    Humanity must be at the heart of politics, says Jeremy Corbyn
    Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

    Joe Biden's 'tease tour'

    Could the US Vice-President be testing the water for a presidential run?
    Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

    Britain's 24-hour culture

    With the 'leisured society' a distant dream we're working longer and less regular hours than ever
    Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

    The addictive nature of Diplomacy

    Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
    Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

    Fashion: Ooh, Lady Chatterley!

    Take inspiration from DH Lawrence's racy tome with equally racy underwear
    8 best children's clocks

    Tick-tock: 8 best children's clocks

    Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
    Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

    Charlie Austin: ‘If the move is not right, I’m not going’

    After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
    Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

    How Isis profits from destruction of antiquities

    Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
    Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

    'If we lose touch we’ll end up with two decades of the Tories'

    In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea