Murdoch's paper to go electronic soon
Global newsprint shortage, rising prices behind move
SOLD OUT
‘It is all sold out. I quite understand that there are people who are desperate for paper.’
— Mr. Rupert Murdoch, on the shortage of newsprint.
Reuter, AP.
HELSINKI — Media mogul Rupert Murdoch, in Finland in search of paper amid a global newsprint shortage, vowed on Friday that all the newspapers in his News Corporation stable would soon be published electronically.
But he warned it would take some time for the on-line newspaper to catch on — and although he said the electronic information superhighway was rich with promise, he saw it putting an end to talk of media monopolies.
He was speaking at an impromptu news conference after meeting Finnish paper-marketing group Finnpap. He came personally to seek long-term supply guarantees for his group.
Warning of newsprint price hikes, the media magnate told reporters that some of his publications would be paying 100 percent more for paper by the middle of next year.
European paper makers, particularly in Sweden, have warned of more price hikes in coming months despite earlier increases.
News Corp buys about 400,000 tonnes of Finnish paper a year at a cost of 1.5 billion markkaa (S$476 million).
Mr. Murdoch said he would like some 200,000 tonnes more but "it is all sold out. I quite understand that there are people who are desperate for paper".
At the news conference, the Australian-born magnate, who owns newspapers, television companies and publishing houses around the world, also said that readers would be able to access all his newspapers by computer in a few years.
There are many possible uses of the electronic highway, he said.
"No one yet has found a way to make a profit on it — I believe one day somebody win. The trick is to get into the business without losing too much money for a few years," he said.
His power, acquisitiveness and deep pockets have prompted critics to say he could soon have a stranglehold on the British media. But he argued that the rise of electronic media could shatter current media monoliths.
"The great thing that’s happening, and the electronic revolution is bringing it about to some extent ... is to open up the possibility of newspapers being started on very little capital," he said.
He said: "No one’s going to be able to have any monopolies — the bigger you are, the more vulnerable you’ll be to attack from someone around the corner with a better idea.
"And they won’t need a lot of money to start against you."
He said global-type television, like Turner Broadcasting System’s CNN channel, was not an area he wanted to develop.
Asked if he wanted to buy CNN, Mr Murdoch said: "No— I really, well we’d like to do that.
"But ... more people watch TV with a local approach than some bland thing which is meant to service the whole world with the same programme." — Reuter, AP.
Source : The Straits Times, 21st May 1995
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