Rupert Murdoch's News Corp posted a 47 percent drop in operating income on Wednesday because of falling advertising revenue at its television stations, newspapers and other businesses.It's only fair to note that News Corp's "television segment" does NOT include Fox News Channel or its other cable offerings such at FX, Fox Reality Channel and Fox Movie Channel. While there are ratings issues there, as with all cable nets, I don't know what impact those issues have had on earnings. Yet.
News Corp's television segment operating income fell 99 percent to $4 million because of lower ad revenue and higher programing costs. Newspaper division operating income fell 97 percent because of lower ad sales.
Of course, there are issues even there, like Fox Reality *star* Joe Arpaio's use of tax money to help operate his show on FRC.
One non-traditional area that is acting as a drag on News Corp's earnings, and looks to continue doing so for the foreseeable future is the social networking site Myspace. Things are so bad over there that News Corp has forced out the founder of Myspace in favor of the former COO of rival (and ascending) site Facebook.
Maybe Murdoch should hire Keith Olbermann or Rachel Maddow? LOL