Murdoch's Internet wing to miss ambitious revenue goal

Rupert Murdoch is admitting that the U.S. economy's pressure on advertising budgets is putting the squeeze on News Corp.

News Corp. Chairman and CEO Rupert Murdoch is optimisitic about Fox Interactive Media's revenue outlook in fiscal 2009.

(Credit: Dan Farber/CNET News.com)

News Corp.'s Fox Interactive Media, which oversees all News Corp. Internet business, including MySpace.com, is expected to fall $100 million short of its ambitious $1 billion annual revenue goal, according to a Reuters report. While on News Corp.'s fiscal third-quarter earnings conference call, however, the News Corp chairman and chief executive reportedly called FIM's business "very healthy" and promised "well over" $1 billion in revenue in fiscal 2009.

"There's no doubt the consumer economy is stressed," Reuters quoted Murdoch as saying. "You're seeing it affected in advertising, more short-term planning, and booking."

In addition to MySpace, other FIM networks include Photobucket, IGN Entertainment, and Fox Sports.

News Corp. reported that its net profit rose to $2.7 billion, or 91 cents per share, in the quarter ended March 31, from $871 million, or 27 cents per share, in the year-ago period, according to Reuters.

Last month, FIM announced a restructuring that included the creation of an "Audience Network" unit that, according to a company statement, "will be to optimize monetization across FIM's content network and for third-party publishers," leveraging the company's ad technology that can target ads based on interests. The new unit combined advertising technology, ad operations, and performance sales efforts into one unit.

[JAndrewM]

Propaganda Corp didn't hit its profit goals?

Time for Bush to get to work on some more Tax Breaks & Deregulation for the "Ministry of Truth".

[jag0]

@ JAndrewM:

First...how original that you just like all hypocritical liberals (I'm making a guess based on your ignorant comment) you make the usual tired slander comment that News Corp is somehow a propaganda machine.

Second...what does your biased personal opinion have to do with the FIM group? I DARE you to give examples of the companies within that group that used as "propaganda" machines. I know for a fact that NONE of the companies within IGN Entertainment are used that way.

Come on now...entertain us with your silly conspiracy theories...we all need a good laugh (at you.)

[benjaminstraight]

benjamin straight writes: Expected. Good article.