News Corp Suffers 30% Decline In Income

In its quarterly earnings report released yesterday, Rupert Murdoch’s News Corporation reported a net income decline of 30 percent:

“Fiscal 2009 profit will drop in the ‘low to mid teens’ in percentage terms, New York-based News Corp. said on a conference call yesterday after U.S. markets closed, citing falling advertising sales and the stronger dollar. The company previously forecast a gain of 4 percent to 6 percent.”

This drop needs to viewed in the context of a broader Wall Street sell off. However, News Corp, parent of Fox News, is significantly under-performing the stock market indexes. For the past 52 weeks, News Corps’ stock price is down 63 percent, while the Dow Jones Industrial Average is off only 36 percent. [Ironic Note: Dow Jones is also owned by News Corp]

News Corp is also under-performing its competitors. CNN parent Time Warner is down 48 percent and NBC/MSNBC parent General Electric is off 54 percent. The fact that News Corp is faring so much worse than its nemesis GE must be gnawing away at folks like Bill O’Reilly, who frequently cites GE’s stock woes as evidence that NBC/MSNBC is evil and unpopular. Now that Keith Olberman and Rachel Maddow have lifted MSNBC’s ratings above his own, will O’Reilly now concede that Fox News is even more evil and less popular?

In the conference call for the earnings release, Murdoch indicated that…

“The revised guidance is a clear reflection of the fiscal environment. We expect that to continue through fiscal 2009.”

Even though Murdoch had previously predicted a prolonged downturn, he is still managing to blame it on Barack Obama. A few days ago he said that Obama’s policies were “crazy” and would be “a real setback.” Since he is on record as far back as May 2008, with his view that we are in for 18 difficult months, it’s hard to figure how he lays these hardships on Obama who won’t even take office until next January.

In addition to the bad earnings news, Murdoch announced that there will be severe job cuts at News Corp. These cuts will occur even as new multimillion dollar contracts have been given to O’Reilly, Sean Hannity, and Glenn Beck. At least some of Murdoch’s employees will have a little job security. However, none of them will have a holiday party this December as financial constraints have resulted in the party’s cancellation.

Season’s Greetings Rupert, et al.

The Disappointment In Sarah Palin’s Heart

It’s been less than 24 hours and already the wheels are coming off of Sarah Palin’s wagon. Fox News’ Campaign Carl Cameron is reporting what those of us with a functioning cerebral cortex already knew: Sarah Palin is an idiot.

Cameron’s sources with the McCain campaign are leaking tales of infighting between the Palin and McCain camps. She is characterized as a diva who would not take advice from staff, refused to be prepared for interviews and debates, and threw temper tantrums when faced with negative press. Even worse they are revealing the depth of her stupidity, or as Cameron describes it, “a lack of knowledgeability” (right, and Stevie Wonder has “a visionary deficiency”). Palin apparently couldn’t name the countries signatory to NAFTA. She didn’t know that Africa is a continent, and not a country. And Cameron says to expect more of these bimbotic disclosures in the days ahead.

But, as usual, the real gems come from Palin herself. In some off-the-cuff remarks she declares her intention to restore credibility to journalism:

“I want to make sure Americans do understand that there’s a little disappointment in my heart about the world of journalism today and I don’t want any individual journalists to take it personally but I have such great respect for the role of the media in our democracy. It is a cornerstone. It allows for checks and balances but only when there is fairness and objectivity in the reporting.

And I want to make sure that Americans can have great faith in that aspect of our society, the media. So whatever I can do there to help and actually be able to allow credence to be giving to the media, I want to help in that respect. That’s where I start as a journalist, receiving a journalist degree, my foundation is, again, with great respect for what the vocation is all about. I want to help restore some credibility there.”

She really does have the gift of gibberish. However, it stretches credulity for a candidate for the vice presidency, who deigned to hold a single press conference, to profess to have respect for journalism as a cornerstone of society. Her notion that the press provides checks and balances only when there is fairness and objectivity forgets that opinions and editorials are also a part of the profession. What she is really arguing for is an end to criticism, particularly of her.

She wants to make sure that Americans have faith in the media and refers to the degree she received in journalism (from the University of Idaho in Moscow, ID) as her “foundation.” But the only use she ever made of it was a brief stint as a weekend sportscaster in Anchorage. Nevertheless, she believes that she can restore credibility to the “liberal” media despite her inability to name a single newspaper or magazine that she has read.

Is this a foretelling of an interest to return to her journalistic roots? In response to questions about her post-campaign activities she said that she would like to have a public role, but not in a partisan sense. That would rule out politics, but it wouldn’t prevent her from setting up shop on talk radio or, more likely, Fox News. She still has another couple of years to kill as governor of Alaska, but that shouldn’t get in the way of her developing the pilot for the Palin Factor and premiering it in the fall of 2010. The question is…will journalism survive long enough for her to get around to saving it?