10-05-2011
Vanessa Ackah 6144748
Eline van Es 6189466
Questions case study 4: News Corporation
1. What is the extent and type of diversity undertaken by NewsCorp?
NewsCorp started with a local newspaper in Australia but was soon the owner of the only national newspaper of Australia and over 20 local newspapers. It had enough profitability to expand to the UK, where it acquired more publishers. In 1984 NewsCorp also moved to the US and made the first major product shift by acquiring film company and several television programs. Five years later Newscorp launched a satellite broadcasting network in the UK, named Sky Television. It merged with BSB but Sky Television dominated the new company and in 1992 it launched a sports channel. In 1996 NewsCorp introduced the Fox News Channel in the US. Also it …show more content…
The NewsCorp started small with a newspaper in Australia en eventually expanded across the world to UK and US. Beside the geographical shift NewsCorp also had a major product shift in 1984. NewsCorp started focusing on the US television market. In 1984 NewsCorp acquired the film company Twentieth Century Fox and in 1985 it bought six television stations of the Metromedia Broadcasting Group. These acquisitions provided the company with access to studios for making films and television programs, to a 2000 film library and to a distribution platform for that content. Later on NewsCorp tried to enter the satellite broadcasting. This had less success than expected, because of the fewer subscribers than expected, resulting in lower revenues. This was primarily marketed to subscribers as movie channels, but in 1992 Sky Sport Channel was launched. Here they secured the right to exclusively English football Premier League matches for five years. This was the gap in the market, because in less than six weeks, a million new subscribers were