Murdoch warns of disruptive effects of technology Graeme Wearden ZDNet UK
March 14, 2006, 15:10 GMT http://news.zdnet.co.uk/business/management/0,39020654,39257301,00.htm The News Corp boss has admitted that power is flowing away from him and his fellow old media moguls Media tycoon Rupert Murdoch has issued a powerful warning of the disruptive force that technology can inflict on traditional business models. In a speech in London on Monday night, Murdoch said that today's Internet pioneers were the heirs to the legacy of great explorers like Columbus. Murdoch, chief executive of News Corp, admitted that power was moving away from proprietors such as himself, towards a "new media audience" who use IT and the Web to "to inform, entertain and above all to educate themselves". This included bloggers, and Web users who access information and downloaded music and video online. "It is difficult, indeed dangerous, to underestimate the huge changes this revolution will bring or the power of developing technologies to build and destroy not just companies but whole countries," said Murdoch, in a speech for the Worshipful Company of Stationers and Newspaper Makers. Until last year, Murdoch has taken little notice of the Internet boom. But in August 2005 News Corporation announced a major expansion into the online space. At the time, Murdoch said there was "no greater priority" for his company, and earmarked $2bn for online acquisitions. Later that month, News Corporation was given clearance to buy Intermix Media for $580m (£322m), giving it control of the MySpace social networking site. News Corp's BSkyB is also threatening to shake up the UK's broadband market. Last year it bought Easynet, which could be the prelude for a major assault against BT's dominance in the wholesale broadband market. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
