Posts Tagged ‘‘Arguments for Democracy’’

Rejoice! Murdoch Press Losing MILLIONS

February 23, 2020

Here’s a bit of good news amidst the horrors of this Tory government, the floods, deportations, rampant racism and the Coronavirus: the Murdoch press is losing money. Very big money. Zelo Street has just put up a very revealing piece about their accounts for the period ending June 2019. This reveals that the Murdoch empire has been hit with a charge of £26,721,000 for one-off payments for legal fees and damages paid to the claimants in the phone hacking scandal. They’ve also incurred other one-off costs for UK newspaper matters of £25,737,000. Other charges include £1, 549,000 for the Management and Standards Committee. This means that the total damage is £54,007,000. Mind you, the directors still remain handsomely rewarded. They have been paid £5,191,000. Of which Rebecca Wade got £2,787,000. Overall, the company lost a total of £67, 952,000. The total loss for the financial year is £67,952,000. Which means that even without the phone hacking scandal, the company would have lost £14 million.

Zelo Street comments

‘Will the Murdoch press make money again in the next few years? Given the claims keep on coming, and the potential downside for the Sun titles if there is serious blowback (as happened with the Screws over the Dowler hacking), it’s not such a daft question.

Or is Rupe just in it for the political leverage? There’s a $64,000 question for you.’

See: https://zelo-street.blogspot.com/2020/02/murdoch-press-still-losing-money.html

That’s a very good question. A little while ago Private Eye raised the same issue regarding the Times. The actual amount of income generated by the Thunderer is so small, and its losses correspondingly so high, that if it was any other paper it would have been closed down years ago. But because it’s the British paper of record, Murdoch keeps it going because it gives him a seat at the same table as the politicos.

The Sage of Crewe recognises how influential the Murdoch titles still are. Tim remarks that the Murdoch’s goons still exceed the other titles, even those of the Heil, in the hate they can lay on their targets. The rest of the press follows their lead, and knows better than to mess with them. But the costs of the phone hacking scandal show all this is catching up with Dirty Rupe and his empire of sleaze.

Tony Benn in his book, Arguments for Democracy, points out that the Daily Herald didn’t fold because it lacked a popular readership. It collapsed, and then was subsequently bought by Murdoch and transformed into the scabby rag it is now, because it lacked advertisers. At the time its readership was bigger than the Times, the Groaniad and the Financial Times added together. What killed it is that its working class readers were too poor to appeal to the advertisers.

I’ve no doubt the paper’s sales increased massively after it was transformed into the Scum. But I also think that it was kept afloat because it was a Tory paper. It was the first working class Conservative newspaper, and so companies that would have had second thoughts about advertising in a socialist paper were probably more prepared to place adverts with Rupe’s mighty organ.

The question is, will that continue. If the Murdoch papers continue to lose readers, will there come a point when the advertisers demand that they’re not getting enough exposure for the money they’re spending, and demand that his newspapers cut their advertising rates. Which will mean another financial hit for them. And what will happen if Murdoch doesn’t shake off his newspaper’s reputation for gross breaches of journalistic standards. Of course the Scum’s journalistic reputation always was low, but in the 1980s and ’90s there was also a tendency to laugh it off as a joke. One of the silly parties standing in Gloucestershire in either the 1983 or 1987 election was the ‘Have the Sun Redesignated as a Comic’ Party. This shows how seriously some people viewed it. Which is unfortunate, as while the Scum certainly deserved its mockery, the joke also created a kind of complacency. For the more intelligent, the Scum was dire and a joke, but it still was massively influential, and the policies it and its master promoted – rampant militarism, welfare cuts, privatisation and a culture of ruthless selfishness and greed – were anything but funny.

But with the phone hacking scandal, some of that laughter has died, quite apart from the bitterness the good folk of Liverpool still feel about the paper’s gross libel of their fair city. How long before the paper’s reputation gets just that bit too toxic that the advertisers don’t want to risk their reputations by being associated with it. And if they go, the Scum goes too.

And hopefully, there’ll be a few more years where the Murdoch press makes such spectacular losses, that it won’t be too long in coming.