Business is more like chess than checkers. You have to plan your moves several steps ahead. 
You need to make multiple small steps to setup your big move. If nothing else is to be learned from this current wave of mergers and acquisitions, understand that these moves are part of much larger plays. This move by News Corp. is not the beginning nor the end of the game, but another step in Rupert Murdoch's long plan to be the dominant source of news around the world.
If you do not understand the analogy of rearranging the deck chairs on the Titanic then you may have trouble understanding this story. If you do understand the analogy then you may wonder why all of this is going on in the first place. Then again, maybe Rupert is smarter than we give him credit for...
FOX News, despite having higher ratings, according to mediabistro.com, than CNN, still looks to be respected as the legitimate leader in news, not just cable, when placed next to the other networks. One component that News Corp. lacks, that NBC has, is a business news channel. FOX News has business news programming, but it is scattered about during the day and on the weekends. If there is a big news story then the business news gets pushed aside, further eroding its audience.NBC has been using its longstanding network news background and the deep pockets of parent GE to build their business channel CNBC. They have been somewhat successful. CNN attempted to challenge CNBC when it launched CNNfn in 1995. This was not a very successful effort and was closed in 2004. This despite the existing relationship and access to all of the material and reporters of the magazines Fortune, Money, Business 2.0 and the flagship: Time.
The existence, success is still to be determined, of CNBC says that there is some demand but clearly the lack of 24 hours of business programming even there says it is a difficult task. Lately even Mr. Big Idea, Donny Deutsch, has been trying to be less of a Larry King and more of a Jim Cramer. Still CNBC shows reruns of Deal or No Deal and other primetime programming to fill the evening hours. Late night, early and weekend mornings are filled with infomercials. Clearly there is not enough material to keep the target audience around the clock.
This brings us back to the Wall Street Journal acquisition. What Mr. Murdoch clearly wants is to start the game with the proven source of respectable business news. Already WSJ has evening and weekend reports on the FOX News channel. Now News Corp. wants to make it a permanent relationship.
The Dow Jones Company has few if any close equals for business news in the United States. It will make a great foundation for a business channel. So why not make one on their own then? Why does it need to be tied to News Corp. to do the right thing?
Will the acquisition succeed? That depends on many factors - the most important one being: How much longer will people go to their televisions and newspapers for news when they can go to their computers and see whatever story they want, when they want it. Why do I have to wait for the episode of the latest Lou Dobbs, Maria Bartiromo (was the label Money Honey a bad branding move?), or Neil Cavuto series to see their report. I don't if the network does not want me to. There fore I watch less and less television. I get my news when I want it and I spend more time at my computer than ever before.
This also makes me wonder - who is watching these programs? If you are a heavy hitter in the market, are you waiting to get your news from a cable program? Wouldn't you be all over the online channels and reports that float around in the "networks" of insiders and friends to stay ahead of the game?
In the interest of full disclosure - I am hoping to pitch a Modern Magellans program to the FOX business channel.
» Rupert Murdoch, Wall Street Journal, Dow Jones News from Know More Media
Rupert Murdoch and his attempt to buy Dow Jones in order to control the Wall Street Journal and other key media assets has been a hot news topic of loate. Last week a number of Know More Media authors covered... [Read More]
Tracked on: July 14, 2007 11:16 AM | Permalink to Trackback