News Corp. Chief Touts Traditional Media

Dec 6, 2006  •  Post A Comment

News Corp. Chief Operating Officer Peter Chernin said traditional media can have a very long life in the business sectors where they have leadership, AdAge reported Tuesday.

Mr. Chernin is committed to adopting successful business models for new media growth by utilizing cash-flow-rich resources from traditional media. By improving the ability to sell ads, expanding internationally, and adding effective tools such as video, the company can capitalize on its pre-existing digital assets, AdAge reported Mr. Chernin as saying.

The Google-YouTube deal has interesting implications for how the development of new media fits into the corporate business structure. While control over online content is now in the hands of the two top video sites, Mr. Chernin believes News Corp. has contemplated a partnership with YouTube since News Corp. is both already a distributor and copyright holder.

This power shift gives all content holders the opportunity to expand their horizons by creating larger platforms, Mr. Chernin told analysts at the UBS Global Media and Communications conference on Monday.