ReutersReport: Rupert Murdoch’s News Corp said on Monday its newspaper advertising revenue would take a hit from widespread business closures caused by the coronavirus outbreak, although paid digital subscriptions for the Wall Street Journal are rising.
Readers are flocking to news outlets for information about the pandemic, but ad revenue has still plummeted for many publishers as companies slash marketing budgets and hesitate to have their brands advertised near coronavirus coverage.
News Corp said book publishing sales and revenue from video subscription services would also likely be dented as brick-and-mortar retail stores are shuttered and sporting events that it broadcasts are canceled or postponed.
A representative for Reuters news organization previously said the company has also experienced an impact on advertising revenue. Thomson Reuters Inc, the parent of Reuters News, competes with News Corp’s Dow Jones Newswires for financial news customers.
News Corp is seeing an increase in digital paid subscribers for the Wall Street Journal, The Times and The Sunday Times, and in a regulatory filing said it was working to offset some of the anticipated revenue losses by cutting costs, though it did not provide further details.