News Corp targets further growth across digital assets, newspapers and pay-TV

Media major News Corp is eyeing off further sharp growth in its burgeoning subscription base following a surge in audience engagement over the past year.

News Corp Australasia executive chairman Michael Miller: ‘The importance of Australian news for Australians, and Australian voices, has really come through in the past 12 months.’

Media major News Corp is eyeing off further sharp growth in its burgeoning subscription base across its digital assets, print newspapers and pay-TV platforms, following a surge in audience engagement over the past year.

News Corp Australasia executive chairman Michael Miller said the strengthening demand, particularly for the company’s journalism and sports coverage, had given it the “confidence” to boost investment in its key markets.

“The past 12 months have been uncertain and we’ve had to make some tough decisions in relation to how we operate,” Mr Miller told The Australian. “But we’ve got a lot more confidence in Australians’ desire for local news, and while we’re part of a very large global community, we’re still very isolated as a ­country.

“The importance of Australian news for Australians, and Australian voices, has really come through in the past 12 months. In addition, Australians have shown that they are among the most prepared in the world to pay for quality journalism.

“So their willingness to pay gives us the confidence that further resources and skills for Australian journalism should be a top priority.”

Mr Miller identified the recent changes made to News Corp’s news titles, which has led to state mastheads and local mastheads coming together on the one website, as a prime example of the media company serving the evolving needs of its audience.

“We’re finding audiences … want all their news together in one spot, and while it’s early days, that’s been a success for News Corp,” he said, adding that page views for the NSW and Queensland mastheads had increased 22 per cent over the past month.

Mr Miller said the company’s news arm was also focused on developing innovative ways to deliver its journalism to a growing audience.

“While journalism is at the core of meeting audience and community needs, how we tell those stories — in audio, in video, using data and visual journalism — is a big part of that,” he said.

“With the new agreements with Facebook and Google, that enables us to connect with communities of interest as opposed to just communities of region.”

On Friday, Mr Miller announced that News Corp is to create at least 100 new editorial roles in the next year. This includes 30 new positions in a national cadet program and 20 new positions on digital mastheads in regions and communities.

The Sunshine Coast Daily and Mackay’s Daily Mercury, which shifted to digital- only titles at the height of the COVID-19 pandemic, are also to soon return in a trial as weekly print ­editions.

Mr Miller also lauded the performance of the Foxtel Group’s sports streaming service Kayo, which has more than one million subscribers, and its subscription entertainment platform Binge.

“The total brand reach (of Foxtel) is up 21 per cent on the prior year, to over three-and-a-half million viewers. If you get the experience right, the content right, and the pricing right, the audiences respond,” he said.

Mr Miller’s buoyant outlook follows the release of News Corp’s third quarter earnings on Friday.

In handing down the results, News Corp’s global chief executive, Robert Thomson, said the company was on track for its most profitable year in nearly a decade.

“Foxtel’s resurgence during the pandemic coupled with the continuing value of its broadcast pro­duct, the rapid growth of Kayo and Binge, and a relentless focus on cost transformation have delivered a much enhanced financial performance that gives us flexibility and optionality,” he said.

Revenue for News Corp Australia was $US249m ($317.45m) for the quarter — an increase of $US6m, or 2 per cent, compared to this time last year.

Digital subscribers at News Corp Australia’s mastheads grew strongly, up 24 per cent, closing at 760,000 compared to 613,300 for the same period in 2020.