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Of course, we could be lucky and Woopert’s media empire could be collapsing. Fox News is the only thing that doing well, after all.

When the iPhone was released, people asked Steve Jobs if he was worried that iPhone would cannibalize iPod, and he said he’d rather Apple cannibalize the iPod instead of somebody else. In other words, if you are in the lead in a sector, you can’t hold back progress to protect that lead, you have to charge forward faster than anyone else so that when the next era comes, you lead in that as well. Apple transformed their success in digital media players to a success in smartphones. NewsCorp has to transform their success in glossy paper magazine subscriptions to success in glossy iPhone/Kindle magazine subscriptions.

The Web is so basic compared to every other digital thing. If you can’t out-compete the Web experience with some other digital media, then you are truly not worthy of sticking around.

In short, put things that people are willing to pay for behind your paywall, and advertise them on your free pages, where Google is sending you 90% of your traffic every day.

Google is handing NewsCorp the ball, but NewsCorp is dropping it and complaining that they want to have their own ball. That is not how the Web works, it’s a network. Your own ball is whatever else you do outside of the Web. In the past that was print, DVD, CD, but now it is online versions of the same.

In the early days of YouTube, there were many full TV episodes on there, even whole seasons, just uploaded by users. I watched the first 3 seasons of a popular TV show in a little low-quality 320×240 window because there was no other online option. Then iTunes started offering much better quality versions of the episode for $2 each, and I bought seasons 4-10 and then after I watched all those, I bought seasons 1-3. Without YouTube, I wouldn’t have even known this particular show existed. Google sold me 10 seasons of a Paramount TV show at DVD prices. The low-quality Web versions were not competing with the iTunes versions, just advertising them.

Just as Google knows what traffic to News Corp is worth, they REALLY know what every fractional percentage of search share is worth, which is where the real economic analysis plays out.

Hence, a deal with Microsoft that allows media cos like News Corp (presumably in tandem with other media players – mainstream and longtail) to tout economics that ‘recognize their value’ to search engines’ index completeness, and simultaneously props up the preferred partner (Bing in this case) as having content that Google doesn’t is a win-win for the media guys and Microsoft.

In the good old days, MS would throw unlimited dollars at weakening the foundation of their strongest competitor. Attacking the efficacy of free indexing by paying/rev sharing for it, (theoretically) weakens Google, bolsters Bing and is a reasoned plank in a ‘pay wall’ strategy, as much as I hate to say it as a New Media guy.

Mark

If I have to choose between using Google and using the Wall Street journal I’ll choose Google.

I started out as a paper subscriber in the Washington DC suburbs. I always got my paper a day late, first delivered by mail, then to the doorstep (but still late). I eagerly switched to the Online service. (I live 3 hours from DC now and I’m quite sure getting a current print copy delivered to my doorstep is out of the question.)

Since then the Online service has steadily (if glacially) improved, but it has far to go even when compared to upstart alternatives when it comes to organization of content, feed quality, e-mail notifications, “social” features”… the list goes on. None of these problems can be blamed on Google.

Nor can Google be blamed for News Corp. buying a property at its peak (Myspace) and riding it off a cliff into the canyon below.

Daily I access WSJ articles that can only be read because I am a subscriber. I get to those articles in a number of ways, the least of which is the Journals front page (which I rarely access).

I regularly click through to ads on WSJ content. News Corp should be thrilled about this. But unfortunately it is quite common for those ads to fail to render. My browser status will say something like “35 of 37 items read”, but as these things are driven (as I’ve often complained) by poorly written scripts, the one or two items on a slow or downed server somewhere keep the entire ad from displaying, and eventually I give up.

Instead of focusing on Google, maybe Mr. Murdoch needs to re-evaluate some of the sycophants that he no doubt has surrounded himself with over the years. The ones who are telling him that they are executing perfectly, but are held back by some villain far away.

As stated, I have no problem PAYING for WSJ content. I do have a problem being forced to use Bing, or the Journals home page to get to that content.

Some advice that Mr. Murdoch should not need to be given:

If you can’t make your products take advantage of synergistic effects, dump the ones that are losing money.

If you can’t make your online content actually work as designed, figure out who to replace.

If you think your content is completely unique and irreplaceable, up your subscription price to $1000+ a year and go back to print.

Finally, if you think doing a deal with Microsoft represents salvation, you might check results from a few companies that have already gone down that path.

Good luck.