News Corp. did not break the total revenues of digital media, but the segment “Other” operations to which it belongs has announced a net loss of $ 73 million, compared with net income of $ 34 million during last year.
CEO Rupert Murdoch said MySpace has seen signs of “recent stabilization of traffic”, which he credited to undermine the management last year-up. Besides MySpace, the digital media unit houses IGN Entertainment, Jamba, Photobucket, and society Hulu joint venture with NBC Universal and Disney.
Digital photography has been Rosier Newspaper Division of the company, where the operating results were driven by robust growth of 17 per cent of ad revenues Digital Network The Wall Street Journal.
Murdoch: 3D is the future
Of course, the biggest News Corp recent success has nothing to do with newspapers or advertising revenues. Twentieth Century Fox picture “Avatar” last week became the highest grossing release of box office of all time, and remains the draw in the galleries beginning seven weeks after its release.
Proud of this success, management announced the next generation of 3D technology to the consumer – and the onslaught of programming that they believe will happen soon benefit from this technology.
“You will see more 3D movies, but more fundamentally, there will be an exponential growth of the 3D programming over the next two years,” said Rupert Murdoch during the conference call the company with investors.
He noted BSkyB, in which News Corp. holds an equity stake, will soon launch a 3D chain, and has already started experimenting with 3D programming.
Not everyone is optimistic about the technology. Chris Allen, director of innovation in video Starcom USA, suggested ClickZ excitement generated by the release 3D Avatar has yet to prove itself as more than just fashion.
“That’s fine if you are a hardcore gamer who wants to be immersed in this experience,” he said.“I do not see it as catching up on the actual consumers.”
Allen said many customers have inquired as to whether they should start producing commercials in 3D. He said that Starcom is not advice, “unless someone is using a seat in a theater environment as the primary point of delivery”.
Overall, News Corp. reported net income of $ 254 million in the second quarter, which ended December 31, 2009, compared to a net loss of $ 6.4 billion a year earlier.