News Corporation (NWS): Business Model Canvas [11-2024 Updated]

In the fast-evolving landscape of media, understanding the business model of a leading entity like News Corporation (NWS) is crucial. This Business Model Canvas provides a comprehensive overview of how News Corporation creates, delivers, and captures value across its diverse portfolio. From strategic partnerships with Telstra and DMG Media to a robust array of digital and print offerings, discover how this media giant navigates challenges and seizes opportunities in the competitive marketplace. Explore the key elements that drive its success below.

News Corporation (NWS) - Business Model: Key Partnerships

Collaborations with Telstra for Foxtel Group operations

News Corporation collaborates with Telstra to enhance the operations of its Foxtel Group. As of September 30, 2024, the Foxtel Debt Group had borrowings of approximately $777 million, which includes amounts outstanding under the Telstra Facility. This facility allows the Foxtel Group to finance cable transmission costs and bears interest at a variable rate of the Australian BBSY plus an applicable margin of 7.75%, maturing in December 2027.

Partnership	Borrowings (in millions)	Interest Rate	Maturity Date
Telstra Facility	A$610	Variable rate (BBSY + 7.75%)	December 2027

Joint ventures with DMG Media for printing services

News Corporation has established joint ventures with DMG Media, particularly affecting its printing operations. As reported for the three months ended September 30, 2024, the transfer of third-party printing revenue contracts to this joint venture significantly impacted revenue, resulting in a decrease of $14 million or 56% in other revenues. This move reflects a strategic partnership aimed at optimizing operational efficiency and cost savings in the News Media segment.

Joint Venture	Revenue Impact (in millions)	Percentage Decrease
DMG Media	$14	56%

Partnerships with digital platforms for content distribution

News Corporation has formed strategic partnerships with various digital platforms to expand its content distribution channels, enhancing its reach and engagement. For the three months ended September 30, 2024, the company reported a decrease of $10 million or 5% in advertising revenues, attributed partly to changes in algorithms on these platforms. This highlights the importance of maintaining strong partnerships in the digital landscape to counteract revenue fluctuations due to external factors.

Partnership Type	Advertising Revenue Impact (in millions)	Percentage Decrease
Digital Platforms	$10	5%

News Corporation (NWS) - Business Model: Key Activities

Content creation across various media formats

News Corporation is engaged in content creation through its diverse portfolio, which includes print, digital, and broadcasting. For the three months ended September 30, 2024, the total revenues from the News Media segment were $521 million, a decrease of $27 million or 5% compared to the same period in the prior year. The decline was attributed to lower advertising revenues and circulation, reflecting the ongoing challenges in the print media landscape.

Distribution of news and entertainment via multiple channels

News Corporation utilizes a multi-channel distribution strategy to reach its audience effectively. The company reported total revenues of $2.577 billion for the three months ended September 30, 2024, a $78 million increase from the prior year. This revenue growth was driven by higher contributions from various segments, including a notable rise in digital real estate services, which brought in $357 million, an increase of $46 million or 15% from the previous year.

Segment	Revenue (in millions)	Change (%)
News Media	$521	-5%
Digital Real Estate Services	$357	+15%
Book Publishing	$546	+4%
Subscription Video Services	$501	+3%

Digital real estate services through platforms like Realtor.com

The digital real estate segment is a critical component of News Corporation's business model, primarily through its ownership of Realtor.com. For the three months ended September 30, 2024, this segment generated $357 million in revenues, which represents a 15% increase compared to the previous year. This growth was supported by higher Australian residential revenues from the REA Group, a significant subsidiary.

As of September 30, 2024, News Corporation's total assets were reported at $16.927 billion, with cash and cash equivalents amounting to $1.778 billion. The company's operational activities reflect a strategic focus on leveraging digital platforms to enhance its service offerings and reach a broader audience.

News Corporation (NWS) - Business Model: Key Resources

Diverse portfolio of media assets (print, digital, broadcast)

As of September 30, 2024, News Corporation reported total revenues of $2.577 billion for the three months ended, reflecting an increase of $78 million, or 3%, compared to the same period in 2023. The revenue breakdown includes:

Revenue Source	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (in millions)	% Change
Circulation and Subscription	1,157	1,129	28	2%
Advertising	381	391	(10)	(3%)
Consumer	521	502	19	4%
Real Estate	357	311	46	15%
Other	161	166	(5)	(3%)

The company’s media assets are segmented into various categories, including News Media, Digital Real Estate Services, Subscription Video Services, and Book Publishing. The Digital Real Estate Services segment demonstrated notable growth with revenues of $457 million, representing a 13% increase from the previous year.

Strong brand presence in Australia, UK, and the US

News Corporation maintains a strong brand presence across key markets, particularly in Australia, the UK, and the US. As of September 30, 2024, the company reported:

• Net income attributable to News Corporation stockholders of $119 million for Q3 2024, up from $30 million in Q3 2023.
• Net income increased by 148%, driven by operational efficiencies and brand strength in digital platforms.
• The company’s total assets reached $16.927 billion, with significant investments in intangible assets valued at $2.324 billion as of the same date.

Skilled workforce in journalism, production, and technology

News Corporation emphasizes the importance of its human resources. As of September 30, 2024, the company reported:

• Segment EBITDA across all divisions totaled $415 million, up from $364 million in the previous year.
• Employee costs have risen due to investments in talent acquisition, particularly in digital content and technology, reflecting a commitment to innovation.

The company’s skilled workforce is integral to maintaining its competitive edge in an evolving media landscape, particularly within its Subscription Video Services segment, which reported revenues of $501 million for Q3 2024, a 3% increase year-over-year.

News Corporation (NWS) - Business Model: Value Propositions

High-quality journalism and entertainment content

News Corporation focuses on delivering high-quality journalism and entertainment content across its various platforms. For the three months ended September 30, 2024, the News Media segment generated total revenues of $521 million, a decrease of 5% from $548 million in the same period of 2023. This decline was attributed to lower advertising revenues and print volume declines, despite cover price increases.

Comprehensive digital real estate solutions

The company's digital real estate segment, primarily through the REA Group, reported revenues of $457 million for the three months ended September 30, 2024, compared to $403 million in the previous year, reflecting a growth of 15%. This growth was driven by increased Australian residential revenues and a strong market presence in digital real estate services, underscoring the company's commitment to providing comprehensive solutions in this sector.

Metric	Q3 2024	Q3 2023	Change (%)
Digital Real Estate Revenues	$457 million	$403 million	15%
Segment EBITDA	$140 million	$122 million	15%

Subscription models providing exclusive content access

News Corporation's subscription video services segment reported revenues of $501 million for the three months ended September 30, 2024, an increase of 3% from $486 million in the prior year. The growth was primarily driven by higher streaming revenues, particularly from Kayo and BINGE, which accounted for 34% of total segment circulation and subscription revenues. The average monthly broadcast residential subscription revenue per user (Broadcast ARPU) was approximately A$89 (US$60), up from A$85 (US$56) in the previous year.

Metric	Q3 2024	Q3 2023	Change (%)
Subscription Video Services Revenues	$501 million	$486 million	3%
Streaming Subscribers (Total Paid)	4,658,000	4,622,000	0.8%
Broadcast ARPU	A$89 (US$60)	A$85 (US$56)	4.7%

News Corporation (NWS) - Business Model: Customer Relationships

Direct engagement through subscription services

As of September 30, 2024, News Corporation reported circulation and subscription revenues of $459 million, which reflects a $23 million increase, or 5%, from the previous year. The digital-only subscriptions of The Wall Street Journal reached approximately 3.81 million, a 10% increase from 3.46 million in the previous year. Total subscriptions for The Wall Street Journal also increased to 4.26 million, up from 3.99 million, indicating a growth of 7%.

Customer support for digital platforms and services

News Corporation's digital platforms, including Foxtel, reported a total of 4.66 million paid streaming subscribers as of September 30, 2024, a slight increase from 4.62 million the previous year. The average monthly broadcast residential subscription revenue per user (Broadcast ARPU) was approximately A$89 (US$60), compared to A$85 (US$56) in the previous year. The Broadcast Subscriber Churn rate improved slightly to 11.0% from 11.4%.

Community building via social media and events

News Corporation has leveraged its social media presence to enhance community engagement. The company’s digital advertising represented 67% of total advertising revenue for the three months ended September 30, 2024, which totaled $85 million. The decline in traditional print advertising revenue has prompted a shift towards digital platforms, indicating a strategic move to engage with consumers through social channels.

Metric	Q3 2024	Q3 2023	Change
Circulation and Subscription Revenue	$459 million	$436 million	$23 million (5%)
The Wall Street Journal Digital-only Subscriptions	3.81 million	3.46 million	+10%
Total Subscriptions (WSJ)	4.26 million	3.99 million	+7%
Paid Streaming Subscribers (Foxtel)	4.66 million	4.62 million	+1%
Average Monthly Broadcast ARPU	A$89 (US$60)	A$85 (US$56)	+A$4
Broadcast Subscriber Churn Rate	11.0%	11.4%	-0.4%
Digital Advertising Revenue	$85 million	$91 million	-$6 million (-7%)

News Corporation (NWS) - Business Model: Channels

Multi-platform distribution: websites, apps, and TV

News Corporation utilizes a multi-platform distribution strategy to reach its audience. This includes:

• Websites such as news.com.au and the Wall Street Journal online.
• Mobile applications that deliver news and entertainment content directly to users.
• Television channels including Fox News, Fox Sports, and various regional networks.

As of September 30, 2024, the total revenues from the News Media segment were $521 million, a decrease of $27 million, or 5%, compared to the prior year's quarter. The decline was attributed to lower advertising revenues and circulation.

Direct-to-consumer subscriptions for news and entertainment

News Corporation has shifted towards a direct-to-consumer model, offering subscription services across its platforms:

• Foxtel Group reported a total of 4.658 million paid streaming subscribers across services like Kayo and BINGE as of September 30, 2024.
• The average monthly broadcast residential subscription revenue per user (Broadcast ARPU) was A$89 (approximately US$60).

Subscription revenues from circulation and digital services accounted for $271 million, with a slight decline of 1% year-over-year.

Advertising through digital and print media

Advertising remains a crucial revenue stream for News Corporation:

• Advertising revenues for the three months ended September 30, 2024, totaled $193 million, down $10 million, or 5%, from the previous year.
• Digital advertising revenues were particularly impacted by declines in traffic due to algorithm changes on platforms.

Here is a summary table of key advertising metrics for News Corporation:

Metric	Q3 2024	Q3 2023	Change ($ Million)	Change (%)
Total Advertising Revenues	$193 million	$203 million	($10 million)	(5%)
Digital Advertising Revenues	N/A	N/A	N/A	N/A
Print Advertising Revenues	N/A	N/A	N/A	N/A

Overall, the advertising landscape for News Corporation has faced challenges, particularly in the print segment, leading to decreased revenues.

News Corporation (NWS) - Business Model: Customer Segments

Consumers seeking news and entertainment

News Corporation serves a diverse consumer base that seeks news and entertainment across various platforms. For the three months ended September 30, 2024, revenues from the News Media segment amounted to $521 million, a decrease of $27 million or 5% compared to the same period in 2023. The circulation and subscription revenues specifically accounted for $271 million, down from $275 million. Digital revenues represented 67% of advertising revenue during this period.

Real estate agents and brokers needing advertising solutions

The Digital Real Estate Services segment is crucial for real estate agents and brokers, contributing significantly to News Corporation's revenues. For the three months ended September 30, 2024, this segment recorded total revenues of $457 million, an increase of $54 million or 13% from the previous year. The REA Group, a key player in this segment, generated $318 million in revenues, reflecting a 22% increase. Notably, real estate revenues alone accounted for $357 million, marking a 15% increase.

Businesses requiring professional information services

Businesses seeking professional information services are served primarily through the Dow Jones segment. For the three months ended September 30, 2024, Dow Jones reported revenues of $552 million, up $15 million or 3% compared to the same period in 2023. The professional information business, which includes services such as Risk & Compliance, generated $221 million, an increase of 8%. Digital revenues constituted 82% of total revenues in this segment, showcasing the shift towards digital information services.

Customer Segment	Revenue (Q3 2024)	Year-over-Year Change
Consumers seeking news and entertainment	$521 million	-5%
Real estate agents and brokers	$457 million	+13%
Businesses requiring professional information services	$552 million	+3%

News Corporation (NWS) - Business Model: Cost Structure

Operating expenses for content production and distribution

For the three months ended September 30, 2024, News Corporation reported operating expenses of $1,263 million, a decrease of $10 million, or 1%, compared to the same period in the previous year. The News Media segment incurred operating expenses of $286 million, down from $314 million in the prior year. The decline in operating expenses was primarily attributed to cost savings initiatives, particularly the integration of News UK’s printing operations.

Marketing and advertising expenditures

Marketing and advertising expenditures for the three months ended September 30, 2024, were reported as part of the Selling, General, and Administrative (SG&A) expenses, totaling $899 million, which reflects an increase of $37 million, or 4%, year-over-year. This increase included approximately $12 million related to costs associated with a withdrawn acquisition offer for Rightmove and higher employee costs within the Digital Real Estate Services segment. Advertising revenues decreased by $6 million, or 7%, during the same period, primarily due to lower advertising spend in the technology and finance sectors.

Administrative and overhead costs

Administrative and overhead costs are also included in the SG&A expenses, which were $899 million for the three months ended September 30, 2024. The breakdown of these costs highlights the impact of foreign currency fluctuations, which accounted for an increase of $12 million, or 1%, in SG&A expenses. Additionally, depreciation and amortization expenses were reported at $189 million, an increase from $171 million the previous year.

Cost Category	Amount (in millions)	Year-over-Year Change
Operating Expenses	$1,263	Decreased by $10 (1%)
News Media Operating Expenses	$286	Decreased by $28 (9%)
Marketing and Advertising Expenditures	$899	Increased by $37 (4%)
SG&A Expenses	$899	Increased by $37 (4%)
Depreciation and Amortization	$189	Increased by $18 (11%)

News Corporation (NWS) - Business Model: Revenue Streams

Subscription fees from digital and print media

For the three months ended September 30, 2024, News Corporation reported circulation and subscription revenues of $1,157 million, which reflects an increase from $1,129 million in the same period of the previous year. This increase was primarily driven by digital subscriptions, particularly in the Dow Jones segment, which accounted for $459 million of the total circulation and subscription revenues, compared to $436 million in the prior year.

Advertising revenues from various platforms

Advertising revenues for the three months ended September 30, 2024, totaled $381 million, a decrease from $391 million during the same period in 2023. This 2.6% decline was attributed to lower advertising spend in the technology and finance sectors. Digital advertising made up 67% of the total advertising revenue.

Real estate services and associated fees

Revenues from the Digital Real Estate Services segment increased to $457 million for the three months ended September 30, 2024, up from $403 million in the same period last year, marking a 13% increase. The REA Group contributed $318 million to this total, largely due to higher residential revenues driven by price increases and increased listings.

Revenue Stream	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
Circulation and Subscription	$1,157	$1,129	2.5%
Advertising	$381	$391	-2.6%
Digital Real Estate Services	$457	$403	13%

Updated on 16 Nov 2024

Resources:

1. News Corporation (NWS) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of News Corporation (NWS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View News Corporation (NWS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.