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

In the ever-evolving landscape of media, News Corporation (NWSA) stands out with a robust business model that leverages its extensive portfolio and innovative strategies. This blog post delves into the Business Model Canvas of News Corporation, highlighting its key partnerships, activities, and revenue streams. Discover how this media giant navigates challenges while delivering trusted journalism and diverse content to a wide audience.

News Corporation (NWSA) - Business Model: Key Partnerships

Collaborations with media affiliates

News Corporation has established significant collaborations with various media affiliates to enhance its content distribution and reach. For instance, the company's revenues from its News Media segment were reported at $521 million for the three months ended September 30, 2024, down from $548 million in the same period of the previous year, indicating a decrease of $27 million or 5%. This decline is partially attributed to the transfer of third-party printing revenue contracts to its joint venture with DMG Media, reflecting the importance of strategic partnerships in mitigating revenue losses.

Joint ventures like DMG Media

DMG Media represents a critical joint venture for News Corporation, particularly in the UK market. The transfer of third-party printing revenue contracts to this joint venture has been a strategic move aimed at consolidating operations and reducing costs. The impact of this joint venture is evident as revenues at News UK decreased significantly, with a reported $207 million for the three months ended September 30, 2024, down from $228 million, reflecting a 9% decline. This joint venture not only helps in cost savings but also positions News Corp better within the competitive media landscape.

Partnerships with technology platforms for digital content

News Corporation has also forged partnerships with technology platforms to bolster its digital content offerings. These collaborations are crucial as the media landscape shifts towards digital consumption. For example, the company has seen fluctuations in digital advertising revenues, which decreased by $9 million or 15% in News UK, largely due to algorithm changes on certain platforms. Such partnerships are essential in navigating the evolving digital landscape and ensuring robust content delivery.

Partnership Type	Impact on Revenue	Key Details
Media Affiliates	$521 million (Q3 2024)	Revenue decline of 5% due to operational shifts
Joint Ventures (DMG Media)	$207 million (News UK Q3 2024)	9% revenue decline attributed to joint venture operations
Technology Partnerships	Decrease of $9 million in digital advertising	Impacted by algorithm changes on platforms

News Corporation (NWSA) - Business Model: Key Activities

Content creation and distribution

News Corporation engages in extensive content creation and distribution across various media platforms. For the three months ending September 30, 2024, the total revenues for the News Media segment were $521 million, down from $548 million for the same period in 2023, marking a 5% decrease.

The breakdown of revenues in the News Media segment is as follows:

Revenue Source	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (%)
Circulation and Subscription	$271	$275	(1%)
Advertising	$193	$203	(5%)
Other	$57	$70	(19%)

The decrease in circulation and subscription revenues was primarily attributed to print volume declines, partially offset by cover price increases and the positive impact of foreign currency fluctuations.

Advertising sales and marketing

Advertising remains a critical revenue stream for News Corporation. In the three months ended September 30, 2024, advertising revenues decreased by $10 million, or 5%, primarily due to lower print advertising revenues in Australia and reduced digital advertising at News UK. The total advertising revenue for the News Media segment was $193 million compared to $203 million in the previous year.

Advertising strategies have shifted towards digital platforms, with the impact of algorithm changes affecting traffic to some of their mastheads. Despite these challenges, the company continues to leverage its extensive network of publications and digital properties to attract advertisers.

Subscription management and customer service

Subscription management is a vital component of News Corporation's business model, particularly in the Subscription Video Services segment. As of September 30, 2024, the total paid streaming subscribers were 4.658 million, an increase from 4.646 million in the previous year. The breakdown of subscribers is as follows:

Service	Q3 2024 Subscribers (in thousands)	Q3 2023 Subscribers (in thousands)
Kayo	1,511	1,411
BINGE	1,571	1,506
Foxtel Now	134	167

The average monthly broadcast residential subscription revenue per user (ARPU) for Q3 2024 was A$89 (approximately US$60), reflecting an increase from the previous year's A$85 (approximately US$56). The churn rate for broadcast subscribers was 11.0%, down from 11.4% in the previous year, indicating improved customer retention.

Customer service initiatives are focused on enhancing user experience and satisfaction, which is critical in maintaining subscriber loyalty amid competitive pressures in the media landscape.

News Corporation (NWSA) - Business Model: Key Resources

Strong brand portfolio (e.g., The Wall Street Journal, New York Post)

As of September 30, 2024, News Corporation's strong brand portfolio includes leading publications such as The Wall Street Journal, which reported an average of 4.255 million total subscriptions, including 3.811 million digital-only subscriptions. The New York Post remains a significant player in the media landscape, contributing to the company's diverse revenue streams.

Digital platforms (e.g., news.com.au)

News Corporation has invested heavily in digital platforms, with news.com.au being a primary asset. The company generated approximately $457 million in revenues from its Digital Real Estate Services segment, which includes digital advertising and subscription services. Digital revenues represented 82% of total revenues for the Dow Jones segment.

Platform	Revenue (Q3 2024)	Subscription Numbers
The Wall Street Journal	$552 million	4.255 million
news.com.au	$457 million	Not disclosed
New York Post	Part of News Media Revenues	Not disclosed

Skilled workforce and editorial teams

News Corporation employs a skilled workforce, essential for maintaining the quality and reputation of its brands. The editorial team is recognized for its expertise, with segment EBITDA for the News Media segment increasing by 14% to $16 million in Q3 2024, driven by cost savings and operational efficiencies. The company reported a total headcount of approximately 25,000 employees across its various divisions.

As of September 30, 2024, News Corporation had total assets valued at $16.927 billion, reflecting a robust financial position to support its talent and resources.

Key Financial Data	Q3 2024
Total Revenues	$2.577 billion
Net Income	$144 million
Total Assets	$16.927 billion
Employee Count	~25,000

News Corporation (NWSA) - Business Model: Value Propositions

Comprehensive news coverage across multiple platforms

News Corporation provides extensive news coverage through various platforms, including print, digital, and broadcast media. For the three months ended September 30, 2024, News Corporation reported total revenues of $2.577 billion, reflecting a 3% increase from the previous year, driven by higher revenues in the Digital Real Estate Services and Book Publishing segments.

Trusted journalism and brand reputation

News Corporation has established itself as a leader in trusted journalism. As of September 30, 2024, the Dow Jones segment, which includes The Wall Street Journal, generated $552 million in revenue, a 3% increase from the prior year, showcasing the enduring demand for reliable news sources. The company’s commitment to journalistic integrity enhances its brand reputation, allowing it to maintain a loyal customer base.

Diverse content offerings (news, sports, entertainment)

The company’s diverse content offerings include news, sports, and entertainment, catering to a wide range of audience preferences. For instance, the Subscription Video Services segment, which accounted for 19% of consolidated revenues, generated $501 million for the three months ended September 30, 2024, up 3% from the previous year, primarily due to increased streaming revenues. This segment includes popular services such as Kayo and BINGE, appealing to sports and entertainment consumers alike.

Segment	Revenue (in millions)	Year-over-Year Change (%)
News Media	$521	(5)
Subscription Video Services	$501	3
Book Publishing	$546	4
Digital Real Estate Services	$457	14
Dow Jones	$552	3

In summary, News Corporation's value propositions are framed around comprehensive coverage, trusted journalism, and a diverse array of content, which collectively differentiate it from competitors and address the varied needs of its customer segments.

News Corporation (NWSA) - Business Model: Customer Relationships

Subscription-based models for digital content

As of September 30, 2024, News Corporation reported circulation and subscription revenues of $1,157 million, up from $1,129 million in the same period in 2023, reflecting a growth of approximately 2.5%. The subscription video services segment, which includes platforms like Kayo and BINGE, generated revenues of $501 million, an increase of 3% year-over-year. Notably, digital revenues accounted for 82% of total revenues in the Dow Jones segment during this period.

Segment	Revenues (in millions)	Year-over-Year Change (%)
Circulation and Subscription	$1,157	2.5%
Subscription Video Services	$501	3%
Dow Jones Digital Revenues	82% of total revenues	-

Engaging through social media and digital channels

In the digital landscape, News Corporation has been actively engaging customers through various social media platforms. The company's digital engagement strategies have led to a significant increase in audience interaction. For instance, the average daily digital-only subscriptions for The Wall Street Journal reached 3,811,000, a growth of 10% from the previous year.

Furthermore, digital advertising revenues across their platforms have been impacted by algorithm changes, resulting in a 5% decrease in advertising revenues to $381 million for the three months ended September 30, 2024. However, the company continues to leverage its social media channels to enhance customer engagement and retention.

Customer loyalty programs and targeted promotions

News Corporation has implemented various customer loyalty programs aimed at retaining subscribers and boosting sales. These initiatives include targeted promotions for existing customers, which have contributed to a 5% increase in circulation and subscription revenues compared to the prior fiscal year. The company has also focused on bundling offers to enhance value for customers and drive subscription growth. For example, the professional information business segment saw an increase in revenues of 8% due to new products and customer acquisitions.

Metric	Value	Year-over-Year Change (%)
The Wall Street Journal Digital-only Subscriptions	3,811,000	10%
Circulation and Subscription Revenue Growth	$1,157 million	5%
Professional Information Business Revenue Growth	$221 million	8%

News Corporation (NWSA) - Business Model: Channels

Online platforms (websites and mobile apps)

News Corporation utilizes various online platforms to deliver its content and engage with customers. For the three months ended September 30, 2024, the Subscription Video Services segment reported revenues of $501 million, an increase of 3% compared to the previous year. This revenue includes circulation and subscription revenues of $425 million, which reflects a 2% rise from $415 million in the same period of fiscal 2023.

Segment	Revenue (Q3 2024)	Revenue (Q3 2023)	Change (%)
Subscription Video Services	$501 million	$486 million	3%
Circulation and Subscription	$425 million	$415 million	2%

The online platforms also include various news websites and mobile applications that collectively serve millions of users, allowing for direct engagement and content delivery.

Traditional media (newspapers, magazines)

Traditional media remains a significant channel for News Corporation. For the three months ended September 30, 2024, revenues from the News Media segment were $521 million, down 5% from $548 million in the same quarter of the prior year. Circulation and subscription revenues decreased to $271 million, a 1% decline from $275 million.

Segment	Revenue (Q3 2024)	Revenue (Q3 2023)	Change (%)
News Media	$521 million	$548 million	-5%
Circulation and Subscription	$271 million	$275 million	-1%

In addition to newspapers, News Corporation publishes magazines, which also contribute to the overall revenue, although specific figures for magazines were not detailed in the latest report.

Streaming services (e.g., Foxtel, Kayo Sports)

Streaming services are a growing channel for News Corporation, with significant contributions from platforms like Foxtel and Kayo Sports. As of September 30, 2024, the total number of streaming subscribers across these services reached approximately 4.7 million, with Kayo having about 1.5 million subscribers.

Streaming Service	Subscribers (Q3 2024)	Subscribers (Q3 2023)
Kayo	1.5 million	1.4 million
BINGE	1.6 million	1.5 million
Foxtel Now	0.134 million	0.167 million

These streaming platforms have become essential for News Corporation, providing a significant revenue stream and allowing for broader audience reach through digital content delivery.

News Corporation (NWSA) - Business Model: Customer Segments

Individual subscribers (digital and print)

As of September 30, 2024, News Corporation reported circulation and subscription revenues of $271 million for the News Media segment, a slight decrease of 1% compared to $275 million in the same period of 2023. This revenue is primarily driven by individual subscribers of both digital and print formats.

In the Subscription Video Services segment, circulation and subscription revenues amounted to $425 million, increasing by 2% from $415 million year-over-year. The overall subscriber base for Foxtel Group's streaming services as of September 30, 2024, included approximately 1.5 million paid subscribers across its platforms, including Kayo and BINGE.

Advertisers seeking targeted audiences

Advertising revenues for the News Media segment totaled $193 million for the three months ended September 30, 2024, down from $203 million in the previous year, reflecting a decline of 5%. This drop was attributed to lower print advertising revenues, particularly at News Corp Australia, and a decrease in digital advertising revenues at News UK, largely due to changes in platform algorithms affecting traffic.

The overall advertising market is evolving, with digital advertising representing approximately 67% of total advertising revenue for the company. This shift indicates a growing focus on targeting specific audience segments through digital channels, which is critical for advertisers aiming to maximize their reach and effectiveness.

Businesses requiring news and information services

News Corporation serves various businesses that require news and information services. The Dow Jones segment, which includes professional information services, reported revenues of $552 million for the three months ended September 30, 2024, a 3% increase from $537 million in the prior year. This segment is crucial for businesses that depend on timely and accurate information for decision-making.

Furthermore, the Digital Real Estate Services segment generated significant revenue, reporting $457 million for the same period, representing a 13% increase year-over-year. This growth is driven by the increasing need for real estate businesses to access up-to-date market data and analytics.

Customer Segment	Revenue (Q3 2024)	Change YoY	Key Insights
Individual Subscribers (Digital & Print)	$271 million (News Media)	-1%	Stable revenue with slight decline due to print volume decrease.
Advertisers	$193 million (News Media)	-5%	Decrease due to lower print and digital advertising revenues.
Businesses (Information Services)	$552 million (Dow Jones)	+3%	Growth driven by professional information services demand.
Digital Real Estate Services	$457 million	+13%	Increasing importance of data in real estate transactions.

News Corporation (NWSA) - Business Model: Cost Structure

Content production and operational costs

The total operating expenses for News Corporation during the three months ended September 30, 2024, were $1.263 billion, a decrease of $10 million compared to the same period in 2023. The company reported segment-specific operational costs as follows:

Segment	Operating Expenses (in millions)	Change from Previous Year (in millions)
News Media	286	28
Subscription Video Services	326	(17)
Digital Real Estate Services	47	2
Book Publishing	365	1
Dow Jones	239	(4)

In addition, restructuring charges amounted to $24 million for the three months ended September 30, 2024. The company incurred costs of $11 million related to the Hubbl product and higher sports programming rights costs.

Marketing and advertising expenses

Marketing and advertising expenses for the same period totaled $899 million, which reflects a $37 million increase from the previous year. Advertising revenues decreased by $10 million, or 5%, primarily due to lower advertising spend in the technology and finance sectors. The breakdown of advertising revenues is as follows:

Type of Revenue	Amount (in millions)	Change from Previous Year (in millions)
Advertising	381	(10)
Digital Advertising	67% of total advertising	1% increase

Overall, the reduction in advertising revenues was offset by a digital ad revenue increase, highlighting a shift in spending patterns.

Technology and infrastructure investments

News Corporation's technology investments were reflected in their capital expenditures, which totaled $95 million for the three months ended September 30, 2024. This is a decrease of $29 million compared to the previous year. The company also reported total borrowings of $2.9 billion, which includes various credit facilities. Notably, the company had total borrowings of $1.969 billion as of September 30, 2024.

Investment Category	Amount (in millions)	Notes
Capital Expenditures	95	Decreased by $29 million from previous year
Total Borrowings	2,900	Including Foxtel and REA Group debts
Available Undrawn Commitments	422	Remaining amount under Repurchase Program

These investments are crucial for maintaining and upgrading the company's technological infrastructure, enhancing their digital capabilities, and supporting their various business segments.

News Corporation (NWSA) - Business Model: Revenue Streams

Subscription fees from digital and print products

For the three months ended September 30, 2024, News Corporation generated $1,129 million from circulation and subscription revenues across various segments. The breakdown is as follows:

Segment	Circulation and Subscription Revenue (in millions)
Dow Jones	$459
Digital Real Estate Services	$2
Subscription Video Services	$425
News Media	$271
Book Publishing	$546
Total	$1,129

Notably, the Dow Jones segment alone accounted for 82% of its revenues from digital sources, reflecting a growing shift towards digital subscriptions.

Advertising revenues (digital and traditional)

Advertising revenues for the three months ended September 30, 2024 totaled $391 million, with the following breakdown:

Segment	Advertising Revenue (in millions)
Dow Jones	$85
Digital Real Estate Services	$38
Subscription Video Services	$65
News Media	$193
Total	$391

Digital advertising represented 67% of total advertising revenue, highlighting the company's focus on digital platforms.

Licensing and syndication of content

News Corporation also generates revenue through licensing and syndication of its content, contributing to its overall revenue streams. The impact of foreign currency fluctuations contributed an increase of $12 million or 2% in revenues for the three months ended September 30, 2024.

Overall, the diversified revenue streams from subscription fees, advertising, and licensing reflect News Corporation's adaptive strategy in a rapidly evolving media landscape.

Updated on 16 Nov 2024

Resources:

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