In a challenging period for News Corp, the media giant is grappling with both financial losses and allegations of staff underpayment. Recent reports highlight a net loss of $27.4 million for the year, marking the second consecutive year of financial decline for the company. This comes amid slowing growth in digital subscriptions, which reached 993,000, adding only 25,000 new subscribers over the year.
Compounding these financial woes, News Corp is under scrutiny from the Media, Entertainment & Arts Alliance (MEAA) over potential underpayments to staff. The union is currently examining a tranche of timesheets and wage reports provided by News Corp, focusing initially on Melbourne-based employees. The MEAA suspects that the company has failed to properly compensate staff for overtime, particularly for those working more than five shifts in a seven-day period, which could result in a significant financial liability for the company.
Financial Challenges and Union Scrutiny
The financial strain on News Corp is evident, with declining revenues from advertising and subscriptions, exacerbated by the loss of income from major platforms like Meta. The company’s financial filings reveal a challenging landscape, with the headquarters at Holt Street facing a tightening of resources.
The MEAA’s investigation into underpayments could further strain News Corp’s finances. According to Cassie Derrick, MEAA media director, the issue of excessive and potentially unsafe working hours without fair compensation is linked to the company’s significant staff reductions over the past decade. Derrick stated,
“If News Corp insists on sacking the bulk of their workforce and then working the remaining staff to the bone, they need to pay up.”
News Corp’s approach to redundancies, often described as “death by a thousand cuts,” contrasts with more publicized mass layoffs by competitors like Nine and Seven. This strategy has allowed News Corp to avoid the same level of public scrutiny, but it may now face significant financial repercussions if the MEAA’s claims are validated.
Lachlan Murdoch’s Corporate Shifts
Amidst these financial and legal challenges, Lachlan Murdoch is also navigating significant changes within his corporate circle. A notable development is the departure of Siobhan McKenna, Murdoch’s long-time aide and a key figure in his business operations. McKenna’s exit from News Corp, as well as from Murdoch’s private investment vehicle Illyria and its radio company Nova, marks the end of a 20-year professional relationship.
McKenna’s departure raises questions about the future direction of Murdoch’s business interests, including the potential sale of Nova. The split also leaves a leadership vacuum that Murdoch will need to address, particularly as News Corp continues to face industry challenges.
Potential New Developments for The Roar
In the realm of sports media, The Roar, a struggling sports website, may have found a potential savior in Dylan Howard, a former Australian journalist known for his controversial career in the United States. While Howard’s involvement remains speculative, his interest underscores the ongoing intrigue surrounding The Roar’s future.
Howard, who has a colorful reputation in media circles, has denied intentions to invest in The Roar. However, his potential involvement highlights the complexities and uncertainties facing the website as it navigates its financial and operational challenges.
Emerging Media Ventures
Meanwhile, Taylor Auerbach, a former 7News Spotlight reporter, is launching a new podcast titled “The Hearing,” focusing on legal and media news in Australia. Auerbach’s venture into podcasting follows his involvement in high-profile legal cases and reflects a broader trend of journalists exploring new media formats to engage audiences.
As News Corp contends with its financial and legal challenges, these developments illustrate the dynamic and often turbulent nature of the media landscape in Australia. The company’s ability to navigate these issues will be critical in shaping its future trajectory.
