Zell: Let Rupert “Take the First Sword”
(Dec. 2, 2009) When it comes to paying for online content, Tribune chief Sam Zell said yesterday that he is more than willing to let News Corp. chairman Rupert Murdoch “take the first sword.” Zell was referring to the ongoing debate over whether newspaper companies should charge users for certain content, erecting a sort of “pay wall” in the process.
Zell made the comment during a CNBC “Billionaire’s Roundtable” discussion on Tuesday morning. Check it out here or click on the video.
“I’m more than willing to let Rupert take the first sword,” said Zell. “And if it works, then I think everybody’s going to follow him, and should have in the first place.”
Asked point blank if he thinks it has a chance for success, Zell said he believes “there’s a good chance” it will work.
“Newspapers do create unique content, particularly locally, that people want to know and want to understand,” he said. “If in fact the cost of access to that is pennies I don’t think that’s going to be an impediment to getting it done.”
As for the future of newspapers, Zell was not without his customary opinion.
“There are answers to the future of newspapers,” he said. “The model has to be changed. I think issues like ‘Can you keep giving it away for free?’ doesn’t make any sense. Do you keep delivering it to people’s homes at costs that are unjustifiable? I think there are a lot of issues that the newspaper industry has to challenge, take advantage of, and recognize that technology is changing their role and they have to adapt accordingly.”
Zell remained consistent in his view that newspapers have a long-term future. While digital may be the best bet going forward, “the role of newspapers in generating news, generating information and delivering that information is a valid long-term position that needs to be both protected and encouraged.”
