News Corp Shuts Down Digital Media Group
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[Sydney, AUSTRALIA] News Corporation today announced that News Digital Media, the company's U.S. digital subsidiary, will cease production of the Web sites Foxnews.com, Foxsports.com and Fox.com, which will be transferred back to the company's traditional Fox News Channel, Sports Television Group and Broadcasting Company, respectively.
The move will reportedly lead to 200 job losses over the next six months. News Corp said the shutdown will take place "as quickly as possible" and is expected to result in significant cost savings for the company.
"During the early days of Internet growth, there was a fear that television and Web programming would rival each other," said Jon Richmond, president of News Digital Media. "On the contrary, we have seen a strong symbiotic relationship develop between Fox's online and broadcast platforms, and the time is right to capitalize on that relationship by streamlining our sports, news and entertainment programming."
In August last year the division was on a high to which it never returned, Foxsports.com alone hiring eight senior journalists from major U.S. newspapers. Foxnews.com offered full news coverage including streaming of live events from its cable television counterparts. Around 450 staff are currently employed within the division.