A lot has been recently about Rupert Murdoch’s News Corpation’s (see chart here) bid to buy Newsday newspaper in New York (read overview article here.)  The officianados in media are worried about concentration of media ownership – as well as the politics of Mr. Murdoch and the implications on journalism.

These are two very different issues.  Mr. Murdoch is a far-right conservative, and he makes no bones about his political leanings.  Since the days of William Randolph Hearst the politics of newspaper owners has been a hot topic among media elite.  But is that the determinant of who should own newspapers?  Their politics?  If we allow free speach, then no.  Whether you like Mr. Murdoch, or not.

What’s brilliant about Mr. Murdoch is his ability to modify News Corp. to meet changing environmental requirements (see News Corp web site here).  While Tribune Company is struggling to admit that newspaper circulation and advertising is never going to recover to 1999 levels, News Corp. long ago moved on. News Corp doesn’t rely on newspapers, the founding business, nor television – the media of the 1960s.  News Corp is a major player in internet communications owning, among other properties, MySpace.com.  This is in addition to book publishing, newspapers, direct broadcast satellite, film, cable TV, and magazines.  News Corp actually HAS a strategy that addresses all of media – and its fast paced change – something almost none of its competitors has.  This includes AOL Time Warner – the company that hoped to dominate the web by merging traditional news with the high growth AOL that bought Netscape – but failed miserably as the traditionalists took over. 

Competitors are right to be fearful of News Corp.  Mr. Murdoch is a consummate Disruptor.  He’s observing Challenges in the environment and forcing his company to launch White Space allowing News Corp to adapt its Success Formula and remain at the industry’s forefront.  Given how people now receive news – all the many channels – his ability to consolidate New York daily print news (including his recent Dow Jones purchase which provides him The Wall Street Journal) is really irrelevant.  Dominating New York print is irrelevant in the TV, Cable TV, Satellite TV, internet world.  But reaching customers through all of these channels sets News Corp. apart from its competition.  While real estate developer Sam Zell is trying to figure out how to maximize sales of the Cubs and Wrigley Field (Tribune properties – as is Newsday), and simultaneously stop floundering performance from his remaining declining print properties, Mr. Murdoch is a decade ahead implementing cross-media platforms to maximize value for readers and advertisers.

Most of the media elite simply are too Locked-in.  Their frameworks are based in the 1980s – not 2008.  You have to hand it to the competitor that uses Disruption and White Space to define a new future for the industry – and everyone else should be paranoid.  Long after we’ve forgotten the newspaper failures, mergers and buyouts News Corp. is quite likely to be providing info to people globally from any media format users desire.