Murdoch’s parties launch circulation war in Gotham City

Rupert Murdoch threw two launch parties for his ambitious raid on the New York newspaper market this week.

The first was a breakfast of bagels, juice and coffee for the industry insiders and speeches talking up the advertising success of the Wall Street Journal‘s new New York supplement.

To be fair, the NYT blogger David Carr covered the breakfast and reported this extraordinary quote from WSJ CEO Robert Thomson:

“Unless journalism is sustainable, it will be inevitably diminished, regardless of the incoherent incantations and the superciliousness of the journalistic elite. That elite has all the ossification of the traditional bourgeoisie, and Baudelaire was definitely correct when he said ‘One must shock the bourgeois,’” said Robert Thomson, managing editor of The Wall Street Journal, quoting both Baudelaire and Oscar Wilde to an audience munching on quiche and salmon-dappled bagels. He received the biggest laugh of the day by advising the audience, “If you really must read The New York Times, read it on the Web for free and then buy The Wall Street Journal.” [Media Decoder]

Thomson also hinted at further assaults across America as the business paper tries to compete with local broadsheets. At the same time the paper is offering discounts to advertisers – at least in the initial phase of the campaign to conquer America.

It’s a good job then that Murdoch has deep pockets and friendly (offshore) bankers behind him. It could get expensive.

The second launch party was an evening affair at Gotham Hall and, according to one guest, the food and drink were nothing much to get excited about. Significantly, perhaps. NYC mayor Michael Bloomberg was at Murdoch’s shoulder for this event.

Bloomberg was typical of the city’s elite who were celebrating with Murdoch (and at his expense – this type of bash doesn’t come cheap in Gotham, even if the catering does run to “pizza station”).

The power in the room last night was a very specific New York one, presumably the type of people Mr. Murdoch needs to win over with his new section. Henry Kravis and developer Bill Rudin were there, as was an outgoing deputy mayor, Ed Skyler, Public Advocate Bill de Blasio and attorney general hopeful Kathleen Rice. It felt like a Real Estate Board of New York party. (In fact, the REBNY chairman, Steve Spinola, was on the tip sheet produced by Rubenstein Associates for reporters prior to the party.) The likes of Graydon Carter and Tina Brown were nowhere to be seen. [Media Mob]

Graydon Carter is the publisher of Vanity Fair. Tina Brown is an institution in New York media and now runs the internet news agregator The Daily Beast. No wonder Murdoch didn’t invite her, he hates agregators.

I can’t help wondering though if the irony in Robert Thomson’s breakfast speech would be lost on these well-heeled bourgeois.

Will Murdoch introduce Bingo and page 3 girls into the WSJ? It’s unlikely, but there may well be other gimmicks that might shock the bourgeois of Gotham.

However, I doubt very much that they’d be shocked by Murdoch’s business tactics. If he succeeds they all stand to benefit.

The real issue is what impact this fight between two old media heavyweights will have on the newspaper market in New York – arguably one of the most important on the planet – and whether it will spread to other American cities, or to global markets.

Murdoch’s presence in both the UK and Australia is well established. In London, Melbourne and Sydney he is in multi-paper markets (like NYC), but his market-share is strong.

What’s also not clear is whether the brawl between two aging print dinosaurs will hasten the death of newspapers, or breathe new life into them.

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