Well in a blow to Australia's bid to be a knowledge nation, News Corporation has decided to axe one-third of its Australian online staff. It's the latest in a string of decisions by major international companies to downsize their Internet arm, and it calls into question the viability of Internet based news and entertainment services.
Media companies face a dilemma.
News Corp's move in downsizing News Interactive reflects a global pattern. America Online has also slashed its staff, affecting Internet services run by CNN and Time Warner. Analysts say the shrinkage of online services confirms one thing - they are not stand alone profitable ventures, but instead continue to need to be propped up by media companies' traditional activities. Ian Lowe is the Australasian managing director of Internet analysts, Red Sheriff. Yes it does.