Rupert Murdoch: "WSJ, Hulu to Charge for Phone Access"

Today at the Goldman Sachs Communacopia XVIII Conference in New York, Wall Street Journal CEO and chairman Rupert Murdoch told attendees the Journal is ready to start charging for mobile access on the Blackberry and iPhone. No time frame was mentioned, but expect charges to begin in a few months. Mr. Murdoch went on to say expect Hulu to institute some sort of pay-per-view or subscription model. Details still have to be worked out with NBC Universal, Disney and others, but the party’s over for free phone TV.

Not welcome news for consumers. According to Mediamark Research & Intelligence (MRI), 20% of respondents in the firm’s “Survey of the American Consumer” said they’re interested in watching TV on their phones. However, fully 87% don’t want to pay a monthly subscription fee to get live TV on their phones.

Here’s the problem: millions of computer users have discovered free TV on their devices delivered by sites like hulu.com. In some cases, show segments are released on the same day as the show is aired on TV. If you can see for free on your computer, why not your phone? The line of demarcation between phones like the iPhone and small screen netbooks filling the market, continues to blur. There is little difference in functionality between these devices. Consumers want free TV and other media, regardless of which screen they're looking at.

Media companies are desperately seeking ways to monetize their content. The “Mobile Video Equipment, Phones, Services, and Subscribers” report from Infonetics Research predicts 397 million mobile video phones will be sold worldwide in 2013, an irresistible market. But will consumers spring for extra fees?

“A combination of poor macroeconomic conditions, sub par 3G network coverage for streamed video services, and pricing that puts mobile video services out of reach for many consumers is contributing to the lackluster growth of mobile video services around the world,” said Jeff Heynen, directing analyst for broadband and video at Infonetics Research. “While mobile video services are expected to eventually grow significantly, until operators can combine broadcast, on-demand, and sideloading, revenue will remain a drop in the bucket of overall mobile service revenue.”

Rupert Murdoch controls a significant slice of the pie. We’ll see if consumers are ready to bite.