The question is, has Rupert Murdoch lost his mind? I would have to say not. Murdoch has made it quite obvious that internet content by subscription shall be his unflinching business model. He's chosen his path, and he's sticking to it, come hell or high water.
All over the internet, freedom of information pundits and net neutrality buffs are quietly snickering at Murdoch. They feel that the bulwark of advertising-based content provision is virtually impenetrable. Yet subscription based news services, such as The Wall Street Journal, are seeming to thrive. Indeed, such quality services remain desirable. When advertising supported models choose to switch to subscriber supported models, it seems that those transitions support themselves and they tend to be noticeably painless.
So, investors may wish to take note; There's still plenty of room to buy into News Corp. and to profit from it's current BSkyB takeover bid. The signals indicate that there is overwhelming support by investors for what Rupert Murdoch is attempting.
Only time will tell if Murdoch is as wise as his wallet is large. His entire business model must yet clear the hurdle of internet user acceptance. Simply put, if highest quality content can be consistently offered at a price point deemed acceptable by the news consumers among us, Rupert Murdoch may be serving a large volume of crow to a very large crowd of naysayers.