MySpace to be the hub of News Corp.'s online strategy
New York: Rupert Murdoch told audiences at a technology and media conference yesterday that MySpace, the fast-growing online community, will constitute a central core of News Corp.'s online strategy, and that he intends to vastly expand its content, including the free video downloads beginning this week.

MySpace is already one of the fastest-growing web sites, having amassed 47 million registered users in two years. But while building MySpace up to rival the major portals, such as Yahoo and MSN, Murdoch says he does not plan to build it into a portal.

Murdoch believes that the traditional concept of the portal could well become outdated. Further, he says portals are not as attractive to the under 25 crowd, which MySpace draws in so well.

Murdoch bought MySpace last summer for US$629mn. Murdoch told the audience at Citicorp's Entertainment, Media and Telecommunications Conference that the free site is growing at a rate of about 1 million new users a week. To continue to bring in new users and to keep them there for longer, Murdoch intends to offer video downloads, rather than the video streaming that is available currently. The company also will improve instant messaging capabilities and add voice services.

News Corp. is reportedly developing technology that will enable better targeting by advertisers on the internet. MySpace allows users to create profiles loaded with information on their likes and dislikes, and Murdoch thinks because of that it could be a goldmine once News Corp. develops ways to organize that data.
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European airlines lose battle on pay-out rules
Luxembourg: European airlines lost a legal fight aimed at scrapping EU rules guaranteeing passengers compensation for flight delays or cancellations. The European Court of First Instance said the rules were a fair penalty and dismissed airlines' claims that the rules infringe international agreements and breach existing legal principles.

The new rules, which came into force in February last year, oblige airlines to pay passengers up to £411 if they are taken off a flight, double the previous figure. Similar compensation is on offer if the airline is held responsible for cancelling a flight.

Delays of two to four hours will require airlines to serve snacks or full meals, while delays more than five hours entitle passengers to a refund and a hotel room if necessary. Refunds of return flights must be offered if the journey is no longer necessary, for example if a business meeting is missed.

The International Air Transport Association, representing 270 carriers worldwide, has estimated that the regulation will cost the industry more than £411 million a year at a time when it is facing higher fuel charges and increased competition. Low-cost airlines have said that the compensation was often much higher than the cost of the tickets and would also force them to pay in cases that were beyond their control.
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GM back in the game with lower prices
Detroit: In a move aimed at taking buyers off the incentive hook, and also target competitors eating into its market share, General Motors Corp. has lowered the sticker prices on three-quarters of its U.S. vehicles.

The world's biggest automaker has said that the new rates will lower the manufacturer's suggested retail price, or MSRP, on an average by US$1,300 over all its products. The new prices will be effective Wednesday.

GM is lowering prices on all 2006 and 2007 Chevrolet, Buick and GMC vehicles and most Pontiac vehicles. Saab, Saturn and Hummer will be excluded because GM feels they're already priced appropriately. The new prices cover 57 of GM's 76 models, and combined with the price cuts that GM took on 2006 models last year, a total of 66 vehicles, or 90 percent of GM's U.S. volume, have now been re-priced.

GM believes it will make money despite the cuts because it will be spending less per vehicle on incentives, which have sometimes topped US$4,000 per vehicle.

With the new pricing the Chevrolet Impala LS, for instance, will sell for US$20,990, down from US$21,990. A comparable Toyota Camry sells for US$23,320, while a comparable Honda Accord sells for US$25,650, GM officials said.
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