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News Corp said Dow Jones, the parent of the Wall Street Journal, could generate $1bn in annual earnings within five years, as the company shifts further towards digital subscriptions and professional data products.
The target, presented at an investor briefing on March 16, implies growth of about 70 per cent from fiscal 2025 levels and caps a decade-long shift away from a traditional publishing model towards recurring digital revenue.
The goal highlights the growing importance of Dow Jones inside News Corp. The segment has become the company’s main growth engine as advertising declines and demand rises for paid information services and verified data , including material used to train artificial intelligence systems.
The Wall Street Journal has been revitalised under the leadership of editor-in-chief Emma Tucker, with a series of scoops across politics and its core business coverage. Its subscriptions have grown steadily to more than 4.6m, with 4.2m being digital only.
Executives said Dow Jones has already reshaped its business model. The segment’s revenue is now 82 per cent digital and 80 per cent recurring, compared with 60 per cent and 69 per cent respectively in 2018.
Robert Thomson, chief executive of News Corp, said the rise of artificial intelligence would increase demand for trusted journalism and structured data.
“In this Age of AI, we are an ‘Input’ company,” said Thomson, chief executive of News Corp. “Just as semiconductors and energy power the physical world, our authoritative editorial is an essential input for the digital world.”
He said the company expects new revenue streams from licensing content to large AI developers.
Almar Latour, chief executive of Dow Jones and publisher of The Wall Street Journal, said growth will come from several areas. These include expanding risk and energy intelligence services, developing new products for digital subscribers and increasing sales of enterprise news and data.
Latour also said the company would maintain tight cost control to support margins. Operating margins have already risen to 25.2 per cent, nearly double the level reported in 2018.
The strategy comes after a period of steady performance for News Corp, which has reported 11 consecutive quarters of year-on-year growth. The company is betting that recurring revenue from subscriptions and professional information services will provide a more stable foundation than advertising.
