The Sun, a prominent tabloid in the British media landscape, finds itself embroiled in financial tumult as it grapples with the enduring aftermath of the phone-hacking scandal. Recent reports reveal a staggering loss of £66 million for the newspaper over the past year, coupled with a significant decline in its online readership by 4 million individuals.
Owned by media magnate Rupert Murdoch’s News Corp empire, The Sun has been besieged by the repercussions of illegal information gathering practices, resulting in extensive payouts to victims and ongoing legal battles. The total losses incurred by the tabloid over the last five years now stand at a staggering £515 million, a testament to the enduring ramifications of the scandal.
Among the litigations looming over The Sun is a high-profile case brought forth by Prince Harry, scheduled to commence before the high court in the coming year. The specter of legal liabilities continues to haunt the publication, contributing significantly to its financial woes.
In addition to the fallout from the phone-hacking scandal, News Corp’s British arm reveals a near-£54 million deficit within its radio and television division. The financial strain is primarily attributed to the operational costs associated with TalkTV, a right-wing news channel that recently announced its transition to an online-only platform due to tepid viewership. Challenges in competing with rival networks, coupled with the departure of notable presenter Piers Morgan, have further compounded TalkTV’s struggles.
Amidst the financial downturn, The Sun witnesses a notable decline in its online and print reach, reflecting shifting consumer preferences and intensified competition within the media landscape. Despite implementing cover price increases to mitigate inflationary pressures and navigating a challenging advertising market, News Group, The Sun’s parent company, continues to grapple with the financial fallout of the scandal.
However, amidst the gloom, there emerges a glimmer of hope for News Corp’s media portfolio, particularly with Times Media Ltd, owner of The Times and The Sunday Times, reporting profits just shy of £61 million. The surge in online subscribers seeking access to premium content underscores the potential for sustainable growth within the digital landscape.