News Corp, led by media tycoon Rupert Murdoch, announced on the 4th (local time) that it will launch a daily newspaper called 'California Post' in Los Angeles, on the U.S. West Coast. This marks the first time that the nation's oldest tabloid, the New York Post, with a 224-year history, directly enters the West. The decision is being noted by the media industry as a 'reverse' investment that counters the trend of decline among most print media in the U.S.
On the same day, Robert Thompson, CEO of News Corp, told the New York Post, "Readers in LA and California desperately want serious reporting and witty commentary instead of biased and clichéd journalism," explaining the reason behind the launch. The New York Post plans to start printing the California Post in early next year. To achieve this, they appointed veteran journalist Nick Papas, who hails from News Corp Australia, as editor-in-chief, and decided to hire more than 50 reporting, editing, and photography staff locally in LA.
This decision is particularly noteworthy because it comes at a time when the LA media is experiencing a severe crisis. The LA Times was once the representative newspaper of the West. However, due to a sharp drop in advertising revenue and failure in digital transition, it has struggled with management difficulties year after year. Ultimately, it carried out a rigorous restructuring, laying off 75 newsroom personnel in 2023 and 115 employees in 2024, leading to a reduced reporting radius and an increased reliance on external sources, significantly diminishing its influence.
The New York Post saw an opportunity at this juncture. They defined the LA region as a 'ripe market' where a news vacuum has occurred. The New York Post expressed confidence, stating that they have already established themselves as a national brand, going beyond just a New York regional newspaper. According to News Corp, the digital edition of the New York Post already records about 3.5 million unique monthly visitors in LA, making it the second highest after New York. Ninety percent of its total digital readers live outside New York.
The California Post plans to replicate the success formula that the New York Post used to surpass other competing tabloids. Unlike the LA Times, which has a paid subscription model, the New York Post noted, "We will increase public accessibility by making online articles free and maximizing advertising revenue."
The New York Post was originally founded in 1801 by Alexander Hamilton under the name 'New York Evening Post,' embodying the ideals of American independence. Murdoch acquired the financially struggling company in 1976 for $30.5 million (approximately 42 billion won) and completely transformed it into the sensationalist tabloid it is today. He brought the provocative headlines, celebrity gossip, and sports and crime-focused editorial style that he showcased in the UK with 'The Sun' and in Australia with 'Daily Telegraph' to New York.
Despite controversies, this strategy has led to positive business results. Murdoch judged that, just as 'The Sun' and 'Daily Mail' dominate the UK market with circulation of over 700,000 copies each, the potential of tabloids remains strong in the U.S. As of September 2024, the New York Post's print circulation stands at approximately 122,000 copies, making it the fourth most circulated newspaper in the country. However, the digital influence is significant, with nearly 90 million visitors to the New York Post website each month.
After decades of reporting losses, the New York Post has achieved profitability for three consecutive years, starting from the 2022 fiscal year, thanks to explosive growth in digital subscribers and advertising revenue. It has far surpassed its long-time competitor, the Daily News, to dominate the New York tabloid market. Next year, California will see major events such as the gubernatorial election, FIFA World Cup, and the 2028 LA Summer Olympics take place. The California Post plans to maximize early recognition in line with the schedules of these major events ahead of its launch.
Media analyst Ken Doctor, who won the Pulitzer Prize, noted in an interview with The Washington Post (WP), "The LA news market has been severely fragmented over the past five years. The New York Post can devise a strategy to target niche markets at relatively low expense and satisfy advertisers." If the western expansion of the New York Post succeeds, there is speculation that they may establish additional media outlets in other conservative regions like Texas or Florida.