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News Corp. has turned its attention to copyright infringement, investigating major streaming platforms and questioning top execs about the business.
News Corp., owner of Fox, the Wall Street Journal and the Murdoch-owned broadcaster Sky, is embarking on a more aggressive stance against online streaming of TV shows, in its latest attempt to tackle the threat that younger viewers are turning away from traditional viewing habits.
But it is up against a tricky issue: the business model of the streaming platforms such as Netflix. Over the past year, Google and Hulu and Amazon and YouTube have faced a barrage of criticism and legal action for the way they create and distribute shows.
News Corp. is also bracing for possible antitrust and "unfair competition" cases from the U.S. government, according to a source familiar with the situation.
The company has already spoken with producers about possible infringement and has been "investigating" the top streaming platforms such as Netflix and Amazon, according to the source. The sources requested anonymity because the investigation is confidential.
Related: How TV streaming services work
News Corp. has "never been more serious" about investigating infringement, the source said. But it is careful to avoid "overcharging" anyone, the source added.
"It is clear that new forms of content distribution are changing the way people consume content and those who do the producing have a responsibility to consumers," said a spokesman for News Corp. "We are not and will not try to stand alone as an industry body."
The streamer sources declined to comment, as did Amazon, Netflix, Google and Hulu.
Fox, News Corp.'s cable networks, and the Murdoch-owned broadcaster Sky also declined to comment on the investigation.
The investigation comes amid a broader shift to online streaming platforms, which are typically ad-supported.
"We have had discussions with companies like Netflix and Hulu, and Sky, but they haven't been helpful to my company," said a top executive at a streaming platform about the investigation.
In August, a U.S. judge said Google was abusing its dominance in digital advertising when it declined to renew a deal with publishers to display their own content in YouTube's search results.
"Although Google currently pays news publishers to carry Google's organic search results, it has been paying lower amounts to carry the organic search results ac619d1d87
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