News Corp's News Media Segment: Uncovering Hidden Revenue Streams in a Digital Era

In a media landscape increasingly defined by digital disruption, News Corp (NASDAQ:NWSA) has demonstrated a rare ability to outperform expectations. The company's third-quarter 2025 results, which saw revenue rise 2.3% year-over-year to $2.14 billion and GAAP earnings exceed forecasts by 9.4%, underscore a strategic pivot that has redefined its News Media Segment. While the segment's overall revenue dipped 8% to $514 million in Q3 2025, its net income surged 22% to $33 million, driven by cost-cutting measures and a shift toward high-margin digital offerings. This analysis explores how News Corp's underappreciated revenue streams-particularly in AI content licensing and digital subscriptions-are reshaping the media industry's value proposition.

Operational Efficiency Fuels Margin Expansion

News Corp's News Media Segment has become a case study in operational discipline. By consolidating printing operations between News UK and DMG Media and reducing Talk costs, the company slashed operating expenses, propelling operating margins from 10.2% in Q3 2024 to 56.1% in Q3 2025, according to an Investor Empires analysis. This efficiency has allowed the segment to offset declining print ad revenue-a common challenge for legacy media firms-with higher-margin digital offerings. For instance, digital revenues now account for 39% of the segment's total revenue in Q3 2025, up from 37% the prior year, according to a Newscorp investor release.

Digital Subscriptions: A Sustainable Growth Engine

The shift to digital subscriptions has been a cornerstone of News Corp's strategy. In Q3 2025, digital-only subscriptions for the Wall Street Journal and Dow Jones divisions rose 11% year-over-year to 4.2 million average subscriptions, representing 91% of total WSJ subscriptions, according to a Newscorp press release. This transition has decoupled the company's revenue from the volatility of traditional advertising. From 2018 to 2025, digital revenue grew from 32% to 62% of News Corp's total business, while advertising's contribution fell from 32% to 16%, according to the same Newscorp press release. The WSJ's subscription model, in particular, has proven resilient, with its paywall strategy fostering a loyal, high-ARPU (average revenue per user) customer base.

AI Content Licensing: A New Frontier for Monetization

Perhaps the most underappreciated revenue stream lies in News Corp's foray into AI content licensing. The company has struck partnerships with AI firms like OpenAI, licensing its vast library of news articles for training purposes, according to a Newscorp press release. CEO Robert Thomson has framed this as a strategic imperative, noting that AI content is "an essential ingredient" in the development of next-generation technologies, according to the same Newscorp press release. This approach not only generates new revenue but also reinforces News Corp's intellectual property rights. A landmark $1.5 billion award against Anthropic for unauthorized use of copyrighted books further validates the company's legal and financial strategy in this space, according to the Newscorp press release.

Strategic Shareholder Value Creation

Beyond operational and digital innovations, News Corp has prioritized shareholder returns. In Q3 2025, the company authorized an additional $1 billion for stock repurchases, according to a TradingView report, signaling confidence in its financial health. This move complements its focus on high-margin segments, ensuring that capital is allocated to both growth and value preservation.

Conclusion: A Blueprint for Media Resilience

News Corp's News Media Segment exemplifies how media conglomerates can thrive in a digital-first era by diversifying revenue streams. While print declines are inevitable, the company's focus on digital subscriptions, AI partnerships, and cost optimization has created a durable competitive advantage. For investors, the segment's 22% year-over-year EBITDA growth, according to the Newscorp investor release, and expanding margins highlight a business that is not just surviving but redefining its role in the global media ecosystem.