The Murdoch empire turns to the tobacco industry

As it experiences a sharp decline in revenue, global media giant News Corporation, founded by Rupert Murdoch, has turned to the tobacco industry to find new sources of income.[1].

In August 2020, The Guardian reported on the poor figures recorded by News Corporation[2]With a loss of $1.5 billion, a drop in advertising revenue from $25 billion to $30 billion, and a drop in turnover of up to $16 billion in Australia, News Corp is taking the brunt of the decline in newspaper sales, partly linked to the Covid-19 crisis.

A contract worth “at least six figures”

News Corporation-owned The Australian newspaper, which has been running a deficit since 2008, has reportedly turned to the tobacco industry for new sources of funding. As reported by Independent Australia, the media group has reportedly signed a financial agreement "worth at least six figures" with Philip Morris. The closeness between the two companies is hardly surprising: Rupert Murdoch served on the tobacco company's board for twelve years, while several PMI executives were members of News Corp's board.

An undeniable editorial influence

While tobacco advertising is banned in Australia, observers have noted some changes in the newspaper's editorial line, such as the appearance of content promoting new products developed by Philip Morris. While the Murdoch-owned press is regularly criticized for its anti-science stance, particularly its climate skepticism, the newspaper published the following lines: " The importance of considering science is particularly relevant for Australia, in the current debate on the regulation of alternatives to cigarettes[3] " The content, which at first glance appears to praise scientific innovation, is in reality a covert advertisement for Philip Morris. The article follows Philip Morris's strategy: using the notion of "harm reduction" to essentially promote heated tobacco. However, no independent study claims that the new tobacco products developed by the industry are less dangerous than conventional cigarettes.

Promotional content in favor of Philip Morris

The content in question takes the form of a classic newspaper article. Only a small mention appears stating that "this content was produced in partnership with Philip Morris International." In marketing, this practice is called " advertorial ", that's to say " an advertisement in print or on the Internet that is presented as editorial content[4] " The goal of this strategy is to create confusion between editorial and promotional content. The advertisement is thus not identified as such by the reader: the message conveyed by the advertiser gains attention and credibility.

Covid: an economic opportunity for the tobacco industry

This strategy therefore violates Australia's tobacco advertising ban. Furthermore, the situation described above demonstrates that the tobacco industry has successfully turned the global pandemic into an economic opportunity. Philip Morris International took advantage of the press's economic vulnerability, partly attributable to Covid, to acquire the capital of a media group.

[1] Murdoch teams up with Big Tobacco, Big News Network, 11/17/2020, (accessed 11/18/2020)

[2] News Corp posts US$1.5bn loss driven by sharp declines in newspaper revenue, The Guardian, 07/08/2020, (accessed 18/11/2020)

[3] A better future starts with faith in science, The Australian, (accessed 11/18/2020)

[4] Advertorial: marketing definition, Definitions-Marketing, (accessed 11/18/2020)

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