NEWS CORP could charge for access to its news websites by the middle of next year and might break off its relationship with Amazon’s Kindle e-reader if it cannot get better terms.

Rupert Murdoch, chief executive of the global media empire, said that he is unhappy with the Kindle’s control of relationships with newspaper subscribers, and might seek a better deal with rival e-reader maker Sony.

Murdoch’s comments come after News Corp, whose properties include the Wall Street Journal, local TV stations and film studios, reported a 10.7 per cent drop in quarterly revenue to $7.67 billion (€5.3 billion).

It forecast operating revenue for fiscal 2010 would rise on 4 per cent revenue growth.

“I think it looks reasonable,” said RBC analyst David Bank. “They gave a pretty realistic view of where the growth is coming from and where it is not going to come from, particularly the advertising-supported businesses.”

Mr Murdoch said the worst might be over. But another fight looms: persuading millions of people to pay for news on the internet when most get it for free.

He did not provide details but said that he wants to make people pay for access to his news websites by the middle of the 2010 fiscal year, which ends next June.

"An industry that gives away its content is cannibalising its ability to do good reporting," Mr Murdoch said. The Wall Street Journal, owned by News Corp's Dow Jones unit, now offers some paid and some free stories.

The move would affect news websites visited by millions of people around the world, including popular tabloids such as the New York Postand the Sun, as well as other papers such as the Timesof London. News Corp's net loss was $203 million for the fiscal fourth quarter, ended June 30th. Net income last year was $1.13 billion. – (Reuters)