News Corporation's CEO Rupert Murdoch has given strong indications that users will soon have to pay for reading company's newspaper-contents on the Internet. Rupert Murdoch said company could no longer afford to provide news on the Internet free of cost.

Speaking on the topic, Murdoch said, "Quality journalism is not cheap, and a newspaper that gives away its content is simply cannibalizing its ability to produce good reporting."

Group sales dropped 10.7% to $7.67 billion, slightly above of analysts' projections of $7.63 billion.

For the April-June quarter, News Corp reported a loss of $203 million or 8 cents per share.

News Corporation's CFO David DeVoe said that they hoped company's fiscal 2010 adjusted operating income to rise by a high single-digit percentage rate.

He further said the company expected its overall revenue to grow by 4% in fiscal 2010. Ad revenue would be flat.

A fall of local TV station ad revenue by 27% brought down TV revenue.

HarperCollins book publisher's revenue fell by 20%, resulting in a loss of $1 million.

News Corp's division that Fox Interactive Media, which includes social networking site MySpace, reported a $136 million operating loss.

CEO of also has plans to end its ties with Kindle e-reader of Amazon. com Inc as he is unhappy over Kindle's control of relationships with newspaper subscribers. The company may hit a deal with Sony Corp, a rival e-reader maker.