News Corp shares closed down at A$18.05 (£7.12) as analysts, who have already trimmed full-year operating income forecasts to between US$1.65bn-US$1.04bn (£1.2bn-£0.7bn), said they expected it to scrape in at the bottom end of the range.
The fall is being attributed to the advertising slowdown and increased spending on feature film promotion.
News Corp's filmed entertainment unit was lifted by the success of hit musical Moulin Rouge, starring Nicole Kidman and Ewan McGregor, and strong video and DVD sales of films such as Castaway, starring Tom Hanks.
However, these revenue boosts were offset by large marketing spends promoting summer releases such as Doctor Doolittle II and Planet of the Apes.
News Corp's newspaper division, which owns The Times in the UK, the New York Post and The Australian, has suffered from weak local currencies. As a result of this, and a softening in the market, ABN Amro expects the division's fourth-quarter earnings to fall 24%.