Rupert Murdoch, the chairman and chief executive of News Corp., says that tablet devices such as the iPad are a "game changer" and have the ability to transform journalism.

Murdoch made the comments as his media and entertainment group posted strong full-year profit of $US2.5 billion. The company received a boost from its box office movie Avatar and a strong contribution from its cable businesses.

Murdoch said that tablets are vital to his company's shift towards paid content. He also foresees that "hundreds and hundreds of millions of these devices" would be sold around the world.

"There will be all sorts of things we can do with them. As they develop technologically, we've got to develop our methods of presentation of news," he said. "We'll have young people reading newspapers."

Total segment operating income increased by 11 per cent to $US4bn, while revenue rose by 8 per cent to $32.8bn.

Record results from the 20th Century Fox filmed entertainment division and cable division were the two biggest contributors. The film division increased profits by 53 per cent to $US1.3bn due Avatar while the cable division was up 37 per cent to $US2.3bn.