Murdoch To World: Don’t Mess With Us!

Michael Hedges November 22, 2010 Follow on Twitter

Rupert Murdoch wants nothing more than universal acceptance of his media power. From competitors to kings, sultans to lesser politicians Clan Murdoch demands the quid pro quo for its favors. Even when it gets bigger and bigger it’s rarely rejected.

Basking in the spotlight of Morgan Stanley’s Barcelona media do News International CEO and presumptive heir to the News Corporation empire James Murdoch sent a pointed message to the UK government. Approve the BSkyB deal or something. Hubris is like a speeding arrow.

“From a policy perspective, the government needs to assess the benefits of having a digital TV business that is a world leader centered in the UK marketplace, with all of the things that it brings, versus potentially jeopardizing an 8 billion-pound investment in the UK with a prolonged kind of plurality process,” said The Younger, dutifully quoted by Reuters (November 17). News Corporation owns 31% of BSkyB, marketed in the UK as Sky.

What a nasty thing to say just a day after THAT Royal Wedding was announced, which will certainly move more UK tabloid newspapers owned by News International. Perhaps James the Younger was simply reminding UK Prime Minister David Cameron who, exactly, is in charge. The government’s austerity program, cutting a swath through public sector employment, will surely benefit the pay-TV giant as those “wasting time on the unemployment line” give up food to pay for the Sky subscription.

No sooner than Conservative Party leader Cameron moved into 10 Downing Street News Corporation approached the BSkyB board with an offer to acquire equity its doesn’t already own. Despite requisite grumblings from independent board members about the price money for cash-stuffed News Corporation is not an insurmountable issue. There would, of course, be anti-trust, public interest and media plurality questions. But with confidence Clan Murdoch began, as they say, measuring for drapes.

UK media regulator OFCOM (Office of Communications) opened a consultation on the deal (November 5), authorized by business secretary Vince Cable. OFCOM collected more than 60,000 written submissions concerning the proposed deal by the end of the consultation period (November 19). Many of the reported statements were negative.

“A dominant media owner can exert significant and, we believe, undue influence over which issues are covered and how they are prioritized,” said broadcasting union BECTU research officer Andy Egan in the union’s statement. “This undermines any narrower concern for impartiality and is unhealthy for democratic debate.”

“There is a significant danger that immensely powerful media concentrated in a few hands will be used by their owners as a means of lobbying politicians to pursue policies which suit those owners' political and commercial interests,” said the submission of the non-profit Campaign for Press & Broadcasting Freedom (CPBF). “Murdoch has played a thoroughly corrosive role in UK politics with governments, fearful of antagonizing him, shaping policies to win or hold on to his support.”

Clan Murdoch dismissed out of hand media concentration issues as the hoots and howls of competitors. This is, they said, a straight business deal. OFCOM will submit its report to Vince Cable by the end of the year. If Cable, the odd man out in the Conservative government, isn’t replaced he can refer the deal to the anti-trust authority, the Office of Fair Trade.

News Corporation notified (November 3) the European Commission (EC) of its intention to takeover BSkyB. EC DG Competition has begun a preliminary investigation, due to end December 8th. The questionnaire sent to television broadcasters, reported by Bloomberg (November 11), asked about access to viewers and advertising platforms and not media plurality and news coverage. The EC can claim jurisdiction because News Corporation materially owns pay-TV operations in Italy and Germany. The EC previously investigated News Corporation owned pay-TV channels’ relationship with sports rights pricing. If DG Competition – and perhaps DG Internal Markets – decides to proceed with a second phase investigation every question will be on the table.

While James Murdoch may be taking the lead in the BSkyB negotiations, The Elder is powering up. In a surprise move, significantly underreported, Rupert Murdoch named New York City Department of Education Chancellor Joel Klein executive vice president in the Office of the Chairman (November 9). He will lead, said the dutifully reported News Corporation press releases, the company’s venture into the education market. Klein also joins the News Corporation board of directors.

Klein has run the largest public school system in the United States, employing more the 150,000. He comes not, however, from education or public administration. He’s a lawyer, Harvard Law, magna cum laude (top of class). Prior to his New York Department of Education job, Klein was Deputy United States Attorney General in charge of the Department of Justice anti-trust division. News Corporation, best anybody can tell, has no anti-trust issues in the United States. Elsewhere, it does; not only in the UK but, now, Italy.

Carefully reported has been the suggestion that News Corporation lawyers have told DG Competition and OFCOM it might be willing to exit news channel Sky News. Officially, News Corporation spokespeople say separating Sky News is “not on the table” because it is “integrated” in the BSkyB business. None of the investigating agencies are venturing comment.

But Sky News is one of the great whispered issues. Rival UK broadcasters and publishers see something Murdochian, unrivaled political muscle in time for the next UK elections in 2015. With those BSkyB independent board members and shareholders out of the way and government willingness to amend more rules in Clan Murdoch’s favor, Sky News could morph into something like News Corporation’s American cable channel Fox News, notorious for veracity -challenged reporting, election campaign contributions to right-wing organizations and, even, hiring Sarah Palin as a commentator.

Fox News is run by former Republican Party operative Roger Ailes. It is a ratings hit, particularly among the “teabagger” set. Ailes served US Presidents Richard Nixon, Ronald Reagan and George H.W. Bush.

Echoing Murdochian dislike for UK public broadcaster BBC, Ailes stirred long simmering right-wing hatred for US public radio broadcaster NPR (National Public Radio). “They are, of course, Nazis,” he said referring to NPR executives. “They have a kind of Nazi attitude. They are the left wing of Nazism.”  US right-wingers have held a visceral hatred for NPR since the network broadcast gavel-to-gavel coverage of the US Senate Watergate hearings, which led to Richard Nixon’s resignation in disgrace.

Use of the term “nazi” is a common pejorative on US right-wing talk radio and, of course, Fox News used to scar and scare. Ironically, American right-wingers are ideologically aligned with positions, particularly social, common to neo-nazi groups. Ailes later apologized (November 19) to Anti Defamation League (ADL) National Director Abe Foxman for using the term.

In Europe, obviously, use of the term “nazi” evokes strong, specific feelings, even two generations on. The institutional memory remains of death, destruction and, yes, the rise of modern propaganda. In American media, it’s just another slur amidst a torrent.

James Murdoch implied the broadcasting and publishing giant might move from the UK to a more “welcoming” country if the UK government proceeds with lengthy investigations of the BSkyB deal. One wonders where, exactly, that might be. News Corporation has been made unwelcome in fast growing countries like China, India and even Russia. Dubai could be an opportunity.

See also in ftm Knowledge

Rupert Murdoch and News Corporation

News Corporation is a highly competitive media giant a global, multi-media footprint. From paywalls and pay-TV to tabloid troubles and new ventures the media industry watches Rupert Murdoch. Update includes family ties, succession plans and other News Of The World. 172 pages PDF (April 2011)

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