Tag Archive for rupert murdoch

European policy, Guest post, Media plurality

Des Freedman: When are we going to do something about media power?

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This is a guest post by Des Freedman, which originally appeared on the UK Coalition for Media Pluralism site.

Media moguls are losing their power. At least that is what Rupert Murdoch thinks. As he tweeted back in 2012, during a discussion about a possible bid for the Chicago Tribune and Los Angeles Times, ‘haven’t you heard of the Internet? No one controls the media or will ever again’.

This is an impressively modest claim for a man whose media interests include Britain’s largest broadcaster, BSkyB, Britain’s best-selling newspaper, Britain’s top commercial radio news wholesaler and a slew of major media companies across the world. The idea that the media is now an anarchic field of competing voices may, after all, seem rather counter-intuitive given the fact that a mere three companies control some 70% of daily national newspaper circulation and that four public service broadcasters (BBC, ITV, Channel 4 and Channel 5) continue to account for nearly three-quarters of total TV viewing in the UK.

The internet, despite Murdoch’s assertion to the contrary, is not going to stop this build-up of media power as similar patterns of concentrated media power are now being replicated online. For example, five groups account for more than 70% of online news consumption (measured by browsing time) and, according to the Reuters Institute for the Study of Journalism, the ‘BBC and a few other traditional brands dominate the UK online news market’. Increasingly, we see monopolies firmly entrenched across the online world – Amazon for e-books, Google for search, Facebook for friendship and so on. In the US, Comcast, the giant internet service provider which also owns content producers and TV channels, recently announced its intention to buy Time Warner Cable to produce a company that would control internet access to two-thirds of American homes.

Handing this much influence to unelected individuals and unaccountable firms has a significant impact on who is able to direct the public conversations that take place at any one time. And we learned from evidence presented to the Leveson Inquiry that politicians are still in awe of ‘old media’ power (just as they are desperate to court ‘new media’ power) while proprietors are still able to command the attention of top politicians and to shape news agendas according to their ideological preferences.

So it matters when the Daily Mail launches its regular witch hunts against leading Labour politicians and stands firmly behind the government’s austerity programme, supports NHS privatisation and warns about a stampede of Romanians coming to our shores (a claim which it recently had to correct). It matters when the Sun uses its market power regularly to assault EU membership and when it describes the Guardian’s publication of the Edward Snowden revelations about NSA surveillance as ‘treason’ (rather ironic considering its self-declared support for press freedom).

An unhealthy intimacy between media moguls and politicians is hardly new but levels of media concentration across Europe are fostering a climate in which a handful of right-wing figures are able to exert growing political influence. Silvio Berlusconi may no longer be the Italian prime minister but his media interests still dominate Italian culture. In Hungary, the CEO of the second biggest commercial TV channel, TV2, is widely identified with the controversial governing party, Fidesz – an affiliation that has led to some 86% of political comment being dominated by representatives of the ruling parties. The Bulgarian media is dominated by Delyan Peevski who not only controls newspapers, websites, broadcast outlets and magazines, but was appointed head of the national security service in 2013. This decision was later overturned but he remains a hugely powerful political figure.

These are just some of the reasons why we need action to overturn media concentration and to press for genuine diversity in the media. In the UK, the House of Lords Communications Committee recently produced a report on media pluralism which called for more involvement from the communications regulator Ofcom, as opposed to ministers, in deciding on media mergers but still refused to recommend a course of action that might actually challenge existing media ownership structures. So while rumours continue about another bid by News Corp to take full control of BSkyB or about a joint bid by Discovery Communications and Sky to buy Channel 5, there are still no effective rules in place to prevent the further consolidation of the media by corporate interests.

It seems highly unlikely that, given the continuing influence of the largest media groups, any of the major political parties in Britain will make democratic media ownership a manifesto priority. But this should not stop us from trying, particularly as we have learned such a lot in the last few years about the corrosive relationships between senior politicians and media executives. We should also support the European Initiative for Media Pluralism, a grass roots campaign to secure enough signatures to force a European debate on tackling concentration. Today, news outlets across Europe, including La Repubblica in Italy, Le Soir in Belgium and openDemocracy in the UK, are devoting space to alt-phabet, a novel way of encoding news stories, to demonstrate the growing threats from states and media giants to pluralism and independence and to urge people to sign the petition.

Patterns of media ownership might not be able to tell us everything we need to know about how the media operate but they are certainly central to the reproduction of media power. As Stuart Hall once pointed out, media ownership might not be ‘a sufficient explanation of the way the ideological universe is structured, but it is a necessary starting point. It gives the whole machinery of representation its fundamental orientation in the value-system of property and profit.’ As long as we have a media culture that is accountable to a narrow range of corporate and state interests rather than the audiences and users who sustain it, then we will never get a media that is willing to challenge the powerful, to represent ordinary people or even adequately to make sense of the world.

To add your name to the petition please follow this link.

Des Freedman is Professor of Media and Communications in the Department of Media and Communications at Goldsmiths, University of London and chair of the Media Reform Coalition.

This article gives the views of the author/s, and does not necessarily represent the position of the Media Power and Plurality Project. We welcome further views and contributions to the media plurality policy debate: please contact j.townend@westminster.ac.uk if you would like to contribute.

Blog, Comment, Media ownership, Media plurality

Steven Barnett: Murdoch and media power – déjà vu all over again?

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This week saw the announcement of half-year results from BSkyB. There was a slight dent in its relentless profitability following recent competition from BT for Premier League rights, but very little deviation from the last full-year results: annual revenues of £7.2 billion with an annual operating profit of £1.3 billion. One and a third billion is an awful lot of spare cash to be generating each year.

That was precisely why Rupert Murdoch, who still owns just 39% of BSkyB, was desperate for his 2010 News Corp bid for the whole company to succeed, until it was finally derailed in July 2011 by the Milly Dowler phone hacking revelations and subsequent Leveson Inquiry. While in previous years his UK newspapers were the company cash cow, they have been increasingly overshadowed by the sports-driven pay TV business of Sky. Unfortunately for Murdoch, only 39% of that £1.3 billion belongs to him.

According to the Daily Telegraph, he may be lining up a new bid and “the move makes more strategic sense now than it did in 2010”. Any bid would now come from his new 21st Century Fox business, created when he split the film and TV business from his publishing interests (still called News Corp) in the wake of the phone-hacking scandal. But in media ownership terms, Murdoch chairs both companies and the end result would be no different from the highly profitable and enormously powerful conglomerate which was eventually sidelined in 2011.

There is in some circles an increasingly relaxed view of a new Murdoch bid: a sense that, with the emergence of global social media and online giants like Google, Facebook and Amazon, anxiety over an expanded Murdoch empire would be yesterday’s problem. This is misguided. A wholly Murdoch-owned BSkyB would still mean that a single media enterprise – and ultimately one individual – controlled over a third of national newspaper circulation (and their associated websites) in the UK and the only commercial 24 hour UK news channel – which in turn supplies the news for Channel Five and almost every commercial radio station in Britain.

Apart from the news plurality issue, a new takeover bid would raise other issues. A unified corporate culture can determine editorial direction across a range of media outputs beyond news, including drama and comedy. Moreover News Corp, like all media conglomerates, are adept at exploiting their media outlets to promote their own products and ignore or disparage those of their rivals. A wholly owned Sky will give Murdoch more leverage for cross-promotion across his empire, thereby entrenching his competitive advantage and further reducing the number of alternative voices.

And apart from influence over editorial content, there’s the scope for consolidating power by putting undue pressure on regulators. Sky has already shown a healthy appetite for expensive litigation, draining the resources of regulators and competitors. Allied with strident editorial assaults on Ofcom in News Corp newspapers, this can create formidable barriers to public interest interventions which reinforces an unfair competitive advantage in the battle for rights and talent.

All of these fears about the potential consequences for unhealthy dominance of the newly merged conglomerate were rehearsed in the months before the News Corp bid fell victim to the phone-hacking scandal. It was, however, on the verge of going through and the lengthy process exposed serious flaws in the UK’s regulatory regime around media plurality. As ministers and prime-ministers past and present explained during the Leveson hearings, politicians became too enmeshed in the Murdoch empire and were given too much discretion in determining the outcome of such bids. If a second bid is also to be thwarted – which the public interest surely demands – that plurality regime must be overhauled.

Next Tuesday sees publication of the long-awaited report by the influential House of Lords Communications committee on media plurality. It will, I hope, propose a number of recommendations for reforming the media plurality public interest test, which was a last minute addition to the 2003 Communications Act (courtesy of some nimble political footwork from David Puttnam in the House of Lords). Without it, the Murdoch takeover would have been waved through.

But now the plurality regime urgently needs updating to embrace a broader view of plurality and media power than just news. Moreover, a new framework needs to re-engineer the complicated sequence of interventions which currently can only start and end with the Secretary of State. If we have learnt anything from the phone-hacking scandal and the relationship between politicians and the press, it is that powerful press barons still command a deeply unhealthy genuflection from politicians in desperate search of a positive headline. It is the independent and competent regulator, Ofcom, which should be tasked with ensuring that the public interest is not sacrificed to political expedience.

Governments are not bound to accept the recommendations of select committees, and there is no guarantee that the Lords committee will propose sweeping changes. But without them it is quite likely not only that Murdoch will launch another bid for the Sky cash cow, but that this time he will succeed. The consequences for democracy of such undiluted media power being concentrated in the hands of a single individual are just as dire as they would have been three years ago.

A version of this post first appeared on the Huffington Post.