While the papal visit dominated much of last week’s news agenda - even the charging of cat-in-a-bin lady was sidelined - another story that could have huge ramifications for the UK’s media slipped under the radar: News Corporation’s planned £8bn buyout of Sky.
When BSB’s satellite venture went squarial-shaped in 1990, Murdoch’s loss-making Sky venture was allowed to take a share of what was then a publicly owned franchise (a fine synopsis of the whole episode is documented here). In June of this year, News Corp announced plans to buy the remaining 61% of the operation, although many of the original commitments of digital satellite broadcasting – such as the public service ethos – have long since been jettisoned.
Discontent over the buyout has begun to simmer again after media analyst Claire Enders prepared an ‘incendiary memo’, leaked on the Beehive City website, for business secretary Vince Cable. In a Guardian interview Enders, who is credited with predicting the dotcom crash and the more recent advertising downturn, gives a gloomy prognosis for the future of the UK’s media:
"Somewhere between 2015 and 2020, News International and Sky will control 50% of the newspaper and television markets respectively."
Enders also warned that a combined News International and Sky would lead to
"…a reduction in media plurality to an unacceptably low level.”
Despite the gloom, Enders’ memo does at least seem to have stirred up debate on the subject. In an Observer comment piece, film producer David Puttnam reiterated a similar warning about News Corp to the one he gave Tony Blair; the Financial Times also called on Cable to investigate.
At the same time the BBC has found itself under scrutiny from the government. The corporation has attempted to assuage criticism by announcing the freezing of its licence fee. There has long been suspicion that Murdoch’s influence over politicians in turn makes them anxious to reign in the public service broadcaster.
Claims that “It was the Sun wot won it” in the 1992 election may be a little far-fetched, but there can be little doubt politicians are at least keen to keep News Corp on their side: Murdoch was once dubbed the “24th member of the cabinet”.
With this influence in mind, will there be the political will to scrutinise a Sky buyout? Taking on the Murdoch machine would mean risking some unfavourable coverage – not a good idea for a coalition government in the middle of an austerity programme.
Also, a vulnerable BBC makes it easier for News Corp to become an even more dominant player. The decision to freeze the licence fee may blunt the best weapon the BBC has to fight its own corner – producing successful programmes. Other media outlets would find it to tough to match News Corp’s financial muscle.
Murdoch’s media outlets – four newspapers, Sky and a slice of ITV – also give him a platform on which to influence the country’s political agenda. A quick look across the pond, where the US is moving toward midterm elections, shows a political agenda that has been seized by Fox News – a subsidiary of News Corp – and the Tea Party movement. Closer to home, Silvio Berlusconi’s domination of the Italian media has propelled him to become the country’s prime minister.
Whatever one thinks of Murdoch, it is hard to deny he is a canny operator. But whatever political influence he may have, the Sky buyout must not result in one owner gaining, or extending, decisive power over the UK's media.A failure to raise concerns now, be it with debate or royal commission, could mean we lose the chance to fight for a plurality of ownership – unless we fight for it by pressing the red button live, and in HD.
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