Twenty-FirstCenturyFoxIncandSkyplc
EuropeanInterventionNotice
CommitmenttoBroadcastingStandards
RESPONSEFROMTHECAMPAIGN
FORPRESSANDBROADCASTINGFREEDOM
March302017
1.INTRODUCTION
TheCampaignforPressandBroadcastingFreedomispleasedtotaketheopportunitytocommentontheproposedbuyoutofSkyplcbyTwenty-FirstCenturyFox(21CF).Weareconfiningourselvesto
thereferralbytheSecretaryofStateonthegroundofcommitmenttobroadcastingstandards.WhilethewholeofSky’soutputiscoveredbyOfcom’sbroadcastingcode,itisinevitablethatmostoftheanalysiswillbeofthepotentiallycontentiousareaofnews.Itisalsoinevitablethattherewill
besomecommentontheconductofindividuals,butthereareparticularlyprominentindividualsinthiscase.
ToconsiderthisrequiresdeterminingthecurrentcommitmentofbothSkyand21CFtotheOfcombroadcastingcode,inparticularsection5,ImpartialityandAccuracy,andthelikelydifferencetoSky
operationsasaresultoftheacquisition.Inourviewthisisanimportantdecisionwithwiderimplicationsthanthenarrowparametersofthetransactioninvolvedmightindicate.ToapprovethetakeoverwouldsignifyafundamentalchangetotheecologyofBritishbroadcasting;inourview,for
theworse.
Itisclearenoughwhattheworrywouldbe:that21CF,theownersoftheFoxnetworkintheUSA,wouldsetouttoapplyFoxNews’sapproachandmodusoperandi,inaprocessdefinedas“Foxification”.FoxNews’soutputisinfrequentbreachofsection5,sothequestionbecomes:can
theownersof21CFbetrustednotto?
2.SKYNEWS:COMPULSIVESCOOPMONGERING
AtpresentSkyNewsishighlyregardedinprofessionalcirclesandhaswontheRoyalTelevisionSocietynewschanneloftheyearawardeighttimesinthelast16years.Thisrecognitionisduetoits
dynamicanddistinctivestyle.SkyNewshasbecomeabywordforrapidandreliablereporting,usedbyeverybodyfrompoliticiansandbusinessestothefireandambulanceservicesas“theplacetoturntoforbreakingnews”,inHeadofNewsJohnRyley’sphrase.
Beingabletobringbreakingnewstoviewersinrealtimehasbeenabreathoffreshairforus
journalists.Ithasbroughtwithitanentirelynewwayofworkingandofapproachinganemergingstory.(a)
This“newway”isacultureofcompulsivescoopmongeringthatisactuallyclosertothatofnewspapersthantraditionalbroadcasting;forallitsmodernitythereissomethingofthe
competitivenessofoldFleetStreetabouttheglitteringSkyNewsCentreinwestLondon.
WhenSkylaunchedin1989manyofitsreporterscamefromnewspapersratherthanbroadcastingandthebeat-the-competitionethostookhold.ManagingeditorSimonColesaid:
NumberOneistobeattheBBC.There’sacheerinthenewsroomwhenwebeattheBBC.Ifthereisastorybreakingwewillgowithitandstaywithit.TheBBC’snewsgatheringisstillcentredroundtheir
bigbulletins.Theywilldecidesomethingisthetopstoryandthatstays,butwewillrunwithanotherifitbreaks.
Thekeyconceptis“rollingnews”,whichtellsstoriesabitatatime,asfreshanglescomein.SkyneitherinventednoreveninitiatedtheconceptinBritain;itwaspioneeredbyTedTurner’sCable
NewsNetworkintheUSin1980.ButitcertainlyshookupTVnews.AsJohnRyleyputsit:
SkyNewswasinthevanguardofthisonslaughtonthebroadcastingstatusquo:itsmissionwastodisrupttelevision’sformulaforpresentingnews.
Italsoclaimstobemoreliberalthanthe“establishment”BBCinitsrangeofpoliticalcontact.Inpre-referendumtimesitgavealotoftimetotheToryEuroscepticsinParliament.Itsformerpolitical
correspondentAdamBoultonsays:
TheBBCusedtosaywewerefollowingMurdoch’sagenda,butwewerecoveringthembecausetheyweretearingtheTorypartyapartandthatwasthestory.ThesamewiththeGreens.TheBBCwouldneverhavetheminthestudio,butwedid,andnowtheBBCdoesaswell.(a)
3.WHATTHEACQUIRERSSAY
Butitistheintentionsoftheputativefutureownersthatmatter,andthereisplentyofinformation
thatmakesthoseclear.Thechairmanof21CF,RupertMurdoch,whoisalsocurrentlychiefexecutiveofFoxNews,in2007toldaHouseofLordsCommitteethatSkyNewswouldbemorepopularifitweremorelikeFox.Theminutesofthesessionread:
HebelievedthatSkyNewswouldbemorepopularifitweremoreliketheFoxNewsChannel.Thenit
wouldbe"aproperalternativetotheBBC".OneofthereasonsthatitisnotaproperalternativetotheBBCisthatnobroadcasterorjournalistintheUKknowsanydifferent.MrMurdochstatedthatSkyNewscouldbecomemorelikeFoxwithoutachangetotheimpartialityrulesintheUK.For
exampleSkyhadnotyetmadethepresentationalprogressthatFoxNewshad.HestatedthattheonlyreasonthatSkyNewswasnotmorelikeFoxnewswasthat"nobodyatSkylistenstome"(b).
Thisoften-quotedremarkmayhavebeentongue-in-cheekbutthereisaclearmessagethatrelates
tothewholeecologyofnewsmediainBritain.Asonehistoryofjournalismputit:
TherearetwokindsofjournalisminBritain,asdifferentassoccerandrugbyfootball….Thetwocodesarenot,assomemightfirstthink,tabloidandbroadsheet,butprintandbroadcast.Newspapershavefor300yearsbeenfiercelyindependentofthestateandevenintheirdeclining
conditionaresostrongthatnogovernmentcantouchthem.Theyareoutspoken,outrageous,irresponsibleandgenerallyover-the-top.Theyoperateinafreemarket,unrestrainedexceptbytheirownrestrictivepractices.Broadcastingontheotherhandoperatesinacontrolledmarket;ithas
beenlicensedandregulatedbythestatesinceitsinceptionandbeenmuchmoresusceptibletogovernmentpressure.
Journalistsworkingunderthetwocodesapproachtheirworkinadifferentway,withdifferentaspirations.Newspaperjournalists…haveafreehandinthemethodologytheyuse,andpushatthe
boundariesoflaw,customandtastetoproducethemostspectacularresultstheycan.Broadcastjournalistsontheotherhandareconsciousofprovidingapublicserviceofreliableandauthoritative
information.Theirlaboursarecircumscribedbymountainsofregulationandsubjecttoscrutinybystatutorybodies.(c)
Inasentence,RupertMurdoch,apressbaronatheart,wantsbroadcastingtoconductitselflikea
newspaper.Ifitisallowedto,thiscrucialecologicalbalancewillbelostandtheloserswillbethewholeofBritain’smediaandpoliticalcultures.
3.1TheFirstMacTaggartLecture
ThereismoresubstantialevidenceofRupertMurdoch’sintentionstohandthanoff-the-cuffremarksataParliamentaryCommittee.In1989hewasinvitedtodelivertheprestigiousMacTaggart
LectureattheEdinburghInternationalTelevisionFestival.Hedefinedtheregulatedbroadcastingenvironmentinthefollowingterms:
For50yearsBritishtelevisionhasoperatedontheassumptionthatthepeoplecouldnotbetrustedtowatchwhattheywantedtowatch,soithadtobecontrolledbylike-mindedpeoplewhoknewwhat
wasgoodforus…aservicerunforthebenefitofthepeoplewhoprovideit,ratherthanthepeoplewhowatchit,sometimesunderduress,becausethereisnothingelsetowatch.
Muchofwhatisclaimedtobequalitytelevisionisnomorethantheparadingoftheprejudicesandinterestsofthelike-mindedpeoplewhocurrentlycontrolBritishtelevision…Thispublicservicesystem
hashaddebilitatingeffectsonBritishsocietybyproducingoutputwhichissooftenobsessedwithclass,dominatedbyanti-commercialattitudesandwithatendencytoharkbacktothepast.Myownviewisthatanybodywho,withinthelawoftheland,providesaservicewhichthepublicwantsata
priceitcanaffordisprovidingapublicservice.
Weseeourselvesasdestroyersofmonopolypower…ascreatorsofchoice…Ibelievethatalargelymarket-ledtelevisionsystem,withviewerschoosingfromawidevarietyofchannelsfinancedin
variousways,willproduceabettertelevisionsystem.(d)
SkyTVwasjustsixmonthsoldwhenMurdochspoke.Sincethenmuchofhiswishlisthascometopass:therearehundredsofchannels,manyofthemadvertising-fundedandfree-to-airthankstothepublicservice-initiatedFreeviewsystem.ButtherunawaywinneroftheexpansionhasbeenSkyTV,
ahugecommercialsuccessthatrunssatelliteservicesinfourcountriesinEuropeandothersaroundtheworld.Itmakesimmenseprofits--£1.5billionlastyear--with12millionUKsubscribersandrevenuesof£8.3billion,welloverdoubletheBBC’s£3.7billion.Thedreadedpublicmonopolyseems
todoneneitherMurdochnorcompetitionmuchharm.
ButSkysubscribers,despitethecostofitspackages,watchBBCprogrammesmorethananyothers.Overall,despitebigcutsinitsrealincome,theBBCholds32.8percentofviewing–nearlyfourtimesSky’s8.4percent.Consumerchoicehasbeenfreedbuthasnotwanderedfar.
3.2TheSecondMacTaggartLecture
In2007Rupert’ssonJamesMurdochwasaskedtodelivertheMacTaggart.Hewas,andisagain
now,chairmanofSkyTV.Hetooktheanti-regulation,anti-BBCmessageevenfurther,inmoreparanoidandbrutallanguageandwithnoneofhisfather’svisionorpanache:
Dumpingfree,state-sponsorednewsonthemarketmakesitincrediblydifficultforjournalismtoflourishontheinternet.Weseemtohavedecidedasasocietytoletindependenceandplurality
wither.TolettheBBCthrottlethenewsmarketandthengetbiggertocompensate.Thethreattoindependentnewsprovisionisseriousandimminent.
GooglehasahigherpercentageofadvertisingspendingintheUKthananywhereelseintheworld:itisaconsequenceofatightlyrestrictedcommercialtelevisionsector.Aheavilyregulated
environmentwithalargepublicsectorcrowdsouttheopportunityforprofit,hindersthecreationofnewjobs,anddampensinnovationinoursector.AndyettheauthoritiesintheUKcontinuetoseekmorecontrolandgreaterintervention.TheUKandEUregulatorysystemalsotightlycontrols
advertising:theamountofadvertisingperhour,theavailabilityofproductplacement,thedistinctionbetweenadvertisingandeditorialandsoforth.ThelatestEU-inspiredrulesonschedulingofadvertisingrestrictthenumberofadbreakspermittedinnewsprogramming.
Inaddition,thesystemisconcernedwithimposingwhatitcallsimpartialityinbroadcastnews.It
shouldhardlybenecessarytopointoutthatthemereselectionofstoriesandtheirplaceintherunningorderisitselfaprocessfullofunacknowledgedpartiality.Theeffectofthesystemisnottocurbbias–biasispresentinallnewsmedia-butsimplytodisguiseit.Weshouldbehonestabout
this:itisanimpingementonfreedomofspeechandontherightofpeopletochoosewhatkindofnewstowatch.Theonlyreliable,durable,andperpetualguarantorofindependenceisprofit.(e)
Andheasked:
WouldwewelcomeaworldinwhichTheTimeswastoldbythegovernmenthowmuchreligiouscoverageithadtocarry?Inwhichtherewereastatenewspaperwithmoremoneythantherestof
thesectorputtogetherand50%ofthemarket?
Obviouslynobodyhassuggestedanythingofthekind,butJamesMurdochseemsnottocomprehendtherationaleforbroadcastregulationandthedistinctionbetweenprintandbroadcast.
Theworldhedescribesisbarelyrecognisable;foronethingtheBBChadsignificantlylessmoneythanSkyeventhen–Sky’srevenuesin2009were£5.3billion.
Butbothfatherandsonmadeclear,onthemostprominentpublicplatformintheindustry,theirscornfortherichandmaturetraditionthathasdevelopedovernearlyacenturyaformulafor
protectingahigh-qualityandtrustedservice.ItisabroadcastingenvironmentthathasbeenflexibleenoughtohappilyembracetheMurdoch’sownverydistinct“tabloid”televisionoutputandheapitwithawards–andwhichhasenabledthemtoprosper.
Nowtheyareseekingclearancetocontroloutrightthesecondmain24-hourTVnewschannelinthe
UK.Whatwouldtheydowithit?
4.PRESENTATIONISEVERYTHING
InRupertMurdoch’s2007interviewwiththeHouseofLordscommittee,hesaid
SkyNewscouldbecomemorelikeFoxwithoutachangetotheimpartialityrulesintheUK.ForexampleSkyhadnotyetmadethepresentationalprogressthatFoxNewshad.(d)
Inthiscontexttheword“presentation”issignificant.Itmeanspresentingcurrentaffairs,notinconventionalbulletins,butinpolitically-chargedtalkshowswithastronglyopinionatedhostanda
paneloflike-mindedexpertsoractivists,plusoftenasolitaryopponentforbalance.ThisiswhatFoxNewsintheUSdoeseveryeveningfrom7pmto11pm.Onthefaceofit,itwouldbreachpracticallyeveryclauseofSection5oftheOfcomcode.
Thepresentersarenotcalled“hosts”,whichaUKtalkshowwouldhave,but“anchors”.Ananchoris
thepresenterofacurrentaffairsprogramme,holdingthevariedelementstogether.Sotheshowispresentedascurrentaffairs,whichwouldbesubjectinBritaintodueimpartialityandaccuracyrequirements,butisactuallyachatshow,whereopinioncanbemorefreelylegitimised.Foxthen
putswhatthepunditssayintobulletinsandcallsitnews.(seesection9.2).Thatishowitworks.ThatiswhatMurdochhasinmindforSky.
Thereisnoquestionaboutthis.CommentatorJulianPetleywrote14yearsagoinIndexonCensorship:
MurdochisabsolutelyitchingtoturnSkyNewsintoaBritishversionofhisrabidlypopulistFoxNews
which,evenbeforeitspost9/11transformationintoacheerleaderforwar,wasdubbedbyFreedomandAccuracyinReporting(FAIR)‘themostbiasednameinnews’.(f)
MurdochconfirmeditwhenaskedbytheNewYorkTimesbackin2003whetherSkywouldbeimitatingFox,Murdochreplied:
Iwish.IthinkthatSkyNewsisverypopularandtheyaredoingverywell,buttheydon'thavethe
entertainingtalkshows-itisjustarollinghalf-hourofhardnewsallthetime….Itis'BBClite'….witha'liberalbias'.(g)
WhetheraUKaudiencewouldwantitisanothermatter.ForSkyNewshasactuallytriedit;twice,
from1994-95and2003-04andbothtimesaflop.ThepresenterbothtimeswasjournalistRichardLittlejohn,formerlyoftheEveningStandard,LBCRadioandtheSun,nowwiththeDailyMail,anaggressiveright-wingcontroversialist.HewashiredbyformerSuneditorKelvinMacKenzie,who
ploughsthesamefieldandwhomMurdochmademanagingdirectorofSkyinanattempttomakeitmoreaggressivelyright-wing.Bothappointmentswerefailures.Theshow,calledRichardLittlejohn,waspulledafterayear.
Perhapsunsurprisingly,thefailurewasputdowntoregulation.Littlejohnsaid:
We'dneverbeenabletomaketheprogrammeweintended.IfSkyNewscouldemulateitsUSsister
FoxNews,whichhaswipedthefloorwithCNNwithopinion-driven‘fairandbalanced’coverage,ratingswouldsoonshootpasttheAstrasatellite.Buttheregulatorswon'tallowit.(h)
Inearly2003hereturnedtopresentLittlejohn,fournightsperweek.TheprogrammewasdroppedinJuly2004andreplacedwithregularrollingnews.
Foxjournalistsdonotliketheidea.JohnRyleywasquotedinTelevisionmagazinein2010:
Althoughithasmyadmiration,IknowthattheFoxNewsmodelwouldnotberightforSkyNews.For
some,opinionwillbetherightpathtofollow.Forus,itisimpartiality.
AndAdamBoulton,theinfluentialandwell-connectedformerpoliticaleditorsaid:
Itwouldnotbetoouradvantagetogowithonesideortheother.Ifwebecameaparty-supportingchannel,likeFoxiswiththeRepublicans,theotherswouldjusttellustofuckoff.”(a)
Therisk,however,isreal.TheBBC’spoliticaleditorNickRobinsonwroteinabookoncontemporary
politicsthatbeforethe2010electionRupertMurdochhadlobbiedtheConservativeshardtogetridofOfcom.Henoted:
AseniorToryministerhastoldmethathadthepartysecuredamajorityitwashisexpectationthattheregulatorwouldhavebeenweakened,theMurdochcompanyNewsCorpwouldhavetakenfull
controlofBSkyBandJamesMurdochwouldhavegothiswayandturnedSkyNewsintoachanneltochallengewhathesawastheBBC’sinnateliberalbias.”(i)
5.CROSS-PROMOTINGMURDOCHMEDIA
Thereareothercategoriesofcontentwheretheacquisitioncouldhaveahazardouseffectoncompliancewiththebroadcastingcode.Thecross-promotionofeachother’soutputbythevarious
mediainacross-sectoralgroupisusuallyconsideredacompetitionquestion,asanabuseofmonopolyorathreattomediaplurality,butitisacontentissuetoo.Itcandistorteditorialstandards,withitsinclusionnotimpartiallyselected,andsupplantingothermaterial.
TheMurdochpresshasdonethisforyears,notjustwithdirectadvertisingbutwiththeinsertionof
favourablereferencesintoeditorialcopy.ItasprevalentinthetabloidtitlesbuthappenedonTheTimesaswell.In1989theTimes’sartseditorTimdeLislequithisjobinprotestafterapromotionalpaneladvertisingareaders’competition--"Winasatellitedish"–wasinsertedacrossthetopofthe
pageforwhichhewasresponsiblewithouthisagreement.Itisrareforjournaliststogiveuptheirjobsonprinciple,notbecausetheyareunprincipledbutbecausebeforetheystartworkonatitle
theyknowwhatitislikeandaccepttheconditions,whatevertheythinkofthem.TimdeLislewrotein2012:
Seeingit,Ifeltphysicallysick.Itwasn'treallyamatterofprinciple–Ihad,afterall,agreedtorunthedamnthing[onalistingspage],andIhadfreelyjoinedaMurdochpaper.Itwasmoreamatterof
taste,andfeelingexploited.CharlieWilson[theeditor]didn'tseethis:hisideaofsympathywastomakemachonoiseslike‘welcometothebigbadworldofnewspapers’.Hewouldn'trepeathisassurancethatitwouldn'thappen,andIwouldn'thavebelievedhimifhehad.SoIresigned.(j)
Atpresent,theopportunitiesforcross-mediapromotionbetweenNewsCorp’snewspapersandSky,
whileextensive,arerestricted;FoxisnotabletodictatepolicywithoutoverallcontrolofSky.Thepresenceofothershareholdersandtheroleofindependentboardmembersplaceslimitsonthem.
ButasmediabusinessanalystClaireEnderswroteatthetimeofthe2010bid:
HavingshareholderswithnolinkstotheMurdochfamilypreventsNewsCorpfromusingSkytofurtheritsownbusinessinterests.TotalownershipofSkywouldhoweverallowthemtoundertakefar
moreextensivecross-promotion,benefittingfromoperationalsynergiesandtheabsenceofcountervailinginfluences.
6.BROADCASTINGSTANDARDS:THEUSFOXEFFECT
Assessmentofthepossiblethreattobroadcastingstandards,if21CFweretogainfullcontrolofSky,musttakeintoaccountRupertMurdoch’srecordintheUSashedevelopedhisprintandbroadcast
mediathere.
In2013,inthewakeofthephone-hackingscandal,RupertMurdochsplithisglobalmediagroupNewsCorporationinto21CF(satellite,cableTVandfilm)andNewsCorporation(printandonline).Howeverthedivisionisnotreal.BothentitiesarestillfirmlyunderthecontrolofRupertMurdoch
andhissons.JamesMurdochrunsFox,andRupertandLachlanMurdocharejointexecutivechairmenofbothFoxandNewsCorporation.
When21CFmadeabidtotakeoverTimeWarnerinJuly2014themovewasquicklyrebuffedbyTimeWarnerchiefexecutiveofficerJeffBewkeswhocitedthreestructuralobjections:Fox’sdual
classsharestructure,whichhandseffectivecontroltotheMurdochfamilyeventhoughtheyareminorityshareholders;“regulatoryrisks”arisingfromthecorporation’srecenthistory;andthequestionableabilityofFox’smanagement“togovernandmanage”amergedcompanyofthissize.
Foralltheirdominationofthecompany,theMurdochfamilyhadbeenthrougharoughpatchafter
thephone-hackingscandalintheUK,andhadtorelyonapreferentialsharestructurethatgivesthefamilyjustunder40percentofthevotingstrength,despiteholdingaround15percentoftheequity.Institutionalshareholders,alarmedatthecollateraldamageandparticularlyatthepossibility
ofcorporatecorruptionchargesonbothsidesoftheAtlantic,lobbiedagainsttheMurdochsattheNewsCorp2011AGM.
Suchopenattacksarerareinthecorporateworld,butInstitutionalShareholderServices(ISS),amajorinvestors’grouping,saidthescandalhad
laidbareastrikinglackofstewardshipandfailureofindependencebyaboardwhoseinabilitytosetastrongtone-at-the-topaboutunethicalbusinesspracticeshasnowresultedinenormouscosts–financial,legal,regulatory,reputationalandopportunity–fortheshareholderstheboardostensibly
serves.
Inelectionstotheboard,67percentofshareholdersobjectedtothere-electionofJames,and64percentagainstLachlan.Whenthefamilyshareswerecounted,thatwas35percentvotedagainstJamesand34percentagainsthisbrother.EvenchairmanRuperthimselfreceived14percent"no"
votes.Wereitnotforthepreferentialstructure,inotherwords,JamesMurdochwouldnotevenhaveremainedontheboard,letalonebeenpromotedtochiefexecutiveof21CF.
In2014therewasanattemptbyNewsCorpshareholderstoscrapthepreferentialsharestructureandreplaceitwith“oneshare,onevote”thatcameclosetosuccess.(k)Theproposalreceived79
millionsharesvotedinfavourversus87.6millionagainst.BillDempsey,chieffinancialofficerofNewsCorpindependentshareholdertheNathanCummingsFoundation,whichsponsoredthemotion,saidthedual-classstructuregavetheMurdochsanunhealthylevelofcontrol:
ThiskindofgovernancestructuremaybewhatwewouldexpectinCubaorNorthKoreabutitisat
oddswithgoodgovernancepractices[intheUS].
7.THEUSMEDIAREGULATORYENVIRONMENT
PresidentRonaldReaganappointedMarkFowleraschairoftheFederalCommunicationsCommission(FCC)in1980andhespearheadedderegulationofthetelecommunicationsindustry.
Fowlersaid:
WhoareweinGovernmenttodictatewhich(TV)programisgoodandsociallydesirableandwhichisbadandsociallyundesirable?Weshouldletthemarketplacedecide.
Onefocusfromthestartwastoabolishthe“FairnessDoctrine”.Thisprincipleforimpartialandbalancedreporting,introducedin1949,requiredbroadcasterstodevoteprogrammingtopotentially
controversialissuesofpublicimportanceandincorporateopposingviewsinthosereports.Theywerefurtherrequiredtoalertanyonesubjecttoapersonalattackintheirprogrammingandgivethemachancetorespond,andtobalancethereportingofallcandidatesinelections.
In1987itwasdulyscrapped,allowingacorpsoframpantconservativecommentatorstoinventa
newgenreofbroadcasting:aggressive,openlybiased,andself-proclaimedas“balance”forasupposedliberal,left-wingbiasinmainstreammedia.Firstweretheradio“shockjocks”,thephone-inhostswhocultivatednotorietytobringaudiencestoradiothreatenedbyothermedia,notably
daytimecableTV.By1992theirexemplarRushLimbaughhadasuccessfultelevisionshowaswellashisnationalradioprogrammethatheldalistenershipofnearly14million.
TheotherkeyfactorreshapingUSmediawasthesweepingchangesinownershiplimitsinthe1996TelecommunicationsAct.TheseenableMurdochtoexpandhismediaholdingsacrosshitherto-
prohibitedsectors,layingthegroundworknotonlyfortheFoxTVnetworkandFoxNewsbutthe2007acquisitionoftheWallStreetJournal.Italsoenabledtheriseofconservativetalkchannelsthat
soonsaturatedtheairwaves.A2007studyof257news/talkTVstationsfound91percentoftheprogrammingwasconservative,animbalancetheyconcludedthatwasnotmarket-drivenbuttheresultof“multiplestructuralproblemsintheUSregulatorysystem.”(l)
ThesechangeshadaprofoundnegativeimpactonUSbroadcasting.RupertMurdochhasbeena
powerfulvoicechallengingregulatoryconstraints,andsupportingmediaconsolidation,ashehasalsobeenintheUK.MurdochadvisedTrumponnaminganewchairfortheFCC,andAjitPai,whowasappointed,hasquicklysetaboutfurtherderegulation,promisingtotakea“weedwhacker”to
whatheconsidersunnecessaryrules.Paihasalsodeclaredhewillscrapthe“netneutrality”rulesthatguaranteethesameinternetservicetoallconsumers,andcutthebudgetoftheCorporationforPublicBroadcasting(CPB),whichprovidesfundsforNationalPublicRadio(NPR)andtelevision(PBS).
8.RUPERTMURDOCHANDUSPOLITICS
MurdochiscloselyassociatedwiththeTrumpPresidency.Thefamiliesarereportedtobecloseand
FoxgaveTrumpblanketcoverageduringthecampaign--includinganapparentlybitterfeudbetweenTrumpandFoxpresenterMegynKelly,wholeftthestationinJanuary,makingrathermore
convincingaccusationsofsexualharassmentagainstchiefexecutiveRogerAiles.Hewasforcedtogoaswell–andbecameatopadvisertothenewpresident.(m)
RupertMurdochbecameaUScitizenin1985.Hehadrecentlypurchased50percentof20th
CenturyFoxFilmCorpandplannedtopurchaseMetromedia,thenation'slargestgroupofindependenttelevisionstations,butfederalregulationslimitednon-U.S.ownershipofabroadcastlicenseto20percent.
HisacquisitionoftheNewYorkPostin1976hadgivenhimaccesstopoliticsatthehighestlevel.He
activelysupportedRonaldReaganinthe1980Presidentialrace.InthecampaignforasecondtermtheDemocraticnominationforVicePresidentwasGeraldineFerraro.InOctober1984tenissuesofthePostfeaturednegativefront-pageheadlinesaboutFerraro.Themostdamagingwasastory
secretlysuppliedbyReagan’scampaignthatherparentshadbeenarrested(butneverconvicted)forillegalgambling.ThesestoriesdevastatedFerrarobutmoreimportantly,inapreviewofthewayFoxNewswastooperate,itledothermediatofocusonherbackgroundwiththesuggestiontheremight
besomethingsinisterthere.(n)
In1988MurdochwasforcedtosellthePostwhenhepurchasedChannel5TVinNewYork,whichbreachedcross-ownershiprulesprohibitingownershipofaTVstationandnewspaperinthesametown.Buthewasabletorepurchasethepaperin1993.In1995hefoundedtheWeeklyStandard,
basedinWashingtonDCandaplatformforneo-conservatism.WhenhesetuptheFoxnetworkitdidnothaveitsownnewsdivisionbutboughtinafeedfromTedTurner’sCableNewsNetwork(CNN).MurdochregardedCNNasdangerouslyliberalanditsinadequatelybelligerentcoverageof
thefirstGulfWarin1990spurredhimtolaunchhisown.(o)
9.FOX:HOWITWORKS
RogerAiles,aRepublicanpoliticalstrategist,offeredhisservicestolaunchtheall-newscablechannelandFoxNewsbeganbroadcastinginOctober1996.Ithashadadisruptive,negativeimpactonUS
broadcasting,journalismandpolitics.Itisnot,infact,anewschannel,inthewaySkyNewsintheUKhasbeen,butaTVversionoftalkradiowithangryandarticulateright-winghosts.Itabandonsthenotionofaprofessional,impartialnewsserviceinfavourofoneexplicitlyshapedtobeastrident
mouthpieceforitsowner’spoliticalagenda.ItcouldhardlybefurtherfromthemodelofnationalTVnewsserviceslicensedbyOfcom.
Ithastwooperatingslogans:“Fairandbalanced”,and“Wereport,youdecide”.Thesehavebeenwidelymocked,understandably,butwhileundoubtedlycynical,toFox’sfollowerstheydohave
meaning:“balanced”toright-wingAmericansmeansacounter-weighttotheperceivedliberalbiasoftheotherbigcorporatenetworks;“youdecide”means,youdecideinthelightofthisdifferentwayinwhichwepresentyouwiththefacts.
9.1Averyrecentcase:AndrewNapolitano
AndrewNapolitanoisdescribedasFoxnetwork’s“seniorlegalanalyst”.Onthemorningshow,Fox&
Friends,onMarch14,NapolitanosaidthatGCHQhadwiretappedTrumponbehalfofPresidentBarackObamaduringtheelectioncampaign.Hesaid:
ThreeintelligencesourceshaveinformedFoxNewsthatPresidentObamawentoutsidethe
chainofcommand.Hedidn’tusetheNSA.Hedidn’tusetheCIA.Hedidn’tusetheFBIandhedidn’t
usetheDepartmentofJustice.HeusedGCHQ.WhattheheckisGCHQ?That’stheinitialsfortheBritishspyingagency.Theyhave24-7accesstotheNSAdatabase.
Thestorywentroundtheworld.Twodayslater,Trump’spresssecretarySeanSpicerrepeatedtheclaimfromtheWhiteHousepodium,infuriatingBritishGCHQofficials,whoresponded:
RecentallegationsmadebymediacommentatorJudgeAndrewNapolitanoaboutGCHQbeingasked
toconduct‘wiretapping’againstthethenpresident-electarenonsense.Theyareutterlyridiculousandshouldbeignored.
ThenextdayFoxNewswasforcedtodisownNapolitano’sremarks.AnchorShepardSmithsaidon-air:
FoxNewscannotconfirmJudgeNapolitano’scommentary.FoxNewsknowsofnoevidenceofany
kindthatthenow-presidentoftheUnitedStateswassurveilledatanytime,anyway.Fullstop.
YetviewerswouldsurelyhaveunderstoodNapolitano’sstatementashavingthefullauthorityofFoxNewswhenitwasmade.TrumphoweverrefusedtorecantandpraisedNapolitanoas“averytalentedlegalmind.
9.2TheFoxEffectand“Fakenews”
Thisisthe“FoxEffect”andhowitworks,withawilfulconfusionbetweennewsandcomment.A
falsestoryoriginateswithsomeright-wingbloggerortalkradiohostorotherconservativeoutlet,whichFoxNewsthenpicksupandgivesheavycoverage,whileberatingthemain“liberal”mediaforignoringit,whobecomeobligedtofollowsuit.Itisnowamainstreamstoryandcanevenbe
formallywithdrawn,ifneedbe,butthatdoesn’tmuchmatterbecauseitiscirculatingonsocialmedia,providingammunitionforconservativeactivists,andcannotbestopped.
Itisalsotheprincipleoriginofthecurrentlydebatedphenomenon“fakenews”.Thereisamoralpanicaboutthedamagedoneby“fakenews”tothehonestyofpublicdiscourse,bothintheUSand
inBritain.ConservativeAmericanblogsandotherobscurewebsitesarefrequentlyheldresponsible;yetitislargelyFoxthatpropelstheirfantasiesintothemainstream.
Ithashappenedtimeandagain.Well-sourcedexamplesincludethe2015storythatBirmingham(England)isa“totallyMuslimplacewherenon-Muslimsjustsimplydon’tgo”.Thiswashotly
contested,obviously,inBritain,andwasagainformallycorrectedandapologisedfor;yetitpersists,andTrumphimselfrepeateditduringhiscampaign.PollsinAmericanstillshowsubstantialnumbersofpeopleconvincedthatBarackObamaisMuslim(despitebeingapractisingChristian)andwasnot
bornintheUSA(thoughtherecordsareclear).BothliesbegantheirmainstreamcareersonFoxNews.
ThethreekeyhoursofbroadcastingonFoxNews,the8pm,9pmand10pmnightlyshows,areanchoredrespectivelybyBillO’Reilly,TuckerCarlson(appointedreportedlybyRupertMurdoch
himselftotakeoverMegynKelly’scovetedslot)andSeanHannityat10pm,areallhostedbypro-Trumppresenters.
Itcouldbeaddedthat“fairandbalanced”doesnotinclude“accurate”or“truthful”,andindeedtruthhardlycomesintoit.Thisconfusionbetweennewsandopinionisonewaythechannelhas
generateditspoliticalinfluenceandbuiltitsaudience.ButtheconsequencesofthisrelentlesspartialprogramminghavedamagedAmericanmediaandpolitics,fosteringfear,divisionandhatred.Moreimportantly,thiskindofbroadcastingisinconflictwiththerequirementofbroadcastersintheUK
andEuropetoprovideimpartialbroadcastnews.
10.ADRYRUNINAUSTRALIA
Asimilarexerciseto21CF’sbidforSkyintheUKhasrecentlytakenplaceinAustralia,whereRupertMurdochbegantoassemblehismediadomainmorethan50yearsago.SkyNewsAustralia,a24-hournewsstation,owned,likeSkyinBritain,byaconsortiumincludingaMurdochcompany,was
100percenttakenoverinDecember2016byanother,inthiscaseNewsCorp,not21CF.Thepreviousownerswith33percenteachwerelocalchannelsNineNewsandSevenNews,andSkyEurope(formerlyBSkyB).ItisacablechannelbroadcastontheFoxtelcablenetwork,whichis50per
centownedbyNewsCorp.Thetakeoverisalreadyprovingcontroversial.
Sky’sdaytimescheduleisarollingnewsformatandwellregardedforitsaccuracyandprofessionalism,likeSkyintheUK.Butthenight-timescheduleisverydifferent:likeFoxintheUS,aseriesofopinion-ledprogrammes,unlikeanyotherTVstationinAustralia,muchofitisonthe
extremeright.TheprogrammesareheavilypopulatedwithcolumnistsfromNewsCorpnewspapers,ofteninterviewingothers.
ThesepresenterslineupveryliketheirAmericancounterparts,withat7pmeveryeveningAndrewBolt,afar-rightcolumnistonNewsCorp’sHeraldSun,Australia’sbiggest-sellingtabloiddaily;at8pm
avarietyofdifferentpresenters;andfrom9to11pmdaily,PaulMurray,aformerradioshockjockTrumpsupporterwithanaggressiveright-wingstyle.
Theformatpredatedthetakeoverbuttherearestillconcerns.OntheConversationwebsite,influentialmediacommentatorDenisMullerwrote:
Skyhasakindofsplitpersonality.Duringtheday,itrunsaprofessional,no-frillsTVnewsservice.But
whendarknessfalls,itbecomesadifferentbeastaltogether.TheBoltReportisanightlypieceofright-wingpunditryinwhichAndrewBoltdoeshismore-in-sadness-than-in-angerroutine.
YethelooksamodelofreasonbycomparisonwithPaulMurray,acrassvulgarianwhoswaggersaboutthesetunburdeninghimselfofastringofgrotesqueries…Certainlyitsstableofcommentators
andpanelchairsisskewedtotheright…butitalsoincludestwoformercentristLaborpremiers…andrespectedindependentjournalists.SuchcatholicityisnottobefoundonFoxNews,andthatisasignificantdifferencebetweenthetwo.ItistooglibtosaythatSkyisjustanAustralianversionofFox
News,buttheMurdochconnectionisacriticalfactor.(p)
ColumnistMarkDay,arespectedandpro-Murdochformereditor,wroteintheAustralian,Murdoch’supmarketnationaldaily:
Sky’sshifttofullprime-timeopinionprogramming—or‘engagingconversation’asinsiderscharacteriseit—broadlyfollowsthehighlysuccessfulFoxNewsformatintheUS,frequently
criticisedforisstrongconservativeleanings.OurSkypresentersgenerallyleantowardsconservative—sometimesdisconcertinglyso.PaulMurray,forinstance,presentsasfarrightbywearinghisadmirationforPaulineHansononhissleeve,yetheregularlytopstheviewingnumbersforallFoxtel
channelsat9pm,provingthatviewerswilltuneintodisagreeasmuchasagreewithapresenter.
IncreasinglyIhavefeltthatopinionprogrammingmayhavegoneasteptoofar.Woulditnotbebettertopullbacktothecorefunctionofprovidingmorenews,atleastpartofthetime?
11.CONCLUSION:FOXINTHEUK
FoxNewsisavailableintheUKviaanumberofplatforms,andislicensedbyOfcom.Therehavebeenoccasionalcomplaintsaboutitscontentovertheyears,andOfcomhasseventimesfound
breachesofthecodesince2013(q),butitisstilldeemedworthyofitslicencedespitetheevidentbiasinitscontent.
Thesevencasescomprisedtheinadvertentlivecoverageofasuicide;twocasesofproductpromotioninconsumerprogrammes;abreachofelectorallawinitsreferendumcoverage;aheavily
biasedpro-Tumpreportonlastyear’spresidentialelection;andtwo“fakenews”stories:asickeninganti-abortionitembytheegregiousAndrewNapolitano(seesection9.1),accusingPlannedParenthooddoctorsoftradinginthebodypartsofabortedfoetuses;andthestory,wellpublicised
inBritain,thatBirminghamisanall-Muslimcitythatnon-Muslimsdon’tgoto.
Otheroverseasbroadcastershavebeendeprivedoftheirlicences,butFoxremains“legit”.Theformerchiefexecutive,EdRichards,toldthesameHouseofLordscommitteeinquiryin2007that
interviewedRupertMurdochthatforeign-basednewschannelssuchasalJazeeraandFoxarenotsubjecttotheimpartialityregulationsbecause,firstly,“theyaretargeted,veryclearlyandexplicitly,atadifferentaudience”,andsecond,“theyhaveextremelysmallaudienceshares”.SkyTV,aswe
haveseen,ismoretightlyregulatedandhasagoodtrackrecord.Thedifferencebetweenthesetwostationsistheissueatstake.
Therehasbeeninrecentyearsadebateintheindustryaboutthenatureofbroadcastnewsandcurrentaffairs.Somehavearguedthatthetraditional“dueimpartiality”requirementshavebeen
basedonthenotionthatpoliticalaffairsbepresentedintermsofequaltimeforthetwomainpoliticalparties,andthatthisisoutofdateandavoidstherealpoliticalissues.ThecoverageoftheEUreferendumlastyearledmanytopointoutthattheexistingrulesreducedcomplexissuesto“tit
fortat”whichservedtheelectoratepoorly.Thesearenowfamiliarargumentsandwedonotneedtogointodetails;butareformsuggestedbymanyisthatthecurrentrulesshouldapplyonlytothemainnationalbulletins,withfreerreinallowedtootherbroadcasters.
InasenseOfcomisalreadymovinginthatdirectionwithamorerelaxedapproachtoniche
broadcasts---suchasFoxNews.ButwereSkytobecomepartof21CFattheheartoftheMurdochs’globalmediadomainthenitcouldnotbeconsideredanythingotherthanamainstreambroadcastertowhichthemostrigorousstandardsshouldapply.AsJulianPetleywroteinIndex:
CananyoneseriouslybelievethattheshortcomingsofBritishtelevisionnewsandcurrentaffairsprogrammesarereallygoingtoberemediedbyinjectingthekindofbrutishlypopulistnewsvalues
whichmakeFoxsuchadisgracetobroadcastjournalism?
Acash-drenchedSkyNews,pluggingarelentlesslypopulistnewsagenda,addingitsstentorianvoicetotheanti-BBCbiasoftheMurdochpress,andbolsteredbymassivecross-mediapromotionfromelsewhereintheMurdochempirewouldrapidlyforceitswayintoadominantpositioninthe
broadcastnewsenvironment.(f)
NOTES(a)Insidethescoopfactory,TelevisionMagazine,April2010,RoyalTelevisionSociety(b)www.theguardian.com/media/2007/nov/24/bskyb.television(c)Journalists:100yearsoftheNUJ,TimGopsillandGregNeale,ProfileBooks2007(d)www.thetvfestival.com/website/wp-content/uploads/2015/03/GEITF_MacTaggart_1989_Rupert_Murdoch.pdf(e)image.guardian.co.uk/sys-files/Media/documents/2009/08/28/JamesMurdochMacTaggartLecture.pdf(f)JulianPetley,IndexonCensorship,Vol.32,No.2,2003(g)www.nytimes.com/2003/04/07/business/media-mr-murdoch-s-war.html(h)BritishJournalismReview,Vol.13,No.3,20(i)NickRobinson,LiveFromDowningStreet:TheInsideStoryofPolitics,PowerandtheMedia,BantamBooks,2012(j)Lisle,Timde.“RupertMurdoch’sEvidenceWasLikeOneofHisTabloids.”Guardian,April26,2012(k)TheGuardian,5August2014.(l)JohnHalpinetal,TheStructuralImbalanceofPoliticalTalkRadio,21June2007.https://www.americanprogress.org/issues/general/reports/2007/06/20/3087/the-structural-imbalance-of-political-talk-radio/(m)GabrielSherman,MegynKelly’sDepartureIsaBigClueAbouttheFutureofFoxNews,”NewYorkMagazine,3January2017.(n)DavidMcKnight,Murdoch’sPolitics,PlutoPress,2013.TheFerrarocaseiscoveredonpp68-70(o)NicoleHemmer,MessengersOfTheRight:ConservativeMediaandtheTransformationofAmericanPolitics,UniversityOfPennsylvaniaPress,2016.(p)Muller,Denis.SkyNewsisnotyetFoxNews,butithasthegood,thebadandtheuglies.TheConversation,February152017(q)www.gov.uk/government/publications/ofcom-sky-21cf-breaches.Individualcasesarearchivedatwww.ofcom.org.uk/about-ofcom/latest/bulletins/broadcast-bulletins/audience-complaints
CampaignforPressandBroadcastingFreedom,23OrfordRoad,[email protected]:AnnField07831676587Organiser:JosefDaviesCoates07974888895
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