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

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