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August 31, 2009
A couple of decades ago in 1989 Rupert Murdoch delivered his MacTaggart lecture, where he argued that television is an area of economic activity, a business, and that competition is invariably preferable to monopoly. Murdoch didn't argue for the death of public service television –-- or the closure of the BBC --- just a reduction in its importance as "part of the market mix, but in no way (dominating) the output".
A commercially-driven system, which he envisaged, largely arrived during the 1990s in the UK – 90% of the UK public now have multichannel digital television, and around half of homes choose to pay for content. BSkyB is currently the most profitable business model for UK television around.
James Murdoch returned to the battle in a powerfully delivered MacTaggart lecture at the 2009 Edinburgh International Television Festival. He launched a scathing attack on the BBC, describing the corporation's size and ambitions as "chilling" and accusing it of mounting a "land grab" in a beleaguered media market. The BBC's news operation was "throttling" the market, preventing its competitors from launching or expanding their own services, particularly online:
Dumping free, state-sponsored news on the market makes it incredibly difficult for journalism to flourish on the internet. Yet it is essential for the future of independent journalism that a fair price can be charged for news to people who value it.
If News Corp is to successfully introduce charges for all its websites (ie., the customer pays a fair price for quality journalism) then it needs to throttle public broadcasting's state sponsored free provision of news.
James Murdoch's argument appeals to independence and plurality and invokes the spectre of Orwell's 1984. Profit and the free market guarantees independence and plurality and a better society. Like his father he wants a much smaller public broadcaster and light regulation---Murdoch also heavily criticised the UK media industry regulator, Ofcom, calling for regulation to be scaled down.
Is this the American model? Does the appeal to plurality and independence mean Fox News Australia?
The Murdoch argument in Australia would be that the ABC's news operation was "throttling" the market, preventing its competitors from launching or expanding their own services, particularly online. Is the ABC too big, potentially a threat to paid-for journalism and inhibiting the ability of commercial competitors to invest in news?
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The attacks on the ABC, like those on the BBC in the UK, are usually from the Right. They are about taste, alleged political bias and now free video on its website.
Newspapers will only be able to charge for access to their websites if they act together. The ABC's very successful free website is seen by papers as unfair online competition