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Nation of fools

David Puttnam

Published 04 December 2006

As the BBC reels from Michael Grade's shock defection, a far greater threat to the future of British broadcasting is upon us. And it goes to the heart of our democracy.

Towards the end of a recent BBC Question Time programme, Polly Toynbee received a thunderous round of applause when she described Rupert Murdoch as "the most pernicious force in the country by far".

Yet even though many citizens may instinctively agree with Richard Branson's assessment that Murdoch is a "threat to democracy", nothing beyond a resounding silence has been heard from either the Labour or the Tory benches following BSkyB's acquisition of a 17.9 per cent stake in ITV - the catalyst for Branson's remarks. Indeed, not a single prominent politician from either major party has thus far broken cover to suggest that the deal might raise serious questions about the future of media plurality in Britain. This is despite, or more probably because of, the fact that Murdoch owns four national newspapers, has de facto control of the BSkyB pay-television service (through a 38 per cent shareholding), owns www.myspace.com, the social networking site most heavily used by the UK's young people, and has now perched himself on the catbird seat at our largest commercial terrestrial broadcaster.

It is easy to dismiss Branson's comments as sour grapes, given that BSkyB's purchase of an ITV stake has in effect scuppered the chances of NTL (in which Branson has a 10.5 per cent holding) acquiring control of the terrestrial giant. Whatever the catalyst, I still believe Branson's outburst to have been sincere, that he was speaking as much as a citizen as a businessman, and, most importantly, that he is absolutely right on this occasion.

Yet, astonishingly, the public has no idea whether there is anyone in parliament who agrees with him. It's almost as if there's a conspiracy of silence, a conspiracy fuelled by a fear of alienating the most powerful media owner in the country.

In purely business terms, there is no question that by ac quiring its stake in ITV, BSkyB pulled off a spectacular coup - only equalled by ITV's acquisition, a few days later, of Michael Grade as its executive chairman. It is hard to imagine the brilliantly combative Grade finding it easy to accommodate a significant shareholder who is also competing in the very areas of entertainment, news and sport that will naturally be his focus for success.

At stake is the erosion of competition within the British media, and the consequences that has for British democracy.

There are those who seem willing to accept that BSkyB's move is merely an attempt to shut out NTL. But as Neil Chenoweth, one of Murdoch's biographers, has written, in Murdoch's deal-making "there is always a second strand running below the public trans action, known only to insiders, and then there is a third strand running under that again, which no one ever sees".

In the case of ITV one can only guess at what the second and third strands might be. But some analysts have suggested that the acquisition of a stake in ITV is merely Murdoch's first card in a longer game, one in which he will end up controlling Channel 5. RTL, owner of Channel 5, is strongly rumoured to be interested in ITV. Murdoch might be willing to sell out to RTL and to the other ITV shareholders in exchange for the prize of the fifth channel.

Dominant satellite position

That would not just be a "threat to British democracy", it would be a further step in a process that can only end in disaster. The cap acity of Murdoch's British interests to "cross-promote" that terrestrial channel, using their dominant satellite position and their newspaper holdings, would be without precedent. The bleat that Channel 5 has merely 5.5 per cent of terrestrial viewing would very quickly become history as the new, heavily promoted, "super soaraway Five" dug deep into the market share of its rivals.

BSkyB's acquisition of a stake in ITV shows exactly why, in the teeth of fierce opposition from both the government and the Conservative front bench, the House of Lords was absolutely right to insist that a "public interest test" be inserted in the Communications Act 2003, so that the consequences for our democracy of mergers and changes of control within the media sector could be scrutinised and, if necessary, stopped.

Ofcom has now begun its own scrutiny of the acquisition of the ITV stake, and the Office of Fair Trading is also likely to get involved. That would inevitably lead to politicians being drawn into making decisions about where the public interest really does lie.

For myself, I have no doubts. This deal should not be allowed to stand. It is my personal belief that BSkyB, and thereby Rupert Murdoch, has unquestionably acquired "material influence" at ITV, and that this can only lead to a further and unprecedented erosion of plurality within the British media.

In 1990 when Sky merged with BSB to create BSkyB, there was a rancorous Commons debate about the issue. The then shadow home secretary, Roy Hattersley, made a scathing attack on the government's supine attitude toward Murdoch's interests, going so far as to question the legality of the deal.

Public opinion - a surprise?

In the intervening 16 years, it has apparently become unthinkable that a front-bench politician of either of the main parties would even consider passing comment on any further extension of Murdoch's tentacles, in the apparent belief that to do so is to incur the wrath of the Sun and the Times, and thereby to court electoral disaster.

But public opinion has a nice way of surprising you, more so than ever in this digital age of blogs and social networking, when information and beliefs can be transmitted to millions with a simple click of the mouse.

In recent weeks, Murdoch was given a wake-up call when, following a wave of public revulsion, he was forced to cancel a proposed book and TV programme in the US in which O J Simpson offered a hypothetical account of how he would have killed his former wife and her friend.

That round of applause for Toynbee's remark on Question Time should serve as a different kind of wake-up call - this time directed at our elected representatives.

Its message is succinct: enough is enough. The time has come for politicians from all sides to step up and clarify their position on the future of democratic pluralism in our media.

If they are really serious about regaining the respect, let alone the trust, of the electorate, it is time they stopped shaping their electoral strategies in response to the leader columns of any of our national newspapers, and started demonstrating a belief that the votes of millions at the ballot box count for more than the self-interest of a handful of manipulative media barons.

Lord Puttnam is a Labour peer, and was chair of the parliamentary committee that examined the Communications Bill. Deputy chairman of Channel 4, he writes here in a personal capacity

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9 comments from readers

outsiderlookingin
30 November 2006 at 17:47

There is a simple, but costly, tactic to counter the great British public's ignorance about the consequences of media ownership and its political apathy. Compulsory media literacy should be part and parcel of primary, secondary and tertiary education, and include the role of media in politics and democratisation, and questions of media reform. In a 'free market', you will not stop the Murdochs of this world. But people might be encouraged to think clearly and more deeply about consequences.


30 November 2006 at 21:37

another simple measure is to demand that all mass media platforms be run as capitalist partnerships, with ALL the shares owned by the people working in there equally.

this would prevent any possible monopolisation of media in the UK.

Campaign for Press & Broadcasting Freedom
01 December 2006 at 13:14

If it’s a round of applause for Poly Toynbee it’s three cheers for Lord Puttnam. His article ‘Nation of fools’ scores many well-placed hits. The Campaign for Press and Broadcasting Freedom, which has long argued for diverse, democratic and representative media, warned that the Communications Act would pave the way for media barons like Murdoch to move in and take over. Ofcom, established by the Act is more of a light touch deregulatory body, but this case highlights the need to revisit media ownership rules to make them ‘future proof’.

This is a political matter and not all politicians are running scared of Murdoch. John Grogan MP has recently put down an early day motion (309), which calls for the secretary of state to intervene and instruct Ofcom to undertake a public interest inquiry. It is quite awful that the only people Ofcom are consulting at present under the existing rules are ITV and BSkyB!

If you are concerned about the future of democratic pluralism in our media you should write to you MP asking them to support the early day motion. In addition we need to build a coalition now to exert political pressure to tighten media ownership rules. If you want to support such a coalition, contact the Campaign at freepress@cpbf.org.uk or ring 0208 521 5932

Barry White

National Organiser

CPBF

23 Orford Road

London E17 9NL.

padbrit
01 December 2006 at 19:01

Oh God Fox News on terrestial UK TV. Be afrad, be very afraid!!!

swatantra nandanwar
02 December 2006 at 14:50

I hope outsider is not calling for the introduction of yet moree Media Studies in the curriculum, when we should be screaming for more Arts, Sport and Games.

What should be brought back is Philosophy and Ethics: the teaching of logical reasoning and moralaity.


04 December 2006 at 11:10

One of the most insidious things to come out of Australia.


04 December 2006 at 11:18

Great article. I'm embarrassed to be an Australian. (Oh that's right he became an American as he could make more money there) Then I'm embarrassed as a human being at the greed and the dumbing down of all he touches.

Daniel
05 December 2006 at 21:16

Excellent article; I fear Murdoch's actions and our reactions have been continuously just a little late though.

What is more terrifying I believe is the digital television switchover which, while being reported as our most wonderful government treating us all to the feast of entertainment that is 700 channels of nothing, is nothing more than government-sponsored corporate monopolising. Any small promotion of Freeview will do little to counter Sky's death star...sorry, marketing department.

And as a Media Student, making it compulsory would be an awful move. Much of our syllabus is pro-conglomeration and debate is stifled.


06 December 2006 at 17:50

A very poignant article. What's more frightening is the possibility of Murdoch being the pied piper stringing along this nation of sheep (I mean fools, I mean consumers!).

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