Archive for category Pay TV Piracy

Australian Media Regulators Looking into Murdoch’s “Fitness”

The first crack in Rupert Murdoch’s political facade in Australia occurred Friday, May 4.   The Australian Media and Communications Authority (ACMA) announced it was looking closely at the House of Commons committee report that declared Murdoch unfit to run an international business.   ACMA licenses and regulates television broadcasting, digital communication, and radio frequency allocation.

Rupert Murdoch controls 70% of the newspaper market in Australia.  He has major interests in the Foxtel pay TV network.  And his political influence in Australia is even greater than in Great Britain and the United States.

The Australian Communication and Media Authority (ACMA) is reviewing the British parliamentary committee report which described News Corporation chairman Rupert Murdoch as ‘not fit’ to lead an international company.

The explosive findings also suggested that former chief executive James Murdoch was wilfully ignorant of the extent of the practice of phone hacking at the now-defunct News of the World. News Corporation released a statement on Tuesday accepting the report, while rejecting some of its “unjustified and highly partisan” commentary.   Murdoch report: ACMA and US Senate enter the fray, May 4

This is the first sign of any potential challenge to Murdoch’s authority in his former homeland.   Despite a heavily documented expose of alleged pay TV hacking and piracy published by the Australian Financial Review, Australian competition regulators gave approval for a Foxtel (Murdoch controls it) acquisition of a competitor (AUSTAR)  that it is alleged Murdoch’s firm hacked.

Post to Twitter Tweet This Post

Share

Tags: , , , , , , ,

Hmmm … Murdoch’s News Corp reduces foreign voting shares to keep U.S. TV licenses

By Michael Collins

Is Murdoch getting ready to trade his kingdom for a horse?  Supposedly, News Corp did a compliance review on the voting rights of foreign shareholders.  The company discovered that it was way out of line for the amount of foreign shareholder voting rights, thus imperiling its bid to renew the licenses for it’s domestic television properties (based on the Communications Act of 1934).

“News Corp, which has spent most of the last year battling the fallout from the News of the World phone-hacking scandal, inadvertently allowed foreign investors to hold 36pc of Class B voting stock – well past the 25pc limit enshrined in American 1934 Communications Act.

“In order to fix the problem, on Wednesday it suspended 50pc of the Class B voting rights of its investors outside the US, effectively halving the power of certain foreign investors.”  The Telegraph, April 18 &  Financial Times, April 18

This includes Prince Alwaleed bin Talal, Saudi investor, who will have his 7% share cut in half for voting.  Talal is a big Murdoch supporter.

Two points.  This is a sign of weakness.  They knew or should have known this was the case but now they’re acting.  News Corp probably got a tip from some “friendly” in government and preemptively corrected the problem.  One commentator asked, When was the last time they reviewed voting rights, 1936?

The prompts the second point, which consists of three questions?  Was News Corp out of compliance on foreign voting shares when it last renewed it’s domestic broadcasting license?  Will anyone in authority investigate?  If they determine that the licenses were renewed with News Corp violating the 1934 Communications Act, will anything be done about it?

Post to Twitter Tweet This Post

Share

Tags: , , , , ,