Rupert Murdoch's Digital Death Star

By Jeffrey Chester, AlterNet. Posted May 20, 2003.

Even as Michael Powell and the GOP sweep away long-standing media ownership safeguards, media mogul Rupert Murdoch is mobilizing to further expand his TV empire beyond broadcast and cable. His plans to acquire the key direct broadcast satellite service (DBS) – DirecTV – will allow Murdoch to advance his conservative political agenda, creating new channels and services that disseminate the rightwing ideology now espoused by Fox News.

News Corp. wants to buy Hughes Electronics – the parent company of DirecTV – from General Motors. If the deal is allowed to go through, Murdoch will have a triple play when it comes to influencing U.S. television with his control of broadcast, cable and satellite channels. His News Corp now owns 35 broadcast TV stations and significant cable channels like Fox News, Fox Sports and even National Geographic TV. Add to that DirecTV's 11 million subscribers and Murdoch will be able to greatly shape broadcast and new digital television services. While both the U.S. Department of Justice and the FCC have to approve the deal, don't expect any significant opposition. GOP lawmakers in the House practically fell on their knees when Murdoch testified about the proposed buyout recently. And why not! Fox News essentially provides a 24/7 campaign contribution to the Bush White House.

The need to oppose the DirecTV acquisition is urgent. Contrary to his promises, Murdoch will use DirecTV as a "death star" to force his programming on cable companies by threatening a price war unless they give Fox favorable access. Since News Corp will control cable TV's principal multichannel competitor, it will easily create new channels – unlike anyone else in the TV business. Rather than engage in open combat and competition, cable powerbrokers such as Comcast and AOL-Time Warner will likely accommodate Murdoch and add his new channels to their own services. Imagine Fox News on steroids. Worse, with DirecTV's capacity to "spotbeam" channels to serve distinct communities, localized versions of Fox programs could be available in major cities across the nation.

The purchase of DirecTV will also enhance Murdoch's existing clout in the U.S. media market. First, News Corp. has already secured key technologies that will act as a virtual tollbooth for the emerging digital TV marketplace. For example, News Corp. subsidiary Gemstar , better known as TV Guide onscreen, allows it to influence viewer programming choices though its control of the key electronic program guide. Murdoch's NDS service , which provides set-top box software, will expand their clout into new broadband digital applications.

Finally, Murdoch's acquisition of DirecTV, as noted in News Corp.'s "public interest" filing at the FCC will greatly expand its global power. The document openly touts the "efficiencies" of the merger, since Murdoch already controls key satellite TV systems serving Europe and Asia. The U.S. deal will cap a long-standing quest by Murdoch to add this country's market to his immense media empire, and further his political influence all across the globe (for a link to his holdings and other information, go to the Center for Digital Democracy.)

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