Murdoch lashes BBC 'megalomania'

[Teddy Bear]

Murdoch lashes BBC 'megalomania'
By Dominic White, Communication Industries Editor
Last Updated: 1:21am GMT 01/12/2006

James Murdoch accused the BBC of "megalomania" at a media conference where the BSkyB chief executive gave a cautious welcome to Michael Grade's appointment as executive chairman of ITV.

At Ofcom's first international conference in London, he called for an end to the "cosy world of UK broadcasting" where "arguing in favour of the free market still causes raised eyebrows".

Singling out the BBC for criticism he said: "[It] infamously fantasises about creating a British Google – and wants the taxpayer to fund it. This is not public service, it's megalomania."

The publicly funded BBC has invested heavily in its website, which has become the UK's market leader for news.

His speech, which comes as Ofcom considers NTL's complaints against Sky's controversial move to buy a 17.9pc stake in ITV, implored the media and telecoms regulator to take a free-market approach to broadcasting.

The address made no reference to the ITV stake, which Sky's cable rival NTL claims is an unfair way of seeking to block its attempts to buy the troubled commercial broadcaster.

Sir Richard Branson, NTL's largest shareholder, last week attacked Mr Murdoch's father, Sky's chairman Rupert Murdoch, claiming the Murdochs' power represented a threat to democracy.

Mr Murdoch refused to comment on Sir Richard's attack, but asked what he thought of the surprise appointment this week of the BBC chairman, Michael Grade, as executive chairman of ITV, the Sky chief executive said: "We said when we made our investment that we were very keen for the [ITV] board to introduce strong leadership for the business. We are very pleased they have done that.

"We look forward, as all shareholders do I think, to hearing what he [Mr Grade] has to say about the growth of the business [ITV] and his vision for the business."

Mr Murdoch said he had no role in the hiring, adding: "As you would expect, we did not seek or have any material influence and don't seek any special consideration."

While he knows Mr Grade, he had not seen him since the news. However, Mr Murdoch added with a smile that he would be contacting ITV's investor relations department shortly.

NTL's chief executive, Steve Burch, speaking later, refused to be drawn on ITV. However, asked to give his wish list for the regulator to address, he said he would like "material influence of competitors" and "monopolistic control of sports and movie rights" to be looked at.

Ofcom's chief executive, Ed Richards, said the regulator may be "stretched" to come back with a view on Sky's stake in ITV before Christmas.

Earlier he revealed Ofcom is considering whether to force BT, and possibly its rivals, to make broadband available to every British home. Once three in four homes have high-speed web access, it may be considered a necessity, he said, in the same way that BT must currently provide a phone line to anybody who asks for it, whatever the cost to BT.