Analysis: Sky TV likely to fall to Murdoch dynasty…if the regulators let it

by | Dec 16, 2016 | History, Satellites, Seradata News | 0 comments

Satellite Pay-TV and internet service provider Sky (formerly known as BSkyB) is likely to fall to a GBP£11.7 billion (US$14.2 million) take over bid by its largest shareholder 21st Century Fox, a firm controlled by the family of press and communications mogul, Rupert Murdoch which also owns FoxTV and the Twentieth Century Fox film studio. Twenty First Century Fox was previously split away from the Murdoch family’s News Corporation (which then had a majority ownership of BSkyB) after its own take over bid failed following controversies involving its newspaper titles spying on celebrities and members of the public using phone hacking.

This new bid is, however, more likely to succeed following a recommendation from an “independent of Fox” board of directors to Sky’s independent shareholders of which 75% will have to vote for the deal for it to through. If this happens, the bid will, however, still be subject to scrutiny from the UK Government and the UK’s Ofcom regulator, especially over fears that its well regarded (and well funded) Sky News service which is also available on free-to-air terrestrial television, might become politically biased.

For example, while not quite yet on the same scale of propaganda that Russian RT televised service broadcasts, nevertheless, Sky’s US equivalent in the planned merged firm, Fox News, has a similar reputation for poor news values and overt political bias – this time right wing.

As a possible sign of things to come, it was noticeable that this current bid was initially announced by Sky News with little reference to the interest that the Murdoch family holds.  Similarly, there has been a distinct unwillingness to report the drug allegations around the station’s Team Sky cycling team.

Of course, it could be argued that such right-wing bias on some television services might serve as a counterweight to the more subtle left-of-centre politically-correct bias that most other Western television media outlets consciously or unconsciously have. CNN, CBS and the BBC come to mind. If you are in any doubt, see BBC One’s clumsy promotion of “diversity-acceptance” in social attitudes in its latest Christmas advert (the movie My Beautiful Laundrette did a much better job of doing this back in 1985).

Sky originally became famous in the 1980s as a satellite television station whose business model has been to dominate live UK Sports broadcasting, initially  football and more recently cricket, Formula 1 Grand Prix motor racing, golf etc) via contracts with each sport’s governing bodies and thus force their fans aficionados to subscribe to its Pay-TV service. The strategy of making viewers pay for sports television coverage including major national events which had been previously available for free, was controversial at the time (and remains so), but politicians were (and still are) fearful of opposing this domination due to the media power of News Corporation.

Either way, whether fair to the television viewing public or not, this strategy worked and the service now has over 11 million subscribers who access it via satellite direct broadcasting from the SES satellite constellation, or via its broadband internet cabled-in system.

It is not just sport and news that the firm offers. While it has long had movie channels, in an attempt to diversify following increased competition in the pay-TV sports sector, Sky has increased its investment in its drama channels, for which it mainly buys US imported shows for, sometimes using its financial muscle to usurp other channels from popular shows. However, to its credit, Sky is also increasingly developing its own quality drama and arts content as a way to woo more subscribers.

In addition to its broadband internet service, the firm has also moved increasingly into the internet-based television “on demand” sector and has also recently announced moves to move into mobile communications with the formation of its Sky Mobile service.

 

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