I'm getting to be a little bit stunned about the ongoing reaction to the NotW story.
We have confessions of a person who pitches the issue of working for the Murdoch's as a kind of addiction. You get addicted to the excitement and ethos and forget about the values.
But elsewhere you have politicians claiming that News International execs tried to blackmail them with statements like "According to one account from a senior party figure, a cabinet minister was told that, if the government did not do as NI wanted, the Lib Dems would be "done over" by the Murdoch papers."
If only those politicians had thought to go the Hugh Grant route and record these conversations.
The episode does bring to mind the words attributed to Edmund Burke (though disputed) that "All that is necessary for the triumph of evil is that good men do nothing."
The more the NotW story goes on - the more that statement seems true.
Novae Meridianae Demetae Dexter delenda est
Showing posts with label NotW. Show all posts
Showing posts with label NotW. Show all posts
Monday, July 25, 2011
Wednesday, July 20, 2011
The Murdochs big show
I did not watch all of the Murdochs' appearance before the UK Parliamentary committee overnight. From what I did see I reach the following conclusions.
1. If the scenario painted by Rupert and James that the UK issues were all at the delegation level of the CEO in the UK then Rupert should have declined to appear.
2. Rupert clearly revealed that there is no effective managerial risk management process. There are things that occurred that were not notified to News Corp's senior executives that should have been.
3. Rupert Murdoch is now old - you could not reach a conclusion from watching his performance that he should be the CEO and Chairman of a major listed company.
4. News Limited's approach to the ethical questions has been to deal with them exclusively as legal questions, hence the excessive reliance on investigations by police rather than their own investigations.
From my purchase point the travesty would be if James takes a fall and Rupert survives. The problem of culture and governance that befell the company and resulted in its need to close NotW starts and ends with Rupert.
How can the shareholders, including his own family, not see that?
But really this video says it all...
Novae Meridianae Demetae Dexter delenda est
1. If the scenario painted by Rupert and James that the UK issues were all at the delegation level of the CEO in the UK then Rupert should have declined to appear.
2. Rupert clearly revealed that there is no effective managerial risk management process. There are things that occurred that were not notified to News Corp's senior executives that should have been.
3. Rupert Murdoch is now old - you could not reach a conclusion from watching his performance that he should be the CEO and Chairman of a major listed company.
4. News Limited's approach to the ethical questions has been to deal with them exclusively as legal questions, hence the excessive reliance on investigations by police rather than their own investigations.
From my purchase point the travesty would be if James takes a fall and Rupert survives. The problem of culture and governance that befell the company and resulted in its need to close NotW starts and ends with Rupert.
How can the shareholders, including his own family, not see that?
But really this video says it all...
Novae Meridianae Demetae Dexter delenda est
Thursday, July 14, 2011
More lessons from News Corp/International/Limited
Just so we are all clear - News Corp is the parent company, originally of Adelaide now of Delaware. News International is the UK operation. News Limited is the Australian operation.
The company name comes from the Adelaide News. Rupert's father was a journalist, editor then manager. He died with shares in some companies, not control of any. The executors sold the share of Herald and weekly Times allowing Rupert, his mother and siblings to retain the Adelaide News and a Queensland title (can't recall if it was the Courier-Mail).
Rupert sold the Adelaide News when he later acquired the HWT group - competition concerns wouldn't allow him to acquire the HWT title the Advertiser otherwise.
The purpose of this tale is to remind you of the structure of News Corp, and that Murdoch will happily adjust that structure to suit his needs.
An underlying question is what his commitment is to printed media, in particular newspapers. The recent acquisition of The Wall Street Journal clearly indicates Murdoch hasn't given up on print. Despite the public perception that Governments these days are made by television or even social media, Murdoch knows that enduring contributions stem from the daily drip of print that gets recycled in the electronic media.
That changes only when the contagion effect of rapid news transmission takes hold - the mob effect that I earlier referred to in the closure of News of the World.
That closure hasn't yet contained the damage, having to now walk away from the BSkyB bid.
The biggest issue with News Corp remains the ability of the 80 year old Murdoch to maintain control, and to create a family succession. The group faces periodic shareholder actions and the latest turmoil adds to those.
Some have speculated that Murdoch will go a step further and abandon the entire UK business. The challenge is that the shareholding base probably sees a change of executives not a change of structure as the solution.
This creates the possibility of the unthinkable - is the only way to save News Corp and the possibility of a family succession for Rupert to go now. If he accepts the blame for the culture and every other error there is no one left to pursue.
James and Elisabeth are both tarnished by the News International story (and the purchase of Shine). Lachlan is currently a relative clean skin - having effectively rejected the culture of his father.
Finally there is ample evidence that what goes on in News is cultural - by which one means unstated by widely accepted norms of behaviour. News Limited has been playing the game pretty solidly over its support of the Sky News bid for Australia Network - even though the ownership is through News International.
Today the Oz has run a story as a kind of "counter corruption" story suggesting inappropriate behaviour by ABC execs in support of the ABC bid. Ultimately the prohibition on lobbying during tendering is an obligation on those being lobbied not the lobbyists. I would be dearly interested in knowing if anyone from News or Seven or lobbyists acting on their behalf has said anything to any Minister about the tender. The difficulty is getting anyone to admit to it - on either side.
Note: A couple of reading recommendations. The Shawcross biography of Murdoch
is far better than Wolff's The Man Who Owns the News
, but the latter is more up to date. The story of subscription television in the UK, and the eventual merger of Sky and BSB to make BSkyB is well told in Dished! The Rise and Fall of British Satellite Broadcasting.
)
Novae Meridianae Demetae Dexter delenda est
The company name comes from the Adelaide News. Rupert's father was a journalist, editor then manager. He died with shares in some companies, not control of any. The executors sold the share of Herald and weekly Times allowing Rupert, his mother and siblings to retain the Adelaide News and a Queensland title (can't recall if it was the Courier-Mail).
Rupert sold the Adelaide News when he later acquired the HWT group - competition concerns wouldn't allow him to acquire the HWT title the Advertiser otherwise.
The purpose of this tale is to remind you of the structure of News Corp, and that Murdoch will happily adjust that structure to suit his needs.
An underlying question is what his commitment is to printed media, in particular newspapers. The recent acquisition of The Wall Street Journal clearly indicates Murdoch hasn't given up on print. Despite the public perception that Governments these days are made by television or even social media, Murdoch knows that enduring contributions stem from the daily drip of print that gets recycled in the electronic media.
That changes only when the contagion effect of rapid news transmission takes hold - the mob effect that I earlier referred to in the closure of News of the World.
That closure hasn't yet contained the damage, having to now walk away from the BSkyB bid.
The biggest issue with News Corp remains the ability of the 80 year old Murdoch to maintain control, and to create a family succession. The group faces periodic shareholder actions and the latest turmoil adds to those.
Some have speculated that Murdoch will go a step further and abandon the entire UK business. The challenge is that the shareholding base probably sees a change of executives not a change of structure as the solution.
This creates the possibility of the unthinkable - is the only way to save News Corp and the possibility of a family succession for Rupert to go now. If he accepts the blame for the culture and every other error there is no one left to pursue.
James and Elisabeth are both tarnished by the News International story (and the purchase of Shine). Lachlan is currently a relative clean skin - having effectively rejected the culture of his father.
Finally there is ample evidence that what goes on in News is cultural - by which one means unstated by widely accepted norms of behaviour. News Limited has been playing the game pretty solidly over its support of the Sky News bid for Australia Network - even though the ownership is through News International.
Today the Oz has run a story as a kind of "counter corruption" story suggesting inappropriate behaviour by ABC execs in support of the ABC bid. Ultimately the prohibition on lobbying during tendering is an obligation on those being lobbied not the lobbyists. I would be dearly interested in knowing if anyone from News or Seven or lobbyists acting on their behalf has said anything to any Minister about the tender. The difficulty is getting anyone to admit to it - on either side.
Note: A couple of reading recommendations. The Shawcross biography of Murdoch
is far better than Wolff's The Man Who Owns the News, but the latter is more up to date. The story of subscription television in the UK, and the eventual merger of Sky and BSB to make BSkyB is well told in Dished! The Rise and Fall of British Satellite Broadcasting.)Novae Meridianae Demetae Dexter delenda est
Monday, July 11, 2011
I feel sorry for Kerry Stokes
Let's be clear, Sky News in Australia is a JV that not only includes News Ltd (through BShyB) but also Kerry Stokes' Seven Network and the Nine Network. So in the consideration of the Australian Network TV tender Stephen Conroy has to deal with not one but three powerful media interests - two still being "mogul" controlled.
I'm not one of those who immediately see Conroy's interest as being supporting the ABC's bid. Successive Communications Ministers have often sided with the political imperative of satisfying the moguls before supporting the public broadcaster.
But how, one asks, could the Government seriously contemplate awarding a contract for the flagship of soft-diplomacy, our broadcast of "Australian values" to the region and beyond be tainted by the involvement of an empire that is now in such disgrace.
Let's be clear this is a Murdoch issue, not a News of the World one. as the referred article notes;
The hacking scandal currently shaking Rupert Murdoch’s empire will surprise only those who have willfully blinded themselves to that empire’s pernicious influence on journalism in the English-speaking world. Too many of us have winked in amusement at the salaciousness without considering the larger corruption of journalism and politics promulgated by Murdoch Culture on both sides of the Atlantic. ...
Private detectives and phone hackers do not become the primary sources of a newspaper’s information without the tacit knowledge and approval of the people at the top, all the more so in the case of newspapers owned by Rupert Murdoch, according to those who know him best.
As one of his former top executives—once a close aide—told me, “This scandal and all its implications could not have happened anywhere else. Only in Murdoch’s orbit. The hacking at News of the World was done on an industrial scale. More than anyone, Murdoch invented and established this culture in the newsroom, where you do whatever it takes to get the story, take no prisoners, destroy the competition, and the end will justify the means.”
It is worth noting that the ownership in Sky News is NOT by the local News Limited, but by BSkyB - which in turn is part of News International (only controlled though - Murdoch is currently seeking full ownership).
Quite simply Sky News should no longer be considered on ethical grounds - which seems harsh to Seven and Nine, but unavoidable so long as Murdoch shows no contrition - or even understanding about his moral bankruptcy. Murdoch's attitude is telling as this report notes;
David Cameron was given a personal guarantee by Rupert Murdoch that Andy Coulson was safe to take on as his Downing Street press chief, The Independent on Sunday learnt yesterday, as the fallout from the News of the World phone-hacking scandal threatened to escalate into all-out war between the UK's two most powerful men.
Rupert Murdoch has survived a number of "near death" experiences in the past - all previously near financial crises. This time the stakes are even bigger - it is his own credibility that is at stake. My personal bet is that Rupert Murdoch and James Murdoch will not be senior executives at News Corp by the end of August.
Novae Meridianae Demetae Dexter delenda est
I'm not one of those who immediately see Conroy's interest as being supporting the ABC's bid. Successive Communications Ministers have often sided with the political imperative of satisfying the moguls before supporting the public broadcaster.
But how, one asks, could the Government seriously contemplate awarding a contract for the flagship of soft-diplomacy, our broadcast of "Australian values" to the region and beyond be tainted by the involvement of an empire that is now in such disgrace.
Let's be clear this is a Murdoch issue, not a News of the World one. as the referred article notes;
The hacking scandal currently shaking Rupert Murdoch’s empire will surprise only those who have willfully blinded themselves to that empire’s pernicious influence on journalism in the English-speaking world. Too many of us have winked in amusement at the salaciousness without considering the larger corruption of journalism and politics promulgated by Murdoch Culture on both sides of the Atlantic. ...
Private detectives and phone hackers do not become the primary sources of a newspaper’s information without the tacit knowledge and approval of the people at the top, all the more so in the case of newspapers owned by Rupert Murdoch, according to those who know him best.
As one of his former top executives—once a close aide—told me, “This scandal and all its implications could not have happened anywhere else. Only in Murdoch’s orbit. The hacking at News of the World was done on an industrial scale. More than anyone, Murdoch invented and established this culture in the newsroom, where you do whatever it takes to get the story, take no prisoners, destroy the competition, and the end will justify the means.”
It is worth noting that the ownership in Sky News is NOT by the local News Limited, but by BSkyB - which in turn is part of News International (only controlled though - Murdoch is currently seeking full ownership).
Quite simply Sky News should no longer be considered on ethical grounds - which seems harsh to Seven and Nine, but unavoidable so long as Murdoch shows no contrition - or even understanding about his moral bankruptcy. Murdoch's attitude is telling as this report notes;
David Cameron was given a personal guarantee by Rupert Murdoch that Andy Coulson was safe to take on as his Downing Street press chief, The Independent on Sunday learnt yesterday, as the fallout from the News of the World phone-hacking scandal threatened to escalate into all-out war between the UK's two most powerful men.
Rupert Murdoch has survived a number of "near death" experiences in the past - all previously near financial crises. This time the stakes are even bigger - it is his own credibility that is at stake. My personal bet is that Rupert Murdoch and James Murdoch will not be senior executives at News Corp by the end of August.
Novae Meridianae Demetae Dexter delenda est
Friday, July 08, 2011
The power of Social Media - the new News of the World
News International has announced the closure of News of the World.
We all know this is the result of the hacking scandal - but why close?
Ultimately the masthead was being rapidly abandoned by advertisers - in part fuelled by a Twitter campaign.
And Facebook provided a place for others to vent anger. I heard a freport but can't find it that a Facebook group was encouraging people to confront anyone with a copy of NotW to get them not to buy another.
The interesting question is whether NotW is the only British tabloid to engage in the hacking, with one Australian academic speculating that others were at it too.
This is another example of "mob-rule" this time potentially positive. But in a highly connected world everyone in business and politics needs to understand how what once might have been a mere legal problem or embarrassment can turn into complete devastation very, very quickly.
Meanwhile the question remains how far up the tree there was knowledge of these practices?
Novae Meridianae Demetae Dexter delenda est
We all know this is the result of the hacking scandal - but why close?
Ultimately the masthead was being rapidly abandoned by advertisers - in part fuelled by a Twitter campaign.
And Facebook provided a place for others to vent anger. I heard a freport but can't find it that a Facebook group was encouraging people to confront anyone with a copy of NotW to get them not to buy another.
The interesting question is whether NotW is the only British tabloid to engage in the hacking, with one Australian academic speculating that others were at it too.
This is another example of "mob-rule" this time potentially positive. But in a highly connected world everyone in business and politics needs to understand how what once might have been a mere legal problem or embarrassment can turn into complete devastation very, very quickly.
Meanwhile the question remains how far up the tree there was knowledge of these practices?
Novae Meridianae Demetae Dexter delenda est
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