[Media Boy]

Murdoch slams BBC for stifling competition

News Corporation's Europe and Asia CEO James Murdoch has hit out at the BBC for "crowding out" and "squashing" competitors with its iPlayer catch-up service.

In a Q&A after the UK Marketing Society's annual lecture in London last night, Murdoch said the iPlayer was "a pre-emptive intervention in a marketplace otherwise hugely competitive and moving very fast."

Murdoch added that the iPlayer had "hoovered up" otherwise productive resources and "squashed other competitors." He said: "I'm not saying it is a bad product, but I am saying it does crowd out competition and innovation. But we have it now, so there you are."

BSkyB's own catch-up service, Sky Anytime, runs on the same technology as the BBC iPlayer, the VeriSign-owned Kontiki platform.

Murdoch was asked whether he regretted BSkyB's £940m (US$1.47bn) purchase of a 17.9% stake in ITV, now that its shares have plummeted and competition authorities may force BSkyB to cut its holding to less than 7.5%.

"All shareholders would look and say the shares are worth less than what they were, and that's frustrating as an investor," said Murdoch, although he defended ITV, adding there was "potential over the long term for value to be realised" from the commercial terrestrial broadcaster.

"Over the long term ITV is still very attractive," he said.

Story from C21 Media.