News Corp Supplies Information, Defies Accountability

WHO IS THIS GIT?

If you can't place the face of the shar pei in the photo above, you're not alone. His is not exactly a household name, but it should be. Just as most Americans don't realize that we get almost ALL of our news and information from a grand total of only six companies, most of us don't know who runs those companies, or realize how much their personal, private interests influence our world view. 

So allow me to introduce you to one Rupert Murdoch, octogenarian and media mogul extraordinaire. Murdoch is the Chairman and CEO of News Corporation, a.k.a. News Corp, and he's on our radar this week because one of his British companies, the tabloid paper News of the World, has just been caught hacking into thousands of voicemail accounts in pursuit of tabloid fodder. Had they stuck simply to the voicemails of celebrities, the scandal would likely not have reached across a desk, let alone the pond. But News of the World employees crossed a line of social acceptability when they reportedly also hacked the accounts of high profile crime victims, including the families of victims of terrorist attacks, even going so far as to delete messages that could arguably have affected the outcome of criminal trials.

WHAT DOES THE MEDIA DO WHEN THE MEDIA IS THE NEWS?

The story would be scandalous enough on its own, but taking into account News Corp's massive influence on the media, the repercussions are somewhat overwhelming. To give you an idea of Murdoch's scope of influence, News Corp is the parent company of all FOX tv stations (including FOX News), 20th Century FOX Studios, the New York Post, the Wall Street Journal, National Geographic, TV Guide, Harper Collins Publishers, and MySpace...just to name a few. You can see a list of News Corp's holdings here.

This one man's decisions reach into pretty much every household in the U.S., not to mention the rest of the world, so how he runs his ship is a matter of some importance. Which might lead one to wonder why his is not a household name. The answer, of course, is that when you run one of the six major media conglomerates, you get to decide exactly how much you want, or don't want, your name to appear in the news. But a scandal of this size is hard to squelch, even if you own the companies reporting on it.

Murdoch, of course, has responded by insisting that the hacking was the result of a few rogue reporters, and has refused to criticize or condemn, let alone fire, News Of The World editor Rebekah Brooks.

The move highlights a tendency of the media mogul to protect his own, industry watchers say....

"He will reward loyalty with loyalty," said Steven Barnett... "It's a case of being one of us."

"If she has 100 percent backing from Rupert Murdoch, which is the word coming out of News Corp, then clearly she is untouchable and more importantly it shows that Murdoch himself thinks the company is untouchable," he adds.

Murdoch has long been criticized by insiders for mixing business with both family and politics, and Brooks is a longtime friend of British Prime Minister David Cameron, whose campaign can credit support in Murdoch's press for much of its success. And though his son and presumed heir James Murdoch has announced the closing of News Of The World, much speculation remains that the end of one Murdoch tabloid is simply the beginning of another. 

Shutting News of the World looks like such a grand gesture. In fact, it's another attempt to look like something is being done -- while in fact changing nothing fundamental within News International.

Shutting the 168-year-old paper isn't a great sacrifice (although, since it was Murdoch's first UK paper, he may feel sentimental about it); it's just bowing to the inevitable. No one wanted to advertise, no one wanted to buy and precious few people wanted to appear in the paper: better to shoot it and put it out of its misery.

But the fact that the URLs for SunonSunday.com and SunonSunday.co.uk were reserved fully two days ago suggests that News International may just be planning to switch its employees over to a "new" paper just like the "old" paper -- but with a new name. This rebranding will fool no one. The fact that the teams are still headed by Rebekah Brooks means nothing will have changed....

Indeed, this smacks of the old tactic of one business committing fraud, declaring bankruptcy, and closing - only to re-open under a new name with a free pass to continue the same old business model. This may be a tried and true business tactic, but it leaves one to wonder, should Murdoch's companies really be trusted as the primary source of so very much of our information?

UPDATES: 

7/11/2011:  Melissa Bell of the Washington Post updates us on the rumors surrounding the scandal, including reports that journalists hacked the voicemails of 9/11 victims as well as the Prime Minister.

7/12/2011: Jonathan Schell provides an in-depth analysis of the scandal and its implications, both social and political, via CNN:

The Murdochs call News Corporation a journalistic enterprise. In fact, it is, first, an entertainment company, with the bulk of its revenue coming from its film and television holdings. Second, and more importantly, it is a propaganda machine for right-wing causes and political figures.

 7/13/11: The FBI has reportedly opened an investigation into News Corp in response to employees allegedly hacking into the voicemail accounts of 9/11 victims. 

7/17/11: Despite efforts to stem backlash from the scandal by resigning her position with News Corp, former NOTW editor Rebekah Brooks has now been arrested and is being held on charges related to corruption and conspiracy to intercept communications.