BBC Trust chief accuses Sky of misrepresentation

The satellite broadcaster BSkyB was today accused of misrepresenting its position in the market place in order to benefit commercially from the current debate over the future of the BBC.

In a speech tonight, Sir Michael Lyons, the chairman of the BBC Trust, the corporation’s governing body, said Sky’s claims to be in jeopardy from the size of the BBC were simply not credible.

“When a commercial competitor of the colossal scale, ambition and financial muscle of Sky attempts to position itself as seriously threatened by the very existence of the BBC, it can be hard to take such charges entirely seriously,” Sir Michael told an audience in Manchester.

Speaking days after the unveiling of a Strategic Review of the future of the BBC, the chairman of the Trust said commercial and political enemies of the corporation were trying to exploit a moment of uncertainty in the BBC’s history. “There are those who put private interests first – and who see the BBC as an obstacle to the furtherance of those private interests, whether they be commercial, or political, and who seek to further those interests by weakening the BBC.”

Sir Michael conceded that other critics of the scale of the BBC “genuinely want to see change to ensure the BBC serves the public better”. He expressed confidence that “the public very well understands the difference between the two kinds of critics”.

Rupert Murdoch’s News Corporation is the largest shareholder in BSkyB and last August, Mr Murdoch’s son James, who is chairman and CEO of News Corp in Europe and Asia and also non-executive chairman of BSkyB, gave a speech in which he complained of the “chilling” expansion of the BBC and said it threatened the future provision of news in Britain.

Yesterday Rupert Murdoch was in Abu Dhabi delivering a keynote address in which he called for light touch regulation in the Middle East media market in which News Corp is trying to expand. Murdoch’s Fox International is to move some of its operations to Abu Dhabi to partner with the state-sponsored company twofour54.

He told his Gulf audience that he could help them build wealth to rival that generated by the oil business. “A creative sector flourishes best in societies where governments intervene with a light hand. With these incentives in place, you will build a creative sector worthy of the great capital you have planned.”

Mr Murdoch, who has been angered by the erosion of News Corp profits by the free digital distribution of its content and will shortly introduce charges for access to the websites of The Times and The Sunday Times, made an attack on companies such as Apple and Amazon which have benefited from changing media consumption patterns. “These days our homes and offices are cluttered with the latest electronic devices. It is easy to be dazzled by this new technology. But the bright and shiny wonders that technology gives us can be like the desert sun – they can blind us to what is real and valuable. Amid the digital dazzle, we risk missing the magic: the creative content that brings these devices to life,” he said.

“What is a Kindle or an e-reader worth without books or newspapers or magazines to read on them? What is a cell phone without the access to e-mail, the photos of your children or your favourite websites? What is the most advanced high-definition TV without the dramas and comedies and news and sport to watch on it? The answer is this: Without creative content, these electronic devices are merely expensive playthings.”

Graham McWilliam, Sky’s Group Director of Corporate Affairs, said: “The commercial sector is used to hearing the Trust dismiss legitimate concerns about the scale and scope of the BBC. When it is hard to find anyone who thinks the Trust is doing a good job, public outbursts from its Chairman will do nothing to inspire increased confidence.”