The economics of free expression

Like him or loathe him, when Rupert Murdoch has something to say it's always worth listening. Giving the opening speech (full text here) to the Abu Dhabi Media Summit yesterday, he made an economic case for freedom of expression in the Middle East. And it was presented in a way that many in the audience must have found tempting.

Murdoch, whose News Corporation owns the Wall Street Journal, New York Post and Fox in the US as well as the Times and the Sun in Britain, pointed out that Arab countries will need to create 50 million new jobs in the next 10 years. 

"A thriving creative industry would contribute many of these jobs," he said, "most of them environmentally friendly, well paying, and contributing to a better quality of life for all."

Citing Indonesia as an example of what can be achieved, he continued:

"Recently I had dinner with the trade minister from another Muslim country, Indonesia. We started talking about the economic value of a creative sector. She told me that the creative sector now accounts for more than 5.4 million jobs and 6% of the Indonesian economy – and is the country’s fifth largest source of exports. She also told me her government set a target that would nearly double the contribution to GDP by 2025. Think of the millions of stimulating new jobs that would mean for the Indonesian people."

It was a clever speech, with a mixture of flattery ("Making guests feel at home is a long and honoured tradition in your culture") and appeals to national pride ("Many of your own citizens prefer Hollywood movies or American television shows to local production"), with an old Arabic proverb thrown in (“If a wind blows, ride it”). 

He also held back from criticising media restrictions directly (one of his own papers, the Times, was recently censored in Dubai) and even empathised with Arab rulers who are confronted "with the occasional inconvenient or unwelcome story". But he argued that this is something they will have to learn to live with:

"I speak from some personal experience. Throughout my life, I have endured my share of blistering newspaper attacks … unflattering television coverage … and books that grossly distort my views or my businesses or both.

"I have learned that this kind of coverage is a fact of life in a modern media society. I have learned too that it is the price one pays for success.

"For a nation, the stakes are even higher. In [the] face of an inconvenient story, it can be tempting to resort to censorship or civil or criminal laws to try to bury it. ... In the long run, this is counterproductive. Markets that distort their media end up promoting the very panic and distrust that they had hoped to control.

"Certainly each nation and culture has the right to insist that the people they allow into their countries to do business respect their national values and traditions. This is best administered, however, with a gentle touch. Human creativity flourishes in freedom. By making the decision for greater openness, you will signal the importance you have assigned to creativity in your plans for the future – and declare your confidence in your people."

Of course, Murdoch has his own reasons for saying this. He recently bought a stake in the Rotana media and entertainment group which, among other things, is the largest producer of Arab music. Rotana is owned by Prince Alwaleed bin Talal of Saudi Arabia and there are still many in the kingdom who  regard its activities as immoral. Strict Wahhabis, for example, believe music is forbidden.

"To be frank, Rotana does not really need our financing," Murdoch said. "We are partnering with Rotana for something more ambitious: To tap into Arab talent and ultimately produce original Arab content for markets both here and abroad." He continued:

"Yesterday we further extended our presence by announcing a strategic partnership between Fox International Channels and Abu Dhabi’s twofour54. First, we will move some of our satellite channels from Hong Kong to here. Second, we will establish a production office here for one of our documentary filmmaking companies. And third, we will headquarter the Middle Eastern operations for our global online advertising network business in Abu Dhabi as well.

"I mention these partnerships only to emphasise that my words are backed up by my investments. With these new partnerships, we are sending a message. When we look to the future, News Corporation is betting on the creative potential of the more than 335 million people who make up the Arab world."

What I find interesting about all this is not Murdoch's own plans – how many Arabs really want to watch Fox News? – but the fact that he's extending his business to the Middle East. His media empire is involved in many countries (even China) but up to now he has steered clear of the Arab countries, for obvious reasons: there were just too many restrictions. Clearly, he senses that the media climate is changing, at least in some parts of the region: "If a wind blows, ride it."