Campaigners dressed up as Theresa May and Rupert Murdoch protest against Murdoch's takeover bid for Sky in Parliament Square, London. December 20, 2016. Stefan Rousseau, Press Association. All rights reserved.Rupert Murdoch launched Sky television as a UK-targeted satellite television service in 1988. Its meagre offering included a movie channel, an entertainment channel, the UK’s first 24-hour news channel and a rudimentary sports package. Few expected it to survive.
Survive it did, but only after nearly bankrupting Murdoch’s master company, News Corporation (NewsCorp hereafter), entering a forced merger with its rival (British Satellite Broadcasting), reducing the NewsCorp stake in the merged company to below 40% in order to facilitate a public flotation, and seeing a swathe of legislation introduced to prevent NewsCorp – or Sky – ever owning any significant part of ITV.
Through those 28 years, Murdoch has subsidized Sky News, whether as sole owner in the early years, or part owner ever since. At least £500 million must have been invested so far, without any real prospect of the service making a profit (especially after the BBC launched its own 24-hour news channel). Throughout this period, Sky News has won multiple awards, been recognized as a highly successful editorial offering, diligently observed UK licensing requirements for impartiality and accuracy, and pioneered a range of developments such as the Prime Ministerial debates during elections.
