Rupert Murdoch Calls for Mideast to Encourage Creative Sector

ABU DHABI: Delivering a speech titled "The Greatest Resource of All" at the Abu Dhabi Media Summit yesterday, News Corporation chief Rupert Murdoch called on the Middle East to foster its creative sector and rally against censorship.

Murdoch stressed the importance of creating good content that will fill the "latest electronic devices" on the market today. "Without creative content, these electronic devices are merely expensive playthings," he said. "Your citizens know this, because they are among the earth’s most sophisticated consumers. They watch films from all parts of the world. And they own all the best and latest gadgets. That is a good thing. Your citizens should be free to take full advantage of human creativity wherever they find it. But they also deserve the opportunity to add their own creative contributions to our vast and growing media world."

To foster this content creation, he said, "you need businesses willing to invest in creativity, to nurture talent, and to build audiences that will buy and enjoy the fruits of this enterprise. That takes the right incentives. By unlocking the creativity of your people, you can diversify your economy … provide millions of jobs for a rising generation … and give the Arab people a global voice and influence commensurate with your importance."

Murdoch noted that the Middle East is currently not known for its television or film productions "Even your own citizens often look elsewhere for a film or television show or news site. As a result, many of your own citizens prefer Hollywood movies or American television shows to local production."

Changing this by investing in Middle Eastern content, Murdoch added, could create jobs across the region—"most of them environmentally friendly, well paying, and contributing to a better quality of life for all. The good news is that the geographic borders that once limited your potential are today largely irrelevant."

As an example, Murdoch pointed to the Indian film My Name Is Khan.
 "In all its aspects, this film speaks to the cross-border soul of the creative industry. The film is a joint venture between an Indian company and an American company. It is a story told from the point of view of a Muslim. It was financed in part from Abu Dhabi. It features Indian stars who are popular in this region. It is attracting huge audiences here in the Middle East … in India … in the U.K. … in the United States. The popularity of My Name Is Khan reminds us that no nation has a monopoly on creative content. If you tell a good story, people will respond."

Moving on to discuss what is required to boost the creative sector, Murdoch stated, "you need money. High-quality content is expensive. The simple fact is that if you want quality content, you need to encourage a marketplace where money flows to those who invest in and create that content." The region also needs a "transparent market," he said, "that helps ensure that people receive a fair price for the value they create."

Creating transparency in the ad market requires better audience analytics, Murdoch explained. "Advertisers and creators need metrics that tell them who they are reaching and how effective their message is—or else they are simply throwing money in the dark. A more transparent advertising market will also encourage media buyers and sellers to compete for business. By contrast, opaque markets tend to be unfairly dominated by one or two players. This can be a cozy arrangement for those players. But a nation pays a very high price for this cozy arrangement—because it takes away the financial engine needed to drive investment in local content."

Advertising, Murdoch noted, is only one aspect of injecting money into the creative sector. "In many parts of the world, we are finding that the best way to finance quality content is by having a balance of advertising and subscription revenue. So a thriving creative sector also needs to be open to new business models that allow companies to know their customers better. The stronger the relationship between media companies and their customers, the more they will cater to local tastes—and invest in the technology that makes for a better experience."

Murdoch also used his speech to stress the importance of allowing foreign competition in media markets. "Japan is a good example of a modern nation with a protected—and limited—creative sector. As a result, Japanese citizens pay higher prices for more limited fare. The Japanese economy has fewer jobs for its workers. And Japanese culture is denied the global voice that a nation which boasts the world’s second largest economy ought to have. In short, creative protectionism is as destructive as other types of protectionism. It is expensive … it is unfair … and it guarantees that local companies coddled by protection will never be strong enough to compete outside their own borders."

He went on make a point about censorship and the need for open and unfettered media markets. "In 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."

In conclusion, Murdoch said: "Your people are eager, talented, and young. They have aspirations in common with their peers in other parts of the world—yet they hold fast to the traditions that make them unique. Give them a society that rewards creativity. When you do, you will breathe life into your blueprints—and build a future worthy of your grand boulevards and glistening skyscrapers."