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http://iss.sagepub.com
International Sociology
DOI: 10.1177/02685809080907252008; 23; 488
International Sociology 
Amelia Arsenault and Manuel Castells
Politics: A Sociological AnalysisSwitching Power: Rupert Murdoch and the Global Business of Media
http://iss.sagepub.com/cgi/content/abstract/23/4/488
 
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distribution. © 2008 International Sociological Association. All rights reserved. Not for commercial use or unauthorized
 at SAN FRANCISCO STATE UNIV on June 27, 2008http://iss.sagepub.comDownloaded from 
 
488
Switching Power: Rupert Murdochand the Global Business of MediaPolitics
 A Sociological Analysis
 Amelia Arsenault and Manuel Castells
University of Southern California, Annenberg School for Communication
abstract:
This article proposes a hypothesis on the nature of power in the networksociety, the social structure of the Information Age. It argues that the ability tocontrol connection points between different networks (e.g. business, media andeconomic networks) is a critical source of power in contemporary society. It thentests this hypothesis through a case study of Rupert Murdoch, CEO of NewsCorp.The operational dynamics of Rupert Murdoch and NewsCorp are examined inorder to illustrate how corporate media actors negotiate the power dynamics ofthe network society to serve their overarching business goals. It identifies keystrategies used by these actors to penetrate new markets and expand audienceshare including: political brokering, leveraging public opinion, instituting sensa-tionalist news formulas, customizing media content and diversifying and adapt-ing media holdings in the face of technological and regulatory changes.
keywords:
media ownership
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networks
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NewsCorp
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Rupert Murdoch
Introduction
In the network society, power relationships are largely defined within thespace of communication (Castells, 2007). This means that global mediagroups are key social actors because they help to shape the social world by exerting control over issue-framing and information gatekeeping.Communication platforms have played decisive roles at every stage ofhuman evolution; however, in the network society multimedia organiza-tions wield unparalleled influence (Bagdikian, 2004; Bennett, 2004;Curran, 2002; Thussu, 2006). These organizations play dual roles. They arenot only corporate and media actors in their own right, but they control a
International Sociology
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July 2008
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Vol. 23(4): 488–513
© International Sociological Association
SAGE (Los Angeles, London, New Delhi and Singapore)DOI: 10.1177/0268580908090725
ANALYSES OF POWER RELATIONS
 
 Arsenault and Castells
Switching Power 
489
disproportionate number of communication delivery platforms that con-stitute the space in which power – whether it is political, economic orsocial – is articulated.However, power-making is a complex and contradictory process thatcannot be reduced to direct domination of media groups over politicalactors or vice versa. In this article, we first propose a hypothesis on thenature of power in the network society, the social structure of theInformation Age (Castells, 2000). We then conduct a case study of RupertMurdoch and NewsCorp (News Corporation) in order to illustrate howcorporate media actors negotiate the power dynamics of the networksociety to serve their overarching business goals.Amid controversy and criticism about media’s undue influence in con-temporary society, Murdoch, the majority shareholder and managing direc-tor of NewsCorp, stands out as the archetypal media mogul. He has beencalled the ‘media’s demon king’, the living embodiment of Charles FosterKane and ‘the global village’s defacto communications minister’ (Farhi,1997; Low, 1998). Political pundits, politicians and anti-conglomerationactivists typically present Murdoch’s Goliath-like status as paradigmatic.But what is the reality behind the rhetoric? We argue that as the head ofthe world’s third largest media conglomerate, NewsCorp – arguably themedia organization with a truly ‘global’ reach – Murdoch is particularlysituated to wield power. Moreover, and perhaps most importantly, hispower is augmented by his ability to act as what Castells (2004) concep-tualized as a ‘switcher’, or a connection point between political, eco-nomic and media networks that facilitates their cooperation byprogramming common goals and resources. This power is measured byhis ability to influence these networks in the service of NewsCorp andMurdoch’s ultimate goal – the financial expansion of NewsCorp.
Power in the Network Society
Where does power lie in the network society? On the one hand, the powerto exclude human communities or individuals from the networks thatconstitute the commanding structure of the network society is the mostfundamental mechanism of domination. In this case, power operates byexclusion/inclusion. On the other hand, if we consider those who areincluded in the networks, the capacity to assert control over othersdepends on two basic mechanisms: (1) the ability to program/reprogramthe goals assigned to the network(s); and (2) the ability to connect differ-ent networks to ensure their cooperation by sharing common goals andincreasing their resources.The holders of the first power position are the programmers; the holdersof the second power position are the switchers. The capacity to program a
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