Murdoch Ventures Into Music Business

Japan’s Michael Jackson is in business with Rupert Murdoch.

At a loud, glitzy Beverly Hills news conference lit by screens showing Japanese music videos, Tetsuya Komuro, Japan’s leading musical artist and producer with 100 million record sales to his name, was formally introduced as the new partner in “TK News.”

The company is a joint venture with Murdoch’s News Corp. that will try to market Komuro-produced music initially in Taiwan, Hong Kong and China and eventually promote the music globally through Murdoch’s extensive satellite television operation.

Virtually unknown in the U.S., Komuro--whose nickname is TK--is a huge celebrity in Japan, with a stature there approaching something of a cross between Jackson and music producer Quincy Jones. His celebrity was evidenced Friday by the ballroom full of Japanese reporters and camera crews.

For News Corp., the move is part of an effort to plug one of its biggest holes in Murdoch’s global media empire--the lack of a major music operation.

Although Murdoch is frequently rumored to be a possible bidder for major music companies, newly named News Corp. President and Chief Operating Officer Peter Chernin said the company isn’t aiming at a major music acquisition. Instead, he said, News Corp. will develop a music presence in an “entrepreneurial” way.

Still, given that Murdoch is involved, the music industry is clearly taking notice. Among the major music executives at the news conference were Virgin Records President Phil Quartararo.

On a subtle level, the conference was significant in that it marked a further stepping forward publicly for Murdoch’s sons, Lachlan, 25, and James, 23. Murdoch has stated publicly that one day he hopes to pass on his global media empire to his children. Murdoch’s daughter Elisabeth, 28, who wasn’t present, also is active in the company.

Lachlan Murdoch, who is managing director of News Corp.’s Australian subsidiary, was one of the featured executives at the conference, along with Chernin and Komuru.

James, who was quietly named vice president of music and new media for News Corp. recently, has until now played no active role in his father’s company, running a music company in New York he started with friends. Still, he stayed in the background during the news conference.

Chernin declined to elaborate on financing arrangements, but suggested that News Corp.’s seed money wasn’t that much. He said the venture could turn profitable in a year or two.

Komuro said he plans to find and develop Asian artists in various countries. Executives at the briefing predicted that some of those artists might someday receive exposure in the U.S. as TK News expands operations.