Murdoch’s TV Pirates

Murdoch Hacking Scandal: The Downfall of ITV's OnDigital

Introduction

  • Panorama reveals a hacking scandal involving the Murdoch company and pay TV, focusing on the downfall of ITV's OnDigital.

  • The investigation uncovers a secret operation where a Murdoch company allegedly hacked down the competition.

The Importance of Pay TV Security

  • Pay TV piracy, involving hacking into smart cards, can lead to significant financial losses.

  • Smart cards are essential for pay TV businesses as they control access to channels and subscriptions.

Lee Gibbling and the House of Ill Compute (THOIC)

  • Lee Gibbling, a prominent figure in TV piracy, created a website called the House of Ill Compute(THOIC).

  • THOIC became a hub for hackers to exchange information on defrauding pay TV systems.

NDS Involvement

  • NDS, a Murdoch company, secretly hired Lee Gibbling instead of prosecuting him.

  • NDS invested significantly in THOIC, turning it into a global platform for pirates.

  • Ray Adams, an ex-policeman, and Len Withall were key figures in NDS's UK security unit.

  • Internal emails suggest that NDS was aware of the legal risks associated with THOIC.

Oliver Kommeling and Hacking Competitors

  • NDS recruited Oliver Kommeling, a skilled hacker, to analyze competitors' smart cards.

  • Kommeling cracked the Canal Plus card used by ITV's OnDigital.

  • The cracked codes were leaked onto the Internet, compromising OnDigital's security.

The Hack of OnDigital

  • Ray Adams allegedly sent codes to Lee Gibbling to manufacture counterfeit smart cards for OnDigital.

  • Counterfeit cards became widely available, leading to significant financial losses for OnDigital.

  • ITV Digital tried countermeasures, but THOIC provided updates to pirates.

The Collapse of ITV Digital

  • ITV Digital collapsed in 02/2002, costing shareholders over £1 billion and resulting in job losses.

  • The piracy was identified as the primary reason for the company's downfall.

NDS's Response and Denials

  • NDS denies any illegal activities and claims that they used THOIC to track and catch hackers.

  • Ray Adams and Len Withall have denied any involvement in the OnDigital hack.

Aftermath and Legal Actions

  • Lee Gibbling went abroad and received payments from NDS, including a £15,000 severance payment with a confidentiality clause in 02/2008.

  • Canal Plus sued NDS in 02/2002, but the case was halted when Rupert Murdoch purchased assets from Canal Plus.

  • A criminal trial in Sicily involves allegations of hacking into smart card systems, including NDSs.

Implications for the Murdochs

  • James Murdoch was a nonexecutive director of NDS during the hacking events.

  • OFCOM is examining whether Rupert and James Murdoch are fit and proper persons to control BSkyB.

  • The allegations of TV hacking pose serious questions about the corporate culture of the Murdoch Empire.