The chairman of the media giant in Europe, which owns the Times and Sun, also blamed the UK government for regulating the media "with relish".

"The expansion of state-sponsored journalism is a threat to the plurality and independence of news provision," he told the Edinburgh Television Festival.

"It is essential for the future of independent digital journalism that a fair price can be charged for news to people who value it," he said.

Former BBC director general Greg Dyke said Mr Murdoch's argument that the BBC was a "threat" to independent journalism was "fundamentally wrong".

He told BBC Radio 5 live: "Journalism is going through a very difficult time - not only in this country but every country in the world - because newspapers, radio and television in the commercial world are all having a very rough time."

He said declining advertising revenues in the recession, rather than the corporation, were to blame for the problems facing the commercial media.

but I ache for the day the Beeb realises its news operation doesn't need to chase ratings and can actually deliver news content of quality and honesty.