Murdoch also announced that News Corp Europe, along with TF1, France's main television company, are in advanced discussions with Telecom Italia regarding the formation of a joint venture to develop the Italian pay TV market.

News Corp Europe and TF1 are also in talks about launching a channel targeted at the 15-35 year old age group, to be distributed in France initially by cable and satellite.

Letizia Moratti has been appointed chairman of News Corp Europe. She is the former chairman of Rai, the Italian state broadcaster.

"Following the outstanding success of BSKVB in the UK, we see opportunities to participate in media developments across Europe. We are delighted to be working with Letizia Moratti, who has both the vision and experience to helpus achieve our ambitions," said Murdoch.

"The arrival of digital services and the expected consolidation in the industry will provide opportunities that News Corp Europe will be perfectly placed to capitalise on," Moratti said.