Murdoch pledges Italian investment

21st Century Fox co-chief operating officer James Murdoch has told Italy’s prime minister of plans to invest over US$50m in new drama for its Sky Italia pay TV division.

Murdoch and Sky Italia MD Andrea Zappia told priemier Matteo Renzi that €40m (US$55m) would be spent on production in the country and said its TV industry had “big, unexpressed potential.”

Renzi is keen to attract investment to boost Italy’s ailing economy while Murdoch, and Sky Italia are looking to bolster their scripted output following the success of Sky Italia’s mobster series Gomorra. It has already been sold to networks in more than 60 territories, including TWC in the US.

The plans will see Sky Italia invest in The Young Pope, which explores the life of an imaginary Italian-American pontiff. It is being produced by Italian prodco Wildside at the country’s Cinecitta Studios.

The pay TV firm is also investing in 10-part criminal series Diabolik, which follows a thief who changes his identity to evade capture. It is being produced at Cinecitta by Cattleya and is the first project co-funded by 21st Century’s three pay platforms: Sky Italia, BSkyB in the UK and Sky Deutschland.

BSkyB is currently bidding to buy out 21st Century Fox’s interests in its sister operations in Germany and Italy and has entered into preliminary discussions to tie up a deal that could be worth as much as €10bn.

Murdoch added that the extension of Italian tax credits to include TV productions could also encourage further investment. The changes mean local producers get a 20% tax break while foreign productions can claim a 25% tax credit.

Murdoch has direct responsibility for the group’s TV interests such as Fox Networks Group in the US and BSkyB in the UK and is set to address delegates on the opening day of Mipcom’s 30th anniversary event.

Confirmation of Murdoch’s appearance followed his recent promotion at Fox, and comes as the firm look to form a joint venture with Apollo Global Management that will bring Shine Group, Core Media Group and Endemol under one umbrella.