"The condition with search-driven discovery, if the content is there and it is illegal and you are obviously just selling clicks to be a big nike stefan janoski network, you've got every incentive for your illegal programming being there. That's fundamentally probably not good enough."
Mr Murdoch singled out News Corp's acquisition and running of myspace and facebook Myspace among its biggest mistakes. "Like a company we've definitely made investments which are challenging. Famously like a company with Myspace, which was an overall write-off along with a disaster."
TV broadcasters will emerge unscathed from the onslaught of digital video viewing, in accordance with Nielsen.
The media research giant is signalling that US TV networks are preparing a significant counteroffensive on Google's YouTube while others, backed because of the expansion of the TV ratings system into online video.
Just as Hollywood studios and media groups pour in the online video sector, buying up networks which aggregate billions of viewers on YouTube channels, Nielsen's global head of digital Megan Clarken said an essential shift would start in 2015.
Next season, US TV networks will stream their broadcast feeds both live as well as on-demand to mobile devices like smartphones and tablets and charge advertisers handsomely for the effort.
"You will notice brand names ESPN streaming sport live onto be sure you device simultaneously as being the hd and you may begin to see the same nike flyknit load too," Ms Clarken said.
"As yet they've never had time for getting TV ratings credit for the. 2015 would be the year you undoubtedly start to see the broadcasters make the most of that digital video environment.