James Murdoch, the chief executive of News Corporation in Europe and Asia, accused the BBC last night of crowding out its competitors with its iPlayer television-over-internet service.

Mr Murdoch, giving his first speech since moving from BSkyB to News Corporation, the parent company of The Times, also defended his decision to invest in ITV, even though the commercial broadcaster’s shares have fallen by half.

He defended News Corp in China and said that there remained good prospects for growth in the newspaper business.

He said that the iPlayer was “a big step, a pre-emptive intervention” that was “squashing a lot of competitors”. Although he said “I am not saying the iPlayer is a bad product”, he made clear that he would rather it did not exist.

The iPlayer, which was launched on Christmas Day last year, allows viewers to watch BBC programmes that have been transmitted in the previous seven days.

It has rapidly become popular and is the UK’s most successful internet television service developed by a main stream broadcaster.

Mr Murdoch made his remarks about the iPlayer during a question and answer session after a lecture given tonight at a dinner hosted by the Marketing Society in London.

His comments about the BBC service were typical of a candid session after he had made a carefully crafted speech emphasising the importance of free markets and competition in broadcasting.

The first question to Mr Murdoch was asked by Stevie Spring, the chief executive of Future, the magazine publisher.

She pressed him on whether he “regretted his investment in ITV” — which was made at 1.35p a share 18 months ago. ITV shares closed yesterday at 63p.

”Clearly the market thinks the shares are worth less than what they were and that’s frustrating as an investor," he said.

"I still believe in the broadcast medium — a particular broadcaster with a great brand and a great position is a fantastic thing.”

Mr Murdoch went on to say that he “still believed in the strength and potential of ITV” because of its ability to reach mass audiences.

He was also questioned about News Corp's decision to broadcast in China. He said that the company’s Star TV business “was the only broadcaster in China to show the events on September 11 live” and that joint venture partner Phoenix was the only broadcaster to cover a Taiwanese election.

When asked about the prospects for newspapers in 10 years' time he said that “he had a large amount of confidence in the newspaper business” and that “I promise you they will grow”. Many commentators and investors believe that newspapers are a medium in gradual decline.

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• B&B shareholders forced into funding rescue
• John Lewis department store sales plunge 8.3%
• Families turn to credit to cover mortgage bills