James Murdoch, Chief Executive and chairman of News Corporation said the BBC should be tamed and a radical overhaul of regulation is crucial to secure the future of the corporation.
Short of calling for the abolition of the BBC licence fee, Murdoch said the corporation's remit and governance should be drastically changed and brought back to basics.
"The land grab is spearheaded by the BBC. The scale and scope of its current activities and future ambitions is chilling," Murdoch said in his MacTaggart Lecture at the Edinburgh International Television Festival last evening.
He also highlighted the BBC Trust's "abysmal record", citing the example of the "over recklessness" of the trust's failure to question why BBC Worldwide was allowed to acquire a majority stake in the Lonely Planet travel guides, according to the Daily Telegraph.
In his defence, the chairman of the BBC Trust, Sir Michael Lyons, highlighted its remit "to strengthen the BBC for the benefit of licence fee payers, not to emasculate it on behalf of its commercial interests".
Murdoch said a "radical reorientation" of regulation is necessary to secure "dynamism and innovation" in the UK broadcasting sector.
He claimed regulators are intervening too much, which is leading to a fall in innovation and creativity.