"We're in pretty intense discussions with the biggest cable companies, and making quite considerable progress," the News Corp chairman told 'Newsweek' in an interview to be published in the magazine's February 13 issue.
Murdoch also plans to announce a $1 billion plan for adding broadband to DirecTV, the satellite TV service he owns, by the end of the month. "We're just now at the very beginning of the shift to digital media," he told the magazine.
The 74-year old shows no sign of slowing down his aggressive deal making, the Internet being his latest field of interest.
After spending more than $1.5 billion in acquiring networking site MySpace.com and other popular sites, he says his Internet revenues will add up to "a conservative $1 billion" by 2010, not counting any more acquisitions.
But Murdoch's not planning to compete with Google or Yahoo in the Internet search business. "No way will we do a frontal assault on Google and Yahoo," Newsweek quoted Murdoch as saying.
Instead, he will focus on those aspects of search "where we already have elements, where we can target different audiences for advertising."
Murdoch also maintained he had no plans to offer Fox shows via iTunes, for now. "How many people want to get video on a tiny screen when they already have TiVo or a similar service from their cable company or DirecTV?" he said.
